Applied Optoelectronics (AAOI) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Applied Optoelectronics published the results on November 5, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. Applied Optoelectronics reports EPS two ways: GAAP, under the accounting rules every US filer follows, and non-GAAP, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• Applied Optoelectronics reports in thousands of dollars; figures here are converted to millions. The year-ago non-GAAP figure is a loss of $0.09 per basic share.
• On October 1, 2026, after the quarter ended, Applied Optoelectronics completed its third at-the-market share offering, selling approximately 5.7 million shares for net proceeds of approximately $588 million.

Source: Applied Optoelectronics Q3 2026 results, November 5, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Applied Optoelectronics splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Applied Optoelectronics's CATV revenue was $111 million in Q3 2026, up 57% from $70.6 million in Q3 2025, 41% of total revenue.
• Applied Optoelectronics's Datacenter revenue was $156 million in Q3 2026, up 254% from $43.9 million in Q3 2025, 58% of total revenue.
• Applied Optoelectronics's Telecom revenue was $2.7 million in Q3 2026, down 27% from $3.7 million in Q3 2025, 1% of total revenue.
• Applied Optoelectronics's Other revenue was $0.7 million in Q3 2026, up 88% from $0.4 million in Q3 2025, under 1% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

In its Q3 2026 release, Applied Optoelectronics said:

“Revenue in the range of $385 million to $420 million.”

“Non-GAAP gross margin in the range of 29.5% to 31%.”

“Non-GAAP net income in the range of $45.9 million to $60.4 million, and non-GAAP income per share in the range of $0.48 to $0.63 using approximately 96 million shares.”

Source: Applied Optoelectronics Q3 2026 release, Nov 5, 2026.

This is the company's own guidance as of Nov 5, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the AAOI forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP total revenue and diluted net income (loss) per share, each as first reported in that quarter's release.

We do not hold a confirmed date for Applied Optoelectronics's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 5, 2026

Applied Optoelectronics sells optical transceivers and networking products into two main markets. In Q3 2026 data center products brought in $155.6 million, 57.7% of total revenue of $269.9 million, and CATV (cable television broadband) products $110.9 million, or 41.1%. Telecom was $2.7 million and FTTH and other $0.7 million. (Applied Optoelectronics Form 10-Q, Q3 2026, Nov 5, 2026)

Total revenue rose 127.5% from $118.6 million. Applied Optoelectronics attributed $111.7 million of the increase to data center products, on strong demand from hyperscale customers for its high-speed connectivity products, and $40.3 million to CATV products, on higher volumes from market share gains and continued deployment by cable operator (MSO) customers. Revenue was also up from $191.9 million in Q2 2026. (Applied Optoelectronics Form 10-Q, Q3 2026, Nov 5, 2026; Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

Sales are highly concentrated. Applied Optoelectronics' top ten customers represented 99% of revenue in Q3 2026, and its top three represented 41%, 28% and 23%. A year earlier the top three were 66%, 24% and 3%. (Applied Optoelectronics Form 10-Q, Q3 2026, Nov 5, 2026)

After the quarter, Applied Optoelectronics signed a 3-year long term agreement with a major hyperscale data center customer, which is obligated, with conditions, to buy 10% of certain 1.6 Tb transceiver products from it between June 2026 and May 2029, at agreed maximum pricing levels. Amazon holds a warrant issued in March 2025 to buy up to 7,945,399 shares, and its fair value is recorded as a reduction of revenue from Amazon. (Applied Optoelectronics Form 10-Q, Q3 2026, Nov 5, 2026)

Applied Optoelectronics returned to GAAP profitability in Q3 2026, with net income of $6.3 million, or $0.07 per diluted share, against a loss of $17.9 million, or $0.28 per share, a year earlier. GAAP operating loss was still $1.4 million; other income of $10.1 million, including $8.2 million of other income, net, lifted it to a pre-tax profit. (Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

Non-GAAP EPS was $0.17. Applied Optoelectronics excludes share-based compensation ($5.7 million in the quarter), expenses associated with discontinued products, non-recurring expenses, amortization of intangible assets and unrealized foreign exchange gains or losses, and applies an estimated annual tax rate in place of the GAAP tax line. (Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

The share count has grown with its at-the-market offerings. Diluted weighted-average shares were 87,835 thousand in Q3 2026, against 63,329 thousand a year earlier, and the Q4 2026 outlook assumes approximately 96 million shares. (Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Applied Optoelectronics gives next-quarter guidance in its release. For Q4 2026 it expects revenue of $385 million to $420 million, non-GAAP gross margin of 29.5% to 31%, and non-GAAP EPS of $0.48 to $0.63 on approximately 96 million shares. (Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

Applied Optoelectronics' CFO said in the release that total manufacturing equipment capacity was approaching 330,000 units per month, that the company expects equipment to produce over 500,000 pieces of 800G and 1.6 Tb products per month by the end of 2026, and over 1 million per month by the end of 2027. It now expects the 2027 U.S. capacity expansion to take longer to complete, citing the time needed to obtain electrical power, among other construction issues. (Applied Optoelectronics Q3 2026 release, Nov 5, 2026)

A consensus figure is the average of the models published by the analysts who cover Applied Optoelectronics, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Applied Optoelectronics's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning AAOI is on is AAOI a buy or a sell?, what analysts expect next is on the AAOI forecast, and what the company does is on the Applied Optoelectronics (AAOI) stock page.

Every number on this page can be traced to a document Applied Optoelectronics published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.