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

Cohu (NASDAQ:COHU) announced its quarterly earnings data on Wednesday. The semiconductor company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.08, FiscalAI reports. Cohu had a negative net margin of 7.43% and a negative return on equity of 1.96%. The business had revenue of $172.96 million for the quarter, compared to analysts’ expectations of $170.25 million. During the same quarter in the prior year, the company earned ($0.06) earnings per share. The business’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 Price Performance

Shares of COHU traded up $3.98 during trading hours on Thursday, hitting $57.12. 533,470 shares of the stock were exchanged, compared to its average volume of 1,117,024. The company has a market cap of $2.70 billion, a price-to-earnings ratio of -68.77 and a beta of 1.51. The company has a debt-to-equity ratio of 0.37, a quick ratio of 4.72 and a current ratio of 5.74. Cohu has a 12-month low of $21.10 and a 12-month high of $75.72. The stock’s 50-day moving average price is $57.08 and its two-hundred day moving average price is $46.69.

Analyst Upgrades and Downgrades

A number of research firms recently commented on COHU. Craig Hallum reiterated a “buy” rating and set a $74.00 price objective on shares of Cohu in a research report on Friday, July 31st. Needham & Company LLC reaffirmed a “buy” rating and set a $65.00 price target on shares of Cohu in a research note on Thursday. B. Riley Financial reaffirmed a “buy” rating on shares of Cohu in a report on Thursday. Robert W. Baird set a $83.00 price objective on shares of Cohu in a research note on Thursday. Finally, Stifel Nicolaus increased their price objective on Cohu from $70.00 to $75.00 and gave the company a “buy” rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $73.62.

Insider Buying and Selling at Cohu

In other news, Director Andrew Caggia sold 15,252 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $51.74, for a total transaction of $789,138.48. Following the transaction, the director directly owned 64,778 shares in the company, valued at $3,351,613.72. The trade was a 19.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Bohrson sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $55.82, for a total value of $558,200.00. Following the completion of the sale, the senior vice president owned 159,702 shares of the company’s stock, valued at $8,914,565.64. This trade represents a 5.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 134,999 shares of company stock valued at $8,321,309. Company insiders own 3.05% of the company’s stock.

More Cohu News

Here are the key news stories impacting Cohu this week:

• Positive Sentiment: Q3 earnings beat estimates: Cohu reported adjusted earnings of $0.43 per share, above the $0.35 consensus estimate and substantially better than the $0.06-per-share loss recorded a year earlier. Revenue reached approximately $173.0 million, topping expectations of $170.25 million and rising 37% year over year. Cohu Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Strong 2027 outlook: Management expects 30% to 40% revenue growth next year and is targeting a threefold increase in shipments of its Eclipse thermal-management products. The forecast suggests improving demand for semiconductor test and thermal solutions. Cohu Expects 30%-40% 2027 Revenue Growth
• Positive Sentiment: AI and HPC demand is expanding: Cohu highlighted a high-performance computing pipeline of roughly $1 billion and increased bookings, reinforcing expectations that AI infrastructure spending could support future orders. Cohu Q3 Earnings Call Highlights
• Positive Sentiment: Analyst confidence improved: Stifel raised its price target to $75, while Needham reaffirmed its Buy rating with a $65 target. The revisions indicate analysts see additional upside following the earnings report. Cohu Price Target Raised at Stifel
• Neutral Sentiment: Despite the improved quarter, Cohu continues to show negative reported net margin and return on equity, so investors will watch whether the projected growth translates into sustained profitability.

About Cohu

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.