AXT Inc. announces Q3 earnings per share of 3 cents, below consensus estimate of 12 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
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Q3 Revenue Performance: The company reported Q3 revenue of $28.0 million, exceeding the consensus estimate of $20.3 million, driven by a significant increase in indium phosphide demand.
Indium Phosphide Growth: Indium phosphide revenues grew over 250% sequentially, reaching a three-year high, aided by the acquisition of export permits for major orders.
Market Trends and Backlog: The company is building a healthy backlog for indium phosphide and gallium arsenide materials, as the industry adapts to changing market conditions.
Future Outlook: The CEO expressed optimism for 2026, anticipating meaningful growth and a return to profitability, supported by ongoing market trends in data center upgrades.
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Analyst Views on AXTI
Wall Street analysts forecast AXTI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXTI is 16.20 USD with a low forecast of 7.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.830
Low
7.00
Averages
16.20
High
26.00
Current: 16.830
Low
7.00
Averages
16.20
High
26.00
About AXTI
AXT, Inc. is a material science company that develops and manufactures high-performance compound and single element semiconductor wafer substrates comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). Its wafer substrates are used when a typical silicon wafer substrate cannot meet the performance requirements of a semiconductor or optoelectronic device. It has two product lines: specialty material substrates and raw materials integral to these substrates. Its InP is a semiconductor wafer substrate used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Its semi-conducting GaAs substrates are used to create opto-electronic products, including high brightness light emitting diodes that are often used to backlight wireless handsets and LCD televisions and for automotive, signage, and lighting applications. Its Ge substrates are used in applications, such as solar cells for space and terrestrial photovoltaic applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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