AXTs Losses Shrink, Stock Jumps 79% as CEO Targets Double Capacity in 2026

AXT (NASDAQ:AXTI) reported fiscal 2025 Q4 earnings on March 17, 2026, with a 32.1% reduction in net losses to $3.84 million compared to $5.66 million in 2024 Q4. The stock surged 78.94% month-to-date despite a 8.2% revenue decline to $23.04 million. CEO Morris Young highlighted progress in securing export permits and plans to double indium phosphide capacity in 2026.

Revenue

AXT’s total revenue fell 8.2% to $23.04 million in 2025 Q4, below $25.11 million in the prior-year period.

Earnings/Net Income

The company narrowed losses to $0.06 per share in 2025 Q4, a 42.9% improvement from $0.11 per share in 2024 Q4. Net losses decreased to $3.84 million, reflecting a 32.1% reduction year-over-year. While the company posted a negative net margin of 24.07%, the improvement signals progress amid ongoing challenges.

Price Action

AXT’s stock edged down 1.95% during the latest trading day but surged 78.94% month-to-date.

Post-Earnings Price Action Review

The strategy of buying AXT shares after its revenue decline and holding for 30 days showed mixed performance over three years. A 15.23% gain in 2024 was followed by 6.95% and 2.08% losses in 2025 and 2026, respectively. The 2024 rebound capitalized on undervaluation, while 2025’s underperformance reflected unfavorable market conditions and limited revaluation. By 2026, the market appeared to have already priced in the expected revenue drop, leading to a slight decline. The strategy’s viability depends on market sentiment and AXT’s ability to recover.

CEO Commentary

Guidance

Additional News

Destination Wealth Management acquired 101,900 shares of AXT in early 2026, signaling renewed institutional interest. CEO Morris Young expressed confidence in sequential revenue growth for Q1 2026, driven by indium phosphide demand for AI infrastructure. The company also plans to double its indium phosphide manufacturing capacity in 2026, supported by a strong balance sheet. Analysts forecast -0.12 EPS for the current year, reflecting ongoing challenges in the semiconductor sector.