Applied Optoelectronics is executing a high-stakes capacity expansion to capitalize on the AI-driven 800G optical transceiver cycle, with revenue surging 86.4% YoY to $191.9M in 2026Q2. However, the company remains GAAP-unprofitable with a -12.9% operating mar...
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Revenue growth accelerated to 86.4% YoY in 2026Q2, but gross margin contracted to 27.7% and operating margin remained deeply negative at -12.9%, indicating that the 800G ramp has not yet delivered operating leverage.
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Applied Optoelectronics provides detailed business information for stockholders and financial analysts through its Investor Relations website.
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Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 6, 2026 | $0.06+296.6% vs $0.02 | $192M+0.8% vs $190M |
Q2 2026 May 7, 2026 | -$0.07-42.9% vs -$0.05 | $151M-3.7% vs $157M |
Q1 2026 Feb 26, 2026 | -$0.01+91.7% vs -$0.12 | $134M+1.5% vs $132M |
Q4 2025 Nov 6, 2025 | -$0.09+10.0% vs -$0.10 | $119M-9.8% vs $132M |
Applied Optoelectronics, Inc. expects demand to exceed capacity through mid 2027 as 800G and 1.6T optical deployments accelerate across hyperscalers. Q2 revenue surged 86% to $191.9 million, while management expects approximately $1.1 billion in revenue during 2026. Monthly 800G and 1.6T capacity could exceed 650,000 units by year-end and reach 930,000 during 2027.
Applied Optoelectronics is rated 'Buy' due to strong end-market demand and a compelling forward valuation. AAOI's 1.6T and 800G optical transceivers are driving revenue inflection, with significant volume orders secured and shipments commencing. Recent financials show an 86.4% YoY revenue increase to $191.9M and adjusted EPS of $0.06, beating consensus.
Engineers Gate Manager LP reduced its holdings in Applied Optoelectronics, Inc. (NASDAQ: AAOI) by 65.8% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,892 shares of the semiconductor company's stock after selling 18,999 shares during the quarter. Engineers Gate Manager
AAOI targets 650,000 monthly units by year-end 2026 as 800G and 1.6T demand continues exceeding available capacity. Management's mid-2027 targets imply roughly $471 million monthly optical revenue, equivalent to $5.65 billion annualized before CATV. AAOI's vertical integration provides scarce laser capacity, while future CPO laser products could potentially generate gross margins near 60%.
Benchmark AAOI against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Applied Optoelectronics, Inc. (AAOI)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $107.00 | $8.59B | -167.19 | 82.75% | -8.39% | -7.94% | — | |
| $945.67 | $73.57B | 2555.86 | 21.03% | -230.1% | -300.07% | — | |
| $29.04 | $117.8M | -32.63 | 8.26% | 0.04% | 0.27% | — | |
| $310.39 | $60.72B | 260.83 | -64.79% | 11.31% | 8.09% | — | |
| $36.40 | $8.98B | 242.67 | 8.39% | -2% | -3.16% | — | |
| $368.56 | $52.17B | 433.60 | 18.79% | 10.87% | 22.82% | — |
Applied Optoelectronics, Inc. (AAOI) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Applied Optoelectronics, Inc. (AAOI) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 6, 2026·SEC
Jul 1, 2026·SEC
Jun 16, 2026·SEC
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Applied Optoelectronics, Inc. (AAOI) stock FAQ — growth, dividends, profitability & financials explained
Applied Optoelectronics, Inc. (AAOI) reported $596.0M in revenue for fiscal year 2025. This represents a 1146% increase from $47.8M in 2011.
Applied Optoelectronics, Inc. (AAOI) grew revenue by 82.8% over the past year. This is strong growth.
Applied Optoelectronics, Inc. (AAOI) reported a net loss of $57.0M for fiscal year 2025.
Applied Optoelectronics, Inc. (AAOI) has a return on equity (ROE) of -7.9%. Negative ROE indicates the company is unprofitable.
Applied Optoelectronics, Inc. (AAOI) had negative free cash flow of $413.3M in fiscal year 2025, likely due to heavy capital investments.
