Cohu (NASDAQ:COHU) Posts Earnings Results, Beats Estimates By $0.08 EPS

Cohu (NASDAQ:COHU) issued its quarterly earnings results on Wednesday. The semiconductor company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.08, FiscalAI reports. Cohu had a positive return on equity of 1.48% and a negative net margin of 3.97%. The firm had revenue of $172.96 million for the quarter, compared to analyst estimates of $170.25 million. During the same period in the previous year, the firm earned ($0.06) earnings per share. The company’s revenue was up 37.0% compared to the same quarter last year.

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

• Strong Q3 performance: Revenue rose 37% year over year to $173 million, bookings increased 126%, and book-to-bill was above one. Non-GAAP EPS was $0.43, while recurring revenue represented 48% of sales.
• High-performance computing momentum accelerated: Cohu raised its 2026 HPC revenue outlook to approximately $120 million, and its Eclipse opportunity pipeline expanded to about $1 billion. The company expects 2027 revenue growth of approximately 30%–40%, primarily from converting this pipeline into production revenue.
• Cohu plans to scale Eclipse production capacity to ship approximately three times as many systems in 2027 as in 2026, with multiple customer qualification milestones expected from late November through the first quarter of 2027.
• Recurring and adjacent opportunities are broadening, including software analytics, HBM and advanced-packaging inspection, computing interfaces, and DiamondX power-management testing. Software analytics annual recurring revenue increased 85% sequentially, and the company secured new hyperscaler interface wins and a production ramp with a power-management customer.
• Rapid HPC demand is creating longer lead times and higher costs for specialty components and semiconductors, potentially pressuring near-term profitability. Cohu expects Q4 gross margin to decline to approximately 44% from 45.7% in Q3 while operating expenses rise to about $57 million as it invests in capacity and product development.

Cohu Stock Up 0.5%

Shares of COHU opened at $53.40 on Friday. The company’s 50-day moving average price is $57.04 and its 200 day moving average price is $46.82. Cohu has a 12-month low of $21.10 and a 12-month high of $75.72. The firm has a market cap of $2.53 billion, a P/E ratio of -102.69 and a beta of 1.51. The company has a current ratio of 5.74, a quick ratio of 4.72 and a debt-to-equity ratio of 0.37.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on COHU. Stifel Nicolaus boosted their price objective on Cohu from $70.00 to $75.00 and gave the company a “buy” rating in a research note on Thursday. Craig Hallum reiterated a “buy” rating and issued a $74.00 price objective on shares of Cohu in a research report on Friday, July 31st. Robert W. Baird set a $83.00 price target on shares of Cohu in a research report on Thursday. Jefferies Financial Group reiterated a “buy” rating and issued a $90.00 price target on shares of Cohu in a research note on Thursday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Cohu in a research report on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cohu presently has an average rating of “Moderate Buy” and a consensus price target of $74.38.

Insider Activity

In related news, Director Andrew Caggia sold 15,252 shares of Cohu stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $51.74, for a total transaction of $789,138.48. Following the sale, the director directly owned 64,778 shares in the company, valued at $3,351,613.72. This trade represents a 19.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nina Richardson sold 3,055 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $51.54, for a total value of $157,454.70. Following the completion of the transaction, the director owned 39,093 shares of the company’s stock, valued at $2,014,853.22. The trade was a 7.25% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 134,999 shares of company stock worth $8,321,309. Insiders own 3.05% of the company’s stock.

Cohu Company Profile

Cohu, Inc is a global provider of semiconductor test and inspection equipment and related services. The company supplies solutions used by semiconductor manufacturers and outsourced semiconductor assembly and test providers to evaluate devices during production, helping improve manufacturing quality, reliability and efficiency.

Cohu’s product portfolio includes semiconductor test handlers, contactors and other interface products, inspection and metrology systems, thermal-management equipment, and software for test-data analysis and factory automation.