Q2 FY2026
Filed Jul 30, 2026Cohu 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.