Applied Optoelectronics Reports 127.5% Year-over-Year Revenue Growth in Q3 2026
Applied Optoelectronics (AAOI) delivered strong third-quarter results for fiscal year 2026, reporting revenue of $269.9 million, a 127.5% increase compared to the previous year. This growth was primarily fueled by massive demand in the data center segment, which saw revenue surge 254% year-over-year, and the CATV segment, which grew 57%. The company's shift toward higher-speed products is evident, with 800G product revenue nearly quadrupling from the previous quarter. Despite the top-line strength, the company faces scaling challenges. Non-GAAP gross margins fell slightly below guidance due to a high concentration of 400G products. Additionally, management noted that manufacturing capacity and supply chain constraints—rather than lack of demand—are currently limiting revenue. While Q4 revenue guidance is aggressive at $385 million to $420 million, construction delays have forced a downward revision of the 2026 monthly unit capacity target.
Tickers: $AAOI
Topics: data center demand gross margin guidance manufacturing capacity revenue growth