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After Applied Optoelectronics reported November results, we cut our quality score to 3.4 out of 5. We lowered our ratings for the management team and for the return the company earns on the money it invests. We have added the dilutive effect of recent stock sales and potential delays in US manufacturing expansion to the risks we track. We also updated our projections for revenue growth and profit margins over the next two years.
Applied Optoelectronics reported earnings of 17 cents per share, beating the 14 cents analysts expected. Revenue hit about 270 million dollars, marking the sixth straight quarter of record sales. The company is successfully shifting its business toward the high-speed lasers and parts needed for AI data centers, which earn higher profits than its older cable television equipment.
Management also announced a new multi-year deal with a major cloud provider. This is a key win because the company relies on a small number of massive customers to fill its factories. Securing this agreement provides more certainty that demand for its newest 800G and 1.6T products will continue to grow as tech giants expand their AI infrastructure.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Applied Optoelectronics, Inc. reports quarterly earnings TODAY (2026-11-05). The results are not out yet. Going in, analysts expect about $0.1422 per share and revenue of about $0.27 billion. For context, the company has beaten expectations in 5 of its last 8 quarters. Write a SHORT heads-up for someone who owns the stock: that results land today, and the one or two things worth watching in them given what we have said about this business. Do not predict the outcome and do not tell anyone what to do.
On October 30, the company entered into a new credit agreement with East West Bank for $170 million in loans and a $30 million revolving credit line. This replaces an older, smaller arrangement that was terminated on October 29. The new deal lasts until 2030 and allows the company to borrow an extra $50 million if needed.
This is a helpful step for a business in the middle of a major manufacturing ramp. The company can use these funds to buy the specialized equipment needed to build its high-speed 800G optical parts. Having more cash available reduces the risk that it will run out of money while waiting for large orders from big tech customers to translate into profit.
Source: 8-K filing
The company is scheduled to report its latest quarterly results on November 5. Analysts are looking for revenue of about 270 million dollars, which would reflect the ongoing shift toward high-speed hardware for AI data centers. This update is particularly important for tracking the progress of its 800G optical transceivers. These are the components that move data through fiber-optic cables at high speeds, and the company is currently ramping up production for its largest tech customers.
Management has a consistent record of clearing its own bars. Six beats in the last eight quarters show they are effectively managing expectations while the business reaches a profitable turning point.
| Expectation | |
|---|---|
| EPS | $0.59 |
| Revenue | $427M |
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