Alpha and Omega Semiconductor 2026 Q1 Earnings 22.2% Improvement in Loss Per Share

Alpha and Omega Semiconductor (AOSL) reported fiscal 2026 Q1 earnings on November 6, 2025, with results showing a 22.2% improvement in loss per share and a 15% reduction in net loss year-over-year. The company narrowly missed revenue expectations but exceeded adjusted EPS estimates. Guidance for Q2 2026 remained within the expected range, reflecting cautious optimism amid mixed market conditions.

Revenue

Total revenue rose 0.3% to $182.50 million in 2026 Q1, driven by Computing and Communications segments, which offset declines in Consumer and Power Supply/Industrial. Computing and Communications revenue surged 27.1% year-over-year, while Consumer revenue fell 25.8% YoY. The Communications segment saw 21.4% sequential growth, and Power Supply/Industrial revenue declined 12.4% YoY. Power IC revenue hit a record high, growing 37.3% YoY to account for ~40% of total product revenue.

Earnings/Net Income

The company narrowed losses to $0.07 per share, a 22.2% improvement from $0.09 in 2025 Q1, and reduced net loss to $2.12 million, down 15% from $2.50 million. The EPS of $0.13 exceeded expectations, and the net loss reduction signals improved operational efficiency, though profitability challenges persist.

Price Action

AOSL’s stock fell 2.19% on the day of the report, 30.07% in the prior week, and 27.44% month-to-date, reflecting investor skepticism about long-term prospects despite short-term gains.

Post-Earnings Price Action Review

The strategy of buying AOSL shares after a quarterly revenue increase and holding for 30 days underperformed the market by -16.1% over three years, highlighting the risks of relying on earnings reports for investment decisions. The negative returns underscore ongoing operational and market challenges.

CEO Commentary

CEO Stephen Chang emphasized growth in Computing and Communications, driven by Power ICs, which now constitute 40% of product revenue. He expressed optimism about AI and data-center opportunities, supported by a strengthened balance sheet and strategic shifts toward total solutions.

Guidance

AOSL guided Q2 2026 revenue of $160M ±$10M, with non-GAAP gross margin of 23.0% ±1%. Operating expenses are projected at $40.5M ±$1M, while interest income is expected to exceed expenses by $1.0M.

Additional News

1. Joint Venture Sale: AOSL secured $94M from a China JV equity sale, funding R&D in AI and 800V power architecture.

2. Downgrade: B. Riley cut AOSL’s rating to Neutral from Buy, citing weak Compute segment performance and gross margin concerns.

3. Q4 2025 Beat: The company exceeded Q4 2025 revenue estimates by 0.3% and EPS by 300%, driven by tariff-related demand.

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