TLDR
- AOI posted Q1 revenue of $151.1M, missing the $154.81M consensus, with an adjusted EPS loss of $0.07, wider than the expected $0.05 loss.
- Data center revenue surged 154% year-over-year to $81.4M, driven by explosive 400G growth and the company’s first volume 800G shipment to a major hyperscale customer.
- AOI is aggressively expanding its Texas manufacturing footprint to ~900,000 sq ft, targeting over 650,000 800G/1.6T units per month by end-2026.
- The company now expects full-year 2026 revenue to exceed $1.1 billion, with Q2 guided at $180M–$198M.
- AOI received its first volume order for 1.6T transceivers from a major hyperscale customer, with deliveries expected to begin as early as Q3.
Applied Optoelectronics (AAOI) posted its fourth straight quarter of record revenue in Q1 2026, though it came in slightly below Wall Street expectations. Revenue landed at $151.1 million against a consensus estimate of $154.81 million.
🚨 $AAOI (Applied Optoelectronics) Q1 2026 Earnings
Missed estimates…
but Q2 guide shows sequential rebound in optical/AI demand 👀
________________________________________📊 KEY METRICS (Q1 2026)
🔹 Revenue: $151.1M (missed est. $157M) 🔴
🔹 EPS: $(0.07) (missed…— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) May 7, 2026
The adjusted loss per share came in at $0.07, a touch wider than the $0.05 loss analysts had penciled in. Still, management framed the quarter as one that met its own internal targets.
The company’s non-GAAP gross margin was 29.2%, within the guided range of 29%–31%. Non-GAAP operating loss was $7.3 million, and GAAP net loss was $14.3 million, or $0.19 per share.
Applied Optoelectronics, Inc., AAOI
AOI ended Q1 with $449.4 million in cash and equivalents, up sharply from $216 million at the end of Q4 2025, aided by recent capital raises. Inventory rose to $206.2 million, largely due to increased raw materials and work-in-progress as the company ramps production.
Data Center Drives the Story
Data center revenue came in at $81.4 million, up 154% year-over-year and 9% sequentially. The growth was fueled by a 36% jump in 100G product sales and a tenfold year-over-year increase in 400G.
The 800G segment contributed $4.6 million, or 5.6% of data center revenue, but it’s what’s coming that has investors’ attention. AOI completed its first volume shipment of 800G single-mode transceivers to a large hyperscale customer during Q1, with a strong ramp expected in Q2.
AOI also received its first volume order for 1.6T transceivers from a separate long-term hyperscale customer, along with two new 800G volume orders from the same buyer. Deliveries for the 800G orders are expected in Q2, with the 1.6T order starting as early as Q3.
CATV revenue was $66.8 million, up 4% year-over-year and 24% sequentially. Telecom came in at $2.6 million, down both year-over-year and sequentially, though the company has consistently flagged that segment as lumpy.
Manufacturing Expansion in Full Swing
AOI has been building out hard. Its Texas manufacturing footprint now spans roughly 900,000 square feet across multiple locations in Sugar Land, Pearland, and Houston.
The company exited Q1 with capacity approaching 100,000 units per month for 800G and 1.6T products, and expects to hit 150,000 per month by the end of Q2. By year-end, the target is over 650,000 units per month, rising to over 930,000 by end-2027, with more than half of that output coming from Texas.
A new 210,000-square-foot facility dedicated to 800G and 1.6T production is expected to be online in Q3. Pearland and Houston facilities are slated for early 2027.
On tariffs, direct impacts were $1.4 million in Q1. Following the reversal of the IEEPA tariff, AOI has applied for a refund it expects to be at least $5.7 million, though timing is unclear.
For Q2, AOI guided revenue to $180M–$198M, with non-GAAP EPS ranging from a $0.03 loss to $0.03 of earnings. The company said it expects to approach sustainable non-GAAP profitability starting in Q2.
For the full year, AOI now projects revenue exceeding $1.1 billion, with more than $140 million in non-GAAP operating income. Management noted the revenue outlook is constrained by production capacity and supply chain, not customer demand.
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