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

Applied Optoelectronics (NASDAQ:AAOI) updated its fourth quarter 2026 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 0.480-0.630 for the period, compared to the consensus earnings per share 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.

Analyst Upgrades and Downgrades

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

Applied Optoelectronics Price Performance

NASDAQ:AAOI traded up $2.58 during trading hours on Friday, reaching $49.48. 12,317,409 shares of the company were exchanged, compared to its average volume of 10,582,646. The business has a 50 day moving average of $94.22 and a 200 day moving average of $113.19. Applied Optoelectronics has a 1-year low of $18.50 and a 1-year high of $233.67. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13. The company has a market capitalization of $4.18 billion, a P/E ratio of -64.33 and a beta of 4.04.

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

Insider Buying and Selling

In related news, insider Shu-Hua Yeh sold 6,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $147.73, for a total value of $886,380.00. Following the completion of the transaction, the insider owned 377,498 shares of the company’s stock, valued at $55,767,779.54. The trade was a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares of the company’s stock, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 52,172 shares of company stock worth $5,985,036. Company insiders own 3.80% of the company’s stock.

More Applied Optoelectronics News

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.