Applied Optoelectronics Q2 Revenue Up 86% to $192 Million, Data Center Sales Top $100 Million, Shares Jump 11%

Applied Optoelectronics reported second-quarter results. GAAP revenue for the quarter was $192 million, up 86.31% year over year and 27% sequentially. Data center revenue surpassed $100 million for the first time, up 140% year over year, accounting for 56% of total revenue. The company posted non-GAAP income of $5.5 million, or $0.06 per diluted share.

Founder Thompson Lin said the second quarter marked a fifth consecutive period of record revenue and non-GAAP profitability. Shipments of 800G products more than doubled sequentially, and customer response to 800G and 1.6T high-speed optical modules has been strong. The company expects demand to outpace capacity by mid-2027, with near-term revenue growth constrained by capacity and supply of key components such as DSPs and TIAs.

Chief Financial Officer Stefan Murry provided capacity expansion guidance.

Second-quarter capital spending reached $565.5 million, including about $280 million in equipment prepayments, focused on manufacturing capabilities for 400G, 800G and 1.6T transceivers.

Applied Optoelectronics shares rose 11.46% in after-hours trading to $138.46.