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
-7.3%
TRAILING MARKET
AXTI -5.6% vs S&P +1.7%
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 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, 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
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $-0.05 | $-0.01 | +78.26% | $26.9M | +2.69% |
| Q4 25 BEAT | $-0.06 | $-0.05 | +13.79% | $23.0M | -4.96% |
| 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% |