Alpha and Omega Semiconductor (AOSL) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 2026 revenue reached $182.5 million, up 3.4% sequentially and 0.3% year over year, driven by growth in Computing and Communications, with Power IC revenue hitting a record high and now nearly 40% of product revenue, supporting margin improvement and business transformation.

• Strategic investments are accelerating, funded by $94 million from a China JV equity sale, focusing on technology, equipment, and engineering talent to expand in high-growth markets.

• Announced support for 800-volt DC power architecture, targeting next-gen AI data centers and expanding opportunities in high-performance computing.

• Net loss narrowed to $2.1 million GAAP, with non-GAAP net income at $4.2 million.

Financial highlights

• Non-GAAP gross margin was 24.1%, down from 24.4% last quarter and 25.5% a year ago, mainly due to higher operational costs.

• Non-GAAP EPS was $0.13, up from $0.02 last quarter but down from $0.21 a year ago.

• Operating cash flow was $10.2 million, including $5 million in customer deposit repayments; cash balance rose to $223.5 million after the JV equity sale.

• EBITDA excluding equity method investment income was $19.4 million, up from $10.5 million last quarter.

• CapEx for the quarter was $9.8 million, with December quarter CapEx expected at $14–16 million.

Outlook and guidance

• December quarter revenue is expected to be $160 million ± $10 million, with non-GAAP gross margin at 23% ± 1%.

• Non-GAAP operating expenses expected to be $40.5 million, plus or minus $1 million.

• Computing segment revenue is forecast to decline nearly 20% sequentially due to post-holiday seasonality and digestion in AI and graphics cards.

• Consumer segment to decline high-teens sequentially, mainly from gaming and wearables seasonality.

• Power supply and industrial segment expected to grow mid to high single digits sequentially, led by power tools recovery.