Filing Flows › Applied Optoelectronics (AAOI) › Q3 2026
Applied Optoelectronics (AAOI) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
Applied Optoelectronics (AAOI) reported revenue of $270M for the third quarter 2026 (Q3 2026), +127% from a year earlier and +41% from the quarter before. Operating margin was -0.5%, net earnings $6.3M (2.3% of revenue).
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.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $270M | +41% | +127% |
| Operating profit | −$1.4M | — | — |
| Net earnings | $6.3M | — | — |
| Operating cash flow | −$2.9M | -125% | — |
What changed
Revenue was $269.9M in Q3 2026, up 127% year over year and up 41% from the previous quarter. Data Center was the largest line at 58% of revenue. Data Center added $111.7M year over year (up 254%), 74% of the total change. Telecom declined 27%.
Gross margin was 28.2%, up 0.2 points from a year earlier. Operating costs exceeded revenue by $1.4M, an operating margin of -0.5%. Operating expenses grew 51% against revenue growth of 127%. The fastest-growing cost line was Research & development (+79%). Net earnings were $6.3M. The effective tax rate was 27.2%. Non-operating items added $10.1M, 117% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$2.9M. Non-cash charges added back $14.7M of depreciation and amortization and $5.7M of share-based compensation. Working capital and other items used $29.6M. Capital expenditures of $367.0M exceeded it, leaving free cash flow of −$369.9M.
Questions
What was Applied Optoelectronics' revenue in the third quarter 2026?
Applied Optoelectronics (AAOI) reported revenue of $270M for the third quarter 2026 (Q3 2026), +127% from a year earlier and +41% from the quarter before.
Was Applied Optoelectronics profitable in the third quarter 2026?
Operating loss was $1.4M (-0.5% of revenue) and net earnings $6.3M.