AXT Reports Q3 2026 Revenue of $73.4M, Up 162% Year Over Year
AXT, Inc. reported Q3 2026 revenue of $73.4 million, up 162% year over year from $28.0 million in Q3 2025, driven by strong customer demand for indium phosphide material. GAAP net income was $25.7 million ($0.39 diluted EPS) compared to a net loss of $1.9 million ($0.04 loss per share) in the prior year period. Non-GAAP net income was $26.8 million ($0.41 per share) compared to a net loss of $1.2 million in Q3 2025. GAAP gross margin expanded to 56.0% from 22.3% in Q3 2025.
Key takeaways
Revenue: Q3 2026 revenue was $73.4 million, up 54% sequentially from $47.6 million in Q2 2026 and up 162% year over year from $28.0 million in Q3 2025.
Indium phosphide demand: Revenue growth was driven by exceptionally strong customer demand for indium phosphide material, with the company more than quadrupling its 2026 indium phosphide revenue opportunity.
Profitability: GAAP net income of $25.7 million compared to net loss of $1.9 million year over year; non-GAAP net income of $26.8 million compared to net loss of $1.2 million in Q3 2025.
Margins: GAAP gross margin was 56.0% compared to 22.3% in Q3 2025; non-GAAP gross margin was 56.1% compared to 22.4% in Q3 2025.
Operating income: GAAP operating income was $28.4 million compared to operating loss of $1.1 million in Q3 2025.
Balance sheet: Cash and cash equivalents were $485.5 million as of September 30, 2026, up from $120.3 million as of December 31, 2025.
Nine-month revenue: Revenue for the nine months ended September 30, 2026 was $147.9 million, up 127% from $65.3 million in the prior year period.
Key metrics
Primary source
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