Applied Optoelectronics (AAOI) Stock Falls 3% After Q3 Guidance Disappoints

TLDR

• AAOI fell 3.4% to $124.22 after issuing Q3 2026 EPS guidance of $0.11–$0.26, below the $0.27 analyst consensus
• Q3 revenue guidance of $255M–$290M brackets the $265.7M consensus estimate
• Q2 revenue hit a record $191.9M, up 86% year-over-year, beating estimates
• Needham cut its price target from $220 to $190 but kept a Buy rating
• Insiders sold over 506,000 shares worth $87.4M in the past 90 days

Applied Optoelectronics (AAOI) stock dropped 3.4% to $124.22 on Thursday after the company issued Q3 2026 guidance that came in below Wall Street expectations on earnings per share.

Applied Optoelectronics, Inc., AAOI

The company guided for Q3 EPS of $0.11 to $0.26, compared to the analyst consensus of $0.27. Revenue guidance of $255M to $290M bracketed the $265.7M consensus.

Despite the guidance miss, Q2 results were solid. AAOI posted record revenue of $191.9M for the quarter, up 86% year-over-year and 27% from Q1. It was the fifth consecutive quarter of record sales.

APPLIED OPTOELECTRONICS $AAOI Q2’26 EARNINGS HIGHLIGHTS

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