Key Highlights

● Fiscal fourth-quarter Revenue was $170.4 million, down 3.5% year on year, up 4.0% sequentially.

● Fiscal 2026 revenue was $678.9 million against $696.2 million in fiscal 2025.

● Management attributed growth to Advanced Computing and a Tier 1 United States smartphone customer.

● First-quarter guidance is revenue of $176 million, plus or minus $10 million.

The latest verified development

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL), a power semiconductor supplier, last reported on 12 August 2026 for its fiscal fourth quarter and fiscal year ended 30 June 2026. The year as a whole included both a revenue decline and a non-GAAP loss, which frames the report. Chief executive Stephen Chang said Advanced Computing is now a clear and growing contributor to both revenue and earnings.

Fourth-quarter results

Revenue was $170.4 million, down 3.5% year on year but up 4.0% from the previous quarter. GAAP gross Margin was 23.1% and non-GAAP gross margin was 23.7%. The company recorded a GAAP operating loss of $11.0 million and a non-GAAP operating loss of $4.8 million.

GAAP net loss was $13.1 million, or $0.43 per diluted share. Non-GAAP diluted Earnings per share were a loss of $0.13, compared with a profit of $0.02 a year earlier. Operating cash outflow was $10.0 million, and cash and equivalents closed the quarter at $180.8 million.

Full-year picture and drivers

For fiscal 2026, revenue was $678.9 million, compared with $696.2 million in fiscal 2025, a decline of about 2.5%. GAAP gross margin was 22.3% and the GAAP operating loss was $43.2 million. GAAP net loss was $42.3 million, or $1.41 per share, while non-GAAP Diluted Earnings per Share were a loss of $0.43 against a profit of $0.22.

Mr Chang attributed growth to Advanced Computing, particularly artificial intelligence and server applications, and to Communications, from ramping products with a Tier 1 United States smartphone customer. These more than offset weakness in the personal computer market, which he linked to elevated memory pricing. The release did not give segment revenue.

China joint venture and Balance Sheet items

Two items stand out. First, fourth-quarter non-GAAP adjustments included a $2.55 million Chinese Withholding tax related to the company's Investment in its Chongqing joint venture, referred to as CQJV in the release. Second, the Equity method investment balance fell from $279.1 million to $142.7 million year on year.

Fiscal first-quarter guide and margin mix at Alpha and Omega

For the fiscal first quarter ending 30 September 2026, management guided to revenue of $176 million, plus or minus $10 million. It guided to GAAP gross margin of 23.8% and non-GAAP gross margin of 24.5%, each plus or minus one point, with non-GAAP operating expenses of $46.5 million, plus or minus $1 million. The revenue midpoint is about 3.3% above the fourth quarter, and the non-GAAP gross margin midpoint is 0.8 percentage points higher. GAAP operating expenses are guided at $52.5 million, plus or minus $1 million, so profitability would still depend on Gross Profit rising faster than costs.

Mr Chang expects the shift in mix and improving pricing to support higher gross margins in the second half of calendar 2026. With non-GAAP gross margin guided at 24.5% against operating expenses of $46.5 million, that second-half mix shift is the main route to higher profit.