AXT (NASDAQ:AXTI) Announces Earnings Results

Key Points

• Q1 beat and bullish Q2 outlook: AXT reported Q1 EPS of ($0.01) and $26.9M revenue, topping estimates, and raised Q2 guidance to non‑GAAP EPS of $0.06–$0.08 (GAAP $0.05–$0.07) with revenue guidance around $34M.
• Major InP backlog and funded capacity expansion: Indium phosphide backlog exceeds $100M and management plans to double IP capacity in 2026 and again in 2027, supported by a $632.5M capital raise for Tongmei.
• Regulatory/export‑permit risk: Management cautioned that near‑term shipments depend on export permits—only about $34M of Q2 revenue is permit‑free or already permitted—so permit delays could limit growth despite strong demand.

AXT (NASDAQ:AXTI - Get Free Report) posted its quarterly earnings data on Thursday. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.03, FiscalAI reports. AXT had a negative return on equity of 9.50% and a negative net margin of 24.07%.The company had revenue of $26.92 million for the quarter, compared to the consensus estimate of $26.22 million. 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 Stock Performance

Shares of AXT stock traded up $8.15 during trading hours on Thursday, reaching $79.22. The company's stock had a trading volume of 12,301,735 shares, compared to its average volume of 13,124,976. AXT has a one year low of $1.23 and a one year high of $90.10. The company's 50 day simple moving average is $55.58 and its 200 day simple moving average is $28.83. The stock has a market cap of $5.18 billion, a P/E ratio of -165.04 and a beta of 1.51.

Insider Activity at AXT

In related news, CEO Morris S. Young sold 37,905 shares of the stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $51.13, for a total transaction of $1,938,082.65. Following the sale, the chief executive officer owned 2,275,328 shares in the company, valued at $116,337,520.64. This represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Jesse Chen sold 8,083 shares of the firm's stock in a transaction dated 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 transaction, the director directly owned 109,526 shares in the company, valued at $5,503,681.50. This represents a 6.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 502,278 shares of company stock valued at $21,196,754 in the last quarter. Insiders own 5.97% of the company's stock.

Institutional Trading of AXT

Several hedge funds have recently made changes to their positions in AXTI. XTX Topco Ltd bought a new position in AXT during the 2nd quarter worth $42,000. Jefferies Financial Group Inc. bought a new stake in AXT in the third quarter valued at $52,000. State of Wyoming acquired a new position in shares of AXT during the fourth quarter valued at $69,000. Creative Planning bought a new position in shares of AXT during the second quarter worth about $86,000. Finally, Kestra Advisory Services LLC bought a new position in shares of AXT during the fourth quarter worth about $98,000. Institutional investors own 49.52% of the company's stock.

Key Stories Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Raised Q2 guidance well above Street — AXT set Q2 FY26 EPS guidance of $0.060–0.080 versus a consensus loss (~-$0.01) and revenue guidance of $34.0M vs. a ~$30.3M consensus, signaling stronger demand and margin improvement ahead.
• Positive Sentiment: Completed a large capital raise to fund expansion — Management said it completed a $632.5M capital raise to support Tongmei’s indium phosphide capacity expansion and R&D investment, improving the company’s ability to execute growth plans. AXT, Inc. Announces First Quarter 2026 Financial Results
• Positive Sentiment: Q1 results: small beat on EPS and revenue — Q1 revenue of ~$26.9M (+39% YoY) and EPS of ($0.01) topped expectations (consensus ~($0.04)), showing better-than-expected quarter performance and supporting the upbeat guidance. AXT Q1 Press Release
• Neutral Sentiment: Underwritten equity offering / dilution — Recent filings disclosed an underwritten offering (≈8.56M shares at $64.25, ~ $550M) to raise capital; while funding supports growth, it also introduces dilution risk that investors will monitor. AXT shares jump as investors position ahead of Q1 earnings
• Neutral Sentiment: Wide analyst spread on targets — Recent analyst price targets vary sharply (e.g., Wedbush $80 vs. B. Riley $21), reflecting disagreement on execution and valuation; that divergence can amplify volatility as the story evolves.
• Negative Sentiment: Unusual put buying — There was a significant uptick in put option purchases (26,242 puts, ~+53% vs. average), indicating some traders positioned for near-term downside or used hedges around the earnings event.
• Negative Sentiment: Heavy insider selling and balance-sheet items flagged — Public data show many insider sales in recent months and Quiver-highlighted items (Q1 operating loss, higher liabilities). These raise governance/conviction concerns for some investors. AXT Inc (AXTI) Stock Falls on Q1 2026 Earnings

Analysts Set New Price Targets

A number of research firms have recently weighed in on AXTI. Wall Street Zen raised shares of AXT from a "sell" rating to a "hold" rating in a research report on Saturday, February 14th. Needham & Company LLC downgraded shares of AXT from a "buy" rating to a "hold" rating in a research note on Tuesday, January 20th. UBS Group set a $35.00 price objective on shares of AXT in a report on Tuesday, February 17th. Wedbush boosted their target price on shares of AXT from $8.50 to $28.00 and gave the stock an "outperform" rating in a research report on Friday, February 20th. Finally, B. Riley Financial upped their target price on shares of AXT to $21.00 and gave the company a "neutral" rating in a research note on Friday, February 20th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, AXT currently has an average rating of "Hold" and an average target price of $22.80.

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.

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