Companies

AXT Inc

NASDAQ: AXTI
$66.92
â–² $1.74 (+2.67%) today
Markets closed · 5:31pm ET

Q1 2026 Earnings

Reported Apr 30, 2026, 4:12pm ET · SEC source
$-0.01
Beat +78.26%
EPS · est. $-0.05
$26.9M
Beat +2.69%
Revenue · est. $26.2M
+6.5%
Beating market
AXTI vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+10%+20%Apr 30May 1report 4:12pm ETearnings+0.1%+25.6%
0+10%+20%Apr 30May 1earnings+0.1%+25.6%
AXTI +25.6%S&P 500 +0.1%
0+10%+20%Apr 30May 1report 4:12pm ETearnings+0.9%+25.6%
0+10%+20%Apr 30May 1earnings+0.9%+25.6%
AXTI +25.6%NASDAQ +0.9%
0+20%+40%+60%Apr 29May 8report 4:12pm ETearnings+2.5%+50.8%
0+20%+40%+60%Apr 29May 8earnings+2.5%+50.8%
AXTI +50.8%S&P 500 +2.5%
0+20%+40%+60%Apr 29May 8report 4:12pm ETearnings+6.5%+50.8%
0+20%+40%+60%Apr 29May 8earnings+6.5%+50.8%
AXTI +50.8%NASDAQ +6.5%
+21.18%
Day of report
+10.42%
Next session
+21.21%
One week
+11.15%
30 days

S&P 500 over the same 30 days: +4.66%.

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 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

“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.”

AXT CEO, on the earnings call

Forward Guidance & Outlook

AXT's management emphasized strong demand for indium phosphide substrates driven by AI-focused data center buildouts requiring high-speed optical data transmission. The company completed a $632.5 million capital raise to fund Tongmei's indium phosphide capacity expansion and R&D into 6-inch indium phosphide wafers. Management indicated that longer-term capacity planning is a central strategic focus, with the company positioning itself as the primary capacity provider to meet current and future industry needs. The STAR Market IPO for Tongmei remains subject to CSRC approval, with the company hoping to accomplish the listing in the coming months.

AXTI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$8.0M$16.0M$24.0M$19.4M$26.9MRevenue$946,528$8.0MGross Profit$-858,753$-1,585,000Operating Income$-892,120$-1,620,000Net Income
$0$8.0M$16.0M$24.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.