AXT (NASDAQ:AXTI) Announces Earnings Results

AXT (NASDAQ:AXTI) posted its quarterly earnings data on Thursday. The semiconductor company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.07 by $0.12, FiscalAI reports. The firm had revenue of $47.59 million for the quarter, compared to the consensus estimate of $34.08 million. AXT had a return on equity of 1.55% and a net margin of 3.23%. AXT updated its Q3 2026 guidance to 0.300-0.320 EPS.

Here are the key takeaways from AXT’s conference call:

• Record Q2 results: Revenue reached $47.6 million, up 77% sequentially and 164% year over year, while non-GAAP net income was $11.9 million, or $0.19 per diluted share. Non-GAAP gross margin improved to 45.0% from 29.9% in Q1.
• Demand for indium phosphide substrates, driven primarily by AI data-center optical connectivity, is substantially exceeding supply. The company plans to lift quarterly indium phosphide capacity to approximately $60 million by year-end 2026 and potentially around $130 million by the end of 2027, with backlog above $100 million.
• AXT signed long-term supply agreements with Casela, Coherent, and Lumentum, including $47.7 million in wafer prepayments from Casela and Coherent. Management said these agreements support confidence in the capacity expansion and expect their revenue contribution to increase from Q3 onward.
• Management guided to approximately $66 million of Q3 revenue that is already supported by permits or does not require permits, with non-GAAP earnings of $0.30–$0.32 per share. Further upside is possible if additional export permits are secured, although permit timing remains uncertain.
• Tongmei shifted its planned listing from China’s STAR Market to the Hong Kong Exchange, a process expected to take about a year. The move creates a potential $49 million redemption right for private-equity investors, though management said investors currently want to remain invested and AXT has sufficient cash if redemption is requested.

AXT Stock Up 28.7%

Shares of NASDAQ AXTI opened at $60.43 on Friday. The firm has a market cap of $3.95 billion, a PE ratio of 3,021.50 and a beta of 1.86. AXT has a twelve month low of $1.85 and a twelve month high of $143.16. The business has a fifty day simple moving average of $75.83 and a two-hundred day simple moving average of $61.74.

Analyst Ratings Changes

A number of research analysts recently weighed in on AXTI shares. Weiss Ratings upgraded shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 27th. Needham & Company LLC raised shares of AXT from a “hold” rating to a “buy” rating and set a $90.00 price objective for the company in a report on Friday. Northland Securities set a $125.00 target price on shares of AXT in a research note on Wednesday, June 3rd. B. Riley Financial cut their price objective on AXT from $73.00 to $52.00 and set a “neutral” rating for the company in a research report on Tuesday. Finally, UBS Group set a $90.00 price objective on AXT in a report on Friday. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $77.00.

Insider Transactions at AXT

In other news, Director David C. Chang sold 8,333 shares of AXT stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $111.17, for a total value of $926,379.61. Following the transaction, the director owned 65,165 shares of the company’s stock, valued at $7,244,393.05. The trade was a 11.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Morris S. Young sold 123,601 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $113.33, for a total transaction of $14,007,701.33. Following the transaction, the chief executive officer owned 2,149,533 shares of the company’s stock, valued at approximately $243,606,574.89. This trade represents a 5.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 251,636 shares of company stock valued at $27,789,677. Company insiders own 5.97% of the company’s stock.

Institutional Investors Weigh In On AXT

A number of hedge funds and other institutional investors have recently bought and sold shares of AXTI. Tudor Investment Corp ET AL purchased a new stake in shares of AXT during the 4th quarter valued at $278,000. Bank of America Corp DE increased its position in AXT by 12,816.7% during the 3rd quarter. Bank of America Corp DE now owns 52,571 shares of the semiconductor company’s stock valued at $236,000 after buying an additional 52,164 shares in the last quarter. SummitTX Capital L.P. acquired a new position in AXT during the 4th quarter valued at about $228,000. Osaic Holdings Inc. raised its stake in AXT by 1,071.5% in the fourth quarter. Osaic Holdings Inc. now owns 11,012 shares of the semiconductor company’s stock valued at $180,000 after buying an additional 10,072 shares during the last quarter. Finally, Dimensional Fund Advisors LP purchased a new stake in AXT in the third quarter valued at about $145,000. Hedge funds and other institutional investors own 49.52% of the company’s stock.

AXT News Summary

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Q2 results substantially exceeded expectations: AXT reported $0.19 in earnings per share versus the $0.07 consensus estimate, while revenue reached approximately $47.6 million, well above estimates near $34 million and up sharply from the prior year. The company also reported improved gross and operating profitability. AXTI Q2 Earnings Beat on Record InP Demand, Revenues Rise Y/Y
• Positive Sentiment: AI-related demand is accelerating: Management cited record InP revenue and strong demand from data-center optical connectivity customers. AXT plans to expand capacity and increase output while targeting further margin improvement. AXTI Q2 Earnings Call Highlights AI Capacity Expansion
• Positive Sentiment: Q3 guidance was well above consensus: AXT forecast earnings of $0.30-$0.32 per share and revenue of roughly $66 million, compared with analyst expectations of $0.10 EPS and $38.7 million in revenue. AXT Stock Rips Higher After Q2 Earnings
• Positive Sentiment: Analyst sentiment improved: Needham upgraded AXT from Hold to Buy and assigned a $90 price target. Heavy call-option buying also indicated increased bullish trading interest. Needham Upgrades AXT to Buy
• Neutral Sentiment: Despite the improved quarter, AXT’s trailing net margin remains negative and the stock continues to exhibit significant volatility, increasing the risk of sharp price swings after the rally.
• Negative Sentiment: Reported insider-trading data shows executives made multiple sales and no purchases during the past six months, which could temper investor confidence, although these transactions may not reflect current operating conditions.

About AXT

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.