Advanced Energy Industries drew nine news stories in the 24 hours to 3 November, against a usual 0.7 a day. Reports indicate the coverage centers on its third-quarter results, with references to record revenue and growth expectations for 2027. The filings show the basis for the attention: net income rose 99.2% over the trailing twelve months while revenue grew 31.7%, meaning more of each extra dollar of sales is reaching the bottom line.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | -10.5% | 2.5% | 5.0% |
| FY25 Q1 | 0.1% | 4.3% | 6.3% |
| FY25 Q2 | 8.5% | 5.2% | 7.6% |
| FY25 Q3 | 17.2% | 8.4% | 8.9% |
| FY25 Q4 | 21.4% | 9.3% | 7.0% |
| FY26 Q1 | 22.2% | 10.8% | 3.6% |
| FY26 Q2 | 24.6% | 13.2% | 4.3% |
| FY26 Q3 | 31.7% | 16.0% | 3.1% |
Growth has picked up
Profit is outgrowing sales. Net income over the twelve months to Q3 2026 was $288.8 million, up 99.2% on the year before, while revenue reached $2.3 billion, up 31.7%. The operating margin widened 7.6 percentage points to 16.0% over the same period, which is the mechanical link between the two growth rates.
Growth has picked up from the recent rate. The twelve-month revenue growth rate of 31.7% is 7.1 percentage points higher than the rate a quarter earlier, placing the current pace above 84% of the company's own past readings.
The value calculation is more sensitive to margins than to growth. In our model, a free-cash-flow margin one percentage point lower would cut the value by 27.0%, against 23.0% for growth five percentage points lower. The pricing of this company leans on the margin story, not just the top line.
Reported profit and cash are moving at different speeds. Net income rose 99.2% over the year, while free cash flow fell 54.2% to $69.9 million. Operating cash flow was $224.6 million, down 4.6%, and capital spending of $154.7 million absorbed most of it. The free-cash-flow margin was 3.1% of revenue, down 5.8 percentage points. The gap between the income statement and the cash flow statement is the tension in this quarter.
Reported profit is holding up better than cash
The twelve-month revenue growth rate of 31.7% is higher than 84% of past readings (−31.7% to 128.7%). The company sits in the top of its historical range on profit and growth, and near the bottom on cash conversion.
The value hinges on margins more than growth
In our model, growth five percentage points lower would lower the value by 23.0%, and growth five percentage points higher would raise it by 29.4%. A free-cash-flow margin one percentage point lower would lower the value by 27.0%. The value is more sensitive to a small margin decline than to a larger growth miss.
What the filings cannot tell you at Advanced Energy Industries
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports.