Applied Optoelectronics reported third-quarter revenue of $269.9 million, above the $269.2 million analysts expected, and net income of $6.3 million versus a loss a year earlier. The company had guided to revenue of $255 million to $290 million.
Applied Optoelectronics posted third-quarter revenue of $269.9 million, beating the $269.2 million expected by three analysts surveyed by Zacks. The company reported net income of $6.3 million for the quarter, after a loss in the same period a year earlier. Applied Optoelectronics, known as AAOI, was set to report third-quarter 2026 results on Nov. 5.
Third-quarter outlook
For the third quarter of 2026, the company expected revenues between $255 million and $290 million and non-GAAP earnings between 11 cents and 26 cents per share. It projected CATV revenues of $100 million to $110 million, compared with $80.6 million in the prior quarter. Performance was expected to have been hurt by a $20 million to $25 million decline in 100G transceiver revenues due to memory-related switch shortages.
800G and 1.6T products
The company expected 800G revenues to rise nearly fivefold sequentially in the third quarter, following sequential growth of more than 100% in the second quarter. It also anticipated completing qualification of its first 1.6T transceiver with a major hyperscale customer during the third quarter, with initial shipments expected toward the end of the quarter.
