AAOI Q2 Revenue Surges 86% to $192M, Q3 Outlook Turns Conservative

Huo Xing Finance reports that on August 7, high-speed optical module manufacturer AAOI (Applied Optoelectronics) released its second-quarter fiscal year 2026 financial results, reporting revenue of $191.9 million, an 86% year-over-year increase, slightly exceeding the market expectation of $190 million and marking the fifth consecutive quarter of record revenue. Adjusted earnings per share came in at $0.06, significantly surpassing the expected $0.01; Non-GAAP net profit reached $5.5 million, far exceeding the expected $1.7 million, representing a significant milestone as the company returned to Non-GAAP profitability this quarter. AAOI’s gross margin declined slightly: GAAP gross margin was 27.7%, down 260 basis points year-over-year; Non-GAAP gross margin was 29.8%, down 60 basis points year-over-year. AAOI provided a conservative outlook for the third quarter: revenue guidance of $255 million to $290 million, with a midpoint of approximately $272.5 million, slightly below the market expectation of $278 million; adjusted EPS guidance of $0.11 to $0.26, significantly below the expected $0.28; Non-GAAP net profit guidance of $10.1 million to $24 million, below the expected $25.2 million; Non-GAAP gross margin guidance of 29% to 30.5%. AAOI emphasized that market demand remains extremely strong, with demand expected to exceed the company’s production capacity through mid-2027, making capacity constraints the primary limiting factor.