BlockBeats News, August 7th - High-speed optical module manufacturer AAOI (Applied Optoelectronics) announced its Q2 FY2026 financial results, with revenue of $1.919 billion, an 86% year-over-year growth, slightly higher than the market's expected $1.90 billion, marking the fifth consecutive quarter of record revenue. Adjusted EPS was $0.06, well above the expected $0.01; Non-GAAP net income was $5.5 million, significantly exceeding the expected $1.7 million, marking an important milestone this quarter in achieving Non-GAAP profitability. AAOI's gross margin saw a slight decrease, with a GAAP gross margin of 27.7%, a 2.6 percentage point decrease year-over-year, and a Non-GAAP gross margin of 29.8%, a 0.6 percentage point decrease year-over-year.

AAOI's outlook for the third quarter was somewhat conservative: revenue guidance of $2.55 billion to $2.90 billion, with a midpoint of around $2.725 billion, slightly below the market's expectation of approximately $2.78 billion; adjusted EPS guidance of $0.11 to $0.26, significantly lower than the expected $0.28; Non-GAAP net income guidance of $10.1 million to $24 million, below the expected $25.2 million; Non-GAAP gross margin guidance of 29% to 30.5%.

AAOI emphasized that market demand remains extremely strong, with market demand expected to exceed the company's production capacity until mid-2027, highlighting that capacity constraints are a key factor.