$AAOI Just Reported. Is The Thesis Intact?

AAOI 0.00%↑ reported Q2 2026 after the close today.

• Revenue $191.9 million, up 86% YoY, up 27% QoQ

• Non-GAAP EPS $0.06, beating consensus of $0.02 by 200%

• Non-GAAP gross margin 29.8%

• Data center revenue $107.7 million, up 140% YoY

• 800G revenue $12.8 million, up more than 10x YoY

Every number landed inside or above the guided range. Non-GAAP EPS of $0.06 came in above management’s own guidance of ($0.03) to $0.03, but also the $0.02 Street consensus. This was AOI’s 5th consecutive record revenue quarter, and the first quarter of non-GAAP profitability since the ramp began.

CFO Stefan Murry called AOI’s high power narrow linewidth laser

“the best in the industry, the best in the world right now.”

AOI has always been a laser company and management reaffirmed it so people could stop calling them the transceiver assembler. They grow their own InP lasers on proprietary equipment while every other module maker sources from the already sold out suppliers.