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 earnings per share (EPS) guidance of 0.480-0.630 for the period, compared to the consensus 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 6.9%

Shares of NASDAQ:AAOI opened at $50.13 on Friday. The company has a market cap of $4.24 billion, a price-to-earnings ratio of -116.58 and a beta of 4.04. Applied Optoelectronics has a 12 month low of $18.50 and a 12 month high of $233.67. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The company has a 50-day moving average price of $92.96 and a 200 day moving average price of $113.25.

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 the consensus estimate of $0.14 by $0.03. Applied Optoelectronics had a negative return on equity of 0.21% and a negative net margin of 4.39%. The company had revenue of $269.88 million for the quarter, compared to analysts’ expectations of $268.11 million. During the same period in the previous year, the firm posted ($0.09) earnings per share. The firm’s revenue for the quarter was up 127.5% on a year-over-year basis. As a group, equities research analysts predict that Applied Optoelectronics will post 0.55 earnings per share for the current year.

Analysts Set New Price Targets

AAOI has been the topic of several analyst reports. Northland Securities raised Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a research report on Monday, November 2nd. Needham & Company LLC decreased their price target on Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a report on Friday. Raymond James Financial restated an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Rosenblatt Securities dropped their price objective 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 research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Applied Optoelectronics has an average rating of “Moderate Buy” and a consensus target price of $111.60.

Insider Activity at Applied Optoelectronics

In related news, insider Hung-Lun Chang sold 32,172 shares of the 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 sale, the insider directly owned 249,276 shares of the company’s stock, valued at $27,472,707.96. This represents a 11.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Stefan Murry sold 4,000 shares of the stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the completion of the sale, the chief financial officer directly owned 363,168 shares in the company, valued at $37,359,092.16. This trade represents a 1.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 52,172 shares of company stock worth $5,985,036. Insiders own 3.80% of the company’s stock.

Trending Headlines about Applied Optoelectronics

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

• Positive Sentiment: Third-quarter results beat estimates: adjusted earnings were $0.17 per share versus $0.14 expected, while revenue of $269.9 million rose 127.5% year over year. The company also reported a sixth consecutive quarter of record revenue and a return to GAAP profitability. Third-quarter results
• Positive Sentiment: Datacenter and CATV sales benefited from demand for 800G transceivers and record broadband equipment shipments. Management also cited accelerating demand for 1.6T products and a potential $1 billion–$1.5 billion hyperscaler deal, supporting the growth outlook. Q3 sales and demand
• Positive Sentiment: A rebound in AI optical stocks is providing a favorable sector backdrop, with investors revisiting recent earnings across the group. AI optical stocks rally
• Negative Sentiment: Fourth-quarter revenue guidance of $385 million–$420 million falls short of the $427.3 million consensus estimate, despite an EPS range that brackets expectations. Component shortages and delays ramping manufacturing capacity—including U.S. expansion issues—could limit the company’s ability to meet demand. Earnings call and capacity delays
• Negative Sentiment: Analysts lowered price targets: B. Riley cut its target to $45 and assigned a neutral rating, while Rosenblatt reduced its target to $115 but maintained a buy rating. The mixed revisions reflect uncertainty following the stock’s volatility. B. Riley analyst rating

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs and manufactures fiber-optic networking products used to transmit data over cable, telecommunications and data center networks. Its offerings include optical transceivers and other optical components and equipment.

The company serves customers in markets including broadband access, telecommunications and data centers. Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics has operations in the United States and Asia and serves customers internationally.

Founder Thompson Lin has served as the company’s chief executive officer.