COHU INC (COHU): Results of Operations and Financial Condition
COHU INC (COHU) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 COHU, INC. 17087 VIA DEL CAMPO SAN DIEGO, CA 92127 FAX (858) 848-8185 PHONE (858) 858-8100 www.cohu.com Cohu Reports Second Quarter 2026 Results ● Second quarter net sales increased 38% year-over-year to $149.0 million ● Gross margin of 45.4%; non-GAAP gross margin o
How this was made
The 30-second read
Why it matters
The key new information is the Q2 financial print, the raised FY26 HPC revenue estimate, and the Q3 sales range, all tied to AI compute adoption of its Eclipse test handler with T-Core active thermal control.
Market read
Traders can update COHU’s near-term revenue expectations using the raised FY26 HPC estimate and the stated Q3 sales range.
What to watch
The guidance is sales-focused; traders may also watch for order timing, customer concentration, and whether test cell utilization gains translate into durable backlog.
Cohu reported second-quarter fiscal 2026 net sales of $149.0 million, up 38% year-over-year, with GAAP loss of $0.2 million and non-GAAP income of $14.1 million.
Net sales increased 38% year-over-year to $149.0 million, estimated test cell utilization improved sequentially to approximately 80%, non-GAAP income reached $14.1 million, and third-quarter sales guidance is $170 million +/- $7 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $149.0 million | – | 38% |
| Gross marginGAAP | 45.4% | – | – |
| Non-GAAP gross marginnon-GAAP | 45.5% | – | – |
| Income from operationsGAAP | $292 thousand | – | – |
| Income from operations before taxesGAAP | $1,989 thousand | – | – |
| Net lossGAAP | $ (0.2) million | – | – |
| Net loss per shareGAAP | $ (0.00) | – | – |
| Basic loss per shareGAAP | $ (0.00) | – | – |
| Diluted loss per shareGAAP | $ (0.00) | – | – |
| Non-GAAP net income (loss)non-GAAP | $14.1 million | – | – |
| Non-GAAP net income (loss) per sharenon-GAAP | $0.26 | – | – |
| Cost of sales (excluding amortization)GAAP | $81,412 thousand | – | – |
| Research and developmentGAAP | $24,943 thousand | – | – |
| Selling, general and administrativeGAAP | $34,445 thousand | – | – |
| Amortization of purchased intangible assetsGAAP | $7,277 thousand | – | – |
| Restructuring chargesGAAP | $633 thousand | – | – |
| Interest expenseGAAP | $ (1,620) thousand | – | – |
| Interest incomeGAAP | $3,868 thousand | – | – |
| Foreign transaction lossGAAP | $ (551) thousand | – | – |
| Income tax provisionGAAP | $2,148 thousand | – | – |
| Weighted average shares used in computing basic loss per shareGAAP | 47,328 | – | – |
| Weighted average shares used in computing diluted loss per shareGAAP | 47,328 | – | – |
| Six months net salesGAAP | $274.1 million | – | – |
| Six months net lossGAAP | $ (12.2) million | – | – |
| Six months net loss per shareGAAP | $ (0.26) | – | – |
| Six months non-GAAP net income (loss)non-GAAP | $14.6 million | – | – |
| Six months non-GAAP net income (loss) per sharenon-GAAP | $0.29 | – | – |
Q3 FY 2026 outlook
- Revenue$170 million +/- $7 million
- NoteFY26 high-performance computing revenue estimate of $100 million to $110 million
- NoteAnnual AI-driven compute opportunity pipeline of approx. $850 million
Capital returns
- Cohu did not repurchase any shares of its common stock during second quarter 2026.
What drove it
- Second-quarter results reflected broad-based improvement across end markets.
- Estimated test cell utilization improved sequentially to approximately 80% at the end of June.
- Customer momentum in AI compute was driven by adoption of the Eclipse test handler with T-Core active thermal control for high-power processors used in data centers.
- Cohu raised its annual AI-driven compute opportunity pipeline to approx. $850 million.
Concerns
- Cohu reported a GAAP net loss of $ (0.2) million in Q2 FY 2026.
- Interest expense was $ (1,620) thousand, compared with $ (126) thousand in Q2 FY 2025.
- Long-term debt was $285,049 thousand at June 27, 2026.
- The filing cites semiconductor industry cyclicality, seasonality and volatility, supply-chain dependencies, customer concentration, AI-related risks, trade barriers and tariffs, geopolitical instability, and other risks.
What to watch
- Delivery against Q3 FY 2026 sales guidance of $170 million +/- $7 million.
- Estimated test cell utilization following the approximately 80% level at the end of June.
- Progress toward the FY26 high-performance computing revenue estimate of $100 million to $110 million.
- Development of the annual AI-driven compute opportunity pipeline of approx. $850 million.
- GAAP profitability following the Q2 GAAP net loss of $ (0.2) million.
Balance sheet and cash flow
- Cash and investments: $498,167 thousand at June 27, 2026; $483,981 thousand at December 27, 2025.
- Short-term borrowings: $9,976 thousand at June 27, 2026; $9,807 thousand at December 27, 2025.
- Current installments of long-term debt: $1,206 thousand at June 27, 2026; $1,244 thousand at December 27, 2025.
- Long-term debt: $285,049 thousand at June 27, 2026; $285,026 thousand at December 27, 2025.
- Accounts receivable: $122,743 thousand at June 27, 2026; $108,754 thousand at December 27, 2025.
- Inventories: $140,334 thousand at June 27, 2026; $129,006 thousand at December 27, 2025.
- Total assets: $1,258,398 thousand at June 27, 2026; $1,242,982 thousand at December 27, 2025.
Analysis
Cohu delivered a substantial top-line recovery in Q2 FY 2026. Net sales were $149.0 million, up 38% year-over-year from $107.7 million and above Q1 FY 2026 net sales of $125.1 million. Management described the improvement as broad-based across end markets, while estimated test cell utilization increased sequentially to approximately 80% at the end of June.
Profitability improved sharply from the prior-year period. Gross margin was 45.4%, and non-GAAP gross margin was 45.5%. GAAP income from operations was $292 thousand, compared with a GAAP operating loss of $17,236 thousand in Q2 FY 2025. The company reported a near-breakeven GAAP net loss of $ (0.2) million, compared with $ (16.9) million a year earlier, while non-GAAP net income increased to $14.1 million from $0.7 million.
AI compute is the central stated growth driver. Management attributed accelerating customer momentum to adoption of the Eclipse test handler with T-Core active thermal control for high-power data-center processors. Cohu raised its FY26 high-performance computing revenue estimate to $100 million to $110 million and raised its annual AI-driven compute opportunity pipeline to approx. $850 million.
The balance sheet showed $498,167 thousand of cash and investments at June 27, 2026, compared with $483,981 thousand at December 27, 2025. Long-term debt was $285,049 thousand, and the company did not repurchase shares during the quarter. Interest expense rose to $ (1,620) thousand from $ (126) thousand in the prior-year quarter.
For Q3 FY 2026, Cohu expects sales of $170 million +/- $7 million. The guide is above Q2 FY 2026 sales of $149.0 million and places attention on whether the utilization improvement, AI-compute adoption and broader end-market recovery translate into continued revenue growth and sustained GAAP profitability.
Management, verbatim
Second quarter results reflected broad-based improvement across our end markets, with revenue increasing 38% year-over-year and estimated test cell utilization improving to approximately 80% at the end of June.
Luis Müller, President and CEO
Customer momentum in AI compute is accelerating, driven by the adoption of our Eclipse test handler with T-Core active thermal control for high-power processors used in data centers. Increased confidence in this market is leading us to raise our FY26 high-performance computing revenue estimate to $100 million to $110 million, further reinforcing Cohu’s differentiated position in test and inspection.
Luis Müller, President and CEO
Not in the filing
stated, not guessed- Prior outlook was not provided, so no comparison of actual results with prior guidance is available.
- Segment revenue, segment comparisons and segment-level drivers were not reported in the provided filing text.
- Operating cash flow was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
- Capital expenditures were not reported in the provided filing text.
- Dividend information was not reported in the provided filing text.
- Q3 FY 2026 gross-margin guidance was not reported.
- Q3 FY 2026 operating-expense guidance was not reported.
- Q3 FY 2026 tax-rate guidance was not reported.
- GAAP gross profit was not reported as a separate line item.
- Non-GAAP operating income, operating expenses, effective tax rate, net cash per share and Adjusted EBITDA values were referenced but their reconciliations were not included in the provided filing text.
- The condensed consolidated balance sheet and filing text were truncated after the heading for other noncurrent liabilities; remaining balance-sheet line items were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8-K Item 2.02 with Exhibit 99.1 reporting Cohu’s second quarter 2026 results and outlook.
Ticker impact
Cohu reported Q2 FY2026 net sales of $149.0M (+38% YoY), gross margin 45.4%, and raised its FY26 high-performance computing revenue estimate to $100M-$110M.
Likely positive bias for COHU as traders re-rate the AI-driven HPC test/handler demand signal and update FY26 revenue expectations.
The article includes primary results, a specific FY26 revenue estimate raise, and a concrete Q3 sales range, all of which are actionable for earnings-model updates.
Market effects
Supports the narrative of improving semiconductor test/inspection equipment utilization and AI compute-related capex demand.
Primarily US semicap sentiment; limited direct regional spillover beyond investor positioning.
AI compute buildout is global, but the disclosed impact is company-specific to Cohu’s test handler adoption.
Counterpoint
Non-GAAP profitability is positive, but GAAP still shows losses, so the market may scrutinize sustainability and margins versus one-off items.
Key entities
- public_companyCOHU
Cohu, Inc., semiconductor test and inspection equipment and services supplier.
- productEclipse test handler with T-Core active thermal control
Cohu technology cited as driving customer momentum in AI compute.