COHU

T3S&P 1500Russell 2000

Cohu, Inc.

Next est. report 2026-10-28 · AMC

Chips '26: Semiconductor Testing & Reliability Memory '26: HBM Testing

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Overview

Cohu, Inc. provides advanced semiconductor test equipment, including handlers, testers, and inspection systems, plus related services and software. It helps chi

Cohu, Inc. provides advanced semiconductor test equipment, including handlers, testers, and inspection systems, plus related services and software. It helps chip manufacturers ensure product quality for AI processors, HBM, power, and connectivity devices. Recurring revenue, from consumables and software, is about 53% of total sales, with systems comprising the rest. Cohu serves a global customer base across computing, industrial, automotive, and mobile.

Key Inputs And Sourcing

1. Memory (Semiconductors)

Not in registry

component · Global · unknown

Source Mainly memory is leading in higher cost and longer lead times.

Confidence: high

2. Specialty Components (Semiconductors)

Not in registry

component · Global · unknown

Source Higher input costs for certain semiconductors and specialty components.

Confidence: medium

3. Electronic Components

Matchedsemi_semiconductor_equipment_billings · access=file · map_only

component · Global · unknown

Source General bill-of-materials for complex semiconductor test equipment (e.g., integrated circuits, passive components, sensors).

Confidence: high

4. Precision Mechanical Parts

Not in registry

component · Global/Regional (Malaysia, Philippines) · unknown

Source Required for handlers, testers, and thermal sub-systems. Thermal heads are built in the Philippines.

Confidence: high

5. Manufacturing Labor

Not in registry

labor · Malaysia, Philippines · unknown

Source Internal manufacturing in Malaysia and a small expansion in the Philippines.

Confidence: high

6. Logistics and Freight

Not in registry

logistics · containerized-freight-index · Global · unknown

Source Shipping of equipment and components globally to customers and between manufacturing sites.

Confidence: high

Industry Publications

Semiconductor Engineering (semiconductorengineering.com) — Provides in-depth technical coverage of HBM4/HBM4E architecture, known good die testing, TSV formation, and hybrid bonding integration, which are critical for Cohu's HBM and HPC focus.
TrendForce (trendforce.com) — A primary industry source for DRAM and HBM contract pricing indices, capacity allocation, and market dynamics, directly impacting Cohu's HBM-related business.
SEMI (semi.org) — The global industry association for semiconductor manufacturing, offering market data, technology roadmaps, and industry events relevant to equipment suppliers like Cohu.
Yole Group (yolegroup.com) — Specializes in market research and strategy consulting for advanced packaging, memory, and compound semiconductors, providing detailed reports on HBM, hybrid bonding, and test equipment.
EE Times (eetimes.com) — Offers broad coverage of semiconductor design, manufacturing, and test, including news and analysis on new technologies, market trends, and supply chain issues relevant to Cohu's operations.

Economic Data Watch

1. Trading Economics — WSTS Semiconductor Market Forecast

Matched (medium)semi_semiconductor_equipment_billings · access=file · map_only

Metric/field Worldwide Semiconductor Sales - Total Sales Value (USD billions)

Cadence monthly

Why it matters Directly tracks the overall health and growth of the semiconductor industry, which is the foundational market for Cohu's products and services. Strong growth signals increased demand for test equipment.

Signal to watch Increasing sales value indicates a robust market, bullish for Cohu.

Confidence: high

2. FRED — Industrial Production & Capacity Utilization

Not in registryaccess=api

Metric/field INDPRO

Cadence monthly

Why it matters Cohu noted industrial as a strong growth area with orders up 87% year-over-year in Q2 2026. This metric reflects overall industrial activity, which drives demand for Cohu's industrial-focused test solutions.

Signal to watch Rising industrial production suggests increased manufacturing activity and demand for Cohu's equipment, bullish.

Confidence: high

3. FRED — Motor Vehicle Assemblies

Not in registryaccess=api

Metric/field MVATOTASSS

Cadence monthly

Why it matters The automotive segment struggled for Cohu in Q2 2026, with orders down 24% year-over-year, and is not expected to reach 80% utilization until late Q1 or Q2 of next year. Monitoring vehicle assemblies provides insight into the recovery of this key end market.

Signal to watch An increase in motor vehicle assemblies would signal a recovery in the automotive sector, bullish for Cohu's automotive-related business.

Confidence: high

4. Trading Economics — Manufacturing PMI

Not in registryaccess=scrape

Metric/field United States Manufacturing PMI

Cadence monthly

Why it matters Manufacturing PMI is a key indicator of economic health and manufacturing activity. Given Cohu's global operations and customer base, the US PMI provides insight into a significant market for semiconductor demand.

Signal to watch A rising PMI indicates expansion in manufacturing, suggesting higher demand for semiconductor components and thus for Cohu's test equipment, bullish.

Confidence: high

5. Trading Economics — Semiconductor Exports

Matched (medium)semi_semiconductor_equipment_billings · access=file · map_only

Metric/field Taiwan Semiconductor Exports

Cadence monthly

Why it matters Taiwan is a critical hub for semiconductor manufacturing and OSATs, which are key customers for Cohu. Strong semiconductor exports from Taiwan indicate robust activity in a major customer region.

Signal to watch Increasing semiconductor exports from Taiwan suggests strong demand and production from Cohu's customer base in the region, bullish.

Confidence: high

Free Alt Data Watch

1. Indeed.com — Job Postings

Not in registry

Metric/field Number of job postings for 'Cohu'

Cadence daily

Why it matters Changes in Cohu's job postings can indicate internal growth, hiring for specific product lines (e.g., HPC, software analytics), or expansion plans, aligning with their stated capacity increases in Malaysia and focus on AI/HBM.

Signal to watch An increasing number of job postings, especially for engineering, manufacturing, or AI/HBM-related roles, is bullish.

Confidence: high

2. SEC EDGAR — Company Filings

Not in registry

Metric/field 8-K, 10-Q, 10-K filings for COHU

Cadence event_driven

Why it matters SEC filings provide official, timely information on material events (8-K), quarterly performance (10-Q), and annual financial health (10-K), which are crucial for understanding Cohu's operational and financial status.

Signal to watch Timely filings with positive updates on revenue, pipeline conversion, or capacity expansion are bullish.

Confidence: high

3. Google Trends — Search Interest

Matched (medium)semi_semiconductor_equipment_billings · access=file · map_only

Metric/field Interest over time for 'HBM4E', 'hybrid bonding semiconductor'

Cadence daily

Why it matters HBM4E and hybrid bonding are critical advanced packaging technologies for next-generation HBM, a key growth driver for Cohu. Increasing search interest indicates growing industry and technological focus.

Signal to watch Rising search interest for these terms suggests increasing industry activity and adoption, bullish for Cohu's HBM-related solutions.

Confidence: medium

4. USASpending.gov — Federal Contract Awards

Matchedsemi_semiconductor_equipment_billings · access=file · map_only

Metric/field Award Amount for 'semiconductor test equipment'

Cadence daily

Why it matters Federal contracts for semiconductor test equipment could indicate government investment in domestic semiconductor capabilities or defense-related projects, potentially creating new opportunities for Cohu.

Signal to watch An increase in federal contract awards related to semiconductor test equipment is bullish, as it expands the addressable market.

Confidence: high

5. USPTO PatentsView — Patent Grants / Applications

Not in registry

Metric/field Number of patents granted/applied by 'Cohu Inc.'

Cadence irregular

Why it matters Patent activity by Cohu can signal ongoing R&D and innovation in key areas like advanced thermal control, HBM inspection, and software analytics, reinforcing their competitive differentiation.

Signal to watch An increasing number of new patent grants or applications, particularly in core technology areas, is bullish.

Confidence: high

Paid Alt Data Watch

1. TrendForce — Memory & Storage Research Service

Matchedtrendforce_dram_nand_pricing · access=file · map_only

Metric/field HBM Contract Price Index (HBM3E / HBM4 blended ASP per GB, USD)

Cadence irregular

Why it matters Directly measures the pricing power and profitability of HBM producers and indicates supply/demand dynamics, a core driver of the theme. Cohu's HBM inspection business is directly tied to HBM production.

Signal to watch Rising HBM contract prices indicate strong demand and potentially higher investment in HBM production and testing, bullish.

Confidence: high

2. Sourceability — Component Inventory & Availability

Matchedsourceability_component_pricing_lead_times_3 · access=file · map_only

Metric/field Memory Component Lead Times (weeks)

Cadence quarterly

Why it matters Cohu explicitly mentioned higher input costs and longer lead times for memory as a supply chain challenge. Monitoring these lead times provides direct insight into potential operational headwinds or easing.

Signal to watch Decreasing lead times for memory components would indicate easing supply chain pressures, bullish for Cohu's production efficiency.

Confidence: high

3. Dell'Oro Group — Semiconductor Test Equipment Market Research

Matcheddell_oro_group_network_equipment_market_share · access=file · map_only

Metric/field Market Share by Vendor (Revenue)

Cadence quarterly

Why it matters Provides insight into the competitive landscape and Cohu's position relative to competitors like Han Precision. Market share gains would validate Cohu's differentiated technology and market traction.

Signal to watch Increasing market share for Cohu in key segments (e.g., HPC handlers, HBM inspection) is bullish.

Confidence: medium

4. Similarweb — Website Analysis

Matched (medium)similarweb_website_traffic_engagement · access=file · map_only

Metric/field Total Visits (Cohu.com vs. Advantest.com, Teradyne.com)

Cadence monthly

Why it matters Web traffic to Cohu's site and those of its competitors can serve as a proxy for customer interest, engagement, and competitive activity in the semiconductor test equipment market.

Signal to watch Outperforming competitor website traffic growth or sustained high traffic to Cohu.com is bullish.

Confidence: medium

5. Lightcast — Job Postings Analytics

Matchedlightcast_job_postings · access=file · map_only

Metric/field Job Postings (Semiconductor Test Equipment Industry, by specific roles)

Cadence monthly

Why it matters Provides granular insights into hiring trends across the broader semiconductor test equipment industry and specific roles, indicating areas of growth, investment, and talent demand.

Signal to watch Increased hiring for roles related to AI, HBM, thermal control, or software analytics within the industry is bullish, signaling market expansion that Cohu can capitalize on.

Confidence: high

Search Keywords Brand Product

Eclipse Handler
Neon HBM inspection
Diamondx Tester
DI-Core AI
PACE prescriptive analytics
Krypton inspection metrology
JetAc Max
semiconductor test equipment
high-performance computing test
HBM memory test
AI processor test
gallium nitride power devices
silicon photonics test
advanced packaging inspection
semiconductor manufacturing software analytics

Search Keywords Event Phrases

Cohu earnings
Cohu investor day

What They Do (Plain English & Analogies): Cohu is like a quality control specialist for the tiny electronic brains (semiconductor chips) that power everything from your phone to your car. Imagine a factory making millions of identical LEGO bricks. Before those bricks are sent out to build amazing things, Cohu provides the specialized machines and tools to quickly and accurately check each brick to make sure it's perfect – no cracks, all the studs are there, and it fits correctly. They make the equipment that tests these chips for flaws, sorts them, and even helps manage the data from all that testing to improve the manufacturing process. They also provide the 'sockets' (test contactors) that connect the chip to the testing machine, and the systems that handle the chips during testing, often heating or cooling them to simulate real-world conditions. Their solutions are particularly crucial for advanced chips used in AI, high-performance computing, and high-bandwidth memory. Beyond the physical machines, Cohu also offers software that uses artificial intelligence to analyze test data, helping factories run more efficiently and improve the quality of the chips they produce.
Very Brief History: Cohu, Inc. was incorporated in 1947, initially known as Cohu Electronics, Inc., before changing its name to Cohu, Inc. in 1972. Over decades, the company has evolved to become a key provider of semiconductor test equipment and services, adapting to the changing demands of the electronics industry and expanding its global footprint.
"Street Stereotype": Cohu is generally perceived by investors and analysts as a cyclical semiconductor capital equipment company, heavily influenced by the broader semiconductor market's ups and downs. However, with its strong recurring revenue base and increasing focus on high-growth areas like High Bandwidth Memory (HBM) testing and AI-related applications, the 'street' is increasingly viewing it as a beneficiary of the AI-driven memory supercycle, offering some stability through its consumables and services.
Subsidiaries On Linked In*: Credence Capital Corporation
Credence Malta Limited
Credence Systems Korea Ltd.
Ismeca Semiconductor (Suzhou) Co Ltd.
Cohu Semiconductor (Shenzhen) Co Ltd of Suzhou
Credence Korea Co., Ltd.
Delta Design (Littleton), Inc.
LTX-Credence Sdn BhD
Delta Design Philippines LLC (Cohu PH)
Customer Sectors & Example Clients: Cohu's customers operate in various semiconductor-related sectors, including automotive, industrial, computing, mobile, RF and connectivity, and memory. They serve both Integrated Device Manufacturers (IDMs) and Outsourced Semiconductor Assembly and Test (OSAT) companies. Specific types of clients mentioned include a leading high-performance computing chipmaker, a US-based IDM for HBM, a Taiwan-based OSAT, leading power and RF customers, and an industrial customer that accounted for over 10% of total sales in Q2 2026. While specific company names are not explicitly provided in the transcript, educated guesses for potential clients based on industry knowledge include: NVIDIA, AMD, Intel (for HPC/AI); Intel, Micron, Samsung (for HBM IDMs); ASE Technology Holding, Amkor Technology (for OSATs); Infineon, NXP, STMicroelectronics (for power/RF/automotive).
New Customers / Segments They'Re Targeting: Cohu is actively targeting new customer opportunities within the high-performance computing (HPC) space, including fabless and hyperscaler programs as they move from qualification to production ramp. They are also expanding their presence at OSATs in Southeast Asia. In inspection, they are pursuing additional advanced package mobile and AI adjacent inspection opportunities. In semiconductor test, they are focusing on demand tied to efficient power delivery and high-speed connectivity across edge devices, vehicles, industrial equipment, and connected infrastructure, specifically mentioning gallium nitride (GaN) power devices and advanced connectivity applications. Furthermore, Cohu is gaining traction in silicon photonics test, booking orders for interface solutions used in optical engine test and pursuing engagements tied to emerging requirements for co-packaged optical devices. Their software analytics business is expanding within existing accounts and deploying on-site AI appliances for customers with strict data sovereignty requirements.
Sales Geographies And Expansion Plans: Cohu currently sells its products and services internationally, with significant exposure in China, the United States, Taiwan, Malaysia, and the Philippines. The company emphasizes strong customer diversification across North America, Europe, and Asia-Pacific. Management did not explicitly state plans to expand into entirely new geographies, but their focus on global customers and strategic verticals implies continued support and growth within their existing international footprint. To support demand, Cohu is expanding its internal manufacturing in Malaysia, aiming to double output by year-end 2026 and support another step up in capacity by mid-2027. They are also undertaking a small expansion in the Philippines, where thermal heads are built.
How Key Themes May Help/Hurt: The buildout of High Bandwidth Memory (HBM) significantly benefits Cohu. As HBM becomes the 'memory backbone of AI training and inference infrastructure', the increasing complexity and value of these devices necessitate more rigorous and advanced testing at multiple stages. Cohu's Neon inspection systems are directly positioned to capitalize on this, with shipments of final inspection systems for HBM3, HBM4, and HBM4e devices to a US-based IDM and strong forecasts into the second half of 2026. The company is also investing to stay ahead of customer roadmaps into HBM5 and beyond. Furthermore, the demand for high-performance computing (HPC) processors, which often integrate HBM, drives the adoption of Cohu's Eclipse handler, enabled by advanced active thermal control for extreme power. This theme helps Cohu by increasing demand for its specialized test and inspection equipment, driving revenue growth, and reinforcing its competitive differentiation in thermal management and advanced inspection for critical AI components. While the overall HBM theme is a strong tailwind, potential risks include the inherent complexity of hybrid bonding in future HBM generations, which could pose new testing challenges, and the cyclicality of the broader memory market, which could eventually impact capital expenditure if there's an oversupply in general DRAM or NAND. However, the current strong demand for HBM specifically for AI applications is a significant positive for Cohu.

3 Main Long-Term Bull Details

Cohu is capitalizing on explosive demand from AI, HPC, and HBM, with its HPC customer pipeline now estimated at $850 million annually and its fiscal 2026 HPC revenue estimate raised to between $100 million and $110 million. Strong Q2 bookings in computing (up 150% year over year) and industrial (up 87% year over year) further validate this robust market traction.
The company's differentiated solutions, including the Eclipse handler with advanced thermal control, which management states is 'the best thermal in the market,' expanding HBM inspection for HBM3, HBM4, and HBM4e devices, and rapidly growing software analytics business (first $1 million revenue quarter, 140% year over year order growth), provide a strong competitive edge and drive recurring revenue.
Cohu is aggressively expanding capacity in Malaysia to double HPC handler output by year-end 2026 and potentially triple it by the end of 2027, supporting a raised full-year 2026 revenue growth outlook of approximately 35%. Improved semiconductor test utilization (80%) and strong operating profit leverage further strengthen the financial outlook.

3 Main Long-Term Bear Details

Despite overall market recovery, the semiconductor industry remains cyclical. The automotive segment continues to struggle significantly, with orders down 24% year over year in Q2, and is not expected to reach 80% utilization until late Q1 or Q2 of next year, potentially impacting overall growth and market sentiment.
Rapid expansion in high-performance computing is straining Cohu's supply chain, leading to longer lead times and higher input costs, particularly for memory. While proactive measures are being taken, these challenges could impact gross margins or the ability to fully meet demand without further cost increases being passed to customers.
The semiconductor test equipment market is highly competitive, with a primary competitor like Han Precision in the handler space. Rapid technological evolution in HBM and advanced packaging also poses a risk of obsolescence, requiring continuous R&D investment to maintain differentiation and market share.

Competitors And Differentiation: The primary competitor in the test handler space is Han Precision from Taiwan, which has historically been the main supplier at test subcontractors. Cohu differentiates itself through its high-power thermal control technology, which management states is 'the best thermal in the market. Period. End of story.' This technology is a key differentiator, improving test quality and first-pass yield, particularly for extreme power devices used in high-performance computing. They also offer configurable thermal handlers like the Eclipse, which can be used across multiple device generations, helping customers reduce capital risk and extend the value of their installed base. Additionally, Cohu's Neon inspection systems for HBM and its new vision inspection sensor with shortwave infrared capability provide advanced solutions for detecting inner cracks in complex silicon devices, reinforcing its position in silicon inspection applications.
Recent Performance & What The Market'S Focused On: Cohu delivered a strong Q2 2026, with sales of $149 million, up 38% year over year, exceeding the midpoint of guidance. Recurring revenue represented approximately 53% of total revenue. The company raised its full-year 2026 revenue outlook for growth to approximately 35% and increased its fiscal 2026 HPC revenue estimate to between $100 million and $110 million. The market is focused on Cohu's ability to convert its expanding $850 million HPC customer pipeline into revenue, the successful execution of its aggressive manufacturing capacity expansion plans in Malaysia, and the continued growth of its HBM inspection system shipments and software analytics business. Investors are also monitoring the overall semiconductor test utilization rate, particularly in computing and industrial segments, and Cohu's ability to mitigate rising input costs and supply chain pressures while maintaining gross margins.

Revenue Segments And Estimated Mix: Recurring — Mix: ~53%; Source: Q2 2026 earnings call; Trend: Up 38% year over year for total sales, recurring revenue was 53% of total
Systems — Mix: ~47%; Source: Implied from Q2 2026 earnings call
Product Brands: Eclipse Handler
Diamondx Tester
Krypton Inspection Metrology System
Neon (for HBM inspection)
DI-Core
PAICe Inspection Software
PACE Prescriptive Analytics Software
DI-Core AI
JetAc Max

Bull / Bear Details

Cohu is strongly positioned for growth in semiconductor test, fueled by robust AI, HPC, and HBM demand, evidenced by an expanded $850M annual HPC pipeline and a

Thesis

Cohu is strongly positioned for growth in semiconductor test, fueled by robust AI, HPC, and HBM demand, evidenced by an expanded $850M annual HPC pipeline and a raised 35% full-year 2026 revenue growth outlook. Despite cyclicality and supply chain pressures, Cohu's differentiated thermal technology, rapidly growing software analytics, and aggressive capacity expansion plans solidify a compelling bullish case. (Updated: 2026-10-18)

Bull case

Cohu is capitalizing on explosive demand from AI, HPC, and HBM, with its HPC customer pipeline now estimated at $850 million annually, including $190 million qualified. The company raised its fiscal 2026 HPC revenue estimate to between $100 million and $110 million, driven by strong Q2 computing bookings (up 150% year over year) and industrial (up 87% year over year).
The company's differentiated solutions, including the Eclipse handler with advanced thermal control, which management states is "the best thermal in the market," expanding HBM inspection for HBM3, HBM4, and HBM4e devices, and a rapidly growing software analytics business (first $1 million revenue quarter, 140% year over year order growth), provide a strong competitive edge and drive recurring revenue.
Cohu is aggressively expanding capacity in Malaysia to double HPC handler output by year-end 2026 and potentially triple it by the end of 2027, supporting a raised full-year 2026 revenue growth outlook of approximately 35%. Improved semiconductor test utilization (80%) and solid operating profit leverage (40% conversion of sequential revenue growth) further strengthen the financial outlook.

Bear case

Despite overall market recovery, the semiconductor industry remains cyclical. The automotive segment continues to struggle significantly, with orders down 24% year over year in Q2, and is not expected to reach 80% utilization until late Q1 or Q2 of next year, potentially impacting overall growth and market sentiment.
Rapid expansion in high-performance computing is straining Cohu's supply chain, leading to longer lead times and higher input costs, particularly for memory. While proactive measures are being taken, these challenges could impact gross margins or the ability to fully meet demand without further cost increases being passed to customers.
The semiconductor test equipment market is highly competitive, with a primary competitor like Han Precision in the handler space. Rapid technological evolution in HBM and advanced packaging also poses a risk of obsolescence, requiring continuous R&D investment to maintain differentiation and market share.

Bull / Bear Case

Bear Case: Despite overall market recovery, Cohu faces significant headwinds and valuation concerns. The company is currently unprofitable on a trailing twelve-month basis, with negative EPS and net income. Its forward P/E ratio of 34.5x-35.4x represents a substantial premium compared to the Nasdaq-100's 22.1x and Cohu's historical median of 18.0x, indicating potential overvaluation. Additionally, the Price/Book ratio above 3 suggests the company could be overvalued relative to its assets. The semiconductor industry remains cyclical, and Cohu's automotive segment continues to struggle, with orders down 24% year-over-year in Q2 and expected to lag in recovery until late Q1 or Q2 of next year. Rapid expansion in HPC is straining Cohu's supply chain, leading to longer lead times and higher input costs, particularly for memory. Discussions to pass these costs on to customers are only just beginning, posing a risk to gross margins. Insider selling, including $3.3 million by the CEO in September 2026 and $13.0 million by insiders over the past 12 months with no buying activity, could signal concerns about the current valuation or future prospects.
Bull Case: Cohu is strongly positioned to capitalize on explosive demand from AI, High-Performance Computing (HPC), and High-Bandwidth Memory (HBM), evidenced by an expanded $850 million annual HPC customer pipeline and a raised fiscal 2026 HPC revenue estimate of $100 million to $110 million. The company reported robust Q2 computing bookings, up 150% year-over-year, and industrial bookings, up 87% year-over-year. Cohu's differentiated solutions, including the Eclipse handler with advanced thermal control, which management states is "the best thermal in the market," and expanding HBM inspection systems, provide a strong competitive edge. Furthermore, its rapidly growing software analytics business, which delivered its first $1 million revenue quarter with 140% year-over-year order growth, contributes to recurring revenue. The company is aggressively expanding its manufacturing capacity in Malaysia, aiming to double HPC handler output by year-end 2026 and potentially triple it by the end of 2027, supporting a raised full-year 2026 revenue growth outlook of approximately 35%. Improved semiconductor test utilization (80%) and solid operating profit leverage further strengthen the financial outlook.
More Compelling & Why: Bear. Cohu's current valuation, particularly its forward P/E of 34.5x-35.4x, is a significant premium to both the Nasdaq-100 and its own historical median, despite being unprofitable on a TTM basis. The most compelling bear argument is the combination of stretched valuation, ongoing unprofitability, and the uncertainty surrounding the ability to pass on rising supply chain costs, which directly impacts future profitability. My view would flip to Bull if Cohu demonstrates sustained GAAP profitability and successfully passes on increased input costs without impacting demand, leading to a more reasonable valuation relative to its growth prospects.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
HPC Customer Pipeline Conversion and Eclipse Handler Orders	This factor directly reflects Cohu's success in capitalizing on the high-growth AI and HPC markets, validating its differentiated Eclipse handler technology and the expansion of its customer base. Successful conversion drives significant revenue growth and strengthens market position.	Announcement of the customer in active qualification (part of the $250M pipeline) expected to qualify by late August 2026. Confirmation of the $26 million Eclipse 6 systems order shipping in Q4 2026. Updates on the customer expected to qualify by mid-Q1 2027.	Bullish if the customer expected to qualify by late August 2026 is announced as qualified by mid-September 2026. Bullish if the $26 million Eclipse 6 order ships as planned in Q4 2026. Bullish if the customer expected by mid-Q1 2027 is announced as qualified by February 2027.	Cohu's official press releases, SEC filings (10-Q, 10-K), and subsequent earnings calls. Next earnings call expected in late October/early November 2026 for Q3 2026 results.	[]	[]
HBM Inspection System Shipments and Next-Gen Roadmap Progress	HBM is the memory backbone of AI infrastructure, and Cohu's inspection systems are critical for ensuring quality. Continued strong shipments and progress on next-gen HBM (HBM5 and beyond) solidify Cohu's position in this high-growth market.	Updates on HBM inspection system shipments and revenue contribution in H2 2026. Announcements regarding further qualifications of Neon at other OSATs or IDMs, and specific progress on HBM5 development.	Bullish if Cohu reports strong HBM inspection system revenue in H2 2026, aligning with or exceeding the strong forecast. Bullish if additional Neon qualifications are announced, particularly for HBM5 or other advanced package mobile/AI adjacent inspection opportunities.	Cohu's subsequent earnings calls and investor presentations. Company press releases regarding new HBM inspection system wins or qualifications.	[]	[]
Malaysia Manufacturing Capacity Expansion for HPC Handlers	This expansion is crucial for Cohu to meet the surging demand for its HPC handlers, particularly the Eclipse system, which is critical for testing AI processors and HBM. Successful execution alleviates testing bottlenecks and enables revenue growth.	Management updates on the progress of the Malaysia factory expansion, specifically confirming the achievement of a 50% increase in HPC handler output by year-end 2026 (over Q2 2026 levels) and being on track to more than double output by mid-2027.	Bullish if Cohu confirms achieving the target of increasing HPC handler output by 50% by year-end 2026. Bullish if they confirm being on track for more than doubling output by mid-2027. Bearish if there are reported delays or setbacks in the capacity expansion.	Cohu's official press releases, SEC filings (10-Q, 10-K), and subsequent earnings calls. Next earnings call expected in late October/early November 2026 for Q3 2026 results.	[]	[]
Overall Semiconductor Test Utilization Rate	Semiconductor test utilization is a key indicator of industry health and a leading indicator for capital expenditure by Cohu's core IDM customers. Sustained high utilization drives demand for Cohu's equipment and services.	Cohu's reported overall semiconductor test utilization rate in Q3 2026 and subsequent quarters. Monitor segment-specific utilization rates, especially for computing and industrial, and the recovery of automotive.	Bullish if overall test utilization remains at or above 80% in Q3 2026 and subsequent quarters. Bullish if computing and industrial utilization rates continue to rise or stay in the low 80s. Bearish if overall utilization drops below 80% or if automotive recovery is further delayed beyond late Q1/Q2 2027.	Cohu's subsequent earnings calls and investor presentations. Industry reports from SEMI or other semiconductor market research firms.	[]	[]
Software Analytics Revenue and Expansion	Cohu's software analytics business represents a growing recurring revenue stream and a strategic diversification. Its expansion reinforces customer value, improves equipment efficiency, and converts the installed base into ongoing revenue opportunities.	Cohu's reported software analytics revenue in Q3 2026 and Q4 2026. Updates on the expansion of the largest software deployment with the HPC chipmaker during H2 2026, and further deployments of DI-Core AI on-site appliances.	Bullish if software analytics revenue continues to grow sequentially in Q3 and Q4 2026, exceeding the $1 million mark. Bullish if Cohu announces successful expansion of the major HPC software deployment in H2 2026.	Cohu's subsequent earnings calls and investor presentations. Company press releases regarding new software deployments or customer wins.	[]	[]

Key Reported Metrics, Reratings Triggers & Results6 rows

This metric highlights the success of Cohu's 'land and expand' strategy for its software analytics business, demonstrating diversification into recurring softwa

Upcoming print · 2026-10-28

Key reported metrics			Rerating thresholds
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date
Software Analytics Orders Growth	140%	This metric highlights the success of Cohu's 'land and expand' strategy for its software analytics business, demonstrating diversification into recurring software revenue and improved equipment efficiency for customers. Sustained growth indicates a valuable new revenue stream.	For Cohu, Inc. (COHU) to rerate higher, its Software Analytics Orders Growth metric needs to hit at least 150% year-over-year in the upcoming earnings report. This would demonstrate an acceleration from the already strong 140% reported in Q2 2026 and signal sustained, robust momentum in this high-growth segment. Additionally, the company would need to report sequential software analytics revenue exceeding $1.25 million, building significantly on its first $1 million revenue quarter.	Accelerated software analytics orders growth and substantial sequential revenue expansion confirm Cohu's successful 'land and expand' strategy and diversification into high-margin, recurring software revenue. This validates the company's competitive edge, reduces cyclicality, and strengthens the long-term investment thesis, justifying a higher valuation multiple.	2026-10-28
High Performance Computing (HPC) System Orders Growth	150%	This metric directly measures Cohu's success in capturing the AI-driven market opportunity, validating its differentiated solutions like the Eclipse handler and the conversion of its expanding customer pipeline. Strong growth signals future revenue potential.	For Cohu, Inc. (COHU) to rerate higher, its High Performance Computing (HPC) System Orders Growth needs to demonstrate sustained momentum by reporting year-over-year growth of at least 100% in Q3 2026. This would signal continued strong conversion of its expanding $850 million annual HPC pipeline, building on the 150% year-over-year growth in computing bookings reported in Q2 2026, and further validating the company's raised fiscal 2026 HPC revenue estimate of $100 million to $110 million. Additionally, the announcement of a significant new HPC customer qualification, particularly the one expected by mid-September 2026, would be a strong positive catalyst.	Sustained triple-digit HPC orders growth confirms Cohu's successful capture of the AI-driven market opportunity, validating its differentiated thermal solutions and the conversion of its substantial customer pipeline. This demonstrates robust future revenue potential, strengthens the bullish investment thesis, and justifies a higher valuation by signaling continued market share gains and strong execution in a critical growth segment.	2026-10-28
Total Revenue	For Q1 2026, total revenue was approximately $122 million (29% y/y growth). The full-year 2026 revenue outlook was increased to approximately 35% y/y growth. HBM revenue for 2026 was still forecasted between $15 million and $20 million, with the increase in fiscal 2026 HPC revenue estimate being "entirely on the Eclipse HPC side, not HBM."	This metric indicates the overall business health and market demand, reflecting Cohu's successful execution on strategic initiatives in AI and HPC, and the recovery of its core segments. Investors will watch for continued strong growth.	For Cohu, Inc. (COHU) to rerate higher, its Total Revenue for Q3 2026 needs to exceed $177 million, surpassing the high end of its own guidance range of $170 million +/- $7 million and significantly beating the analyst consensus estimate of $167.85 million. Additionally, for a stronger rerating, the company would need to either raise its full-year 2026 revenue growth outlook above the current approximately 35% or provide an initial, robust outlook for 2027 that signals continued acceleration in its high-growth segments, particularly HPC and HBM.	Exceeding revenue expectations would validate Cohu's strong execution in the high-growth AI, HPC, and HBM markets, demonstrating successful conversion of its expanding pipeline and reinforcing its competitive edge. This signals sustained market recovery and strengthens the long-term investment thesis by showcasing robust demand for its differentiated test solutions.	2026-10-28
Software Analytics Orders Growth	140%	This metric highlights the success of Cohu's 'land and expand' strategy for its software analytics business, demonstrating diversification into recurring software revenue and improved equipment efficiency for customers. Sustained growth indicates a valuable new revenue stream.	For Cohu, Inc. (COHU) to rerate higher, its Software Analytics Orders Growth metric needs to hit at least 150% year-over-year in the upcoming earnings report. This would demonstrate an acceleration from the already strong 140% reported in Q2 2026 and signal sustained, robust momentum in this high-growth segment. Additionally, the company would need to report sequential software analytics revenue exceeding $1.25 million, building significantly on its first $1 million revenue quarter.	Accelerated software analytics orders growth and substantial sequential revenue expansion confirm Cohu's successful 'land and expand' strategy and diversification into high-margin, recurring software revenue. This validates the company's competitive edge, reduces cyclicality, and strengthens the long-term investment thesis, justifying a higher valuation multiple.	2026-10-28
High Performance Computing (HPC) System Orders Growth	150%	This metric directly measures Cohu's success in capturing the AI-driven market opportunity, validating its differentiated solutions like the Eclipse handler and the conversion of its expanding customer pipeline. Strong growth signals future revenue potential.	For Cohu, Inc. (COHU) to rerate higher, its High Performance Computing (HPC) System Orders Growth needs to demonstrate sustained momentum by reporting year-over-year growth of at least 100% in Q3 2026. This would signal continued strong conversion of its expanding $850 million annual HPC pipeline, building on the 150% year-over-year growth in computing bookings reported in Q2 2026, and further validating the company's raised fiscal 2026 HPC revenue estimate of $100 million to $110 million. Additionally, the announcement of a significant new HPC customer qualification, particularly the one expected by mid-September 2026, would be a strong positive catalyst.	Sustained triple-digit HPC orders growth confirms Cohu's successful capture of the AI-driven market opportunity, validating its differentiated thermal solutions and the conversion of its substantial customer pipeline. This demonstrates robust future revenue potential, strengthens the bullish investment thesis, and justifies a higher valuation by signaling continued market share gains and strong execution in a critical growth segment.	2026-10-28
Total Revenue	Q2 2026 revenue was $149 million, up 38% year over year. The company increased its full-year 2026 revenue outlook for growth over last year to approximately 35%. The fiscal 2026 HPC revenue estimate was raised to between $100 million and $110 million. HBM revenue for 2026 was still forecasted between $15 million and $20 million.	This metric indicates the overall business health and market demand, reflecting Cohu's successful execution on strategic initiatives in AI and HPC, and the recovery of its core segments. Investors will watch for continued strong growth.	For Cohu, Inc. (COHU) to rerate higher, its Total Revenue for Q3 2026 needs to exceed $177 million, surpassing the high end of its own guidance range of $170 million +/- $7 million and significantly beating the analyst consensus estimate of $167.85 million. Additionally, for a stronger rerating, the company would need to either raise its full-year 2026 revenue growth outlook above the current approximately 35% or provide an initial, robust outlook for 2027 that signals continued acceleration in its high-growth segments, particularly HPC and HBM.	Exceeding revenue expectations would validate Cohu's strong execution in the high-growth AI, HPC, and HBM markets, demonstrating successful conversion of its expanding pipeline and reinforcing its competitive edge. This signals sustained market recovery and strengthens the long-term investment thesis by showcasing robust demand for its differentiated test solutions.	2026-10-28

Last reported · 2026-07-30

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Full Year Orders Growth	29%	Achieving at least 35% Full Year Orders Growth would validate Cohu's strong positioning in the high-growth AI and HBM test markets, confirming that design wins and increased utilization are translating into robust future revenue. This sustained outperformance against market cyclicality and competitive pressures would reinforce the bullish investment thesis and justify a higher valuation.	Full Year Orders Growth needs to hit at least 35% for 2026. This would demonstrate significant acceleration from the 29% growth in 2025 and substantially outperform the projected 12-16% revenue growth and the broader semiconductor test equipment market's 12% growth forecast for 2026. It would also build on the strong sequential order momentum seen in Q4 2025, where systems orders were up 47% and recurring orders up 34% quarter-over-quarter, and align with the higher end of the $60 million to $85 million HPC segment guidance for 2026.	Achieving at least 35% Full Year Orders Growth would validate Cohu's strong positioning in the high-growth AI and HBM test markets, confirming that design wins and increased utilization are translating into robust future revenue. This sustained outperformance against market cyclicality and competitive pressures would reinforce the bullish investment thesis and justify a higher valuation.	2026-07-30	Not explicitly reported for full year 2026. However, the company increased its full-year 2026 revenue outlook for growth over last year to approximately 35%. Q2 2026 bookings showed Computing up 150% year over year, Industrial up 87% year over year, and Software Analytics orders up 140% year over year.	Partially	While a specific 'Full Year Orders Growth' for 2026 was not reported as an actual, the company did raise its full-year 2026 revenue outlook to approximately 35% year-over-year growth, which aligns with the 35% rerating trigger for orders growth. This suggests strong underlying order trends, as evidenced by significant year-over-year bookings increases in key segments like Computing (150%) and Industrial (87%) in Q2 2026. The rerating trigger's rationale explicitly linked orders growth to outperforming revenue growth forecasts, and the company's updated revenue guidance meets this threshold, indicating positive momentum.
Recurring Revenue	25%	Sustained and accelerating recurring revenue growth confirms robust market recovery and Cohu's strong installed base utilization and customer reliance, particularly in high-growth AI and HBM sectors. This predictability and stability are crucial for valuation rerating, signaling reduced cyclicality and validating the long-term investment thesis.	For Cohu, Inc. (COHU) to rerate higher, its Recurring Revenue metric needs to hit approximately $76 million or more in Q1 2026. This would represent a sequential growth of at least 4% from Q4 2025's recurring revenue of $73 million, significantly exceeding the implied sequential flatness from the company's Q1 2026 total revenue guidance of $122 million (where recurring revenue is expected to be ~60%). Additionally, this would demonstrate an acceleration in year-over-year growth beyond the 25% reported in Q4 2025.	Sustained and accelerating recurring revenue growth confirms robust market recovery and Cohu's strong installed base utilization and customer reliance, particularly in high-growth AI and HBM sectors. This predictability and stability are crucial for valuation rerating, signaling reduced cyclicality and validating the long-term investment thesis.	2026-07-30	Recurring revenue was approximately 53% of total revenue in Q2 2026. Total revenue for Q2 2026 was $149 million. This implies recurring revenue of approximately $78.97 million. The year-over-year growth for recurring revenue was not explicitly stated for Q2 2026, but total sales were up 38% year over year.	Yes	Although the rerating trigger was specifically for Q1 2026, the Q2 2026 earnings report shows recurring revenue at approximately $78.97 million (53% of $149 million total revenue). This figure exceeds the $76 million target set for Q1 2026. The company also highlighted that its software analytics business, a component of recurring revenue, delivered its first $1 million revenue quarter and saw orders increase an impressive 140% year over year. This strong performance in recurring revenue streams, driven by software analytics and consumables, reinforces the bullish investment thesis.
Total Revenue	29%	Exceeding these revenue thresholds would validate Cohu's strategic focus on high-growth AI and HBM markets, demonstrating successful execution and market share gains. This signals a sustained market recovery beyond cyclical expectations, justifying a higher valuation multiple and strengthening the long-term investment thesis by alleviating profitability and overvaluation concerns.	For Q1 2026, Cohu needs to report Total Revenue exceeding $130 million, surpassing the high end of its guidance of $129 million and analyst consensus of approximately $122 million. Additionally, for a higher rerating, the company needs to raise its full-year 2026 revenue guidance to reflect year-over-year growth of at least 25% to 30%, demonstrating an acceleration from the 12.74% growth in 2025 and sustaining the strong Q4 2025 year-over-year growth of 29.9%. This growth should be primarily driven by strong traction in AI, HBM, and HPC segments, with HBM revenue exceeding the $20 million high end of their 2026 forecast.	Exceeding these revenue thresholds would validate Cohu's strategic focus on high-growth AI and HBM markets, demonstrating successful execution and market share gains. This signals a sustained market recovery beyond cyclical expectations, justifying a higher valuation multiple and strengthening the long-term investment thesis by alleviating profitability and overvaluation concerns.	2026-07-30	Q2 2026 revenue was $149 million, up 38% year over year. The company increased its full-year 2026 revenue outlook for growth over last year to approximately 35%. The fiscal 2026 HPC revenue estimate was raised to between $100 million and $110 million. HBM revenue for 2026 was still forecasted between $15 million and $20 million.	Yes	Cohu significantly exceeded the Q1 2026 revenue rerating trigger by reporting Q2 2026 revenue of $149 million, which was up 38% year over year. More importantly, the company raised its full-year 2026 revenue outlook to approximately 35% year-over-year growth, surpassing the 25% to 30% target for a higher rerating. This strong performance was driven by demand in high-performance computing (HPC) opportunities, with the fiscal 2026 HPC revenue estimate raised to between $100 million and $110 million. While the HBM revenue forecast remained within the $15 million to $20 million range, the overall revenue growth and outlook were very positive, validating Cohu's strategic focus on high-growth AI and HPC markets.

Key Questions

Will Cohu successfully convert its expanded $850 million annual HPC customer pipeline into revenue, particularly with the $26 million Eclipse 6 systems order la

Will Cohu successfully convert its expanded $850 million annual HPC customer pipeline into revenue, particularly with the $26 million Eclipse 6 systems order largely shipping in Q4, and execute its aggressive manufacturing capacity expansion plans to double HPC handler output by year-end 2026?

Question 2: Can Cohu effectively mitigate the impact of rising input costs, particularly for memory, by successfully passing these costs on to customers, given that discussions have just begun, and maintain its projected Q3 gross margin of approximately 45% and full-year mid-40% range?
Question 3: Beyond HPC, will the recovery in Cohu's core business segments, particularly the lagging automotive market which is not expected to reach 80% utilization until late Q1 or Q2 2027, accelerate as overall test utilization remains high, and can the software analytics business sustain its strong growth trajectory and expand its major HPC deployment in H2 2026?

Earnings Transcript Summary2 rows

2026-07-30 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Scaling high-performance computing (HPC) handler adoption and HBM inspection: Management emphasized expanding their position in HPC through the Eclipse Handler for AI processors and JetAc Max devices, as well as increasing presence in HBM inspection for HBM3, HBM4, and HBM4e devices. They also raised their fiscal 2026 HPC revenue estimate to between $100 million and $110 million. 2. Expanding Diamondx into power and connectivity devices: Management highlighted increasing demand tied to AI-enabling requirements for efficient power delivery and high-speed connectivity, specifically mentioning gallium nitride (GaN) power devices and advanced connectivity applications as a $340 million annual addressable market opportunity. 3. Converting software pilots into production deployments and increasing recurring revenue: Management noted the success of their 'land and expand' strategy for software analytics, with DI-Core AI and PACE prescriptive analytics software moving from early production wins to repeatable patterns, delivering their first $1 million revenue quarter and orders increasing 140% year over year. They also emphasized that recurring revenue was approximately 53% of total revenue.	Call Takeaway & ToneThe overall takeaway of the call was highly positive and confident. Cohu delivered strong Q2 2026 results, exceeding guidance, driven by robust demand in high-performance computing (HPC) and AI-related applications. Management expressed significant optimism regarding their expanding HPC pipeline, the adoption of their Eclipse handler and HBM inspection solutions, and the successful scaling of their software analytics business. The company is actively expanding manufacturing capacity to meet this demand and sees a recovery in its core business, led by industrial. The tone was upbeat, emphasizing strong execution, strategic alignment with key growth markets, and a positive outlook for continued revenue growth and profitability.	Prior Quarter'S Y/Y Growth By SegmentFor Q1 2026, segment-specific revenue year-over-year growth rates were not explicitly reported. However, the following order growth rates were noted: Overall orders increased 57% year over year. Inspection and Metrology orders grew 64% year over year. Semiconductor Test orders surged 163% year over year. Test Handler business orders were up 54% year-over-year. Total revenue for Q1 2026 grew 29% year-over-year. Recurring revenue comprised 60% of total revenue in Q1 2026.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Details of the HPC pipeline and conversion to revenue: Analysts inquired about the $850 million pipeline, the mix of qualified customers (HPC vs. HBM), and the timeline for these opportunities to convert into revenue. Management confirmed that the qualified segment includes three HPC and one HBM customer, representing about $190 million in annual opportunity, with additional customers in qualification expected to convert to revenue within a month for one, and by mid-Q1 next year for another. 2. Supply chain, capacity expansion, and input costs: Analysts pressed on Cohu's ability to meet increasing demand, particularly for HPC, and the impact of higher input costs. Management detailed plans to increase output for HPC handlers by about 50% over the next six months and to more than double it by mid-2027, with a path to triple by the end of 2027. They acknowledged that memory is the main component with higher costs and longer lead times, but they are managing this through advanced purchases and are initiating discussions with customers about passing on these costs. 3. Core business recovery and seasonality: Analysts sought clarification on the contribution of the core business to the increased revenue guidance and expected seasonality. Management stated that Q3 revenue growth is roughly 50% HPC-driven and 50% from the core business. They noted that industrial is leading the core business recovery, with overall test utilization improving to 80%, and they expect the core business to remain flattish into Q4, with automotive lagging until Q1 or Q2 of next year.	Revenue SegmentsTotal sales were up 38% year over year. Recurring revenue was approximately 53% of total revenue. Bookings by segment (year-over-year growth) were: Computing up 150%, Industrial up 87%, Consumer up 29%, Mobile essentially flat, and Automotive down 24%.

2026-02-12 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Market recovery and growth, especially in high-performance computing (AI, HBM): Management highlighted the 'continued market recovery across end markets', 'increasing design win traction, expanding AI data center opportunities and strengthening market signals across several strategic verticals'. They specifically mentioned the Eclipse handler for AI device roadmap and HBM inspection for next-generation memory devices, and expressed excitement about 'high-performance computing opportunities that we see with the Eclipse handler'. 2. Strong recurring business and installed base value: Management emphasized that 'Recurring business remained strong, representing about 60% of total revenue in the fourth quarter'. They believe this 'strong recurring business reflects the value of our installed base and customer reliance on Cohu across their production environment', providing 'stable performance, particularly over the past two years of soft equipment demand'. They also noted that 'recurring revenue now has increased sequentially four quarters in a row', signaling market recovery. 3. Strategic investments and financial strength: Management discussed the Q4 convertible debt offering, which raised $287.5 million to 'provide additional liquidity to strengthen our balance sheet and support strategic initiatives'. Their focus for 2026 includes supporting 'R&D investments that are enabling several design wins in the compute market, including AI data center infrastructure, HBM memory and physical AI applications, along with progressively increasing our cash flow generation'.	Call Takeaway & ToneThe overall takeaway of the call is that Cohu is experiencing a strong market recovery, driven by increasing demand in high-performance computing, AI, and automotive sectors. The tone was positive and optimistic, with management highlighting robust order activity, strong recurring revenue, and significant design wins. They expressed confidence in continued growth for 2026, supported by strategic investments and an improving market environment, despite some one-time inventory charges impacting Q4 gross margin.	Prior Quarter'S Y/Y Growth By SegmentQ3 2025 Total Revenue: 32.42% year-over-year. Q3 2025 Recurring Revenue: Not explicitly stated in the provided search results. Q3 2025 Systems Revenue: Not explicitly stated in the provided search results.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Order activity (systems and recurring) and conversion to revenue: Analysts inquired about the strong Q4 order activity and its conversion to revenue in Q1 and later in the year. Management responded that systems orders were up 47% quarter-on-quarter, driven by handlers, thermal subsystems, and testers, while recurring orders were up 34% quarter-over-quarter, including large service contracts, interface products, and handler spares. They clarified that approximately 70% of Q1 guided revenue is in backlog, with the majority of the balance shipping in Q2. 2. HBM (Neon) revenue and 2026 expectations, and gross margin clarification: Analysts asked about Neon HBM revenue in 2025 and projections for 2026, and sought clarification on the Q4 gross margin. Management stated that HBM revenue exited 2025 at $11 million, with three more systems booked in January for Q1, and a forecast of $15 million to $20 million for 2026. They explained that the Q4 gross margin was lower due to a one-time inventory charge of about 350 basis points from discontinuing certain product lines. 3. Eclipse handler activity, ramp, and capacity: Analysts questioned the activity around the Eclipse handler, its expected ramp throughout 2026, and the company's capacity to meet demand. Management confirmed a Q4 booking for a high-performance thermal configuration of the Eclipse handler, with the first production unit shipped in late January. They indicated a ramp in production, particularly in Q2 and Q3, and affirmed having the capacity to meet demand based on current forecasts.	Revenue SegmentsTotal Revenue: 30% year-over-year. Recurring Revenue: 25% year-over-year. Systems Revenue: 38.29% year-over-year. Full Year 2025 Revenue: 13% year-over-year.

Transcript Tidbits3 rows

2026-07-30

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCohu is expanding its position in high-performance computing (HPC) with the adoption of its Eclipse Handler for AI processors and next-generation JetAc Max devices, reinforcing an estimated $850 million annual customer pipeline. This includes $190 million in qualified annual opportunity across 4 customers, $250 million in active qualification across 5 customers, and $445 million in early-stage engagement across 10 additional customers. The company raised its fiscal 2026 HPC revenue estimate to between $100 million and $110 million. Cohu is also increasing its presence at OSATs in Southeast Asia to support fabless and hyperscaler programs. In inspection, Cohu shipped additional final inspection systems for HBM3, HBM4, and HBM4e devices and qualified Neon at a Taiwan-based OSAT for advanced package mobile and AI adjacent inspection. A new vision inspection sensor with shortwave infrared capability was released to detect inner cracks in complex silicon devices. In semiconductor test, Cohu is addressing an estimated $340 million annual addressable market opportunity over the midterm for GaN power and advanced connectivity applications. The software analytics business delivered its first $1 million revenue quarter, with orders up 140% year-over-year, driven by land-and-expand strategies and on-site AI appliance deployments for data sovereignty. High-speed interface technology is gaining traction in silicon photonics test, with $500 thousand booked in interface solutions for optical engine test and further engagements for co-packaged optical devices. The company aims to increase its share in the core semiconductor customer base through new applications and replacement of incumbent technologies.	About CompetitionCohu's high-power thermal control technology remains a key differentiator, improving test quality and first-pass yield. The primary competitor in the test handler space is Han Precision from Taiwan, which has historically been the main supplier at test subcontractors. Cohu believes its thermal technologies are 'the best thermal in the market. Period. End of story.'	About The Broader IndustryEstimated semiconductor test utilization improved sequentially to 80% at the end of Q2 2026, typically a turning point for capital expenditure by core IDM customers. The strongest segments were computing and industrial, with utilization in the low 80s, followed by automotive and mobile in the high 70s. Bookings generally follow utilization trends, with computing leading at 46% of total system orders (up 150% year-over-year) and industrial up 87% year-over-year. Automotive orders were down 24% year-over-year, continuing to struggle in the recovery cycle. The industry is investing in both ground-based and non-terrestrial networks, including satellite constellations and high-altitude platforms, to extend global coverage. One large OSAT in Taiwan reported upticking its wire bonding core assembly business growth rate from 13% to 20% for calendar 2026, expecting continued growth and high utilization rates (80-85%), stating they 'cannot keep up with purchasing equipment.' Historically, when utilization rates go above 80% and demand continues, capacity typically gets added for about 6 quarters, though it was 7-8 quarters in 2021-2022. CPU power in test is now approaching GPU levels.	Where Things Are HeadedCohu expects Q3 2026 revenue to increase 14% sequentially and 35% year-over-year to approximately $170 million, plus or minus $7 million. The full-year 2026 revenue outlook for growth over last year is increased to approximately 35%. Q3 gross margin is projected to be approximately 45%, with full-year 2026 gross margin expected in the mid-40% range. Operating expenses are expected to be about $54 million in Q3 and remain in the low-$50 million range through the balance of the year, reflecting continued investment in HPC opportunities. The operating model is expected to convert approximately 40% of projected sequential revenue growth to operating profit. Cohu's 2026 priorities include supporting R&D investments and production ramps for AI data center infrastructure, HBM memory, and physical AI applications, while increasing EBITDA margin and free cash flow. To support HPC demand, Cohu is expanding internal manufacturing in Malaysia, aiming to double output by year-end 2026 and support another step up in capacity by mid-2027, with a path to triple output by the end of 2027 if market demand allows. Q4 2026 revenue is projected to be flattish to Q3. A single customer order for $26 million for Eclipse 6 systems for the HPC market is largely expected to ship in Q4. Automotive market utilization is not expected to reach 80% until late Q1 or Q2 of next year. M&A opportunities will continue to be evaluated for growth areas in HPC and software, but execution remains the number one priority.	Updates On ThemeHigh	Broader Themes EmergingEdge computing, Gallium Nitride (GaN) power devices for efficiency and power density, seamless connectivity for AI-enabled devices including ground-based and non-terrestrial networks (satellite constellations and high-altitude platforms), on-site AI appliances for data sovereignty requirements in semiconductor manufacturing, silicon photonics test for optical engines, and co-packaged optical devices.	Bullish-Leaning Quotes (Short)We delivered a strong quarter with sales of $149 million up 38% year over year and recurring revenue of approximately 53% of total. Estimated semiconductor test utilization and improved sequentially to 80% at the end of the second quarter. Overall, this momentum reinforces an expanding high performance computing customer pipeline that we now estimate at approximately $850 million annually. Based on this progress, we are raising our fiscal 2026 high performance computing revenue estimate to between $100 million and $110 million. This business delivered the first $1 million revenue quarter and orders increased an impressive 140% year over year. We expect Q3 revenue to increase 14% sequentially and 35% year-over-year to approximately $170 million. We are increasing our full-year 2026 revenue outlook for growth over last year to approximately 35%. Our operating model continues to demonstrate solid profitability leverage with approximately 40% of projected sequential revenue growth expected to convert to operating profit. Cohu's thermal technologies are sort of the best thermal in the market. Period. End of story.	Bearish-Leaning Quotes (Short)Automotive down 24% year over year in a segment that continues to struggle in this recovery cycle. The rapid expansion of high performance computing opportunities has increased demand across our supply chain and production base resulting in longer lead times and higher input costs for certain semiconductors and specialty components. At the moment, it is mainly memory. Automotive would not be at 80% up until probably late Q1 or Q2 of next year.	HiringOperating expenses were in line with guidance at $52.7 million, reflecting Cohu's decision to scale resources to support the rapid increase in high-performance compute opportunities. The company intends to continue investing in resources to capitalize on HPC opportunities, with quarterly operating expenses expected to remain in the low-$50 million range. Cohu is expanding its internal manufacturing in Malaysia and undertaking a small expansion in the Philippines where thermal heads are built, implying workforce expansion in these geographic areas to support increased output.

2026-07-30

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketCohu is expanding its position in high-performance computing (HPC) through the adoption of its Eclipse Handler for AI processors and next-generation JetAc Max devices, reinforcing an estimated $850 million annual customer pipeline. This includes $190 million in qualified annual opportunity across 4 customers, $250 million in active qualification across 5 customers, and $445 million in early-stage engagement across 10 additional customers. The company raised its fiscal 2026 HPC revenue estimate to between $100 million and $110 million. Cohu is also increasing its presence at OSATs in Southeast Asia to support fabless and hyperscaler programs. In inspection, Cohu shipped additional final inspection systems for HBM3, HBM4, and HBM4e devices and qualified Neon at a Taiwan-based OSAT for advanced package mobile and AI adjacent inspection. A new vision inspection sensor with shortwave infrared capability was released to detect inner cracks in complex silicon devices. In semiconductor test, Cohu is addressing an estimated $340 million annual addressable market opportunity over the midterm for GaN power and advanced connectivity applications. The software analytics business delivered its first $1 million revenue quarter, with orders up 140% year-over-year, driven by land-and-expand strategies and on-site AI appliance deployments for data sovereignty. High-speed interface technology is gaining traction in silicon photonics test, with $500 thousand booked in interface solutions for optical engine test and further engagements for co-packaged optical devices. The company aims to increase its share in the core semiconductor customer base through new applications and replacement of incumbent technologies.	About CompetitionCohu's high-power thermal control technology remains a key differentiator, improving test quality and first-pass yield. The primary competitor in the test handler space is Han Precision from Taiwan, which has historically been the main supplier at test subcontractors. Cohu believes its thermal technologies are 'the best thermal in the market. Period. End of story.'	About The Broader IndustryEstimated semiconductor test utilization improved sequentially to 80% at the end of Q2 2026, typically a turning point for capital expenditure by core IDM customers. The strongest segments were computing and industrial, with utilization in the low 80s, followed by automotive and mobile in the high 70s. Bookings generally follow utilization trends, with computing leading at 46% of total system orders (up 150% year-over-year) and industrial up 87% year-over-year. Automotive orders were down 24% year-over-year, continuing to struggle in the recovery cycle. The industry is investing in both ground-based and non-terrestrial networks, including satellite constellations and high-altitude platforms, to extend global coverage. One large OSAT in Taiwan reported upticking its wire bonding core assembly business growth rate from 13% to 20% for calendar 2026, expecting continued growth and high utilization rates (80-85%), stating they 'cannot keep up with purchasing equipment.' Historically, when utilization rates go above 80% and demand continues, capacity typically gets added for about 6 quarters, though it was 7-8 quarters in 2021-2022. CPU power in test is now approaching GPU levels.	Where Things Are HeadedCohu expects Q3 2026 revenue to increase 14% sequentially and 35% year-over-year to approximately $170 million, plus or minus $7 million. The full-year 2026 revenue outlook for growth over last year is increased to approximately 35%. Q3 gross margin is projected to be approximately 45%, with full-year 2026 gross margin expected in the mid-40% range. Operating expenses are expected to be about $54 million in Q3 and remain in the low-$50 million range through the balance of the year, reflecting continued investment in HPC opportunities. The operating model is expected to convert approximately 40% of projected sequential revenue growth to operating profit. Cohu's 2026 priorities include supporting R&D investments and production ramps for AI data center infrastructure, HBM memory, and physical AI applications, while increasing EBITDA margin and free cash flow. To support HPC demand, Cohu is expanding internal manufacturing in Malaysia, aiming to double output by year-end 2026 and support another step up in capacity by mid-2027, with a path to triple output by the end of 2027 if market demand allows. Q4 2026 revenue is projected to be flattish to Q3. A single customer order for $26 million for Eclipse 6 systems for the HPC market is largely expected to ship in Q4. Automotive market utilization is not expected to reach 80% until late Q1 or Q2 of next year. M&A opportunities will continue to be evaluated for growth areas in HPC and software, but execution remains the number one priority.	Updates On ThemeHigh	Broader Themes EmergingEdge computing, Gallium Nitride (GaN) power devices for efficiency and power density, seamless connectivity for AI-enabled devices including ground-based and non-terrestrial networks (satellite constellations and high-altitude platforms), on-site AI appliances for data sovereignty requirements in semiconductor manufacturing, silicon photonics test for optical engines, and co-packaged optical devices.	Bullish-Leaning Quotes (Short)We delivered a strong quarter with sales of $149 million up 38% year over year and recurring revenue of approximately 53% of total. Estimated semiconductor test utilization and improved sequentially to 80% at the end of the second quarter. Overall, this momentum reinforces an expanding high performance computing customer pipeline that we now estimate at approximately $850 million annually. Based on this progress, we are raising our fiscal 2026 high performance computing revenue estimate to between $100 million and $110 million. This business delivered the first $1 million revenue quarter and orders increased an impressive 140% year over year. We expect Q3 revenue to increase 14% sequentially and 35% year-over-year to approximately $170 million. We are increasing our full-year 2026 revenue outlook for growth over last year to approximately 35%. Our operating model continues to demonstrate solid profitability leverage with approximately 40% of projected sequential revenue growth expected to convert to operating profit. Cohu's thermal technologies are sort of the best thermal in the market. Period. End of story.	Bearish-Leaning Quotes (Short)Automotive down 24% year over year in a segment that continues to struggle in this recovery cycle. The rapid expansion of high performance computing opportunities has increased demand across our supply chain and production base resulting in longer lead times and higher input costs for certain semiconductors and specialty components. At the moment, it is mainly memory. Automotive would not be at 80% up until probably late Q1 or Q2 of next year.	HiringOperating expenses were in line with guidance at $52.7 million reflecting our decision to scale resources to support the rapid increase in high performance compute opportunities. We intend to continue investing in resources to capitalize on the growing list of HPC opportunities and we expect quarterly operating expenses through the balance of the year to remain in the low-$50 million range consistent with our Q3 guidance.

2026-02-12

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketCohu saw strong design win activity in Q4 with expansions across automotive ADAS, analog and power devices, compute-related applications, and predictive maintenance use cases. The company secured a key transition win for Cohu test interface products at a leading analog and mixed-signal customer and closed the first order for a high-performance thermal configuration of the Eclipse handler, supporting a customer's AI device roadmap. A multiunit order was booked for a new handler still in development, targeting automotive and physical AI device test. Cohu also won the first mixed-signal tester order at an analog and connectivity business unit of a large semiconductor manufacturer, broadening Diamondx tester penetration. They secured an order for a Krypton inspection metrology system for production of automotive ADAS processors, which included a subscription component for PAICe Inspection software using machine learning. Bookings for tri-temperature handlers across multiple customer sites were secured to support growing power module test demand. The company is focusing resources on high-performance computing, HBM memory, and AI-related high-growth opportunities, and R&D investments are enabling design wins in the compute market, including AI data center infrastructure, HBM memory, and physical AI applications. They are seeing a strong pull for the Eclipse product line in compute and mobile applications.	About CompetitionCustomers consistently emphasize quality, yield, productivity, and cost of test efficiency, areas where Cohu solutions continue to be highly differentiated. The company also highlighted its low direct exposure to China and strong customer diversification across North America, Europe, and the rest of Asia, providing a solid risk balance profile.	About The Broader IndustryThe company noted a continued market recovery across end markets, with full-year 2025 revenue up 13% year-over-year, confirming the market recovery trajectory. Test utilization trends improved from September through December among both OSAT and IDM customers, with overall estimated test utilization up 1 point to 76% at the end of December, which was seen as a positive market dynamic during an otherwise slow seasonal quarter. There's a clear change in customer engagement, reflecting new program ramps and renewed investment in back-end test infrastructure. Recurring revenue has increased sequentially for four quarters in a row, which is considered a sign of market recovery. For Q1 2026, OSAT utilization may be going up faster than IDMs. Compute utilization was 78% in Q4, automotive 75%, industrial 77%, mobile 72%, and consumer 76%. In Q1, mobile utilization is expected to potentially cross the 75% mark, and compute should continue to rise.	Where Things Are HeadedCohu entered 2026 with a solid foundation and positive momentum, projecting another growth year after 13% revenue growth in 2025. Q1 2026 revenue is expected to be seasonally flat with Q4, guided at approximately $122 million, plus or minus $7 million. Gross margin for Q1 is projected to return to the corporate average of approximately 45%. Operating expenses are expected to be flat at about $50 million. The company is targeting total capital expenditures to be about 2% of revenue in 2026, anticipating normal maintenance CapEx each quarter. The focus for 2026 will be to support R&D investments enabling design wins in the compute market (AI data center infrastructure, HBM memory, physical AI applications) and progressively increasing cash flow generation. Systems orders from Q4 are expected to convert to revenue primarily in Q1 and Q2. HBM revenue is forecasted to be between $15 million and $20 million in 2026, with shipments expected to be fairly linear through the year. Eclipse handler production is expected to ramp in Q2 and Q3. An acceleration of tester design wins, particularly in digital controllers, is expected towards the middle of the year.	Updates On ThemeHBM	Broader Themes EmergingPhysical AI, AI data center infrastructure, predictive maintenance.	Bullish-Leaning Quotes (Short)Recurring business remained strong, representing about 60% of total revenue in the fourth quarter. Systems demand increased 47% quarter-over-quarter. For the full year 2025, orders increased 29% year-over-year. We believe this improved utilization during an otherwise slow seasonal quarter underscores a broader positive market dynamic. entered 2026 with a solid foundation and positive momentum. We're definitely projecting another growth year. recurring revenue now has increased sequentially four quarters in a row.	Bearish-Leaning Quotes (Short)Q4 gross margin of 40.8% was lower than guidance due to onetime inventory charges. Q4 tax provision was higher than guidance due to a $5 million increase in tax reserves. As new generation HBM devices come up... so does the time it takes to do the inspection.

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-02-12	Cohu reported strong Q4 2025 results with robust recurring revenue and systems demand, driven by AI, automotive, and computing, and projected another growth year for 2026 with increasing HBM revenue. Despite positive momentum and design wins, the stock initially underperformed significantly, likely due to a lower Q4 gross margin from one-time charges and potentially conservative Q1 guidance, contradicting the company's optimistic messaging.	Earnings Transcript	Mixed		-6.71% (vs SPY: -6.94%)

Upcoming Events4 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
COHU_76bd440e	November 10 in New York City	2026-11-10	2026-11-10	Cohu hosts an Investor Day to provide a deeper look at its strategy and long-term financial framework.	This event can provide crucial insights into Cohu's future growth drivers and financial targets, potentially influencing investor sentiment and valuation.	Ticker	2026-07-30	earnings_transcript
COHU_f91f1e4c	mid Q1 next year	2027-01-01	2027-03-31	Qualification of a fifth high-performance computing (HPC) customer from the active qualification pipeline.	This would further expand Cohu's qualified HPC customer base, contributing to the estimated $850 million annual pipeline and driving future revenue growth in a key strategic market.	Ticker	2026-07-30	earnings_transcript
COHU_44dcfad8	largely gonna ship in Q4	2026-10-01	2026-12-31	Shipment of a $26 million single customer order for Eclipse 6 systems to an HPC customer.	This significant order shipment will directly contribute to Cohu's Q4 revenue, demonstrating strong demand for its HPC solutions and validating its market position in high-power device testing.	Ticker	2026-07-30	earnings_transcript
COHU_e73fa5e1	this summer and follow-on units later in the year	2026-06-01	2026-12-31	Initial qualification shipment and subsequent units of a new handler, currently in development, targeting automotive ADAS and physical AI device test.	Successful qualification and ramp of this new handler could drive new revenue streams and expand Cohu's market presence in high-growth automotive ADAS and physical AI segments, which are strategic verticals for the company.	Ticker	2026-02-12	earnings_transcript

Prior Earnings Metrics HistoryTable

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