Cohu (NASDAQ:COHU) Shares Gap Up on Earnings Beat

Key Points

• Cohu reported a strong fiscal Q2: Revenue rose 38.3% year over year to $149 million, while non-GAAP EPS of $0.26 exceeded the $0.14 consensus estimate.
• Management provided an optimistic outlook, forecasting fiscal Q3 revenue of $163 million to $177 million, supported by accelerating growth and rising high-performance computing demand.
• The earnings beat and guidance drove a sharp share-price move, while analysts broadly maintained positive views; however, Cohu continues to report GAAP losses and negative margins.

Shares of Cohu, Inc. (NASDAQ:COHU - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $46.45, but opened at $57.70. Cohu shares last traded at $48.56, with a volume of 439,486 shares traded.

The semiconductor company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.14 by $0.12. Cohu had a negative return on equity of 3.50% and a negative net margin of 11.54%.The company had revenue of $149.00 million during the quarter, compared to analysts' expectations of $144.20 million. During the same quarter in the previous year, the business earned $0.02 EPS. The firm's revenue was up 38.3% on a year-over-year basis.

More Cohu News

Here are the key news stories impacting Cohu this week:

• Positive Sentiment: Cohu reported fiscal Q2 revenue of $149.0 million, up 38.3% year over year and ahead of the $144.2 million consensus estimate. Non-GAAP earnings were $0.26 per share, well above the $0.14 consensus and $0.02 reported a year earlier. Cohu Reports Second Quarter 2026 Results
• Positive Sentiment: Management issued fiscal Q3 revenue guidance of $163 million to $177 million, substantially above the roughly $146.6 million analyst forecast. The outlook signals continued sequential growth and was a major catalyst for the stock’s advance. Cohu jumps on strong Q2 results, guidance
• Positive Sentiment: On the earnings call, executives highlighted an accelerating growth outlook and increasing HPC-related demand, supporting expectations for stronger semiconductor test-equipment sales. Cohu Inc Earnings Call Highlights HPC-Driven Upswing
• Positive Sentiment: Needham analyst Charles Shi reaffirmed a Buy rating and raised his price target to $65, citing Cohu’s accelerating growth and HPC tailwinds. Needham raises Cohu price target
• Negative Sentiment: Despite the adjusted-profit beat, Cohu posted a small GAAP loss in Q2, and its first-half GAAP loss totaled $12.2 million. Continued GAAP losses and a negative net margin remain risks if growth or demand weakens. Cohu Reports Second Quarter 2026 Results

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Needham & Company LLC boosted their target price on shares of Cohu from $54.00 to $65.00 and gave the company a "buy" rating in a report on Friday. Robert W. Baird assumed coverage on shares of Cohu in a report on Wednesday, July 8th. They issued an "outperform" rating and a $65.00 price target on the stock. Stifel Nicolaus boosted their price objective on shares of Cohu from $50.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Jefferies Financial Group restated a "buy" rating and set a $74.00 price objective on shares of Cohu in a report on Friday. Finally, Evercore reaffirmed an "outperform" rating and issued a $53.00 target price on shares of Cohu in a research report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $67.43.

Insider Activity

In related news, Director Steven J. Bilodeau sold 10,257 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $44.85, for a total transaction of $460,026.45. Following the completion of the sale, the director directly owned 52,272 shares of the company's stock, valued at approximately $2,344,399.20. This represents a 16.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jeffrey D. Jones sold 13,000 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $46.84, for a total value of $608,920.00. Following the completion of the sale, the chief financial officer owned 343,792 shares of the company's stock, valued at approximately $16,103,217.28. This represents a 3.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 89,668 shares of company stock worth $4,210,016 in the last quarter. Insiders own 3.05% of the company's stock.

Institutional Investors Weigh In On Cohu

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in Cohu by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 4,361,164 shares of the semiconductor company's stock worth $101,484,000 after acquiring an additional 57,618 shares during the period. Royce & Associates LP grew its position in Cohu by 0.4% in the fourth quarter. Royce & Associates LP now owns 1,918,424 shares of the semiconductor company's stock valued at $44,642,000 after acquiring an additional 7,927 shares in the last quarter. State Street Corp raised its stake in shares of Cohu by 0.3% during the fourth quarter. State Street Corp now owns 1,819,530 shares of the semiconductor company's stock valued at $42,340,000 after purchasing an additional 5,439 shares during the period. SG Capital Management LLC purchased a new stake in shares of Cohu during the fourth quarter valued at approximately $33,174,000. Finally, Invesco Ltd. lifted its position in shares of Cohu by 478.4% during the second quarter. Invesco Ltd. now owns 1,175,282 shares of the semiconductor company's stock worth $22,612,000 after purchasing an additional 972,088 shares in the last quarter. Institutional investors and hedge funds own 94.67% of the company's stock.

Cohu Trading Up 6.0%

The firm has a market capitalization of $2.32 billion, a price-to-earnings ratio of -40.78 and a beta of 1.55. The business's 50-day moving average price is $56.68 and its 200 day moving average price is $42.39. The company has a debt-to-equity ratio of 0.37, a current ratio of 6.43 and a quick ratio of 5.31.

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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