Key Highlights

  • COHU shares rose about 12% pre-market to $59.29, from $53.14 prior close.
  • Q3 revenue rose 37% to $173.0 million, above the $170.2 million estimate.
  • Non-GAAP EPS of $0.43 beat the $0.35 estimate.
  • Total bookings rose 126% and systems bookings rose 318%.
  • High-performance computing revenue guidance for 2026 rose to about $120 million.

Bookings Surge on AI Demand

Cohu, Inc. (NASDAQ:COHU) shares rose sharply in pre-market trading after third-quarter results that beat estimates and pointed to accelerating demand tied to artificial intelligence. Revenue rose 37% to $173.0 million, non-GAAP earnings per share were $0.43 and adjusted EBITDA margin was 16.6%. Gross margin was 45.7%, and recurring revenue made up 48% of the total.

Total bookings rose 126% and systems bookings rose 318%. The high-performance computing opportunity pipeline grew about 18% to roughly $1 billion in annual opportunity, including $230 million in qualified programs and $440 million in active qualification. Cash and investments rose to $508 million against $310 million of debt.

Cohu is a Poway, California supplier of semiconductor test, handling, inspection and metrology equipment, founded in 1947. Its portfolio spans test handlers, thermal subsystems, automated test equipment, contactors, probe heads and data analytics software. It has about 2,800 employees, and a meaningful share of revenue comes from recurring installed-base sales.

Guidance and 2027 Preliminary View

Management raised its 2026 high-performance computing revenue outlook to about $120 million and is scaling capacity to ship about three times as many Eclipse thermal handlers in 2027 as in 2026. Fourth-quarter revenue is guided to $178 million, plus or minus $7 million, up about 46% from a year earlier, with gross margin near 44% and operating expenses near $57 million. Full-year 2026 revenue growth is now expected near 38%.

For 2027, preliminary guidance is revenue growth of 30% to 40%, gross margin of 46% to 48% and quarterly operating expenses of $54 million to $56 million, with about half of incremental revenue falling to operating income.

Other segments also gained. Bookings for high-bandwidth memory and advanced packaging inspection are deep into the first quarter of 2027, interface solutions won first orders from two hyperscalers, and software analytics annual recurring revenue rose 85% sequentially. Industrial systems orders rose 52% and automotive orders 23% sequentially. Management flagged tight specialty components and higher input costs.

Valuation Snapshot

Before the move, Cohu had a market capitalisation of about $2.5 billion, a forward price-to-earnings ratio near 28.8 and a 52-week range of $21.10 to $75.72. A research firm raised its price target to $75 from $70, and the average target is near $73. An investor day is scheduled for November 10. Technology stocks were weaker pre-market, so the move runs against the sector.

What Investors Will Weigh Next

The numbers support the view that AI-related test demand is broadening the company's order book. Supply of specialty components, the lower fourth-quarter gross margin guide and the November investor day are the next markers.