AXT Q2 revenue more than doubles, beats estimates on strong data center demand

AXT

30/07/2026 21:16

Overview
US compound semiconductor maker's Q2 revenue more than doubled, beating analyst expectations
Adjusted net income for Q2 beat analyst expectations
Company cites strong demand for data center optical connectivity and record indium phosphide revenue

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
DATA CENTER DEMAND - Co said strong customer demand for data center optical connectivity drove revenue growth
RECORD INDIUM PHOSPHIDE REVENUE - Co reported highest quarterly indium phosphide revenue to date
CAPACITY AND PRODUCTIVITY - Co attributed results to increased manufacturing capacity and improved productivity

Company press release: ID:nBw5NJDQca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$47.60 mln
$34.09 mln (5 Analysts)
Q2 Adjusted Net Income
Beat
$11.90 mln
$4.41 mln (4 Analysts)
Q2 Adjusted Gross Margin
 
45.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for AXT Inc is $93.00, about 151.6% above its July 29 closing price of $36.97
The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 1,232 three months ago

Reuters Recommended Reads
July 30 - Aixtron orders nearly double on strong optoelectronics demand
July 28 - Corning Q2 core sales beat estimates on optical communications strength
July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)