Advanced Energy Industries (NASDAQ:AEIS) Shares Gap Up Following Better-Than-Expected Earnings

Advanced Energy Industries, Inc. (NASDAQ:AEIS) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $279.04, but opened at $299.09. Advanced Energy Industries shares last traded at $315.7020, with a volume of 338,879 shares traded.

The electronics maker reported $1.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.18. The firm had revenue of $489.40 million during the quarter, compared to analyst estimates of $473.12 million. Advanced Energy Industries had a net margin of 8.41% and a return on equity of 14.27%. The business’s revenue was up 17.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.30 earnings per share. Advanced Energy Industries has set its Q1 2026 guidance at 1.690-2.190 EPS.

Advanced Energy Industries Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Monday, February 23rd will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, February 23rd. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.1%. Advanced Energy Industries’s dividend payout ratio (DPR) is 10.50%.

Key Headlines Impacting Advanced Energy Industries

Here are the key news stories impacting Advanced Energy Industries this week:

• Positive Sentiment: Q4 results beat and management raised Q1 guidance — AEIS reported $1.94 EPS vs. ~ $1.77 expected and revenue of $489.4M (above estimates); management set Q1 2026 EPS guidance of $1.69–$2.19 and revenue guidance above Street estimates, which is the main catalyst for the stock move. Read More.
• Positive Sentiment: Analysts raised forecasts and price targets following the beat — multiple outlets report analysts increased earnings forecasts and price targets after the strong quarter, boosting buy/overweight ratings. This drove upward revisions to consensus expectations. Read More.
• Positive Sentiment: KeyCorp and Needham raised price targets to $330 and reiterated positive ratings — both moves imply roughly ~18% upside from the prior reference price and signal sustained institutional confidence. Read More.
• Positive Sentiment: Additional bullish analyst commentary — Stifel and other firms published bullish notes forecasting further appreciation after the print, reinforcing the momentum from upgrades. Read More.
• Neutral Sentiment: Investor outreach scheduled — Advanced Energy will present at upcoming Citi, Susquehanna and Morgan Stanley conferences later this month, which should help management’s messaging but is informational rather than immediately catalytic. Read More.
• Neutral Sentiment: Transcripts and metric deep dives available — Earnings call transcripts and analyst writeups (Zacks, Seeking Alpha, InsiderMonkey) provide color on demand drivers (AI/data center, fabs) and margin dynamics; useful for investors reassessing estimates but not a new catalyst by themselves. Read More. • Read More.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on AEIS shares. Stifel Nicolaus set a $325.00 price objective on Advanced Energy Industries in a research note on Wednesday. Weiss Ratings reissued a “hold (c+)” rating on shares of Advanced Energy Industries in a research report on Monday, December 29th. Zacks Research lowered Advanced Energy Industries from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 1st. Benchmark upped their price objective on shares of Advanced Energy Industries from $150.00 to $225.00 and gave the stock a “buy” rating in a research note on Wednesday, November 5th. Finally, Susquehanna raised their target price on shares of Advanced Energy Industries from $300.00 to $375.00 and gave the company a “positive” rating in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Advanced Energy Industries currently has an average rating of “Moderate Buy” and a consensus target price of $284.00.

Insider Transactions at Advanced Energy Industries

In other Advanced Energy Industries news, Director Tina Donikowski sold 2,257 shares of the company’s stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $210.33, for a total value of $474,714.81. Following the sale, the director directly owned 8,248 shares of the company’s stock, valued at approximately $1,734,801.84. This represents a 21.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Paul R. Oldham sold 8,174 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $203.11, for a total transaction of $1,660,221.14. Following the sale, the executive vice president owned 24,792 shares in the company, valued at approximately $5,035,503.12. This represents a 24.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Advanced Energy Industries

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Azzad Asset Management Inc. ADV increased its position in shares of Advanced Energy Industries by 0.4% during the 3rd quarter. Azzad Asset Management Inc. ADV now owns 10,720 shares of the electronics maker’s stock worth $1,824,000 after purchasing an additional 45 shares during the last quarter. Allworth Financial LP raised its holdings in shares of Advanced Energy Industries by 9.2% in the 3rd quarter. Allworth Financial LP now owns 582 shares of the electronics maker’s stock valued at $99,000 after purchasing an additional 49 shares in the last quarter. Cullen Frost Bankers Inc. lifted its holdings in Advanced Energy Industries by 40.6% during the 4th quarter. Cullen Frost Bankers Inc. now owns 194 shares of the electronics maker’s stock worth $41,000 after buying an additional 56 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Advanced Energy Industries by 19.9% in the third quarter. EverSource Wealth Advisors LLC now owns 374 shares of the electronics maker’s stock valued at $64,000 after purchasing an additional 62 shares in the last quarter. Finally, D.A. Davidson & CO. grew its position in shares of Advanced Energy Industries by 3.5% in the 3rd quarter. D.A. Davidson & CO. now owns 1,860 shares of the electronics maker’s stock valued at $316,000 after buying an additional 63 shares during the last quarter. Institutional investors and hedge funds own 99.67% of the company’s stock.

Advanced Energy Industries Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 4.10 and a quick ratio of 3.01. The stock has a 50-day moving average price of $235.73 and a 200 day moving average price of $196.91. The firm has a market cap of $12.02 billion, a price-to-earnings ratio of 83.56, a PEG ratio of 1.34 and a beta of 1.41.

Advanced Energy Industries Company Profile

Advanced Energy Industries, Inc is a global technology company specializing in precision power conversion, measurement, and control solutions. The company designs and manufactures a broad portfolio of products including high-voltage power supplies, RF and microwave generators, digital power controllers, reactive gas control systems, and thin film measurement instruments. These solutions enable advanced processes in semiconductor fabrication, flat panel display manufacturing, industrial coating, data storage, telecommunications and medical device production.

Founded in 1981 and headquartered in Fort Collins, Colorado, Advanced Energy has grown through strategic product development and international expansion.