AXT Reports Record Q2 Earnings Driven by Indium Phosphide Demand
AXT Inc. (NASDAQ: AXTI) reported record financial results for its second quarter of 2026, driven primarily by strong demand in the indium phosphide segment used in data center applications. Revenue reached $47.6 million, up significantly from both the prior quarter and year-ago period. The company returned to profitability with a non-GAAP operating profit of $11.2 million and net income of $11.9 million or $0.19 per diluted share. The surge in performance was attributed to increased demand for indium phosphide substrates, which generated revenue of $30.7 million—its highest ever. AXT also benefited from a secondary public offering that raised $632 million and boosted its cash reserves to $749 million. The company provided Q3 guidance with expected revenue between $66 million and non-GAAP earnings per share in the range of $0.30–$0.32. Looking ahead, AXT plans to significantly expand indium phosphide capacity by 2027 while managing risks related to export permits for China-bound shipments.
