Applied Optoelectronics (NASDAQ:AAOI) Issues Q4 2025 Earnings Guidance

Applied Optoelectronics (NASDAQ:AAOI) issued an update on its fourth quarter 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of -0.130–0.040 for the period. The company issued revenue guidance of $125.0 million-$140.0 million, compared to the consensus revenue estimate of $144.3 million.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on AAOI. Needham & Company LLC began coverage on Applied Optoelectronics in a report on Friday, July 25th. They set a “buy” rating and a $32.00 price target on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Wednesday, October 8th. Raymond James Financial upped their target price on Applied Optoelectronics from $18.00 to $25.00 and gave the company an “outperform” rating in a report on Friday, August 8th. Wall Street Zen downgraded Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Saturday, August 9th. Finally, Northland Securities set a $30.00 price target on shares of Applied Optoelectronics in a report on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Applied Optoelectronics currently has an average rating of “Hold” and an average price target of $27.20.

Applied Optoelectronics Stock Performance

AAOI stock traded down $1.57 during trading on Friday, reaching $27.54. 7,348,440 shares of the stock were exchanged, compared to its average volume of 4,642,673. Applied Optoelectronics has a twelve month low of $9.71 and a twelve month high of $44.50. The company has a current ratio of 2.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $1.72 billion, a P/E ratio of -8.20 and a beta of 2.88. The stock has a 50 day simple moving average of $29.35 and a 200-day simple moving average of $23.85.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.10) by $0.01. The company had revenue of $118.63 million for the quarter, compared to analyst estimates of $119.77 million. Applied Optoelectronics had a negative return on equity of 10.60% and a negative net margin of 42.29%.Applied Optoelectronics’s revenue for the quarter was up 82.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.21) EPS. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. As a group, sell-side analysts anticipate that Applied Optoelectronics will post -1.18 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Chih-Hsiang (Thompson) Lin acquired 3,250 shares of the firm’s stock in a transaction on Wednesday, August 13th. The shares were purchased at an average price of $22.65 per share, with a total value of $73,612.50. Following the acquisition, the chief executive officer directly owned 1,655,415 shares in the company, valued at $37,495,149.75. The trade was a 0.20% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, insider Hung-Lun (Fred) Chang sold 15,784 shares of the company’s stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $22.70, for a total value of $358,296.80. Following the transaction, the insider directly owned 256,326 shares in the company, valued at approximately $5,818,600.20. This represents a 5.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have acquired 44,100 shares of company stock worth $1,000,878 over the last quarter. Corporate insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Applied Optoelectronics by 10.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock worth $393,000 after buying an additional 2,415 shares during the period. Cetera Investment Advisers acquired a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $377,000. New York State Common Retirement Fund grew its stake in Applied Optoelectronics by 36.0% in the 2nd quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after buying an additional 4,500 shares during the last quarter. Invesco Ltd. lifted its holdings in Applied Optoelectronics by 50.0% during the 2nd quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company’s stock worth $1,562,000 after purchasing an additional 20,261 shares during the last quarter. Finally, First Trust Advisors LP bought a new position in Applied Optoelectronics during the second quarter worth about $952,000. Institutional investors and hedge funds own 61.72% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.