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

Key Points

• Cohu beat quarterly expectations: The semiconductor company reported $0.26 in EPS versus the $0.14 consensus and revenue of $149 million, ahead of estimates of $144.2 million. Revenue increased 38% year over year, while gross margin reached 45.5%.
• AI and high-performance computing are driving growth: Computing accounted for 46% of system orders, up 150% year over year, prompting Cohu to raise its 2026 HPC revenue outlook to $100 million–$110 million and full-year revenue growth forecast to approximately 35%.
• Risks remain despite stronger guidance: Cohu expects Q3 revenue of about $170 million, but longer component lead times and higher costs could pressure margins, while weak automotive demand may persist into 2027.

Cohu (NASDAQ:COHU - Get Free Report) 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. Cohu had a negative net margin of 11.54% and a negative return on equity of 3.50%. The business had revenue of $149.00 million during the quarter, compared to analyst estimates of $144.20 million.

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 Up 18.1%

Shares of Cohu stock traded up $7.11 during midday trading on Thursday, hitting $46.45. The company's stock had a trading volume of 2,408,918 shares, compared to its average volume of 1,141,867. The company has a quick ratio of 5.31, a current ratio of 6.43 and a debt-to-equity ratio of 0.37. Cohu has a 1-year low of $17.80 and a 1-year high of $74.60. The stock has a 50-day simple moving average of $56.66 and a 200-day simple moving average of $42.25. The firm has a market capitalization of $2.19 billion, a P/E ratio of -39.03 and a beta of 1.55.

Insiders Place Their Bets

In related 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 sale, the chief executive officer directly owned 927,619 shares in the company, valued at approximately $43,245,597.78. This trade represents a 4.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director James A. Donahue sold 10,257 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $46.77, for a total transaction of $479,719.89. Following the transaction, the director directly owned 3,578 shares in the company, valued at $167,343.06. The trade was a 74.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 89,668 shares of company stock valued at $4,210,016 over the last ninety days. Insiders own 3.05% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Vanguard Personalized Indexing Management LLC lifted its holdings in shares of Cohu by 2.1% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 16,231 shares of the semiconductor company's stock valued at $378,000 after buying an additional 332 shares during the last quarter. US Bancorp DE raised its position in Cohu by 4.6% during the third quarter. US Bancorp DE now owns 9,847 shares of the semiconductor company's stock valued at $200,000 after acquiring an additional 432 shares in the last quarter. CANADA LIFE ASSURANCE Co lifted its stake in Cohu by 0.9% in the second quarter. CANADA LIFE ASSURANCE Co now owns 65,233 shares of the semiconductor company's stock valued at $1,255,000 after acquiring an additional 576 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Cohu by 8.1% in the third quarter. Russell Investments Group Ltd. now owns 11,108 shares of the semiconductor company's stock valued at $226,000 after acquiring an additional 830 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Cohu by 3.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 27,214 shares of the semiconductor company's stock worth $400,000 after acquiring an additional 905 shares in the last quarter. 94.67% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts recently weighed in on COHU shares. Robert W. Baird assumed coverage on shares of Cohu in a report on Wednesday, July 8th. They set an "outperform" rating and a $65.00 target price on the stock. Jefferies Financial Group set a $60.00 target price on Cohu and gave the company a "buy" rating in a research note on Friday, May 1st. Zacks Research upgraded Cohu from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Evercore reissued an "outperform" rating and set a $53.00 target price on shares of Cohu in a report on Tuesday, April 28th. Finally, TD Cowen raised their price target on Cohu from $60.00 to $80.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $63.86.

About Cohu

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.

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