Applied Optoelectronics (NASDAQ:AAOI) Announces Q4 2026 Earnings Guidance

Applied Optoelectronics (NASDAQ:AAOI) updated 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.

Analysts Set New Price Targets

AAOI has been the subject of several recent research reports. Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Needham & Company LLC decreased their target price on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday. Rosenblatt Securities decreased their price target 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. Raymond James Financial restated an “outperform” rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Finally, B. Riley Financial dropped their target price on shares of Applied Optoelectronics from $92.00 to $45.00 and set a “neutral” rating for the company in a report on Friday. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $111.60.

Applied Optoelectronics Trading Up 6.9%

Shares of AAOI opened at $50.13 on Friday. Applied Optoelectronics has a one year low of $18.50 and a one year high of $233.67. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. The company has a market capitalization of $4.24 billion, a P/E ratio of -116.58 and a beta of 4.04. The stock 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 announced its earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.03. The company had revenue of $269.88 million for the quarter, compared to analyst estimates of $268.11 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. Applied Optoelectronics’s revenue for the quarter was up 127.5% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.09) earnings per share. Sell-side analysts forecast that Applied Optoelectronics will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan Murry sold 4,000 shares of the company’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the transaction, the chief financial officer owned 363,168 shares of the company’s stock, valued at $37,359,092.16. This represents a 1.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the firm’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the completion of the sale, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. The trade was a 1.59% 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 three months, insiders have sold 52,172 shares of company stock valued at $5,985,036. 3.80% of the stock is owned by corporate insiders.

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

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.