Shares of Alpha & Omega Semiconductor (AOSL) plunged 12.44% in Wednesday's trading session, following a disappointing revenue forecast for the upcoming quarter that overshadowed better-than-expected first-quarter results. The semiconductor company's stock continued to face pressure in after-hours trading, tumbling an additional 15.28% as investors digested the financial report.

Alpha & Omega Semiconductor reported adjusted earnings of $0.13 per share for the fiscal first quarter ended September 30, 2025, surpassing the mean analyst expectation of $0.09 per share. Revenue for the quarter came in at $182.5 million, showing a marginal increase of 0.3% year-over-year but slightly below the analyst consensus of $183.20 million. Despite beating earnings estimates, the company posted a quarterly loss of $2.12 million, with reported EPS reflecting a loss of $0.07 per share.

The primary catalyst for the stock's sharp decline appears to be the company's disappointing revenue guidance for the second quarter. Alpha & Omega Semiconductor projected Q2 revenue to be around $160 million, which likely falls significantly below market expectations. This weak outlook suggests potential challenges in the company's near-term growth prospects or headwinds in the broader semiconductor industry. The market's severe reaction underscores the importance investors place on forward-looking statements, as they reassess the company's future financial performance in light of this guidance.