Applied Optoelectronics (AAOI) is set to report its Q2 2026 earnings after markets close on Thursday. Ahead of that, investors may be wondering if the stock will rise or fall. Using historical data, shareholders can take an educated guess at how the stock will perform after its earnings report later this week. Interestingly, AAOI stock has largely fallen after earnings, except for one case of an extreme rally.
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Double your AAOI exposure with Tradr's AAOXHere’s a quick breakdown of AAOI stock’s price movements after its four most recent earnings reports.
Investors can see from this chart that AAOI stock experienced decent drops after its Q1 2026, Q3 2025, and Q2 2025 earnings reports. However, the shares experienced a massive rally after the company’s Q4 2025 earnings report, which boosted the price 56.88%.
Investors will note that AAOI stock saw such a strong rally after the company posted Q4 results well above estimates. That included adjusted earnings per share of -1 cent alongside revenue of $134.27 million. For comparison, Wall Street expected adjusted EPS of -11 cents and revenue of $132.28 million. Additionally, the company provided strong guidance alongside increased AI data center demand.
With the AI boom ongoing, Applied Optoelectronics could report another beat in its Q2 2026 earnings release. If it does, this could boost the shares again, especially if the company provides another strong catalyst for trader optimism with an AI data center demand update.
How Applied Optoelectronics Stock Moved Ahead of Earnings
Applied Optoelectronics stock was up 15.85% on Tuesday, extending a 265.95% year-to-date rally. The stock has also surged 414.64% over the past 12 months.
What to Expect from Applied Optoelectronics’ Q2 2026 Earnings Report
Wall Street expects Applied Optoelectronics to report its first profit in over two years during this earnings report. That includes adjusted EPS of 1 cent alongside revenue of $190.48 million. Based on the company’s earnings history over the past eight quarters, there’s an equal chance it will beat or miss Wall Street’s estimates.
Is Applied Optoelectronics Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Applied Optoelectronics is Moderate Buy, based on three Buy and two Hold ratings over the past three months. With that comes an average AAOI stock price target of $144.30, representing a potential 14.25% upside for the shares. (See AAOI Stock Forecast)
