Applied Optoelectronics Reports Strong Q4, Shares Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Should l Buy AAOI?
Source: Benzinga
- Earnings Beat: Applied Optoelectronics reported a fourth-quarter loss of only $0.01 per share, significantly better than the analyst consensus estimate of a $0.11 loss, indicating improvements in cost management and market demand, which boosts investor confidence.
- Strong Sales Performance: The company achieved quarterly sales of $134.274 million, surpassing the analyst consensus estimate of $134.120 million, suggesting that its products continue to gain competitive traction in the market, potentially driving future revenue growth.
- Stock Surge: Following the earnings report, Applied Optoelectronics shares jumped 20.4% to $64.69 in pre-market trading, reflecting market optimism about the company's future performance and likely attracting more investor interest.
- Positive Guidance: The company issued first-quarter sales guidance above market expectations, further solidifying its market position in the optoelectronics sector and indicating stable growth potential for the upcoming quarters.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AAOI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AAOI
Wall Street analysts forecast AAOI stock price to fall
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 53.690
Low
15.00
Averages
38.25
High
50.00
Current: 53.690
Low
15.00
Averages
38.25
High
50.00
About AAOI
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. The Company also designs, manufactures, and integrates its own analog and digital lasers using the proprietary Molecular Beam Epitaxy (MBE) and Metal Organic Chemical Vapor Deposition (MOCVD) alternative processes for the fabrication of lasers. The Company manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company offers its fiber-optic networking products, primarily for four networking end-markets, such as cable television, (CATV), Internet data center, telecommunications, (telecom), and fiber-to-the-home (FTTH). The Company has manufacturing facilities in Taipei, Taiwan and Ningbo, China.
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.
Applied Optoelectronics Stock Reaches Highest Level in Over Eight Years Following Q1 Revenue Forecast Exceeding Expectations, Up 36% Last Trading Session
Company Performance: Applied Optoelectronics reported Q1 revenue that exceeded estimates, marking a significant achievement eight years after its initial public offering.
Revenue Growth: The company's revenue increased by 36% compared to the previous year, indicating strong market demand and effective business strategies.
See More
Applied Optoelectronics Reports Record Q4 2025 Earnings Amid Strong Demand
- Significant Revenue Growth: Applied Optoelectronics reported a total revenue of $456 million in Q4 2025, reflecting an 83% year-over-year increase, driven by robust demand in both CATV and data center sectors, marking the strongest year in the company's history.
- Accelerated 800G Module Production: The company has ramped up production of its 800G modules to support the growth of AI data centers for major hyperscale customers, with expectations for strong sales growth starting in Q2 2026, further solidifying its market position.
- Margin Improvement Expectations: The management projects non-GAAP gross margins for Q1 2026 to be between 29% and 31%, with a target of achieving 40% gross margin by Q3 2026, demonstrating confidence in future profitability.
- Capital Investment Expansion: The company made capital investments totaling $84 million in Q4 2025, primarily aimed at expanding production capacity and optimizing the supply chain to meet a revenue target exceeding $1 billion, underscoring its commitment to U.S. manufacturing.
See More
U.S. Stocks Decline Midway; Dell Shares Surge Over 21%
- Market Performance: U.S. stocks traded lower midway through the session, with the Nasdaq Composite falling over 1%, the Dow down 1.40% to 48,807.06, and the S&P 500 dropping 0.74% to 6,858.05, indicating overall market weakness.
- Dell's Earnings Beat: Dell Technologies Inc. (NYSE:DELL) shares surged over 21% on Friday after reporting fourth-quarter earnings of $3.89 per share, exceeding the consensus estimate of $3.53, with quarterly revenue hitting $33.38 billion, up from $23.93 billion a year ago, showcasing strong financial performance.
- Sector Dynamics: Consumer staples stocks rose by 1.3%, while financial stocks fell by 2.6%, reflecting mixed reactions across sectors that could influence investors' asset allocation strategies.
- Commodity Market Fluctuations: Oil prices increased by 2% to $66.54, gold rose by 1.1% to $5,252.30, and silver jumped 7.7% to $94.360, indicating active commodity markets and heightened demand for safe-haven assets.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades, downgrades, and initiations are not detailed, the overall rating changes indicate analysts' sensitivity to market sentiment, potentially prompting investors to reassess their positions.
- Market Reaction Potential: Rating changes by analysts often trigger market volatility, and investors should monitor these shifts to timely adjust their investment strategies and capitalize on potential market opportunities.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, and investors are encouraged to regularly check the analyst ratings page for the latest updates.
See More
Autodesk Reports Strong Q4 Earnings, Raises Guidance
- Earnings Beat: Autodesk reported Q4 earnings of $2.85 per share, surpassing the analyst consensus of $2.64, indicating strong market performance and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $1.957 billion, exceeding the analyst estimate of $1.912 billion, reflecting robust demand for its products and driving overall revenue growth.
- Stock Price Surge: Following the positive news, Autodesk's stock rose 6% to $247.40 on Friday, indicating market optimism regarding the company's future growth potential.
- Optimistic Outlook: The FY27 guidance provided by Autodesk exceeded market expectations, showcasing the company's confidence in future performance and potentially attracting more investor interest in its long-term prospects.
See More
Applied Optoelectronics Reports Strong Q4, Stock Surges
- Earnings Beat: Applied Optoelectronics reported a 34% year-over-year revenue increase to $134.3 million in Q4, surpassing expectations and showcasing broad strength in its CATV and datacenter segments, which boosts market confidence in future growth.
- Positive Outlook: The company forecasts Q1 2026 revenue between $150 million and $165 million, exceeding analyst expectations of $145 million, indicating rising demand for its next-generation datacenter products.
- Stock Hits New High: Applied Optoelectronics shares surged to a new 52-week high of $79.50, marking a significant rebound from a low of around $10 last spring, reflecting strong market confidence and investor interest.
- Analyst Upgrades: Needham reiterated its Buy rating on AAOI and raised its price target from $43 to $80, while B. Riley Securities upgraded the stock from Sell to Neutral and increased its target from $15 to $54, reflecting optimism about the company's future performance.
See More
Applied Optoelectronics Stock Reaches Highest Level in Over Eight Years Following Q1 Revenue Forecast Exceeding Expectations, Up 36% Last Trading Session
Company Performance: Applied Optoelectronics reported Q1 revenue that exceeded estimates, marking a significant achievement eight years after its initial public offering.
Revenue Growth: The company's revenue increased by 36% compared to the previous year, indicating strong market demand and effective business strategies.
See More
Applied Optoelectronics Reports Record Q4 2025 Earnings Amid Strong Demand
- Significant Revenue Growth: Applied Optoelectronics reported a total revenue of $456 million in Q4 2025, reflecting an 83% year-over-year increase, driven by robust demand in both CATV and data center sectors, marking the strongest year in the company's history.
- Accelerated 800G Module Production: The company has ramped up production of its 800G modules to support the growth of AI data centers for major hyperscale customers, with expectations for strong sales growth starting in Q2 2026, further solidifying its market position.
- Margin Improvement Expectations: The management projects non-GAAP gross margins for Q1 2026 to be between 29% and 31%, with a target of achieving 40% gross margin by Q3 2026, demonstrating confidence in future profitability.
- Capital Investment Expansion: The company made capital investments totaling $84 million in Q4 2025, primarily aimed at expanding production capacity and optimizing the supply chain to meet a revenue target exceeding $1 billion, underscoring its commitment to U.S. manufacturing.
See More
U.S. Stocks Decline Midway; Dell Shares Surge Over 21%
- Market Performance: U.S. stocks traded lower midway through the session, with the Nasdaq Composite falling over 1%, the Dow down 1.40% to 48,807.06, and the S&P 500 dropping 0.74% to 6,858.05, indicating overall market weakness.
- Dell's Earnings Beat: Dell Technologies Inc. (NYSE:DELL) shares surged over 21% on Friday after reporting fourth-quarter earnings of $3.89 per share, exceeding the consensus estimate of $3.53, with quarterly revenue hitting $33.38 billion, up from $23.93 billion a year ago, showcasing strong financial performance.
- Sector Dynamics: Consumer staples stocks rose by 1.3%, while financial stocks fell by 2.6%, reflecting mixed reactions across sectors that could influence investors' asset allocation strategies.
- Commodity Market Fluctuations: Oil prices increased by 2% to $66.54, gold rose by 1.1% to $5,252.30, and silver jumped 7.7% to $94.360, indicating active commodity markets and heightened demand for safe-haven assets.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades, downgrades, and initiations are not detailed, the overall rating changes indicate analysts' sensitivity to market sentiment, potentially prompting investors to reassess their positions.
- Market Reaction Potential: Rating changes by analysts often trigger market volatility, and investors should monitor these shifts to timely adjust their investment strategies and capitalize on potential market opportunities.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, and investors are encouraged to regularly check the analyst ratings page for the latest updates.
See More
Autodesk Reports Strong Q4 Earnings, Raises Guidance
- Earnings Beat: Autodesk reported Q4 earnings of $2.85 per share, surpassing the analyst consensus of $2.64, indicating strong market performance and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $1.957 billion, exceeding the analyst estimate of $1.912 billion, reflecting robust demand for its products and driving overall revenue growth.
- Stock Price Surge: Following the positive news, Autodesk's stock rose 6% to $247.40 on Friday, indicating market optimism regarding the company's future growth potential.
- Optimistic Outlook: The FY27 guidance provided by Autodesk exceeded market expectations, showcasing the company's confidence in future performance and potentially attracting more investor interest in its long-term prospects.
See More
Applied Optoelectronics Reports Strong Q4, Stock Surges
- Earnings Beat: Applied Optoelectronics reported a 34% year-over-year revenue increase to $134.3 million in Q4, surpassing expectations and showcasing broad strength in its CATV and datacenter segments, which boosts market confidence in future growth.
- Positive Outlook: The company forecasts Q1 2026 revenue between $150 million and $165 million, exceeding analyst expectations of $145 million, indicating rising demand for its next-generation datacenter products.
- Stock Hits New High: Applied Optoelectronics shares surged to a new 52-week high of $79.50, marking a significant rebound from a low of around $10 last spring, reflecting strong market confidence and investor interest.
- Analyst Upgrades: Needham reiterated its Buy rating on AAOI and raised its price target from $43 to $80, while B. Riley Securities upgraded the stock from Sell to Neutral and increased its target from $15 to $54, reflecting optimism about the company's future performance.
See More
