Alpha and Omega Semiconductor (NASDAQ:AOSL) Announces Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Alpha and Omega Semiconductor (NASDAQ:AOSL) issued its quarterly earnings results on Thursday. The semiconductor company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.08), FiscalAI reports. Alpha and Omega Semiconductor had a negative return on equity of 2.78% and a negative net margin of 13.86%.The company had revenue of $162.26 million for the quarter, compared to analysts’ expectations of $160.67 million. During the same quarter last year, the company earned $0.09 EPS. Alpha and Omega Semiconductor’s revenue for the quarter was down 6.3% compared to the same quarter last year.

Here are the key takeaways from Alpha and Omega Semiconductor’s conference call:

• Total December‑quarter revenue was $162.3 million, down 6.3% YoY and 11.1% sequentially; non‑GAAP gross margin was 22.2% and non‑GAAP EPS was a $0.16 loss.
• AOS reports traction in advanced computing and AI with design wins for high‑performance medium‑voltage MOSFETs (hot‑swap and intermediate‑bus converters) and expanding BOM content with a Tier‑1 U.S. smartphone customer.
• Management monetized ~20% of its Chongqing JV for an aggregate $150M (installment receipts underway) while retaining an 18.9% stake and repurchased ~$13.9M of shares, bolstering financial flexibility.
• Company is accelerating targeted R&D (planning ~25% YoY increase for calendar 2026) and modestly higher CapEx to support higher‑value product programs, which will pressure near‑term OpEx before expected future benefits.
• March guidance: revenue ~$160M ± $10M and non‑GAAP gross margin ~21% ± 1%; management calls March a near‑term trough with growth expected to resume in June and accelerate into 2027.

Alpha and Omega Semiconductor Stock Up 1.1%

Shares of AOSL opened at $22.51 on Friday. The company has a market capitalization of $676.65 million, a PE ratio of -6.93 and a beta of 2.01. Alpha and Omega Semiconductor has a 52-week low of $15.90 and a 52-week high of $46.65. The company has a 50-day simple moving average of $21.39 and a 200-day simple moving average of $24.82.

Insider Activity

In other news, EVP Bing Xue sold 1,845 shares of the business’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $20.56, for a total value of $37,933.20. Following the completion of the transaction, the executive vice president directly owned 127,863 shares of the company’s stock, valued at $2,628,863.28. The trade was a 1.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 16.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Royal Bank of Canada increased its stake in Alpha and Omega Semiconductor by 7.4% in the first quarter. Royal Bank of Canada now owns 11,939 shares of the semiconductor company’s stock valued at $297,000 after purchasing an additional 820 shares during the last quarter. AQR Capital Management LLC acquired a new position in shares of Alpha and Omega Semiconductor during the 1st quarter valued at about $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Alpha and Omega Semiconductor by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,167 shares of the semiconductor company’s stock valued at $352,000 after acquiring an additional 624 shares during the last quarter. Strs Ohio purchased a new position in shares of Alpha and Omega Semiconductor during the 1st quarter worth about $70,000. Finally, Creative Planning acquired a new stake in shares of Alpha and Omega Semiconductor in the second quarter worth approximately $248,000. Hedge funds and other institutional investors own 78.97% of the company’s stock.

Analyst Ratings Changes

Several research analysts have commented on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a report on Wednesday, January 21st. Stifel Nicolaus lowered their target price on shares of Alpha and Omega Semiconductor from $29.00 to $24.00 and set a “hold” rating for the company in a research note on Thursday, November 6th. Benchmark cut their price target on Alpha and Omega Semiconductor from $32.00 to $25.00 and set a “buy” rating on the stock in a research note on Thursday, November 6th. Wall Street Zen upgraded Alpha and Omega Semiconductor from a “sell” rating to a “hold” rating in a report on Saturday, December 6th. Finally, B. Riley restated a “neutral” rating and set a $24.00 target price (down previously from $40.00) on shares of Alpha and Omega Semiconductor in a research note on Thursday, November 6th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Alpha and Omega Semiconductor has an average rating of “Hold” and a consensus price target of $24.33.

Trending Headlines about Alpha and Omega Semiconductor

Here are the key news stories impacting Alpha and Omega Semiconductor this week:

• Positive Sentiment: Company plans a 25% increase in R&D for fiscal 2026 to accelerate moves into AI power solutions and medium‑voltage products — signals management is investing to capture higher‑growth design wins and improve long‑term revenue/margin profile. Alpha and Omega Semiconductor plans 25% R&D increase for 2026 amid push into AI and medium‑voltage solutions
• Positive Sentiment: Launched a 600V super‑junction MOSFET platform — expands product portfolio into higher‑voltage industrial/EV segments that could lead to new customer engagements and incremental revenue over the next several quarters. Alpha and Omega Semiconductor launch 600V super junction MOSFET platform
• Neutral Sentiment: Company updated Q3 fiscal 2026 revenue guidance to a $150M–$170M range (consensus about $153.4M) — top‑end exceeds consensus but the wide range signals near‑term uncertainty; EPS guidance was not clearly provided. (Guidance update released with earnings.)
• Neutral Sentiment: Earnings‑call transcript is available for investors wanting management’s detail on demand trends, channel inventory, and the R&D spending plan; useful for assessing timing of potential recovery. AOSL Q2 2026 Earnings Call Transcript
• Negative Sentiment: Reported fiscal Q2 results: GAAP loss of ($0.16) per share, missing consensus (~($0.13)), and revenue fell ~6.3% year‑over‑year. Profitability metrics remain pressured (negative net margin and modest negative ROE), which explains investor caution. Alpha and Omega Semiconductor Reports Financial Results for the Fiscal Second Quarter of 2026
• Negative Sentiment: Market writeups flag the EPS miss and continued YoY revenue decline, keeping near‑term analyst expectations muted and putting pressure on the stock until revenue/margin trends stabilize. Alpha and Omega Semiconductor (AOSL) Reports Q2 Loss, Beats Revenue Estimates

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.