Applied Optoelectronics Inc.: Beat — EPS $0.17, Revenue $269.88M
Earnings BeatQ3 2026 · After-market
Did Applied Optoelectronics Inc. (AAOI) beat earnings?
Yes, Applied Optoelectronics Inc. (AAOI) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+21.43% surprise
$0.17Actual
Expected: $0.14
vs. year ago +288.9%
Total Revenue+0.66% surprise
$269.88MActual
Expected: $268.11M
vs. year ago +127.5%
Released Nov 05 · 4:10 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $269.88M | $118.63M | +127.5% |
| Revenue detail — reported lines | |||
| └─CATV | $110.88M | $70.60M | +57.0% |
| └─Datacenter | $155.61M | $43.94M | +254.2% |
| └─Telecom | $2.73M | $3.74M | -27.1% |
| └─Other | $660.00K | $351.00K | +88.0% |
| Net Income | $6.30M | ($17.94M) | - |
| GAAP Basic EPS | $0.07 | -$0.28 | - |
| GAAP Diluted EPS | $0.07 | -$0.28 | - |
| Non-GAAP Diluted EPS | $0.17 | -$0.09 | - |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | |
|---|---|---|
| Guidance | Expected | |
| Revenue | $385M-$420M | $427.26MMiss -5.80% |
| Non-GAAP gross margin | 29.5%-31% | — |
| Non-GAAP net income | $45.9M-$60.4M | — |
| Non-GAAP income per share | $0.48-$0.63 | $0.56In-Line |
| Shares | ~96M | — |
Q4 2026 Outlook
- Revenue
- Guidance$385M-$420MExpected$427.26MMiss -5.80%
- Non-GAAP gross margin
- Guidance29.5%-31%Expected—
- Non-GAAP net income
- Guidance$45.9M-$60.4MExpected—
- Non-GAAP income per share
- Guidance$0.48-$0.63Expected$0.56In-Line
- Shares
- Guidance~96MExpected—
Business Highlights
- ➤Secured a multi-year strategic agreement with a Tier 1 hyperscale datacenter customer.
- ➤Scaled manufacturing capabilities for 800G and 1.6T optical products.
- ➤Manufacturing equipment capacity approached 330,000 units per month.
- ➤US 2027 capacity expansion timeline lengthened due to electrical-power and construction issues.
- ➤Expects installed equipment to produce over 500,000 800G and 1.6T products monthly by year-end 2026.
- ➤Targets capacity above 1 million 800G and 1.6T transceivers monthly by year-end 2027.
- ➤Supplies optical and HFC networking infrastructure to tier-one cloud, CATV, telecom and FTTH customers.
- ➤Maintains R&D in Atlanta and engineering/manufacturing operations in Texas, Taiwan and China.
Management Commentary
Dr. Thompson Lin, Founder, President and Chief Executive Officer
“We are pleased to have generated record revenue for our sixth consecutive quarter and to have returned to GAAP profitability in Q3. 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.”
Dr. Stefan Murry, Chief Financial Officer and Chief Strategy Officer
“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. 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.”