Applied Optoelectronics Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.65%.
Did AAOI Beat Earnings? Q1 2026 Results
Applied Optoelectronics delivered its fourth consecutive quarter of record revenue in Q1 2026, but the headline growth masked a meaningful earnings shortfall that is likely to temper enthusiasm among investors who had watched <a href="https://247wallst.com/investing/2026/04/09/applied-optoelectronics-stock-has-surged-237-this-year-but-analyst-sees-room-to-run-to-140/">the stock climb sharply</a> into the print. Revenue reached $151.14 million, up 51.4% year over year, yet came in 2.37% below the $154.81 million consensus, while a non-GAAP loss of $0.07 per share missed the $0.05 estimate by 44.93%, as aggressive investment in capacity expansion drove R&D and G&A expenses sharply higher. The Datacenter segment was the primary engine, more than doubling to $81.40 million from $32.05 million a year ago on strong demand for 800G transceivers tied to AI infrastructure buildouts. GAAP gross margin narrowed to 29.1% from 30.6%, reflecting product mix pressures as higher-volume datacenter shipments ramped. Looking ahead, management guided Q2 revenue of $180 million to $198 million, with significantly larger sequential growth anticipated in Q3 as newly expanded Houston manufacturing capacity comes online.
- AI-driven datacenter investment acceleration driving demand for 800G transceivers
- Broad-based demand in both datacenter and CATV businesses
- First volume shipment of 800G products to a large hyperscale customer
- Datacenter revenue more than doubled year-over-year to $81.4 million
“We are pleased to deliver first quarter results that were in line with our expectations, driven by broad based demand in both our datacenter and CATV businesses. We continue to see strong customer engagement around our 800G transceivers and 1.6 Tb products, particularly as AI-driven datacenter investments accelerate. Notably, we completed our first volume shipment of our 800G products to one of our large hyperscale customers in Q1.”
Applied Optoelectronics CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, the company expects revenue in the range of $180 million to $198 million, non-GAAP gross margin in the range of 29% to 30%, and non-GAAP net income ranging from a loss of $2.5 million to income of $2.8 million (non-GAAP EPS of -$0.03 to $0.03 on approximately 80.7 million shares). Management anticipates sequential revenue growth throughout 2026, with significantly larger growth expected starting in Q3 as additional capacity comes online. The company continues to see strong customer engagement around 800G transceivers and 1.6 Tb products driven by AI datacenter investment acceleration.
AAOI YoY Financials
AAOI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.