Cohu (NASDAQ:COHU) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Cohu (NASDAQ:COHU) posted its quarterly earnings data on Thursday. The semiconductor company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.12, FiscalAI reports. The firm had revenue of $149.00 million for the quarter, compared to analyst estimates of $144.20 million. Cohu had a negative net margin of 7.43% and a negative return on equity of 1.95%. Cohu’s quarterly revenue was up 38.3% on a year-over-year basis. During the same period last year, the firm posted $0.02 EPS.

Here are the key takeaways from Cohu’s conference call:

• Strong Q2 execution: Revenue rose 38% year over year to $149 million, recurring revenue reached 53% of sales, non-GAAP EPS was $0.26, and gross margin exceeded guidance at 45.5%.
• AI and HPC momentum accelerated: Computing represented 46% of system orders, up 150% year over year, while Cohu raised its 2026 high-performance computing revenue outlook to $100 million-$110 million. The HPC opportunity pipeline expanded to approximately $850 million annually across 19 customers.
• Growth investments and guidance increased: The company expects Q3 revenue of about $170 million, up 14% sequentially, and now forecasts approximately 35% full-year 2026 revenue growth, or roughly $610 million-$615 million. Malaysia and Philippines manufacturing expansions are intended to more than double HPC handler output by mid-2027.
• Software adoption is becoming repeatable: Software analytics generated its first $1 million revenue quarter, with orders up 140% year over year, and Cohu is progressing toward its largest single-customer deployment while developing on-site agentic AI tools to support recurring revenue.
• Supply-chain and end-market risks remain: Memory and other specialty components have longer lead times and higher costs, potentially pressuring margins or customer pricing, while automotive demand remains weak, with utilization not expected to reach 80% until late Q1 or Q2 2027.

Cohu Stock Performance

Shares of COHU opened at $47.99 on Friday. Cohu has a 12-month low of $17.80 and a 12-month high of $74.60. The stock has a market cap of $2.26 billion, a P/E ratio of -57.82 and a beta of 1.55. The company has a current ratio of 6.43, a quick ratio of 5.31 and a debt-to-equity ratio of 0.37. The company has a 50-day moving average of $56.71 and a two-hundred day moving average of $42.43.

More Cohu News

Here are the key news stories impacting Cohu this week:

• Positive Sentiment: Second-quarter results exceeded expectations: Cohu reported adjusted earnings of $0.26 per share versus the $0.14 consensus estimate, while revenue rose 38.3% year over year to $149.0 million, ahead of the $144.2 million forecast. Results benefited from AI-compute demand, higher tester and recurring-service sales, and a favorable product mix. COHU Q2 Earnings Beat Estimates on AI Compute and Favorable Mix
• Positive Sentiment: Strong third-quarter outlook: Management forecast revenue of $163 million to $177 million, well above the $146.6 million analyst consensus. The outlook suggests continued momentum from high-performance computing and semiconductor test demand. Cohu jumps on strong Q2 results, guidance
• Positive Sentiment: Analysts raised their valuations: B. Riley lifted its price target from $65 to $69 and assigned a Buy rating. Needham analyst Charles Shi also reiterated a Buy rating and raised his target to $65, citing accelerating growth and HPC tailwinds. B. Riley analyst action Needham analyst action
• Negative Sentiment: GAAP profitability remains a concern: Although adjusted earnings were positive, Cohu posted a GAAP loss of approximately $0.2 million for the quarter, alongside a negative net margin and negative return on equity. Investors may therefore focus on whether improving revenue and mix can translate into sustainable GAAP profits. Cohu Reports Second Quarter 2026 Results

Insiders Place Their Bets

In other news, CEO Luis A. Muller sold 45,154 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $46.62, for a total transaction of $2,105,079.48. Following the completion of the transaction, the chief executive officer directly owned 927,619 shares of the company’s stock, valued at $43,245,597.78. This trade represents a 4.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Steven J. Bilodeau sold 10,257 shares of Cohu stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $44.85, for a total value of $460,026.45. Following the transaction, the director owned 52,272 shares of the company’s stock, valued at $2,344,399.20. This represents a 16.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 89,668 shares of company stock valued at $4,210,016. Corporate insiders own 3.05% of the company’s stock.

Institutional Trading of Cohu

Several institutional investors and hedge funds have recently made changes to their positions in COHU. Kestra Advisory Services LLC purchased a new stake in Cohu during the 4th quarter worth about $34,000. Los Angeles Capital Management LLC purchased a new position in Cohu in the 4th quarter valued at about $37,000. Gen Wealth Partners Inc purchased a new position in Cohu in the 4th quarter valued at about $44,000. Smartleaf Asset Management LLC boosted its stake in shares of Cohu by 202.7% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,113 shares of the semiconductor company’s stock worth $41,000 after purchasing an additional 1,415 shares during the last quarter. Finally, Quadrant Capital Group LLC purchased a new stake in shares of Cohu during the third quarter worth about $81,000. 94.67% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

COHU has been the subject of several recent analyst reports. Stifel Nicolaus raised their target price on shares of Cohu from $50.00 to $70.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. TD Cowen increased their price target on shares of Cohu from $60.00 to $80.00 and gave the stock a “buy” rating in a report on Tuesday, June 16th. B. Riley Financial raised their price objective on shares of Cohu from $65.00 to $69.00 and gave the company a “buy” rating in a research report on Friday. Needham & Company LLC lifted their price objective on Cohu from $54.00 to $65.00 and gave the company a “buy” rating in a report on Friday. Finally, Evercore reiterated an “outperform” rating and set a $53.00 target price on shares of Cohu in a research report on Tuesday, April 28th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $68.75.

Cohu Company Profile

Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company’s product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test.

Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies.