Alpha and Omega Semiconductor (AOSL) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue was $163.8 million, up 0.9% sequentially and down 0.5% year-over-year, slightly above guidance midpoint, driven by strength in Advanced Computing and Communications, offset by PC and memory market softness.

• Non-GAAP gross margin was 21.7%; non-GAAP EPS was a loss of $0.28 per share; GAAP net loss was $13.8 million ($0.46 per share).

• Advanced Computing, including AI, servers, and graphics, more than doubled sequentially and grew over 40% year-over-year, now representing 25% of the computing segment.

• Strategic focus on application-specific total solutions, expanding BOM content, and higher-performance applications is driving growth and competitive advantage.

• Management views December and March quarters as the bottom for revenue and margin, expecting improvement ahead.

Financial highlights

• Revenue: $163.8 million (down 0.5% year-over-year, up 0.9% sequentially).

• Non-GAAP gross margin: 21.7% (down from 22.2% last quarter and 22.5% a year ago).

• Non-GAAP operating expenses: $44.3 million (up from $41.3 million last quarter and $39.7 million a year ago).

• Non-GAAP EPS: -$0.28 (vs. -$0.16 prior quarter, -$0.10 prior year).

• Operating cash flow: -$8.3 million (compared to -$8.1 million last quarter and $7.4 million a year ago).

• EBITDA: $5.9 million, down from $9.7 million prior quarter.

Outlook and guidance

• June quarter revenue expected at $168 million ±$10 million.

• GAAP gross margin guidance: 22.3% ±1%; non-GAAP gross margin: 23% ±1%.

• Non-GAAP operating expenses expected at $45.5 million ±$1 million.

• CapEx for June quarter expected at $15–$17 million.

• Management expects sequential growth and margin expansion, led by Advanced Computing and premium smartphone demand.