Semiconductor materials firm AXT Q3 revenue beats estimates

AXT

30/10/2025 20:15

Overview

AXT Q3 revenue increases to $28 mln, beating analyst expectations

Adjusted EPS for Q3 beats estimates, reflecting improved performance

Indium phosphide revenue grows over 250% sequentially, reaching a three-year high

Outlook

Company anticipates growth opportunities in 2026 driven by data center trends

AXT focuses on gross margin recovery and expense discipline for future growth

Result Drivers

INDIUM PHOSPHIDE DEMAND - Co reports over 250% sequential growth in indium phosphide revenues, driven by data center applications

GROSS MARGIN FOCUS - Co aims to drive gross margin recovery and expansion through operating expense discipline and inventory reduction

DATA CENTER TRENDS - Co sees strong market trends in data center upgrades as a key opportunity for growth in 2026

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$28 mln
$19.80 mln (5 Analysts)
Q3 Adjusted EPS
Beat
-$0.03
-$0.12 (5 Analysts)
Q3 Adjusted Net Income
Beat
-$1.20 mln
-$5.42 mln (4 Analysts)
Q3 Adjusted Gross Margin
22.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 $4.00, about 76.7% below its October 29 closing price of $7.07

Press Release: ID:nBw51538Xa

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(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.)