Cohu

Cohu reported Q2 FY2026. EPS came in at $0.26 against a $0.14 consensus, beat by 85.7%. Revenue was $149.0M versus $144.2M expected, beat by 3.3%. Gross margin was 0.0%, down 4040 bps from last quarter.

Cohu's Q1 FY2026 results show a modest revenue beat and a significant increase in the high-performance computing (HPC) pipeline, setting the stage for a strong Q2 and full-year outlook. Despite a lower-than-expected EPS, the company's strategic investments and growing HPC opportunities position it well for future growth.

The market had revenue pinned almost exactly, and got it: Cohu printed $122.2 million against $122.1 million. The actionable surprise was the -$0.15 EPS versus $0.07 expectation, because management’s own commentary points to a recovery that needs cleaner gross-margin conversion before the stock can be paid for orders growth.

Cohu beat a low bar, but the investable debate is whether HBM inspection and AI-related system orders can pull the model back toward operating leverage before recurring mix crowds out system upside. The market likely priced in cyclical stabilization after the +3.4% revenue surprise and +68.4% EPS surprise, while the real surprise was narrower: management is guiding a sequential revenue step-down even as it raises specific AI-adjacent product expectations.

Cohu printed below the Street’s revenue number, but the actionable read is that utilization, Q3 systems mix, and customer-win evidence argue the cycle is turning before GAAP margins show it. The market may be over-penalizing the -5.9% revenue surprise while underpricing the swing to $0.02 EPS and the $125 million Q3 revenue guide as evidence that test automation demand is recovering from a depressed base.