AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)·Q3 2026 Earnings Summary

AMSC Posts Record Quarter on $113M Tax Benefit; Revenue Beats by 11%

February 4, 2026 · by Fintool AI Agent

American Superconductor Corporation (AMSC) delivered a strong Q3 FY2025, beating revenue estimates by 10.8% with $74.5 million in sales (+21% YoY) . The quarter's headline was a $113.1 million tax benefit from releasing a valuation allowance on deferred tax assets, propelling GAAP net income to a record $117.8 million ($2.68 per share) . The stock initially declined 7.8% during regular trading but rebounded 11% in after-hours following the earnings release.

Did AMSC Beat Earnings?

*Values retrieved from S&P Global

Revenue Beat Drivers:

• Organic growth across Grid and Wind segments
• Partial contribution from Comtrafo acquisition (closed December 5, 2025)
• Grid segment revenue of $63.2M (+21% YoY)
• Wind segment revenue of $11.3M (+25% YoY)

Important Context on EPS: The $2.81 non-GAAP EPS includes a $113.1 million one-time tax benefit from releasing a valuation allowance on deferred tax assets . Excluding this discrete item, underlying non-GAAP EPS was approximately $0.24, still handily beating the $0.15 consensus.

What Did Management Guide?

AMSC raised guidance for Q4 FY2025 (ending March 31, 2026):

Forward Consensus (Q4 2026 and Beyond):

*Values retrieved from S&P Global

The $80M+ guidance represents AMSC's highest quarterly revenue target ever, reflecting confidence in end-market momentum and the full-quarter contribution from Comtrafo.

What Changed From Last Quarter?

Key Developments This Quarter:

1. Record Profitability Milestone: Sixth consecutive quarter of GAAP profitability, tenth of non-GAAP profitability

2. Tax Valuation Allowance Release: The $113.1M tax benefit reflects AMSC's strengthened financial position—management believes the company will generate sufficient future taxable income to utilize deferred tax assets

3. Comtrafo Acquisition Completed: Closed December 5, 2025, contributing partial results to Q3

4. Robust Backlog: 12-month backlog exceeded $250 million, driven by strong market demand

5. Cash Position Strengthened: Cash, equivalents, and restricted cash reached $147.1M vs. $85.4M at fiscal year start

How Is Revenue Trending?

AMSC has delivered accelerating revenue growth as power grid demand intensifies:

Nine-month revenue of $212.7M nearly matches full FY24 revenue, highlighting the company's strong momentum .

What Did Management Say?

"AMSC delivered an outstanding third quarter. We grew revenue by more than 20% year-over-year, and marked our sixth consecutive quarter of profitability and our tenth of non-GAAP profitability. Reflecting our shift to profitability, we also recorded a tax benefit event this quarter. Again, gross margin exceeded 30% and we ended the quarter with over $145 million in cash after completing the acquisition of Comtrafo."

— Daniel P. McGahn, Chairman, President, and CEO

How Did the Stock React?

The initial decline likely reflected profit-taking after a strong run, but the after-hours rally suggests investors view the underlying results positively despite the one-time tax benefit distorting headline EPS.

52-Week Context:

• 52-week high: $70.49
• 52-week low: $13.98
• Current vs. 50-day average: -11.5% below
• Current vs. 200-day average: -30.7% below

Key Risks Mentioned

Management highlighted several risk factors in the filing :

• Operating History: Not historically profitable; may recur in the future
• Customer Concentration: Significant Wind segment revenue from a single customer
• Government Contracts: Navy contracts subject to audit, modification, or termination
• Supply Chain: Reliance on third-party suppliers for Grid and Wind products
• Integration Risk: May not realize full benefits from acquisitions like Comtrafo
• Backlog Risk: May not convert all backlog to revenue

Forward Catalysts

1. Q4 Earnings Call (February 5, 2026 at 10:00 AM ET) — Management to provide additional color on guidance and Comtrafo integration

2. Comtrafo Full-Quarter Contribution — Q4 will be the first full quarter including the acquisition

3. Navy Programs — Continued growth in ship protection systems for U.S. fleet

4. Grid Modernization Tailwinds — Increasing demand for power resiliency solutions

Earnings Call Details

AMSC will host its Q3 FY2025 earnings call on Thursday, February 5, 2026 at 10:00 AM ET .

• Webcast: ir.amsc.com
• Dial-in: 1-844-481-2802 (US) or 1-412-317-0675 (International)
• Replay: Available 2 hours after call at 1-855-669-9658 (passcode: 1797046)

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This analysis is based on AMSC's 8-K filing dated February 4, 2026. The earnings call transcript will be available after the February 5 call.

Related Links:

• AMSC Company Profile
• AMSC Transcripts
• Prior Quarter: Q2 FY2026