Applied Optoelectronics delivered record revenue for its sixth consecutive quarter, beating analyst expectations on both the top and bottom lines. The company successfully returned to GAAP profitability during the period, primarily driven by a massive expansion in datacenter operations and the securing of a new strategic agreement with a Tier 1 hyperscale customer.
Key Highlights
- Datacenter revenue surged 254% year-over-year to $155.6 million, up from $43.9 million in the third quarter of 2025.
- The company achieved GAAP net income of $6.3 million, or $0.07 per share, a significant turnaround from the $17.9 million net loss reported in the prior-year period.
- Manufacturing capacity for high-speed 800G and 1.6T products is expected to reach 500,000 units per month by year-end 2026, despite construction-related delays involving electrical power at U.S. facilities.