Cohu Q3 sales, profit beat analyst estimates on demand for Eclipse thermal solutions

Overview

• Semiconductor test equipment maker's Q3 net sales rose 37% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company cites demand for Eclipse thermal solutions and recurring revenue growth as key drivers

Outlook

• Cohu expects Q4 2026 sales of $178 mln +/- $7 mln, up 46% year-over-year

• Company raises FY 2026 high-performance computing revenue outlook to about $120 mln

• Cohu plans to expand manufacturing capacity to support potential customer production ramps in 2027

Result Drivers

• ECLIPSE THERMAL SOLUTIONS - Co said increased demand for Eclipse thermal solutions drove systems sales

• RECURRING REVENUE - Co said growth in services, consumables and software contributed to stable recurring revenue

• HIGHER UTILIZATION - Co said test cell utilization increased sequentially to 82%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for Cohu, Inc. is $70.00, about 37.3% above its October 27 closing price of $50.98

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

• Oct 27 - Seagate Technology Q1 revenue and adjusted EPS beat estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)