Q1 26 EPS
$-0.01
BEAT +78.26%
Est. $-0.05
Q1 26 Revenue
$26.9M
BEAT +2.69%
Est. $26.2M
vs S&P Since Q1 26
+11.9%
BEATING MARKET
AXTI +19.2% vs S&P +7.3%
Market Reaction
Did AXTI Beat Earnings? Q1 2026 Results
AXT Inc. Delivered a stronger-than-expected first quarter for fiscal 2026, posting a non-GAAP loss of just $0.01 per share against a consensus estimate of $0.05, a 78.26% beat, while revenue of $26.92 million topped expectations by 2.69% and surged 3… Read more AXT Inc. Delivered a stronger-than-expected first quarter for fiscal 2026, posting a non-GAAP loss of just $0.01 per share against a consensus estimate of $0.05, a 78.26% beat, while revenue of $26.92 million topped expectations by 2.69% and surged 39.1% year over year from $19.36 million. The headline improvement was driven by a dramatic margin recovery, with the company swinging to a 29.6% GAAP gross margin from a negative 6.4% a year ago, narrowing the operating loss to $1.58 million from $10.28 million in Q1 2025. The most consequential development underpinning the results was AXT's completion of a $632.5 million capital raise to fund capacity expansion and R&D at its Tongmei subsidiary, targeting indium phosphide substrates that are central to high-speed optical interconnects in AI-driven data centers, a theme that has drawn fresh analyst attention and significantly raised price targets in recent weeks. Management indicated that longer-term capacity planning with key customers is now a central strategic priority, with Tongmei's STAR Market IPO still pending CSRC approval.
Key Takeaways
- • Strong demand for indium phosphide substrates for AI-focused data center optical interconnects
- • Significant gross margin improvement to 29.6% from negative 6.4% year-over-year
- • Revenue growth of 39% year-over-year driven by compound semiconductor demand recovery
AXTI YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“This is an incredibly exciting time for AXT. Last week we completed a capital raise for $632.5 million in support of Tongmei's indium phosphide capacity expansion as well as R&D investment in new products like 6-inch indium phosphide. Indium phosphide substrates are a key ingredient in high-speed optical data transmission required in AI focused data centers. Thanks goes to our investors who are helping us address the strong demand we are seeing.”
— Morris Young, Q1 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% |