Applied Optoelectronics, Inc.
Applied Optoelectronics, Inc. Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q2 FY26 call signalled
5 of 5 strong
The short version
- Expect over $1.1 billion revenue in 2026, limited by production capacity, not demand. - For 2026, AOI expects revenue to exceed $1.1 billion with non-GAAP operating profit over $140 million, limited by production capacity, not market demand.
From Applied Optoelectronics, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Expect over $1.1 billion revenue in 2026, limited by production capacity, not demand.
- Anticipate acceleration in H2 2026 due to new capacity and customer qualifications.
- Targeting $471 million/month data center transceiver revenue by mid-2027, including:
- ~$90 million from 100G and 400G products
- ~$217 million from 800G products
- ~$164 million from 1.6 terabit products
- Plan to ramp up 1.6 terabit transceivers significantly in 2027, beyond smaller 2026 orders.
- Expect capacity growth leading to 60-80% quarterly growth in Q3 and Q4 2026.
- Laser fabrication capacity to expand ~350% by end of 2027 to support CPO demand.
2 more points management made on revenue & sales performance
Profitability & Margins
See what Applied Optoelectronics, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Significant expansion of U.S. manufacturing footprint in Texas:
- 900,000 sq. ft. including 135,000 sq. ft. headquarters, 388,000 sq. ft. in Pearland, 210,000 sq. ft. facility under development, and 154,000 sq. ft. in Houston.
- New 210,000 sq. ft. facility in Texas dedicated to 800G and 1.6 terabit transceiver manufacturing, starting production in Q3 2024.
- Additional Pearland and Houston facilities to come online in early 2027 for 800G and 1.6 terabit capacity.
- Expansion of indium phosphide laser fabrication capacity:
- Targeting to become a top 3 global laser supplier by end of next year.
- Scaling laser manufacturing for co-packaged optics (CPO) to support future growth.
2 more points management made on capital expenditure plans
Fundraising & Capital Structure
See what Applied Optoelectronics, Inc. said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- Current orders in hand for 800G transceivers amount to approximately $124 million.
- The company has received multiple volume orders for 800G and 1.6 terabit transceivers from long-term major hyperscale customers.
- Forecast demand for 800G and 1.6 terabit modules is expected to exceed production capacity through mid-2027.
- A large 1.6 terabit order announced is small relative to the anticipated ramp in 2027 ($200 million described as "not big").
- Next year, the company expects to deliver over $1.6 billion in transceiver revenue.
2 more points management made on order book & pipeline
Continue your research
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Frequently Asked Questions
What were Applied Optoelectronics, Inc. Q2 FY26 results?
- Expect over $1.1 billion revenue in 2026, limited by production capacity, not demand. - For 2026, AOI expects revenue to exceed $1.1 billion with non-GAAP operating profit over $140 million, limited by production capacity, not market demand.
What is Applied Optoelectronics, Inc. share price analysis?
Applied Optoelectronics, Inc. currently shows a strong growth signal based on ranking data. The stock trades at a P/E of 37.2 with a market cap of $13,563. Investors should review the full earnings analysis for detailed insights.
Is Applied Optoelectronics, Inc. planning capital expenditure?
- Significant expansion of U.S.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.