Q2 26 EPS Adjusted
$0.06
BEAT +300.00%
Est. $0.02
Non-GAAP adjustments include $4,863K stock-based compensation, $3,594K expenses associated with discontinued products, $1,102K non-cash expenses for discontinued products, $4,744K non-recurring expenses, $123K amortization of intangible assets, $(432)K unrealized exchange gain, and $14,262K non-GAAP tax benefit
Q2 26 Revenue
$191.9M
BEAT +0.76%
Est. $190.5M
Market Reaction
Did AAOI Beat Earnings? Q2 2026 Results
Applied Optoelectronics posted a blowout second quarter for fiscal 2026, with adjusted EPS of $0.06 beating the $0.01 consensus by 300%, while revenue of $191.92 million edged past the $190.48 million estimate and surged 86.4% from $102.95 million a … Read more Applied Optoelectronics posted a blowout second quarter for fiscal 2026, with adjusted EPS of $0.06 beating the $0.01 consensus by 300%, while revenue of $191.92 million edged past the $190.48 million estimate and surged 86.4% from $102.95 million a year ago, marking what the company called its fifth consecutive quarter of record revenue. The primary engine behind the growth was the Datacenter segment, which more than doubled to $107.66 million from $44.79 million a year ago, fueled by 800G product volumes that more than doubled sequentially, an advantage the company can sustain thanks to its proprietary laser manufacturing technology that insulates it from supply constraints affecting rivals. CATV revenue also contributed, rising to $80.58 million from $56.02 million year-over-year. AOI also swung to non-GAAP profitability after posting a non-GAAP net loss of $8.83 million in Q2 2025. Shares have already reacted to the momentum, and management reinforced the outlook by guiding Q3 revenue of $255 million to $290 million, with demand expected to exceed production capacity through mid-2027.
Key Takeaways
- • Strong demand for high-speed optics driven by AI datacenter buildout
- • High-volume adoption of 1.8 GHz CATV products
- • 800G product volumes more than doubled sequentially
- • Return to non-GAAP profitability
AAOI Forward Guidance & Outlook
For Q3 2026, AOI expects revenue of $255 million to $290 million, non-GAAP gross margin of 29% to 30.5%, and non-GAAP net income of $10.1 million to $24.0 million (non-GAAP EPS of $0.11 to $0.26 on approximately 92.8 million shares). Management anticipates steady sequential revenue growth through the remainder of 2026 and expects demand to outpace production capacity through mid-2027. The company targets manufacturing capacity of approximately 650,000 pieces per month of 800G and 1.6Tb products by year-end 2026.
AAOI YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
AAOI Revenue by Segment
With YoY comparisons, source: SEC Filings
“Q2 was a pivotal quarter for AOI. We delivered record revenue for our fifth consecutive quarter and achieved an important milestone as we returned to non-GAAP profitability in the quarter. Further, we saw a strong volume ramp of our 800G products, which more than doubled sequentially.”
— Thompson Lin, Q2 2026 Earnings Press Release
AAOI Earnings Trends
AAOI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AAOI EPS Trend
Earnings per share: estimate vs actual
AAOI Revenue Trend
Quarterly revenue: estimate vs actual
AAOI Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT Non-GAAP adjustments include $4,863K stock-based compensation, $3,594K expenses associated with discontinued products, $1,102K non-cash expenses for discontinued products, $4,744K non-recurring expenses, $123K amortization of intangible assets, $(432)K unrealized exchange gain, and $14,262K non-GAAP tax benefit | $0.02 | $0.06 | +300.00% | $191.9M | +0.76% |
| Q1 26 MISS | $-0.05 | $-0.07 | -44.93% | $151.1M | -2.37% |
| Q4 25 BEAT FY | $-0.11 | $-0.01 | +91.07% | $134.3M | +4.71% |
| FY Full Year | — | $-0.26 | — | $455.7M | — |
| Q3 25 MISS | $-0.09 | $-0.09 | -2.27% | $118.6M | -0.95% |
| Q2 25 MISS | $-0.07 | $-0.16 | -116.22% | $103.0M | -2.70% |
| Q1 25 BEAT | $-0.04 | $-0.02 | +46.67% | $99.9M | +0.49% |