AXT (NASDAQ:AXTI) Announces Quarterly Earnings Results

AXT (NASDAQ:AXTI) posted its earnings results on Thursday. The semiconductor company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03, FiscalAI reports. The company had revenue of $26.92 million for the quarter, compared to analyst estimates of $26.22 million. AXT had a negative net margin of 14.69% and a negative return on equity of 6.11%. AXT updated its Q2 2026 guidance to 0.060-0.080 EPS.

Here are the key takeaways from AXT’s conference call:

• Q1 results and Q2 guidance: Q1 revenue was $26.9M with a non-GAAP gross margin of 29.9% and a sharply reduced non-GAAP net loss; management expects to be profitable in Q2 with non-GAAP EPS of $0.06–$0.08 (GAAP $0.05–$0.07).
• Large Indium Phosphide backlog and rapid capacity expansion: Indium Phosphide backlog topped $100M, Q2 is expected to be the largest IP quarter in company history, and AXT plans to double IP capacity in 2026 and double again in 2027, supported by a $632.5M capital raise for Tongmei.
• Integrated raw-material and manufacturing advantage: AXT highlighted vertical integration (JinMei refining high‑purity indium, in‑house furnace design and crucible supply) as a competitive edge to secure critical materials and improve margins.
• Export-permit risk constrains upside: Management warned that future revenue and shipments depend materially on the timing and approval of export permits; only about $34M of Q2 revenue is currently permit‑free or already permitted, so permit delays could limit near‑term growth.

AXT Price Performance

Shares of AXTI stock traded up $16.78 during trading hours on Friday, hitting $96.00. The company had a trading volume of 19,934,142 shares, compared to its average volume of 12,949,367. The stock has a market capitalization of $6.28 billion, a PE ratio of -200.00 and a beta of 1.51. AXT has a fifty-two week low of $1.23 and a fifty-two week high of $96.32. The company’s fifty day moving average is $55.58 and its 200 day moving average is $28.83.

Insiders Place Their Bets

In other AXT news, Director Jesse Chen sold 8,083 shares of the stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $50.25, for a total transaction of $406,170.75. Following the sale, the director directly owned 109,526 shares in the company, valued at $5,503,681.50. This represents a 6.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Morris S. Young sold 37,905 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $51.13, for a total transaction of $1,938,082.65. Following the sale, the chief executive officer owned 2,275,328 shares in the company, valued at approximately $116,337,520.64. This trade represents a 1.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 502,278 shares of company stock worth $21,196,754 in the last ninety days. 5.97% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AXT

Hedge funds have recently added to or reduced their stakes in the business. Gotham Asset Management LLC acquired a new stake in AXT during the 4th quarter worth approximately $1,041,000. Squarepoint Ops LLC purchased a new stake in shares of AXT in the 4th quarter valued at approximately $619,000. XTX Topco Ltd increased its position in shares of AXT by 173.7% in the 4th quarter. XTX Topco Ltd now owns 35,201 shares of the semiconductor company’s stock valued at $576,000 after purchasing an additional 22,338 shares during the last quarter. Graham Capital Management L.P. purchased a new stake in shares of AXT in the 4th quarter valued at approximately $518,000. Finally, Wells Fargo & Company MN purchased a new stake in shares of AXT in the 4th quarter valued at approximately $431,000. 49.52% of the stock is currently owned by institutional investors and hedge funds.

AXT News Roundup

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT issued bullish Q2 guidance — management set EPS guidance of $0.06–$0.08 and revenue guidance around $34M, well above consensus, giving investors a near-term profit and revenue outlook upgrade. Press Release
• Positive Sentiment: Q1 results beat estimates on both EPS and revenue: revenue grew ~39% YoY to ~$26.9M and GAAP EPS was a smaller-than-expected loss, which supports the upbeat guidance. Earnings Summary
• Positive Sentiment: AXT completed a large equity capital raise (~$550M–$632.5M in recent filings/offering) to fund Tongmei’s indium-phosphide capacity expansion and R&D — provides cash for growth initiatives that could drive longer-term revenue expansion. Offering Coverage
• Neutral Sentiment: Institutional activity and analyst views are mixed — several hedge funds added large positions recently, while analyst price targets vary widely (e.g., Wedbush $80 vs B. Riley $21), contributing to volatile sentiment. Institutional Activity
• Neutral Sentiment: Unusual options activity (spike in put volume) and pre-earnings positioning increased trading volatility—this can amplify moves in either direction. (reported market activity)
• Negative Sentiment: Significant insider selling has been reported (multiple insiders selling large blocks over recent months), which investors may view as a red flag on near-term insider confidence. Insider Trades
• Negative Sentiment: Company remains unprofitable on a GAAP basis with negative margins/ROE, so execution risk and margin recovery will be critical to sustain the rally. Earnings Detail

Analyst Upgrades and Downgrades

AXTI has been the topic of several recent analyst reports. B. Riley Financial upped their price objective on shares of AXT to $21.00 and gave the stock a “neutral” rating in a report on Friday, February 20th. Craig Hallum restated a “buy” rating on shares of AXT in a report on Friday, January 9th. Needham & Company LLC lowered shares of AXT from a “buy” rating to a “hold” rating in a report on Tuesday, January 20th. UBS Group set a $35.00 price objective on shares of AXT in a report on Tuesday, February 17th. Finally, Wedbush upped their price objective on shares of AXT from $8.50 to $28.00 and gave the stock an “outperform” rating in a report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $22.80.

About AXT

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.