AXT reported second quarter 2026 revenue of $47.6 million and GAAP diluted earnings per share of $0.17, significantly surpassing analyst expectations and marking a substantial turnaround from the prior year's loss.
Key Highlights
- Revenue grew to $47.6 million, up 165% from $18.0 million in the same quarter last year, driven by what management described as a "step-function increase" in demand.
- The company reported GAAP net income of $11.1 million, or $0.17 per diluted share, a major reversal from a net loss of $7.0 million, or $0.16 per share, in the prior-year period.
- GAAP gross margin expanded significantly to 44.9% from 8.0% in the second quarter of 2025, attributed to improved productivity and strong customer demand.
- Management noted that the company achieved its highest quarterly indium phosphide revenue to date, fueled by demand for data center optical connectivity and AI infrastructure.