AXT (NASDAQ:AXTI) Releases Earnings Results

AXT (NASDAQ:AXTI) announced its earnings results on Thursday. The semiconductor company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.07 by $0.12, FiscalAI reports. AXT had a negative net margin of 14.69% and a negative return on equity of 5.71%. The company had revenue of $47.59 million during the quarter, compared to the consensus estimate of $34.08 million. AXT updated its Q3 2026 guidance to 0.300-0.320 EPS.

Here are the key takeaways from AXT’s conference call:

• Record Q2 results: Revenue reached $47.6 million, up 77% sequentially and 164% year over year, while non-GAAP net income was $11.9 million, or $0.19 per diluted share. Non-GAAP gross margin improved to 45.0% from 29.9% in Q1.
• Demand for indium phosphide substrates, driven primarily by AI data-center optical connectivity, is substantially exceeding supply. The company plans to lift quarterly indium phosphide capacity to approximately $60 million by year-end 2026 and potentially around $130 million by the end of 2027, with backlog above $100 million.
• AXT signed long-term supply agreements with Casela, Coherent, and Lumentum, including $47.7 million in wafer prepayments from Casela and Coherent. Management said these agreements support confidence in the capacity expansion and expect their revenue contribution to increase from Q3 onward.
• Management guided to approximately $66 million of Q3 revenue that is already supported by permits or does not require permits, with non-GAAP earnings of $0.30–$0.32 per share. Further upside is possible if additional export permits are secured, although permit timing remains uncertain.
• Tongmei shifted its planned listing from China’s STAR Market to the Hong Kong Exchange, a process expected to take about a year. The move creates a potential $49 million redemption right for private-equity investors, though management said investors currently want to remain invested and AXT has sufficient cash if redemption is requested.

AXT Stock Up 29.3%

AXT stock traded up $13.74 during midday trading on Friday, hitting $60.68. 25,823,267 shares of the stock were exchanged, compared to its average volume of 10,172,729. AXT has a 52 week low of $1.85 and a 52 week high of $143.16. The stock has a market capitalization of $3.97 billion, a PE ratio of -194.47 and a beta of 1.86. The company has a fifty day simple moving average of $77.44 and a two-hundred day simple moving average of $61.74.

Trending Headlines about AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Q2 earnings beat expectations: AXT reported quarterly revenue of approximately $47.6 million, well above the roughly $34 million consensus estimate, while EPS of $0.19 exceeded expectations of $0.07. Results were supported by record indium phosphide demand, improved productivity and stronger profitability. AXTI Q2 Earnings Beat on Record InP Demand, Revenues Rise Y/Y
• Positive Sentiment: Very bullish Q3 outlook: Management guided for third-quarter EPS of $0.30–$0.32 and revenue of about $66 million, substantially above analyst estimates of approximately $0.10 EPS and $38.7 million in revenue. The outlook suggests momentum is continuing into the second half of the year.
• Positive Sentiment: AI infrastructure demand is driving expansion: AXT highlighted accelerating demand from data-center optical connectivity and plans to expand capacity, potentially supporting higher production volumes and margins. AXTI Q2 Earnings Call Highlights AI Capacity Expansion
• Positive Sentiment: Analyst upgrade and customer agreement: Needham upgraded AXTI from Hold to Buy and assigned a $90 price target. Separately, AXT entered a long-term indium phosphide supply and capacity-reservation agreement with Lumentum, improving demand visibility. Needham Upgrades AXT to Buy
• Neutral Sentiment: Options activity was elevated: Traders bought 43,167 call options, about 29% above average call volume, indicating increased speculative and potentially bullish interest but not guaranteeing further gains.
• Negative Sentiment: Insider selling remains a risk: Reported insider activity over the past six months showed sales by executives and directors, with no purchases. This may temper enthusiasm despite the earnings-driven rally.

Analyst Upgrades and Downgrades

AXTI has been the topic of several research reports. Needham & Company LLC raised AXT from a “hold” rating to a “buy” rating and set a $90.00 price target on the stock in a research note on Friday. B. Riley Financial dropped their price target on shares of AXT from $73.00 to $52.00 and set a “neutral” rating for the company in a research note on Tuesday. UBS Group set a $90.00 target price on shares of AXT in a report on Friday. Northland Securities set a $125.00 target price on shares of AXT in a research report on Wednesday, June 3rd. Finally, Weiss Ratings raised AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $77.00.

Insiders Place Their Bets

In other news, CEO Morris S. Young sold 123,601 shares of AXT stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $113.33, for a total transaction of $14,007,701.33. Following the transaction, the chief executive officer directly owned 2,149,533 shares of the company’s stock, valued at $243,606,574.89. This trade represents a 5.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jesse Chen sold 6,172 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $115.24, for a total transaction of $711,261.28. Following the completion of the transaction, the director directly owned 50,275 shares of the company’s stock, valued at $5,793,691. This trade represents a 10.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 251,636 shares of company stock worth $27,789,677. Company insiders own 5.97% of the company’s stock.

Hedge Funds Weigh In On AXT

Institutional investors have recently modified their holdings of the business. Tudor Investment Corp ET AL acquired a new stake in AXT during the 4th quarter worth approximately $278,000. Bank of America Corp DE raised its holdings in shares of AXT by 12,816.7% during the third quarter. Bank of America Corp DE now owns 52,571 shares of the semiconductor company’s stock worth $236,000 after acquiring an additional 52,164 shares during the period. SummitTX Capital L.P. acquired a new stake in shares of AXT during the fourth quarter worth $228,000. Osaic Holdings Inc. lifted its holdings in shares of AXT by 1,071.5% in the fourth quarter. Osaic Holdings Inc. now owns 11,012 shares of the semiconductor company’s stock valued at $180,000 after purchasing an additional 10,072 shares in the last quarter. Finally, Dimensional Fund Advisors LP bought a new stake in shares of AXT in the third quarter valued at about $145,000. Institutional investors own 49.52% of the company’s stock.

About AXT

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.