Q2 26 EPS
$0.19
BEAT +163.89%
Est. $0.07
Q2 26 Revenue
$47.6M
BEAT +39.63%
Est. $34.1M
vs S&P Since Q2 26
+125.9%
BEATING MARKET
AXTI +129.2% vs S&P +3.3%
Market Reaction
Did AXTI Beat Earnings? Q2 2026 Results
AXT Inc. Delivered a standout second quarter for fiscal 2026, posting results that left Wall Street estimates well behind as surging demand for indium phosphide substrates used in AI data center optical connectivity drove a dramatic acceleration in t… Read more AXT Inc. Delivered a standout second quarter for fiscal 2026, posting results that left Wall Street estimates well behind as surging demand for indium phosphide substrates used in AI data center optical connectivity drove a dramatic acceleration in the business. Revenue reached $47.59 million, a 164.8% increase from the year-ago period and well ahead of the $34.08 million consensus, representing a 39.63% beat. Non-GAAP earnings per share of $0.19 topped the $0.07 analyst estimate by 163.89%, while the company swung to GAAP net income of $11.13 million compared to a net loss of $7.01 million in Q2 2025. The performance was powered by record indium phosphide revenue, with gross margin expanding sharply to 44.9% from just 8.0% a year earlier, reflecting both volume leverage and manufacturing productivity gains. Investors and analysts had been closely watching whether the company could navigate export permit uncertainties tied to geopolitical tensions, and the quarter's results suggest those concerns did not materially impede execution.
Key Takeaways
- • Record quarterly indium phosphide revenue driven by data center optical connectivity demand
- • Step-function increase in revenue from capacity additions and manufacturing productivity improvements
- • GAAP gross margin expansion to 44.9% from 8.0% year-over-year
- • Interest income of $4.7 million driven by substantially larger cash position
AXTI YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“This is an incredibly exciting time for AXT. We have reached an inflection point in our business where strong customer demand for data center optical connectivity coupled with our continued success in adding manufacturing capacity and improving productivity are driving a step-function increase in our revenue. In Q2, we recorded our highest quarterly indium phosphide revenue to date.”
— Morris Young, Q2 2026 Earnings Press Release
AXTI Earnings Trends
AXTI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AXTI EPS Trend
Earnings per share: estimate vs actual
AXTI Revenue Trend
Quarterly revenue: estimate vs actual
AXTI Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.07 | $0.19 | +163.89% | $47.6M | +39.63% |
| Q1 26 BEAT | $-0.05 | $-0.01 | +78.26% | $26.9M | +2.69% |
| Q4 25 BEAT FY | $-0.06 | $-0.05 | +13.79% | $23.0M | -4.96% |
| FY Full Year | — | $-0.41 | — | $88.3M | — |
| Q3 25 BEAT | $-0.12 | $-0.03 | +75.41% | $28.0M | +37.68% |
| Q2 25 MISS | $-0.13 | $-0.15 | -11.94% | $18.0M | +0.18% |
| Q1 25 MISS | $-0.14 | $-0.19 | -37.68% | $19.4M | +1.97% |
| Q4 24 MISS | $-0.04 | $-0.10 | -138.10% | $25.1M | +4.89% |