Applied Optoelectronics (NASDAQ:AAOI) Releases 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.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. Needham & Company LLC cut their price target on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday. Northland Securities upgraded Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a report on Monday. B. Riley Financial decreased their price target on Applied Optoelectronics from $92.00 to $45.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Rosenblatt Securities decreased their target price on shares of Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating for the company in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $111.60.

Applied Optoelectronics Price Performance

Shares of Applied Optoelectronics stock traded up $1.11 during trading on Friday, reaching $48.00. 15,577,876 shares of the company’s stock were exchanged, compared to its average volume of 10,597,290. 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 has a 1-year low of $18.50 and a 1-year high of $233.67. The company has a market cap of $4.06 billion, a P/E ratio of -61.18 and a beta of 4.04. The firm’s 50-day moving average price is $94.22 and its 200 day moving average price is $113.19.

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

Insider Buying and Selling

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total value of $3,545,676.12. Following the transaction, the insider directly 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Stefan Murry sold 4,000 shares of the business’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $102.87, for a total transaction of $411,480.00. Following the transaction, the chief financial officer owned 363,168 shares in the company, valued at $37,359,092.16. The trade was a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 52,172 shares of company stock valued at $5,985,036 over the last 90 days. Company insiders own 3.80% of the company’s stock.

Applied Optoelectronics News Summary

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.

About Applied Optoelectronics

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.