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Applied Optoelectronics (AAOI) guidance and outlook
Applied Optoelectronics (AAOI) updated its guidance on Nov 5, 2026: Revenue $385M–$420M for Q4 2026; Gross margin 29.5%–31% for Q4 2026; Net income $45.9M–$60.4M for Q4 2026; EPS $0.48–$0.63 for Q4 2026. Applied Optoelectronics' 10-Q filed Nov 5, 2026 makes 19 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | Q4 2026 | $385M–$420M | new |
| Gross margin | Q4 2026 | 29.5%–31% | new |
| Net income | Q4 2026 | $45.9M–$60.4M | new |
| EPS | Q4 2026 | $0.48–$0.63 | new |
From the earnings release filed Nov 5, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 5, 2026
- We target four networking end-markets: internet and artificial intelligence (“AI”) data centers, CATV, telecom, and FTTH.
- The four end markets we target are all driven by significant bandwidth demand fueled by the growth of AI, cloud computing, network-connected devices, video traffic, and online social networking.
- We expect the first of these new facilities to begin operation later in 2026.
- We believe that this customer's desire to engage in an LTA of this type is a consequence of their belief that the demand for these components will remain strong for the next several years.
- We continue to monitor these developments and have implemented strategies intended to reduce potential disruptions, including supply chain diversification, inventory management initiatives and operational efficiencies.
- We derive a significant portion of our revenue from our top ten customers, and we anticipate that we will continue to do so for the foreseeable future.
- We believe that diversifying our customer base is critical for our future success, since reliance on a small number of key customers makes our ability to forecast future results dependent upon the accuracy of the forecasts we receive from those key customers.
- Management expects gross margin to increase in future periods as a result of product mix, cost optimization initiatives, and production efficiencies.
- Based on current conditions, management expects shipping costs and tariff-related impacts to continue through the remainder of 2026, although at a reduced level compared to 2025.
- Accordingly, management cannot currently predict whether the reduction in tariff-related impacts will continue or the extent to which future tariff developments may affect our results of operations.
- We made significant investments in the three months ended September 30, 2026 which we believe should qualify for these credits, but we intend to continue to evaluate these and future investments for applicability to the tax credit provisions of the CHIPS Act.
- In addition, to the extent customers in the Company’s data center business continue to grow relative to Digicomm, Management expects Accounts Receivable concentration with Digicomm to decline.
Applied Optoelectronics' latest quarter
Applied Optoelectronics, Q3 2026: revenue $270M (+128% year over year), operating margin -0.5%, net earnings $6.3M, operating cash flow −$2.9M. The chart follows the revenue to costs, profit and cash.
Questions
Did Applied Optoelectronics raise or lower its guidance?
Applied Optoelectronics (AAOI) updated its guidance on Nov 5, 2026: Revenue $385M–$420M for Q4 2026; Gross margin 29.5%–31% for Q4 2026; Net income $45.9M–$60.4M for Q4 2026; EPS $0.48–$0.63 for Q4 2026.
What does Applied Optoelectronics expect?
We target four networking end-markets: internet and artificial intelligence (“AI”) data centers, CATV, telecom, and FTTH. The four end markets we target are all driven by significant bandwidth demand fueled by the growth of AI, cloud computing, network-connected devices, video traffic, and online social networking. We expect the first of these new facilities to begin operation later in 2026.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.