Applied Optoelectronics (AAOI) experienced a 24-hour plunge of 6.82%, with the decline extending into post-market trading on Thursday. The stock's downward movement followed its regular session performance, reflecting sustained selling pressure.

The sharp decline was triggered by the company's first-quarter 2026 financial results, which fell short of analyst expectations. Applied Optoelectronics reported an adjusted loss per share of $0.07, worse than the consensus estimate of a $0.05 loss. Revenue of $151.1 million also missed expectations, coming in below the anticipated $154.81 million to $157.1 million range. The company's adjusted net loss widened to $4.9 million, compared to the estimated $3.84 million loss.

Further disappointing investors, the company provided second-quarter guidance below market forecasts. Applied Optoelectronics expects revenue between $180 million and $198 million, with a midpoint of $189 million falling short of the $196 million consensus estimate. The company projected adjusted earnings per share in the range of a $0.03 loss to a $0.03 profit, significantly below the expected $0.07 profit. The data center business, which generated $81.4 million in Q1 revenue, particularly missed expectations of $91.4 million.