Applied Optoelectronics Surged 33% after Soaring 57% on Last Friday, Q1 Earnings Guidance Exceeds Expectations

The fiber-optic component maker Applied Optoelectronics surged 33% in premarket. The stock surged nearly 57% in the previous trading session, as the company's first-quarter earnings guidance exceeded expectations.

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.

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.