Applied Optoelectronics (NASDAQ:AAOI) Issues Q4 2026 Earnings Guidance

Applied Optoelectronics (NASDAQ:AAOI) issued an update on its fourth quarter 2026 earnings guidance on Friday morning. The company provided EPS guidance of 0.480-0.630 for the period, compared to the consensus EPS estimate of 0.550. The company issued revenue guidance of $385.0 million-$420.0 million, compared to the consensus revenue estimate of $427.3 million.

Applied Optoelectronics Stock Up 5.5%

AAOI traded up $2.58 during trading on Friday, reaching $49.48. 12,317,409 shares of the stock were exchanged, compared to its average volume of 10,582,646. The stock has a market cap of $4.18 billion, a P/E ratio of -64.33 and a beta of 4.04. Applied Optoelectronics has a twelve month low of $18.50 and a twelve month high of $233.67. The stock’s 50 day moving average price is $94.22 and its two-hundred day moving average price is $113.19. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.03. The firm had revenue of $269.88 million for the quarter, compared to analyst estimates of $268.11 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company’s quarterly revenue was up 127.5% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.09) earnings per share. Equities analysts expect that Applied Optoelectronics will post 0.55 EPS for the current year.

Wall Street Analysts Forecast Growth

AAOI has been the topic of a number of research analyst reports. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. B. Riley Financial reduced their price target on Applied Optoelectronics from $92.00 to $45.00 and set a “neutral” rating for the company in a report on Friday. Weiss Ratings raised Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Raymond James Financial restated an “outperform” rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Finally, Needham & Company LLC cut their price objective on Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating for the company in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Optoelectronics currently has a consensus rating of “Moderate Buy” and a consensus price target of $111.60.

Insider Activity

In related news, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the sale, the insider owned 249,276 shares of the company’s stock, valued at approximately $27,472,707.96. The trade was a 11.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Stefan J. Murry sold 4,000 shares of the company’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total transaction of $411,480.00. Following the completion of the transaction, the chief financial officer owned 363,168 shares in the company, valued at approximately $37,359,092.16. This trade represents a 1.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 52,172 shares of company stock valued at $5,985,036 over the last ninety days. 3.80% of the stock is currently owned by company insiders.

Key Stories Impacting Applied Optoelectronics

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: AAOI reported record revenue for a sixth consecutive quarter and returned to GAAP profitability. Third-quarter revenue rose 127.5% year over year to $269.9 million, while EPS of $0.17 topped the $0.14 consensus. Third-quarter results
• Positive Sentiment: Management commentary points to accelerating demand for 1.6T transceivers and a potential $1 billion–$1.5 billion hyperscaler deal. Datacenter sales more than tripled year over year, supporting expectations for continued growth. Earnings-call highlights
• Neutral Sentiment: Analyst views diverged: Rosenblatt kept a Buy rating but cut its price target from $220 to $115, while B. Riley lowered its target from $92 to $45 and moved to Neutral.
• Negative Sentiment: Fourth-quarter revenue guidance of $385 million–$420 million fell short of the $427.3 million consensus. The company also cited component shortages and delays expanding capacity, including challenges with power and construction for planned U.S. manufacturing, which could limit its ability to meet demand.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.