COHU · Cohu, Inc.

Cohu reported first quarter fiscal 2026 results with net sales of $125.1 million, reflecting sequential growth from $122.2 million in Q4 FY2025 and year-over-year increase from $96.8 million, driven by accelerating AI and high-performance computing demand alongside improving market conditions and estimated test cell utilization of 78% at quarter end. GAAP gross margin held steady at 46.3%, with non-GAAP at 46.5%, supported by approximately 60% recurring revenue. Despite a GAAP net loss of $12.1 million or $0.26 per share, non-GAAP results showed profitability with $0.6 million net income or $0.01 per share, benefiting from adjustments including share-based compensation, amortization of intangibles, and restructuring charges. President and CEO Luis Müller highlighted strong momentum from AI-driven compute demand, design wins, and software analytics expansion, which are deepening customer adoption and bolstering long-term recurring revenue potential. The company raised its FY26 high-performance computing revenue outlook to $80-100 million and increased its AI-driven compute addressable market estimate to ~$750 million. For Q2 FY2026, Cohu guided net sales to $144 million +/- $7 million. Balance sheet remains solid with $488.7 million in cash and investments, up slightly from year-end, and no share repurchases occurred. Non-GAAP measures exclude items like restructuring costs and acquisition-related expenses to better reflect core operational trends, aiding investor evaluation of performance and cash generation.