Advanced Energy Industries AEIS is scheduled to release first-quarter 2026 results on May 4.
For the first quarter of 2026, Advanced Energy expects revenues of $500 million (+/- $20 million). The company expects non-GAAP earnings of $1.94 per share (+/- 25 cents).
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $508.20 million, indicating growth of 25.61% from the figure reported in the year-ago quarter. The consensus mark for earnings is currently pegged at $1.96 per share, unchanged over the past 30 days. The figure indicates a 59.35% increase from the year-ago quarter’s reported figure.
Advanced Energy beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering an average surprise of 15.86%.
Advanced Energy Industries, Inc. Price and EPS Surprise
Advanced Energy Industries, Inc. price-eps-surprise | Advanced Energy Industries, Inc. Quote
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced AEIS’s Q1 Performance
AEIS shares have surged 85% in the year-to-date period, driven by higher demand for its solutions in the semiconductor and data center computing markets. In the latter end-market, the company has been benefiting from strong AI-driven demand from hyperscalers, a trend expected to have continued in the to-be-reported quarter.
AEIS expects sequential revenue growth primarily from the semiconductor segment in the first quarter of 2026. Customer forecasts have improved, and new product revenue is anticipated to increase throughout the year, underpinned by investments in advanced logic and memory capacity. The company has achieved significant design wins, especially with its eVerest, eVoS, and NavX technologies, which are solving critical customer challenges at advanced nodes (sub-2nm).
The company projects first-quarter 2026 data center computing revenues to be similar to the fourth quarter of 2025, with expectations for revenue to strengthen through the year as new programs ramp up. An expanded capacity driven by facilities in the Philippines and Mexico has been helping the company keep up with strong demand in the data center computing end market.
The Industrial and Medical segment is expected to be flattish in the to-be-reported due to typical seasonality, but the outlook remains positive for continued growth over the next several quarters.
However, AEIS is expected to have suffered from ongoing supply chain constraints, especially in processors and memory, which could limit growth, as well as potential margin pressure from tariffs and higher operating expenses.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
AEIS currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Sandisk SNDK has an Earnings ESP of +4.96% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Sandisk is set to report third-quarter fiscal 2026 results on April 30. Sandisk shares have increased 317.1% in the year-to-date period.
Audioeye AEYE has an Earnings ESP of +9.62% and a Zacks Rank #2 at present. Audioeye is likely to report its first-quarter 2026 results on May 13. Audioeye shares have decreased 27.4% in the year-to-date period.
Extreme Networks EXTR has an Earnings ESP of +1.41% and a Zacks Rank #2. Extreme Networks is set to report its third-quarter 2026 results on April 29. Extreme Networks' shares have increased 5.7% in the year-to-date period.
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This article originally published on Zacks Investment Research (zacks.com).