Cohu (NASDAQ:COHU) Announces Quarterly Earnings Results

Cohu (NASDAQ:COHU) announced its quarterly earnings results on Thursday. The semiconductor company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.14 by $0.12, FiscalAI reports. The company had revenue of $149.00 million during the quarter, compared to analysts’ expectations of $144.20 million. Cohu had a negative return on equity of 3.50% and a negative net margin of 11.54%.

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 NASDAQ COHU traded up $7.11 during trading hours on Thursday, hitting $46.45. 2,408,918 shares of the company’s stock were exchanged, compared to its average volume of 1,141,867. Cohu has a 1-year low of $17.80 and a 1-year high of $74.60. The company has a debt-to-equity ratio of 0.37, a current ratio of 6.43 and a quick ratio of 5.31. The stock has a market capitalization of $2.19 billion, a price-to-earnings ratio of -39.03 and a beta of 1.55. The company’s 50-day moving average price is $56.66 and its 200-day moving average price is $42.25.

Insider Activity

In other Cohu news, CEO Luis A. Muller sold 45,154 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $46.62, for a total value of $2,105,079.48. Following the sale, the chief executive officer 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 transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Christopher Bohrson sold 1,000 shares of Cohu stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $63.88, for a total value of $63,880.00. Following the completion of the transaction, the senior vice president directly owned 171,702 shares in the company, valued at approximately $10,968,323.76. This represents a 0.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 89,668 shares of company stock worth $4,210,016 over the last 90 days. Company insiders own 3.05% of the company’s stock.

Hedge Funds Weigh In On Cohu

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp raised its stake in Cohu by 0.3% during the 4th 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 last quarter. SG Capital Management LLC acquired a new stake in Cohu in the 4th quarter worth $33,174,000. Invesco Ltd. grew its position in Cohu by 478.4% in the 2nd 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 during the last quarter. Paradigm Capital Management Inc. NY increased its holdings in shares of Cohu by 12.3% during the 4th quarter. Paradigm Capital Management Inc. NY now owns 914,897 shares of the semiconductor company’s stock worth $21,290,000 after purchasing an additional 99,998 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Cohu by 1.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 806,191 shares of the semiconductor company’s stock worth $18,760,000 after purchasing an additional 13,376 shares during the period. Institutional investors own 94.67% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on COHU shares. Weiss Ratings restated a “sell (d-)” rating on shares of Cohu in a report on Friday, July 17th. TD Cowen lifted their price target on shares of Cohu from $60.00 to $80.00 and gave the company a “buy” rating in a research report on Tuesday, June 16th. Zacks Research upgraded shares of Cohu from a “strong sell” rating to a “hold” rating in a research note on Monday, April 20th. Evercore reaffirmed an “outperform” rating and set a $53.00 price objective on shares of Cohu in a report on Tuesday, April 28th. Finally, Stifel Nicolaus upped their price objective on shares of Cohu from $50.00 to $70.00 and gave the stock a “buy” rating in a report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Cohu presently has a consensus rating of “Moderate Buy” and an average 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.