AXT reported second-quarter 2026 revenue of $47.6 million and GAAP net income attributable to AXT of $11.1 million ($0.17 diluted EPS), a significant increase from a net loss in the prior-year quarter. GAAP gross margin improved to 44.9% and non-GAAP diluted EPS was $0.19 for the quarter. Management cited strong customer demand for data center optical connectivity and expanded manufacturing capacity as drivers of the revenue inflection.
Financial Highlights
- Revenue: $47.6 million for the three months ended June 30, 2026 (vs. $17.974 million in Q2 2025).
- GAAP gross profit: $21.366 million and GAAP gross margin: 44.9% of revenue for Q2 2026.
- GAAP income from operations: $10.423 million for Q2 2026.
- GAAP net income attributable to AXT: $11.128 million for Q2 2026; GAAP diluted net income per share: $0.17.
- Non-GAAP net income: $11.890 million for Q2 2026; Non-GAAP diluted net income per share: $0.19 (non-GAAP excludes stock-based compensation).
Business Highlights
- Recorded the highest quarterly indium phosphide (InP) revenue to date, driven by customer demand in data center optical connectivity.
- Management highlighted continued expansion of manufacturing capacity and productivity improvements to meet increasing market demand.
- Company is engaging with direct customers and major end customers to align on expected demand and product roadmaps in optical and AI infrastructure markets.
- AXT emphasized its integrated supply chain strategy, including partial ownership in over ten China-based suppliers of raw materials and consumables to support manufacturing scale-up.
Original SEC Filing:
This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.