Overview

* AXT Q3 revenue increases to $28 mln, beating analyst expectations

* Adjusted EPS for Q3 beats estimates, reflecting improved performance

* Indium phosphide revenue grows over 250% sequentially, reaching a three-year high

Outlook

* Company anticipates growth opportunities in 2026 driven by data center trends

* AXT focuses on gross margin recovery and expense discipline for future growth

Result Drivers

* INDIUM PHOSPHIDE DEMAND - Co reports over 250% sequential growth in indium phosphide revenues, driven by data center applications

* GROSS MARGIN FOCUS - Co aims to drive gross margin recovery and expansion through operating expense discipline and inventory reduction

* DATA CENTER TRENDS - Co sees strong market trends in data center upgrades as a key opportunity for growth in 2026

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $28 mln $19.80

Revenue mln (5

Analysts

)

Q3 Beat -$0.03 -$0.12

Adjusted (5

EPS Analysts

)

Q3 Beat -$1.20 -$5.42

Adjusted mln mln (4

Net Analysts

Income )

Q3 22.40%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy"

* Wall Street's median 12-month price target for AXT Inc ( AXTI ) is $4.00, about 76.7% below its October 29 closing price of $7.07

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)