Q3 25 EPS
$-0.03
BEAT +75.41%
Est. $-0.12
Q3 25 Revenue
$28.0M
BEAT +37.68%
Est. $20.3M
vs S&P Since Q3 25
+1,058.3%
BEATING MARKET
AXTI +1,071.7% vs S&P +13.4%
Market Reaction
Did AXTI Beat Earnings? Q3 2025 Results
AXT delivered a standout third quarter, with an explosive rebound in indium phosphide demand powering results that cleared Wall Street's expectations by a wide margin. Revenue came in at $27.95 million, up 18.2% year over year and well ahead of the $… Read more AXT delivered a standout third quarter, with an explosive rebound in indium phosphide demand powering results that cleared Wall Street's expectations by a wide margin. Revenue came in at $27.95 million, up 18.2% year over year and well ahead of the $20.30 million consensus, while adjusted diluted EPS of negative $0.03 beat the negative $0.12 estimate by 75.41%. The single biggest driver was a more than 250% sequential surge in InP revenues tied to global data center buildouts, a recovery made possible after AXT's China-based subsidiary Tongmei secured export permits to resume shipping the critical semiconductor substrate to key customers. AXT shares jumped more than 15% on the news, reflecting investor relief that export permit approvals had unlocked pent-up backlog. GAAP gross margin recovered to 22.3% from just 8.0% in Q2, though the operating loss narrowed sharply to $1.12 million. Looking ahead, management signaled optimism about a return to profitability in 2026, citing continued data center upgrade cycle tailwinds and a healthy backlog across both InP and gallium arsenide materials.
Key Takeaways
- • Indium phosphide revenues grew more than 250% sequentially, reaching a three-year high
- • Obtained export permits for significant indium phosphide orders throughout the quarter
- • Strong uptick in data center demand globally driving InP demand
- • Building healthy backlog for both InP and GaAs materials
- • Operating expense discipline with total opex declining to $7.3M from $9.1M year-over-year
- • Inventory reduction from $85.1M to $77.7M
AXTI YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
“This has been a highly active time for our business with the strong uptick in indium phosphide demand from data center applications globally. In Q3, our indium phosphide revenues grew more than 250 percent sequentially and reached a three-year high as we obtained export permits for a number of significant indium phosphide orders throughout the quarter. In addition, we continue to build healthy backlog for both indium phosphide and gallium arsenide materials as our industry and our customers adapt to a new normal within a rapidly changing environment. We remain highly focused on our efforts to drive gross margin recovery and expansion, operating expense discipline, and inventory reduction. With strong, ongoing market trends fueling the data center upgrade cycle, we believe we have tremendous opportunity in 2026 to drive meaningful growth in our business and a return to profitability.”
— Morris Young, Q3 2025 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% |