Applied Optoelectronics Rallies Over 40% On Q4 Beat, Q1 Outlook

Applied Optoelectronics Inc (NASDAQ:AAOI) is trading sharply higher Friday morning after the fiber-optic component maker posted stronger-than-expected fourth-quarter results and issued upbeat guidance for the first quarter. Here’s what investors need to know.

• Applied Optoelectronics stock is surging Friday. Why are AAOI shares at highs?

Q4 Revenue Jumps 34%, Tops Estimates

Late Thursday, the company reported an adjusted fourth-quarter loss of 1-cent per share, far better than Wall Street's projected loss of 11 cents.

Revenue rose roughly 34% year over year to $134.3 million, edging past consensus estimates and marking a record quarter for the Sugar Land, Texas-based supplier of advanced optical and hybrid fiber-coax networking gear.

Management highlighted broad-based strength across its CATV and datacenter businesses, along with expanding gross margins.

Q1 Revenue Outlook Tops Estimates

For the first quarter of 2026, Applied Optoelectronics forecasts revenue between $150 million and $165 million, above analyst expectations around $145 million.

The company expects a non-GAAP net loss of 9 cents per share at worst, with the potential to break even as it ramps next-generation datacenter products and adds manufacturing capacity.

Following the report, Needham reiterated its Buy rating and lifted its price target on AAOI to $80 from $43, while B. Riley Securities upgraded the stock to Neutral from Sell and raised its target to $54 from $15.

AAOI Hits New 52-Week High

Applied Optoelectronics shares have surged to a new 52-week high of $79.50 after climbing sharply in recent weeks, marking a dramatic rebound from a low around $10 last spring.

The stock is now trading well above its 20-, 50- and 200-day moving averages, signaling strong bullish momentum and an accelerating uptrend.

AAOI Stock Skyrockets Friday Morning

AAOI Price Action: Applied Optoelectronics shares were up 47.87% at $79.39 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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