[AAOI Q2 Revenue Surges 86% to $192 Million, Q3 Outlook Leaning Conservative] BlockBeats News, August 7 – High-speed optical module manufacturer AAOI (Applied Optoelectronics) released its fiscal Q2 2026 earnings report, posting revenue of $191.9 million, an 86% year-over-year increase, slightly exceeding market expectations of $190 million. This marks the fifth consecutive quarter of record-breaking revenue. Adjusted earnings per share (EPS) came in at $0.06, significantly surpassing the expected $0.01. Non-GAAP net profit reached $5.5 million, far exceeding the forecasted $1.7 million, marking a key milestone as the company returned to Non-GAAP profitability this quarter. AAOI's gross margin declined, with GAAP gross margin at 27.7%, down 2.6 percentage points year-over-year, and Non-GAAP gross margin at 29.8%, down 0.6 percentage points year-over-year. AAOI's Q3 outlook is relatively conservative: revenue guidance is set at $255 million to $290 million, with a midpoint of approximately $272.5 million, slightly below the market expectation of around $278 million. Adjusted EPS guidance is $0.11 to $0.26, significantly below the expected $0.28. Non-GAAP net profit guidance is $10.1 million to $24 million, lower than the expected $25.2 million. Non-GAAP gross margin guidance is 29% to 30.5%. AAOI emphasized that market demand remains extremely strong and is expected to exceed the company's production capacity through mid-2027. Capacity constraints remain the core limiting factor.