Applied Optoelectronics Reports Third Quarter 2026 Results
Datacenter revenue rose to $155.609 million from $43.935 million a year earlier, alongside growth in the CATV business.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Applied Optoelectronics (NASDAQ: AAOI) reported third-quarter 2026 revenue of $269.9 million and returned to profitability under generally accepted accounting principles (GAAP). Revenue compared with $118.6 million a year earlier and $191.9 million in the second quarter. GAAP net income was $6.3 million, or $0.07 per basic share, versus losses in both comparison quarters. GAAP gross margin reached 28.2%, while non-GAAP gross margin fell to 28.7%.
The company secured a multi-year agreement with a Tier 1 hyperscale datacenter customer. It expects equipment installed by year-end 2026 to support over 500,000 monthly 800G and 1.6 Tb units, and manufacturing capacity above 1 million monthly by year-end 2027, despite U.S. expansion delays. For Q4, it expects revenue of $385 million–$420 million and non-GAAP earnings of $0.48–$0.63 per share using approximately 96 million shares.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue of $269.875 million increased from $118.630 million a year earlier and $191.9 million sequentially.
- Moderate pointQ3 GAAP net income of $6.3 million reversed year-earlier and sequential losses of $17.9 million and $22.8 million.
- Moderate pointQ3 non-GAAP net income of $14.792 million compared with a $5.399 million year-earlier loss and $5.5 million sequential profit.
- Moderate pointMulti-year agreement secured with a Tier 1 hyperscale datacenter customer.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance of $385 million–$420 million exceeds Q3 revenue of $269.875 million.
- Moderate pointCash, cash equivalents and restricted cash of $621.457 million increased from $216.035 million at December 31, 2025.
15 minor points
- Minor pointQ3 GAAP basic EPS of $0.07 compared with losses of $0.28 in both comparison quarters.
- Minor pointDatacenter revenue of $155.609 million increased from $43.935 million in Q3 2025.
- Minor pointCATV revenue of $110.879 million increased from $70.602 million in Q3 2025.
- Minor pointQ3 GAAP gross margin of 28.2% rose from 28.0% a year earlier and 27.7% sequentially.
- Minor pointQ3 operating loss narrowed to $1.442 million from $18.187 million a year earlier.
- Minor pointQ3 adjusted EBITDA of $28.537 million increased from $2.005 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Year-end 2026 equipment target supports over 500,000 monthly 800G and 1.6 Tb units, versus current capacity approaching 330,000.
- Minor point. Forward-looking: it has not happened yet and may not happen.Year-end 2027 manufacturing capacity is expected to exceed 1 million monthly 800G and 1.6 Tb transceivers.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 non-GAAP gross margin is expected at 29.5%–31%, versus 28.7% in Q3.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 non-GAAP net income is expected at $45.9 million–$60.4 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Q4 non-GAAP EPS is expected at $0.48–$0.63 using approximately 96 million shares.
- Minor pointNine-month revenue of $612.942 million increased from $321.441 million in 2025.
- Minor pointNine-month GAAP loss narrowed to $30.762 million from $36.206 million; loss per share narrowed to $0.38 from $0.64.
- Minor pointNine-month non-GAAP net income of $15.327 million reversed a $15.088 million year-earlier loss.
- Minor pointQ3 sales and marketing expense fell to $7.875 million from $9.871 million a year earlier.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.2027 U.S. capacity expansion is expected to take longer because of electrical-power access and other construction issues.
- Moderate pointQ3 non-GAAP gross margin of 28.7% declined from 31.0% a year earlier and 29.8% sequentially.
- Moderate pointQ3 weighted-average basic shares rose to 85.397 million from 63.329 million a year earlier, expanding the share base.
- Moderate pointAccounts payable rose to $494.279 million from $143.932 million at December 31, 2025.
- Minor pointTelecom revenue fell to $2.727 million from $3.742 million in Q3 2025.
3 minor points
- Minor pointQ3 research and development expense rose to $38.109 million from $21.265 million a year earlier.
- Minor pointQ3 general and administrative expense rose to $31.613 million from $20.314 million a year earlier.
- Minor pointCurrent notes payable and long-term debt rose to $59.990 million from $33.975 million at December 31, 2025.
News Explained
The quarter’s positive GAAP bottom line coexisted with an operating loss, so it did not establish profitable operations.
AOI has reported its third-quarter results; its September 30 balance sheet lists
Although the company reported GAAP net income of
Details
Market Reaction – AAOI
On Nov 5, the day this news came out, the latest delayed price for AAOI is 12.56% below the previous close. Our momentum scanner has recorded 336 alerts for this stock so far that day. The latest delayed price is $41.00. Relative volume is elevated at 2.5x what this stock usually trades by this time of day.
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Key Figures
- GAAP revenue
- $269.9 million
- Q3 2026; versus $118.6 million in Q3 2025 and $191.9 million in Q2 2026
- GAAP gross margin
- 28.2%
- Q3 2026; versus 28.0% in Q3 2025 and 27.7% in Q2 2026
- Non-GAAP gross margin
- 28.7%
- Q3 2026; versus 31.0% in Q3 2025 and 29.8% in Q2 2026
- GAAP net income
- $6.3 million
- Q3 2026; compared with losses in Q3 2025 and Q2 2026
- Non-GAAP net income
- $14.8 million
- Q3 2026; compared with a loss in Q3 2025 and income of $5.5 million in Q2 2026
- Q4 revenue outlook
- $385 million to $420 million
- Fourth quarter 2026
- Q4 non-GAAP net income outlook
- $45.9 million to $60.4 million
- Fourth quarter 2026
- Manufacturing capacity outlook
- Over 1 million pieces per month by the end of 2027
- 800G and 1.6 Tb transceivers; the company said its 2027 US capacity expansion plan would take longer
Previous Earnings Reports
-
Q2 GAAP loss persisted despite non-GAAP income, with revenue reaching $191.9 million.
-
Q3 revenue rose year over year, but GAAP and non-GAAP losses remained.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
non-gaap financial
convertible senior notes financial
adjusted ebitda financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
"We are pleased to have generated record revenue for our sixth consecutive quarter and to have returned to GAAP profitability in Q3," said Dr. Thompson Lin, AOI's Founder, President and Chief Executive Officer. "We have made meaningful progress in scaling our manufacturing capabilities, particularly for our 800G and 1.6T products, to address demand for AI-related optical technologies that we believe is accelerating. We have recently secured a multi-year strategic agreement with a Tier 1 hyperscale datacenter customer, which we think provides us with improved long-term visibility and reinforces our confidence in the opportunity ahead as demand for high-bandwidth, energy-efficient optical connectivity products continues to grow."
"We delivered another solid quarter, including accelerating revenue growth and improving profitability, driven by robust demand and manufacturing expansion in both our datacenter and CATV businesses," said Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. "We currently have a total manufacturing equipment capacity approaching 330,000 units per month. We expect our 2027 capacity expansion plan in the US to take longer to complete due to longer than expected time to obtain necessary electrical power among other construction related issues. As we work through these construction issues, we now expect by the end of 2026 that we will have sufficient manufacturing equipment installed to produce over 500,000 pieces of 800G and 1.6 Tb products per month and we expect to grow our manufacturing capacity to over 1 million pieces of 800G and 1.6 Tb transceivers per month by the end of 2027. We remain focused on executing on our capacity expansion plans and believe we are well positioned to support the next phase of AI datacenter deployment."
Third Quarter 2026 Financial Summary
- GAAP revenue was
$269.9 million $118.6 million $191.9 million
- GAAP gross margin was
28.2% , compared with28.0% in the third quarter of 2025 and27.7% in the second quarter of 2026. Non-GAAP gross margin was28.7% , compared with31.0% in the third quarter of 2025 and29.8% in the second quarter of 2026.
- GAAP net income was
$6.3 million $0.07 $17.9 million $0.28 $22.8 million $0.28
- Non-GAAP net income was
$14.8 million $0.17 $5.4 million $0.09 $5.5 million $0.06
A reconciliation between all GAAP and non-GAAP information referenced above is contained in the tables below. Please also refer to "Non-GAAP Financial Measures" below for a description of these non-GAAP financial measures.
Fourth Quarter 2026 Business Outlook (+)
For fourth quarter of 2026, the company currently expects:
- Revenue in the range of
$385 million $420 million - Non-GAAP gross margin in the range of
29.5% to31% . - Non-GAAP net income in the range of
$45.9 million $60.4 million $0.48 $0.63
(+) Please refer to the note below on forward-looking statements and the risks involved with such statements as well as the note on non-GAAP financial measures.
Conference Call Information
The company will host a conference call and webcast for analysts and investors today, November 5, 2026 to discuss its third quarter 2026 financial results and outlook for its fourth quarter 2026 at 4:30 p.m. Eastern time / 3:30 p.m. Central time. This call will be open to the public, and investors may access the call by dialing 888-880-3330 (domestic) or 646-357-8766 (international). A live audio webcast of the conference call along with supplemental financial information will also be accessible on the company's website at investors.ao-inc.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing (800) 770-2030 (domestic) or (609) 800-9909 (international) and entering passcode 4754976 #.
Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "could," "would," "target," "seek," "aim," "predicts," "think," "objectives," "optimistic," "new," "goal," "priorities," "strategy," "potential," "is likely," "will," "expect," "momentum," "plan" "project," "permit," "positions" or by other similar expressions that convey uncertainty of future events or outcomes. These statements include management's beliefs and expectations related to our outlook for the fourth quarter of 2026 and the remainder of the year. Such forward-looking statements reflect the views of management at the time such statements are made. These forward-looking statements involve risks and uncertainties, as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include but are not limited to: reduction in the size or quantity of customer orders; change in demand for the company's products due to industry conditions; changes in manufacturing operations; volatility in manufacturing costs; delays in shipments of products; disruptions in the supply chain; change in the rate of design wins or the rate of customer acceptance of new products; the company's reliance on a small number of customers for a substantial portion of its revenues; potential pricing pressure; a decline in demand for our customers' products or their rate of deployment of their products; general conditions in the internet datacenter, cable television (CATV) broadband, telecom, or fiber-to-the-home (FTTH) markets; changes in the world economy (particularly in
Non-GAAP Financial Measures
We provide non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP earnings (loss) per share, and non-GAAP Adjusted EBITDA to eliminate the impact of items that we do not consider indicative of our overall operating performance. To arrive at our non-GAAP gross margin, we exclude stock-based compensation expenses, expenses associated with discontinued products, and non-recurring (income) expenses, if any, from our GAAP gross margin. To arrive at our non-GAAP net income (loss), we exclude all amortization of intangible assets, stock-based compensation expense, expenses associated with discontinued products, non-cash expenses associated with discontinued products and non-recurring (income) expenses, unrealized foreign exchange loss (gain), and non-GAAP tax benefit (expenses) from our GAAP net income (loss). Included in our non-recurring expenses in Q3 2026 and Q3 2025 are employee severance expenses (if any) and legal expenses associated with litigation and certain legal and advisory expenses associated with purchase termination or patent protection. In computing our non-GAAP income tax benefit (expense), we have applied an estimate of our annual effective income tax rate and applied it to our net income before income taxes. Our non-GAAP Adjusted EBITDA is calculated by excluding depreciation expense, non-GAAP tax benefit (expense), and interest (income) expense, as well as the items excluded from non-GAAP net income (loss), from our GAAP net income (loss). Our non-GAAP diluted net earnings (loss) per share is calculated by dividing our non-GAAP net gain (loss) by the fully diluted share count (for periods in which non-GAAP net income is positive) or basic share count (for periods in which our non-GAAP net income is negative).
We believe that our non-GAAP measures are useful to investors in evaluating our operating performance for the following reasons:
- We believe that elimination of items such as amortization of intangible assets, stock-based compensation expense, non-recurring revenue and expenses, losses from the disposal of idle assets, unrealized foreign exchange gain or loss, and depreciation on certain equipment undergoing reconfiguration is appropriate because treatment of these items may vary for reasons unrelated to our overall operating performance;
- We believe that elimination of expenses associated with discontinued products, including depreciation and inventory obsolescence is appropriate because these expenses are not indicative of our ongoing operations;
- We believe that estimating non-GAAP income taxes allows comparison with prior periods and provides additional information regarding the generation of potential future deferred tax assets;
- We believe that non-GAAP measures provide better comparability with our past financial performance, period-to-period results and with our peer companies, many of which also use similar non-GAAP financial measures; and
- We anticipate that investors and securities analysts will utilize non-GAAP measures as a supplement to GAAP measures to evaluate our overall operating performance.
A reconciliation of our GAAP net income (loss), GAAP total gross profit, GAAP earnings (loss), and GAAP earnings (loss) per share for Q3 2026 to our non-GAAP net income (loss), non-GAAP total gross profit, Adjusted EBITDA, and earnings (loss) per share, respectively, is provided below, together with corresponding reconciliations for Q3 2025.
Non-GAAP measures should not be considered as an alternative to gross profit, net income (loss), earnings (loss) per share, or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measures may not be comparable to similarly titled measures of other organizations because other organizations may not calculate such other non-GAAP measures in the same manner. We have not reconciled the non-GAAP measures included in our guidance to the appropriate GAAP financial measures because the GAAP measures are not readily determinable on a forward-looking basis. GAAP measures that impact our non-GAAP financial measures may include stock-based compensation expense, non-recurring expenses, amortization of intangible assets, unrealized exchange loss (gain), asset impairment charges, loss (gain) from disposal of idle assets, and changes in the fair value of our convertible notes. These GAAP measures cannot be reasonably predicted and may directly impact our non-GAAP gross margin, our non-GAAP net income and our non-GAAP fully-diluted earnings per share, although changes with respect to certain of these measures may offset other changes. In addition, certain of these measures are out of our control. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.
About Applied Optoelectronics
Applied Optoelectronics, Inc. (AOI) is a leading developer and manufacturer of advanced optical and HFC networking products that serve as the critical building blocks for AI datacenters, CATV and broadband fiber access networks worldwide. AOI supplies these critical infrastructure products to tier-one customers across cloud computing, CATV broadband, telecommunications, and FTTH markets. The company has R&D facilities in
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Applied Optoelectronics, Inc. |
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Preliminary Condensed Consolidated Balance Sheets |
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(In thousands) |
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(Unaudited) |
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September 30, 2026 |
December 31, 2025 |
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ASSETS |
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CURRENT ASSETS |
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Cash, Cash Equivalents and Restricted Cash |
$ 621,457 |
$ 216,035 |
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Accounts Receivable, Net |
413,760 |
244,404 |
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Inventories |
377,991 |
183,105 |
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Prepaid Expenses and Other Current Assets |
131,557 |
32,183 |
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Total Current Assets |
1,544,765 |
675,727 |
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Property, Plant And Equipment, Net |
1,043,993 |
376,050 |
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Land Use Rights, Net |
4,940 |
4,825 |
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Operating Right of Use Asset |
70,509 |
49,697 |
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Intangible Assets, Net |
3,692 |
3,623 |
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Other Assets |
467,727 |
58,501 |
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TOTAL ASSETS |
$ 3,135,626 |
$ 1,168,423 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES |
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Accounts Payable |
$ 494,279 |
$ 143,932 |
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Bank Acceptance Payable |
51,509 |
33,363 |
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Accrued Expenses |
49,794 |
42,491 |
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Current Lease Liability-Operating |
5,182 |
3,522 |
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Current Portion of Notes Payable and Long Term Debt |
59,990 |
33,975 |
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Total Current Liabilities |
660,754 |
257,283 |
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Convertible Senior Notes |
128,836 |
129,829 |
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Other Long-Term Liabilities |
104,688 |
47,393 |
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TOTAL LIABILITIES |
894,278 |
434,505 |
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STOCKHOLDERS' EQUITY |
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Common Stock |
90 |
75 |
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Additional Paid-in Capital |
2,757,548 |
1,224,538 |
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Cumulative Translation Adjustment |
4,551 |
(617) |
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Retained Earnings |
(520,841) |
(490,078) |
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TOTAL STOCKHOLDERS' EQUITY |
2,241,348 |
733,918 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 3,135,626 |
$ 1,168,423 |
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Applied Optoelectronics, Inc. |
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Preliminary Condensed Consolidated Statements of Operations |
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(In thousands) |
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(Unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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Revenue |
2026 |
2025 |
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2026 |
2025 |
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CATV |
$ 110,879 |
$ 70,602 |
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$ 258,298 |
$ 191,122 |
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Datacenter |
155,609 |
43,935 |
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344,675 |
120,775 |
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Telecom |
2,727 |
3,742 |
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8,698 |
8,618 |
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Other |
660 |
351 |
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1,271 |
926 |
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Total Revenue |
269,875 |
118,630 |
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612,942 |
321,441 |
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Total Cost of Goods Sold |
193,720 |
85,367 |
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439,664 |
226,472 |
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Total Gross Profit |
76,155 |
33,263 |
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173,278 |
94,969 |
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Operating Expenses: |
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Research and Development |
38,109 |
21,265 |
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98,636 |
59,687 |
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Sales and Marketing |
7,875 |
9,871 |
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25,712 |
23,363 |
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General and Administrative |
31,613 |
20,314 |
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88,090 |
55,020 |
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Total Operating Expenses |
77,597 |
51,450 |
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212,438 |
138,070 |
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Operating Loss |
(1,442) |
(18,187) |
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(39,160) |
(43,101) |
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Other Income (Expense): |
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Interest Income |
3,094 |
451 |
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8,079 |
961 |
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Interest Expense |
(1,221) |
(902) |
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(3,011) |
(2,653) |
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Other Income (Expense), net |
8,228 |
702 |
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8,027 |
8,587 |
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Total Other Income (Expense): |
10,101 |
251 |
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13,095 |
6,895 |
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Net income (loss) before Income Taxes |
8,659 |
(17,936) |
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(26,065) |
(36,206) |
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Income Tax Expense |
(2,359) |
- |
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(4,697) |
- |
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Net income (loss) |
$ 6,300 |
$ (17,936) |
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$ (30,762) |
$ (36,206) |
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Net income (loss) per share attributable to common stockholders |
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basic |
$ 0.07 |
$ (0.28) |
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$ (0.38) |
$ (0.64) |
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diluted |
$ 0.07 |
$ (0.28) |
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$ (0.38) |
$ (0.64) |
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Weighted-average shares used to compute |
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|
basic |
85,397 |
63,329 |
|
81,016 |
56,762 |
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diluted |
87,835 |
63,329 |
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81,016 |
56,762 |
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Applied Optoelectronics, Inc. |
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Reconciliation of Statements of Operations under GAAP and Non-GAAP |
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(In thousands) |
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(Unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
2025 |
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2026 |
2025 |
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GAAP total gross profit (a) |
$ 76,155 |
$ 33,263 |
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$ 173,278 |
$ 94,969 |
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Share-based compensation expense |
161 |
87 |
|
487 |
264 |
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Non-recurring expense |
29 |
7 |
|
327 |
48 |
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Expenses associated with discontinued products |
1,098 |
3,372 |
|
4,691 |
3,372 |
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Non-GAAP total gross profit (a) |
$ 77,443 |
$ 36,729 |
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$ 178,783 |
$ 98,653 |
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GAAP net gain (loss) |
$ 6,300 |
$ (17,936) |
|
$ (30,762) |
$ (36,206) |
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Share-based compensation expense |
5,684 |
3,116 |
|
14,939 |
8,842 |
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Expenses associated with discontinued products |
1,098 |
3,372 |
|
4,691 |
3,372 |
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Non-cash expenses associated with discontinued products |
902 |
1,106 |
|
2,920 |
3,225 |
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Amortization of intangible assets |
127 |
113 |
|
371 |
330 |
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Non-recurring (income) expense |
816 |
86 |
|
5,837 |
1,340 |
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Unrealized exchange loss (gain) |
(568) |
5,550 |
|
176 |
490 |
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Tax (benefit) expense related to the above |
433 |
(806) |
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17,155 |
3,519 |
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Non-GAAP net income (loss) |
$ 14,792 |
$ (5,399) |
|
$ 15,327 |
$ (15,088) |
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|
|
|
|
|
|
GAAP net income (loss) |
$ 6,300 |
$ (17,936) |
|
$ (30,762) |
$ (36,206) |
|
Share-based compensation expense |
5,684 |
3,116 |
|
14,939 |
8,842 |
|
Expenses associated with discontinued products |
1,098 |
3,372 |
|
4,691 |
3,372 |
|
Non-cash expenses associated with discontinued products |
902 |
1,106 |
|
2,920 |
3,225 |
|
Amortization of intangible assets |
127 |
113 |
|
371 |
330 |
|
Non-recurring expense (income) |
816 |
85 |
|
5,837 |
1,341 |
|
Unrealized exchange loss (gain) |
(568) |
5,550 |
|
176 |
490 |
|
Depreciation expense |
13,692 |
6,148 |
|
31,159 |
15,936 |
|
Interest (income) expense, net |
(1,873) |
451 |
|
(5,068) |
1,692 |
|
Income tax expenses (credit) |
2,359 |
- |
|
4,697 |
- |
|
Adjusted EBITDA |
$ 28,537 |
$ 2,005 |
|
$ 28,960 |
$ (978) |
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|
|
|
|
|
|
|
GAAP diluted net income (loss) per share |
$ 0.07 |
$ (0.28) |
|
$ (0.38) |
$ (0.64) |
|
Share-based compensation expense |
0.06 |
0.05 |
|
0.18 |
0.16 |
|
Expenses associated with discontinued products |
0.01 |
0.05 |
|
0.06 |
0.06 |
|
Non-cash expenses associated with discontinued products |
0.01 |
0.02 |
|
0.03 |
0.06 |
|
Non-recurring (income) expense |
0.01 |
- |
|
0.07 |
0.02 |
|
Unrealized exchange loss (gain) |
(0.01) |
0.08 |
|
- |
0.01 |
|
Non-GAAP tax benefit |
0.01 |
(0.01) |
|
0.20 |
0.06 |
|
Effect of diluted share count |
0.01 |
- |
|
0.02 |
- |
|
Non-GAAP diluted net earnings (loss) per share |
$ 0.17 |
$ (0.09) |
|
$ 0.18 |
$ (0.27) |
|
|
|
|
|
|
|
|
Shares used to compute diluted loss per share |
85,397 |
63,329 |
|
81,016 |
56,762 |
|
Shares used to compute diluted earnings per share |
87,835 |
63,329 |
|
84,106 |
56,762 |
|
|
|
|
|
|
|
|
(a) Provided for the purpose of calculating gross profit as a percentage of revenue (gross margin). |
|
|
|
||
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SOURCE Applied Optoelectronics, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Applied Optoelectronics' Q3 2026 revenue and GAAP earnings?
Applied Optoelectronics reported $269.875 million in revenue and $6.3 million in GAAP net income, or $0.07 per basic and diluted share. Revenue was $118.630 million a year earlier, when the company reported a net loss of $17.936 million.
What is AAOI's fourth-quarter 2026 outlook?
AAOI expects revenue of $385 million–$420 million, non-GAAP gross margin of 29.5%–31%, and non-GAAP net income of $45.9 million–$60.4 million. Expected non-GAAP earnings per share are $0.48–$0.63 using approximately 96 million shares.
Why does Applied Optoelectronics expect its 2027 U.S. capacity expansion to take longer?
The company expects the expansion to take longer because obtaining necessary electrical power is taking longer than expected, alongside other construction-related issues. It still expects manufacturing capacity to exceed 1 million 800G and 1.6 Tb transceivers per month by the end of 2027.