AEIS Set to Report Q4 Earnings: What's in the Cards for the Stock?

Advanced Energy Industries AEIS is scheduled to release fourth-quarter 2025 results on Feb. 10.

AEIS expects fourth-quarter 2025 revenues of $470 million (+/- $20 million). Non-GAAP earnings are expected to be $1.75 per share (+/- 25 cents).

The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $473.6 million, indicating growth of 14% from the figure reported in the year-ago quarter. The consensus mark for earnings is currently pegged at $1.76 per share, unchanged over the past 30 days. The figure indicates a 35.4% increase from the year-ago quarter’s reported figure.

Advanced Energy Industries’ earnings beat the Zacks Consensus Estimate for earnings in the trailing four quarters, delivering an average surprise of 18.28%. 
 

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’ Q4 Performance

AEIS shares have surged 142.2% in the trailing 12-month 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 data center computing revenues to increase modestly on a sequential basis, while semiconductor revenues are expected to decline slightly on a sequential basis. 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.

AEIS expects Industrial & Medical revenues to grow modestly on a sequential basis and sequential growth in the Telecom and Networking end-market in the to-be-reported quarter. Strong demand for the high-power density Evergreen series and the NeoPower line of configurable power solutions is expected to have driven AEIS’ Industrial & Medical revenue growth in the fourth quarter of 2025. AI-related programs are expected to have driven Telecom and Networking revenues in the to-be-reported quarter.

However, gross margin is expected to have suffered from higher tariffs despite the positive impact of cost optimization. AEIS expects fourth-quarter 2025 gross margin, including a tariff impact of 100 basis points, to be between 39% and 40%.

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:

IPG Photonics IPGP currently has an Earnings ESP of +15.08% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IPG Photonics shares have jumped 62.6% in the trailing 12-month period. IPG Photonics is slated to report its fourth-quarter 2025 results on Feb. 12.

Applied Materials AMAT currently has an Earnings ESP of +3.06% and has a Zacks Rank #2. 

Applied Materials shares have jumped 75.6% in the trailing 12-month period. Applied Materials is set to report its first-quarter fiscal 2026 results on Feb. 12.

Analog Devices ADI has an Earnings ESP of +2.98% and a Zacks Rank #2 at present.

Analog Devices shares have appreciated 56.4% in a year. Analog Devices is scheduled to report its first-quarter fiscal 2026 results on Feb. 18.

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This article originally published on Zacks Investment Research (zacks.com).

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