AXT (NASDAQ:AXTI) Issues Q3 2026 Earnings Guidance

Key Points

• AXT issued strong Q3 2026 guidance: EPS is expected at $0.30–$0.32, versus the $0.10 consensus estimate, while revenue guidance of $66.0 million significantly exceeds the $38.7 million consensus.
• Shares rose 27% to $46.94 following the update. The company also recently reported Q2 revenue of $47.6 million and EPS of $0.19, both well above analyst expectations.
• Risks remain: analysts maintain a consensus “Hold” rating with a $50 average price target, while insiders sold approximately $27.8 million of stock during the last quarter.

AXT (NASDAQ:AXTI - Get Free Report) updated its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.300-0.320 for the period, compared to the consensus EPS estimate of 0.100. The company issued revenue guidance of $66.0 million-$66.0 million, compared to the consensus revenue estimate of $38.7 million.

AXT Trading Up 27.0%

NASDAQ:AXTI traded up $9.97 during mid-day trading on Thursday, reaching $46.94. 18,036,077 shares of the stock were exchanged, compared to its average volume of 10,065,020. The business has a fifty day moving average price of $78.92 and a 200 day moving average price of $61.58. AXT has a 1-year low of $1.85 and a 1-year high of $143.16. The firm has a market capitalization of $3.07 billion, a PE ratio of -151.41 and a beta of 1.86.

AXT (NASDAQ:AXTI - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) earnings per share for the quarter, beating analysts' consensus estimates of ($0.04) by $0.03. The company had revenue of $26.92 million during the quarter, compared to the consensus estimate of $26.22 million. AXT had a negative net margin of 14.69% and a negative return on equity of 5.71%. On average, sell-side analysts forecast that AXT will post 0.19 earnings per share for the current year.

Analyst Ratings Changes

AXTI has been the subject of several recent research reports. Weiss Ratings raised shares of AXT from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, May 27th. B. Riley Financial decreased their price target on shares of AXT from $73.00 to $52.00 and set a "neutral" rating on the stock in a research report on Tuesday. Finally, Northland Securities set a $125.00 price target on AXT in a report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $50.00.

Insiders Place Their Bets

In other news, Director Jesse Chen sold 6,172 shares of AXT stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $115.24, for a total value of $711,261.28. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Morris S. Young sold 123,601 shares of the business's stock in a transaction that occurred 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 sale, the chief executive officer owned 2,149,533 shares in the company, valued at $243,606,574.89. This represents a 5.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 251,636 shares of company stock worth $27,789,677. Company insiders own 5.97% of the company's stock.

More AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Strong earnings and revenue beat: AXT reported second-quarter revenue of $47.6 million, up roughly 165% year over year and well above the $34.8 million consensus estimate. Earnings were reported at $0.19 per diluted share, exceeding the $0.07 analyst estimate. A third-party financial-data provider also reported $21.4 million of gross profit, $10.4 million of operating income and $11.1 million of net income attributable to common shareholders. AXT Second-Quarter 2026 Financial Results
• Positive Sentiment: Demand outlook is improving: CEO Morris Young said AXT is reaching an inflection point, driven by customer demand for data-center optical connectivity and continued success adding manufacturing capacity. This supports expectations for sustained growth in compound-semiconductor wafer substrates. AXT Second-Quarter 2026 Financial Results
• Positive Sentiment: Long-term Lumentum agreement: AXT entered into a multiyear supply and capacity-reservation agreement with Lumentum Operations for indium phosphide wafer substrates. The deal improves visibility into future demand and reinforces AXT’s position in optical communications. AXT Long-Term Supplier Agreement with Lumentum
• Neutral Sentiment: Strong liquidity: Cash and equivalents rose to approximately $445.2 million, providing financial flexibility for capacity expansion. However, operating cash flow was negative $11.7 million during the quarter.
• Negative Sentiment: Heavy insider selling: Company insiders reportedly made 33 open-market sales and no purchases over the past six months, including substantial sales by CEO Morris Young. This may raise concerns about valuation or insider confidence.
• Negative Sentiment: Mixed valuation signals: B. Riley issued a pessimistic forecast, while recent analyst price targets have ranged widely from $21 to $93. That dispersion reflects uncertainty about how durable the rapid growth will be.

Institutional Trading of AXT

Several hedge funds and other institutional investors have recently modified their holdings of the business. Acadian Asset Management LLC raised its position in AXT by 2.8% during the first quarter. Acadian Asset Management LLC now owns 293,818 shares of the semiconductor company's stock valued at $412,000 after buying an additional 8,039 shares during the period. Creative Planning purchased a new position in AXT during the second quarter valued at approximately $86,000. XTX Topco Ltd acquired a new position in AXT in the 2nd quarter valued at approximately $42,000. Dimensional Fund Advisors LP acquired a new position in AXT in the 3rd quarter valued at approximately $145,000. Finally, Jefferies Financial Group Inc. purchased a new stake in AXT in the 3rd quarter worth approximately $52,000. Institutional investors and hedge funds 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.

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