AXT (NASDAQ:AXTI) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

AXT (NASDAQ:AXTI - Get Free Report) issued its earnings results on Thursday. The semiconductor company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.04) by $0.03, FiscalAI reports. The firm had revenue of $26.92 million for the quarter, compared to analyst estimates of $26.22 million. AXT had a negative net margin of 14.69% and a negative return on equity of 6.11%. AXT updated its Q2 2026 guidance to 0.060-0.080 EPS.

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

• Q1 results and Q2 guidance: Q1 revenue was $26.9M with a non-GAAP gross margin of 29.9% and a sharply reduced non-GAAP net loss; management expects to be profitable in Q2 with non-GAAP EPS of $0.06–$0.08 (GAAP $0.05–$0.07).
• Large Indium Phosphide backlog and rapid capacity expansion: Indium Phosphide backlog topped $100M, Q2 is expected to be the largest IP quarter in company history, and AXT plans to double IP capacity in 2026 and double again in 2027, supported by a $632.5M capital raise for Tongmei.
• Integrated raw-material and manufacturing advantage: AXT highlighted vertical integration (JinMei refining high‑purity indium, in‑house furnace design and crucible supply) as a competitive edge to secure critical materials and improve margins.
• Export-permit risk constrains upside: Management warned that future revenue and shipments depend materially on the timing and approval of export permits; only about $34M of Q2 revenue is currently permit‑free or already permitted, so permit delays could limit near‑term growth.

AXT Trading Up 21.2%

AXTI stock opened at $96.00 on Friday. The firm has a market cap of $6.28 billion, a PE ratio of -200.00 and a beta of 1.75. The stock has a 50-day moving average price of $55.58 and a 200-day moving average price of $28.83. AXT has a 1-year low of $1.23 and a 1-year high of $96.32.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AXTI. Needham & Company LLC lowered AXT from a "buy" rating to a "hold" rating in a research report on Tuesday, January 20th. B. Riley Financial upped their price target on AXT to $21.00 and gave the company a "neutral" rating in a research report on Friday, February 20th. Craig Hallum reissued a "buy" rating on shares of AXT in a research note on Friday, January 9th. UBS Group set a $35.00 price objective on AXT in a research report on Tuesday, February 17th. Finally, Wedbush lifted their price objective on AXT from $8.50 to $28.00 and gave the stock an "outperform" rating in a research note on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $22.80.

Insider Activity at AXT

In related news, Director Jesse Chen sold 8,083 shares of the firm's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $50.25, for a total transaction of $406,170.75. Following the completion of the sale, the director owned 109,526 shares of the company's stock, valued at $5,503,681.50. This trade represents a 6.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Morris S. Young sold 37,905 shares of AXT stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $51.13, for a total value of $1,938,082.65. Following the completion of the sale, the chief executive officer owned 2,275,328 shares of the company's stock, valued at approximately $116,337,520.64. The trade was a 1.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 502,278 shares of company stock worth $21,196,754 in the last 90 days. Corporate insiders own 5.97% of the company's stock.

Institutional Trading of AXT

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AXTI. XTX Topco Ltd bought a new stake in shares of AXT in the 2nd quarter worth $42,000. Jefferies Financial Group Inc. bought a new stake in AXT in the 3rd quarter valued at about $52,000. State of Wyoming purchased a new stake in shares of AXT during the 4th quarter valued at approximately $69,000. Creative Planning bought a new stake in shares of AXT during the second quarter valued at about $86,000. Finally, Kestra Advisory Services LLC bought a new position in AXT in the 4th quarter valued at $98,000. 49.52% of the stock is owned by institutional investors.

Key Headlines Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT issued bullish Q2 guidance — management set EPS guidance of $0.06–$0.08 and revenue guidance around $34M, well above consensus, giving investors a near-term profit and revenue outlook upgrade. Press Release
• Positive Sentiment: Q1 results beat estimates on both EPS and revenue: revenue grew ~39% YoY to ~$26.9M and GAAP EPS was a smaller-than-expected loss, which supports the upbeat guidance. Earnings Summary
• Positive Sentiment: AXT completed a large equity capital raise (~$550M–$632.5M in recent filings/offering) to fund Tongmei’s indium-phosphide capacity expansion and R&D — provides cash for growth initiatives that could drive longer-term revenue expansion. Offering Coverage
• Neutral Sentiment: Institutional activity and analyst views are mixed — several hedge funds added large positions recently, while analyst price targets vary widely (e.g., Wedbush $80 vs B. Riley $21), contributing to volatile sentiment. Institutional Activity
• Neutral Sentiment: Unusual options activity (spike in put volume) and pre-earnings positioning increased trading volatility—this can amplify moves in either direction. (reported market activity)
• Negative Sentiment: Significant insider selling has been reported (multiple insiders selling large blocks over recent months), which investors may view as a red flag on near-term insider confidence. Insider Trades
• Negative Sentiment: Company remains unprofitable on a GAAP basis with negative margins/ROE, so execution risk and margin recovery will be critical to sustain the rally. Earnings Detail

AXT Company Profile

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.