Equity Profile

AAOI

Applied Optoelectronics, Inc.

Information TechnologyCommunications Equipment$14.2B

Aug6Thu

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Applied Optoelectronics, Inc. (AAOI) operates in the Information Technology sector, focusing on communications equipment....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a key indicator of the company's profitability and is closely watched by investors.

N/A

Revenue Growth

Revenue growth indicates the company's ability to expand its market share and meet demand in the communications sector.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

AAOI Q2-2026 Earnings Preview

Context

Company Snapshot

Applied Optoelectronics, Inc. (AAOI) operates in the Information Technology sector, focusing on communications equipment. The company is significant as it provides optical networking products that support high-speed internet and data services, which are increasingly important in today's digital economy.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+38.95%

Avg Stock Reaction

-0.30%

Last Quarter Recap

In Q1 2026, AAOI reported an EPS of -$0.07, outperforming expectations by 32%. However, the stock fell 11.76% the following day, indicating market disappointment despite the positive surprise.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for AAOI are uncertain due to the lack of analyst estimates and management guidance. The stock's recent performance suggests that investors are cautious ahead of the earnings report.

Bull Case

If AAOI can demonstrate strong revenue growth and improved margins, it could signal a turnaround in its financial performance, leading to a positive market reaction.

Bear Case

Conversely, if the company fails to show signs of recovery or continues to report losses, it may lead to further declines in stock price and investor confidence.

Expectations

Two Questions That Matter

The print will turn on these two things.

What specific revenue growth figures can AAOI report for this quarter?

Revenue growth is critical to assess the company's recovery trajectory and its ability to capitalize on market demand.

Will management provide any guidance on future profitability or cost management?

Guidance on profitability will help investors gauge the company's financial health and operational efficiency moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate the potential for AAOI to leverage new contracts in the growing optical networking market, which could drive unexpected revenue growth.

Supporting Evidence

The options market is pricing a significant move, indicating that traders expect volatility and potential surprises.

AAOI has a history of beating EPS estimates, suggesting that the company may have the capacity to outperform expectations again.

Key Risk

If revenue growth exceeds expectations significantly, it could shift market sentiment and lead to a bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether AAOI can turn around its financial performance after a series of disappointing quarters.

Bull Confirmed If

A revenue growth rate of at least 15% year-over-year would confirm the bullish outlook.

Bear Confirmed If

A revenue decline or continued losses would solidify the bearish perspective.

Pre-Earnings Positioning

Options Market

Implied Move

±56.52%

Historical Avg

±7.4%

Pricing rich

The options market is pricing in a significant move, indicating that traders expect volatility around the earnings report.

Options are pricing ±56.5% while AAOI has averaged ±7.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.3%

30d HV

138.9%

Calls (2.0M)P/C Ratio: 1.69Puts (1.0M)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$7.1M

69,400 sh

3 insiders

Net

$7.1M

Net selling

Most Active Insiders· 3 open-market trades

*** See RemarksChang Hung-Lun (Fred)
$3.6M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If AAOI beats expectations and raises guidance, history suggests a potential stock increase of around +0.21% on the following day.

In-Line / Cautious

If results are in line but management is cautious, the stock may experience muted movement as investors reassess their outlook.

Miss

A miss could lead to a decline of approximately -3.87%, reflecting ongoing concerns about the company's profitability.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new contracts or partnerships that could drive revenue growth.
2Any updates on cost management strategies that could improve margins.
3Insights into market demand for optical networking products.
4Management's outlook on competitive pressures in the communications equipment sector.
5Comments on the company's long-term growth strategy.

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Company Snapshot

Applied Optoelectronics, Inc. (AAOI) operates in the Information Technology sector, focusing on communications equipment....

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a key indicator of the company's profitability and is closely watched by investors.

N/A

Revenue Growth

Revenue growth indicates the company's ability to expand its market share and meet demand in the communications sector.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

AAOI Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+38.95%

Avg Stock Reaction

-0.30%

Last Quarter Recap

In Q1 2026, AAOI reported an EPS of -$0.07, outperforming expectations by 32%. However, the stock fell 11.76% the following day, indicating market disappointment despite the positive surprise.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If AAOI can demonstrate strong revenue growth and improved margins, it could signal a turnaround in its financial performance, leading to a positive market reaction.

Bear Case

Conversely, if the company fails to show signs of recovery or continues to report losses, it may lead to further declines in stock price and investor confidence.

Expectations

Two Questions That Matter

The print will turn on these two things.

What specific revenue growth figures can AAOI report for this quarter?

Revenue growth is critical to assess the company's recovery trajectory and its ability to capitalize on market demand.

Will management provide any guidance on future profitability or cost management?

Guidance on profitability will help investors gauge the company's financial health and operational efficiency moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate the potential for AAOI to leverage new contracts in the growing optical networking market, which could drive unexpected revenue growth.

Supporting Evidence

The options market is pricing a significant move, indicating that traders expect volatility and potential surprises.

AAOI has a history of beating EPS estimates, suggesting that the company may have the capacity to outperform expectations again.

Key Risk

If revenue growth exceeds expectations significantly, it could shift market sentiment and lead to a bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether AAOI can turn around its financial performance after a series of disappointing quarters.

Bull Confirmed If

A revenue growth rate of at least 15% year-over-year would confirm the bullish outlook.

Bear Confirmed If

A revenue decline or continued losses would solidify the bearish perspective.

Pre-Earnings Positioning

Options Market

Implied Move

±56.52%

Historical Avg

±7.4%

Pricing rich

The options market is pricing in a significant move, indicating that traders expect volatility around the earnings report.

Options are pricing ±56.5% while AAOI has averaged ±7.4% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.3%

30d HV

138.9%

Calls (2.0M)P/C Ratio: 1.69Puts (1.0M)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$7.1M

69,400 sh

3 insiders

Net

$7.1M

Net selling

Most Active Insiders· 3 open-market trades

*** See RemarksChang Hung-Lun (Fred)
$3.6M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If AAOI beats expectations and raises guidance, history suggests a potential stock increase of around +0.21% on the following day.

In-Line / Cautious

If results are in line but management is cautious, the stock may experience muted movement as investors reassess their outlook.

Miss

A miss could lead to a decline of approximately -3.87%, reflecting ongoing concerns about the company's profitability.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Details on new contracts or partnerships that could drive revenue growth.
2Any updates on cost management strategies that could improve margins.
3Insights into market demand for optical networking products.
4Management's outlook on competitive pressures in the communications equipment sector.
5Comments on the company's long-term growth strategy.