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AAOI’s Q2 revenue surged 86% to $192 million, with a conservative third-quarter outlook.

1 hours ago

High-speed optical module manufacturer Applied Optoelectronics (AAOI) released its Q2 FY2026 financial results, reporting revenue of $191.9 million, up 86% year-over-year. The figure slightly beat the market consensus of $190 million, marking the fifth consecutive quarter of record revenue. Adjusted earnings per share (EPS) came in at $0.06, far exceeding the $0.01 expectation; Non-GAAP net profit reached $5.5 million, also well above the $1.7 million forecast. The return to Non-GAAP profitability this quarter is a key milestone for the company. AAOI’s gross margins declined year-over-year: GAAP gross margin stood at 27.7%, down 2.6 percentage points; Non-GAAP gross margin was 29.8%, down 0.6 percentage points. The company issued a conservative Q3 guidance: Revenue is projected between $255 million and $290 million, with a midpoint of ~$272.5 million, slightly below the market expectation of ~$278 million. Adjusted EPS guidance ranges from $0.11 to $0.26, significantly lower than the $0.28 consensus; Non-GAAP net profit guidance is $10.1 million to $24 million, below the $25.2 million forecast; Non-GAAP gross margin is expected to be 29% to 30.5%. AAOI emphasized that market demand remains extremely strong, and will continue to outpace the company’s production capacity through mid-2027, with capacity supply-demand imbalance being the core constraint.

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