Applied Optoelectronics (NASDAQ:AAOI) Releases Q2 2026 Earnings Guidance

Applied Optoelectronics (NASDAQ:AAOI) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of -0.030-0.030 for the period, compared to the consensus EPS estimate of 0.070. The company issued revenue guidance of $180.0 million-$198.0 million, compared to the consensus revenue estimate of $194.1 million.

Applied Optoelectronics Stock Down 11.8%

Shares of NASDAQ:AAOI traded down $20.99 during trading on Thursday, reaching $157.55. The stock had a trading volume of 13,604,392 shares, compared to its average volume of 9,438,592. The firm’s 50-day simple moving average is $117.54 and its 200 day simple moving average is $63.67. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.18. Applied Optoelectronics has a one year low of $12.56 and a one year high of $191.87. The company has a market capitalization of $12.61 billion, a P/E ratio of -242.38 and a beta of 3.76.

Applied Optoelectronics (NASDAQ:AAOI) last posted its earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The firm had revenue of $151.14 million for the quarter, compared to analysts’ expectations of $156.98 million. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. As a group, research analysts expect that Applied Optoelectronics will post 0.66 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on AAOI shares. Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. B. Riley Financial upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price target on the stock in a research note on Friday, February 27th. Northland Securities reiterated a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research note on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $50.00 price target on shares of Applied Optoelectronics in a research report on Thursday, February 19th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $52.80.

Insiders Place Their Bets

In other news, insider Shu-Hua (Joshua) Yeh sold 50,000 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $97.10, for a total transaction of $4,855,000.00. Following the sale, the insider directly owned 322,051 shares of the company’s stock, valued at $31,271,152.10. This represents a 13.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider David C. Kuo sold 29,000 shares of Applied Optoelectronics stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $100.13, for a total value of $2,903,770.00. Following the completion of the transaction, the insider owned 82,663 shares of the company’s stock, valued at approximately $8,277,046.19. This represents a 25.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 314,333 shares of company stock worth $29,262,106. Corporate insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Comerica Bank purchased a new stake in shares of Applied Optoelectronics in the third quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. grew its holdings in Applied Optoelectronics by 166.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock valued at $42,000 after buying an additional 750 shares in the last quarter. Headlands Technologies LLC acquired a new stake in shares of Applied Optoelectronics in the 2nd quarter worth $57,000. Wexford Capital LP purchased a new position in shares of Applied Optoelectronics during the 3rd quarter worth $95,000. Finally, State of Wyoming acquired a new position in shares of Applied Optoelectronics during the 4th quarter valued at about $160,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company’s core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures.

The company’s product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications.