AXT Inc's stock fell 5.01% in the after-hours session following the release of its first-quarter 2026 financial results. The decline comes after the stock had risen significantly during the regular trading day.

The semiconductor materials company reported revenue of $26.9 million, beating the consensus estimate of $26.2 million. However, AXT posted a GAAP net loss attributable to shareholders of $1.6 million, or $0.03 per share. While this represented an improvement from the $0.20 per share loss in the same period last year, the market reaction suggests investors were expecting stronger performance.

On an adjusted basis, the company reported EPS of $0.01, beating the estimate of a $0.05 loss, and adjusted net income of -$600,000, which was better than the estimated -$2.37 million. Management highlighted the completion of a $632.5 million capital raise to support capacity expansion and noted that Tongmei's proposed STAR Market IPO remains under regulatory review with completion targeted in the coming months.