Applied Optoelectronics (AAOI) Q4 2025 Earnings
How Did AAOI Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −5.20%.
Did AAOI Beat Earnings? Q4 2025 Results
Yes. Applied Optoelectronics reported Q4 2025 earnings of $-0.01 a share on Feb 26, 2026, beating the $-0.11 consensus estimate by 91.1%. Revenue was $134.3M against a $128.2M estimate.
Applied Optoelectronics capped its strongest year in company history with a decisive Q4 2025 beat, posting a loss of just $0.01 per share against a consensus estimate of negative $0.11 — a 90.77% positive surprise — while revenue climbed 33.9% year-over-year to a record $134.27 million. Investors <a href="https://247wallst.com/investing/2026/02/26/live-applied-optoelectronics-aaoi-reports-q4-earnings-tonight/">had been watching closely</a> heading into the print, and the results delivered: broad-based demand across both the datacenter and CATV segments drove the top-line surge, with datacenter revenue alone reaching $74.88 million in the quarter, up from $44.24 million a year ago. GAAP gross margin expanded to 31.2% from 28.7%, as the company's ongoing manufacturing capacity expansion in Texas supported higher-volume production of next-generation optical products. The strong quarter sent shares sharply higher, with analysts raising price targets on growing demand for 400G and 800G transceivers. Looking ahead, AOI guided Q1 2026 revenue of $150 million to $165 million, with management projecting full-year 2026 revenue could exceed $1 billion.
- Broad-based demand in both CATV and datacenter businesses
- Record fourth quarter revenue of $134.3 million
- Gross margin expansion to 31.2% GAAP and 31.4% non-GAAP
- Datacenter revenue grew to $74.9 million from $44.2 million year-over-year in Q4
“We are pleased to deliver record fourth quarter results that were in line with or better than our expectations, and which capped off the strongest year in our company's history. Our results were driven by broad-based demand in both our CATV and datacenter businesses. We have considerable momentum entering 2026, and we believe we are well positioned to accelerate our growth this year.”
Applied Optoelectronics CEO, on the earnings call
What Was Applied Optoelectronics's Outlook in Q4 2025?
For Q1 2026, AOI expects revenue in the range of $150 million to $165 million, non-GAAP gross margin in the range of 29% to 31%, and non-GAAP net income in the range of a loss of $7.0 million to a loss of $0.3 million, with non-GAAP income per share in the range of a loss of $0.09 to breakeven using approximately 76.4 million shares.
AAOI YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $134.3M | $100.3M | +33.9% |
| Gross Profit | $41.9M | $28.7M | +46.0% |
| Operating Income | −$11.5M | −$51.6M | −77.7% |
| Net Income | −$2.0M | −$1.0M | +98.3% |
AAOI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.