Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 12, 2026 · Beat 5 of last 7 quarters
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AOS's accelerating Advanced Computing growth—now approaching 20% of total revenue—signals deepening penetration of AI server and cloud infrastructure power delivery, particularly in medium-voltage MOSFETs for intermediate bus converters and hot-swap applications. The company's expansion of medium-voltage capacity and targeted R&D for next-gen AI infrastructure positions it to capture more content as hyperscale and cloud deployments scale, reinforcing the AI infrastructure buildout thesis.
June quarter revenue of $170.4M was up 4% sequentially, driven by a 35% sequential surge in Advanced Computing, which reached a record 31% of the Computing segment. Consumer declined 21.3% YoY on gaming weakness, while Communications grew 22.3% YoY on strength in DC-DC modules and networking. Power Supply & Industrial grew 5.2% sequentially on e-mobility and DC fans. Non-GAAP gross margin improved 200 bps sequentially to 23.7% on better mix and utilization, and non-GAAP EPS improved to a loss of $0.13 from a loss of $0.28 last quarter.
Management guided September quarter revenue to approximately $176M ± $10M, with non-GAAP gross margin expanding to 24.5% ± 1% on better product mix. Advanced Computing is expected to grow more than 40% sequentially, with AI/server revenue up over 60%, offsetting weakness in traditional PCs and Consumer. The company expects gross margins to improve in the second half of calendar 2026 as mix shifts toward higher-value AI infrastructure products. R&D investments are expected to step up modestly through the year, with most incremental hiring completed in calendar 2026. Management noted a few million dollars of revenue impact from Typhoon Dolphin flooding at its Shanghai packaging operations, partially reflected in guidance.
“Advanced Computing is now a clear and growing contributor to both revenue and earnings, reinforcing the long-term direction of the business.”
on Strategic progress
“We are expanding manufacturing capacity in key product areas, increasing targeted R&D investments for next-generation AI infrastructure, and building a growing pipeline of new products across AI-related workloads.”
on Investment and capacity
“More importantly, Advanced Computing is expected to exceed 40% of Computing segment revenue and approach 20% of total company revenue, another important step in shifting our product mix towards higher-value applications with richer product content and stronger profitability.”
on Advanced Computing outlook
Could you talk about the parameters around your gross margin? What's the contribution between utilization and pricing, and where is utilization right now?
CFO Yifan Liang said the 200 bps sequential improvement was driven more by product mix than utilization/operating expenses. For September, the 70-80 bps increase is primarily from better mix, with some impact from the typhoon factored in. CEO Stephen Chang added that high-performance MOSFETs in AI/server applications are performance-driven with less competition, supporting better pricing and margins.
How much of the Advanced Computing growth is customer traction/new program wins versus ramps of previous sockets?
CEO Stephen Chang said it's a bit of both, with a more diversified customer base across hyperscalers and power supply providers, and growth spread across multiple programs within those customers.
Beyond Advanced Compute, what did the other subsegments of Computing do, and what are customers indicating about build intensity beyond fiscal Q1?
CEO Stephen Chang said standard PCs grew modestly in June but expect an adjustment in September due to memory and CPU shortages. Graphics have no major platform release this year, with the next refresh expected next year. He noted September is the main correction, with December still unclear but not expecting a correction at that point.