Aehr Test Systems (AEHR)
NASDAQ:AEHR
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Aehr Test Systems
(NASDAQ:AEHR)
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Rating:54Neutral
Price Target:
$70.00
▼(-0.61% Downside)
Action:ReiteratedDate:04/10/26
AEHR scores in the mid-range primarily because recent financial performance is weak (profitability and cash flow have turned sharply negative), despite a low-leverage balance sheet. Technicals are supportive with strong trend strength, but momentum looks overextended. The latest earnings call improves the outlook with strong bookings/backlog and reiterated guidance toward a Q4 return to non-GAAP profitability, though execution timing, margin pressure, and dilution risk remain key constraints.
Positive Factors
Record bookings and backlog
A record bookings surge and a $50.9M effective backlog materially improve revenue visibility over multiple quarters. Backlog supports production planning and reduces near-term demand uncertainty, increasing the probability that booked systems convert into durable system and recurring consumables revenue.
Negative Factors
Revenue decline and margin pressure
Sharp revenue contraction and meaningful margin compression show the business remains cyclical and sensitive to timing of large orders. Persistently lower volumes and an unfavorable product mix can depress profitability long enough to impair reinvestment and elongate the path back to stable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Record bookings and backlog
A record bookings surge and a $50.9M effective backlog materially improve revenue visibility over multiple quarters. Backlog supports production planning and reduces near-term demand uncertainty, increasing the probability that booked systems convert into durable system and recurring consumables revenue.
Read all positive factors
Aehr Test Systems (AEHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.22B
Dividend YieldN/A
Average Volume (3M)2.62M
Price to Earnings (P/E)―
Beta (1Y)2.58
Revenue Growth-3.23%
EPS Growth-122.16%
CountryUS
Employees115
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.05
Shares Outstanding31,453,255
10 Day Avg. Volume4,476,332
30 Day Avg. Volume2,617,862
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)2.30
Price to Sales (P/S)4.79
P/FCF Ratio-22.77
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue48.36
Enterprise Value/Gross Profit157.39
Enterprise Value/Ebitda-161.34
Forecast
1Y Price Target
$62.00Price Target Upside-11.97% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$47.75M
Aehr Test Systems Business Overview & Revenue Model
Company Description
Aehr Test Systems provides test systems for burning-in and testing logic, optical, and memory integrated circuits worldwide. It offers products, such as the ABTS and FOX-P families of test and burn-in systems and FOX WaferPak Aligner, FOX-XP Wafer...
How the Company Makes Money
Aehr primarily makes money by selling semiconductor test and burn-in capital equipment and associated consumables/services to device manufacturers. Key revenue streams generally include: (1) System sales: one-time sales of its test and burn-in pla...
Aehr Test Systems Key Performance Indicators (KPIs)
Any
Bookings
Measures new orders received for Aehr’s test and burn-in systems, indicating current demand and the pipeline for future revenue. Large or growing bookings point to customer adoption and potential near-term revenue ramps, while volatility can signal project timing, long lead times, or reliance on a few big customers.
Measures new orders received for Aehr’s test and burn-in systems, indicating current demand and the pipeline for future revenue. Large or growing bookings point to customer adoption and potential near-term revenue ramps, while volatility can signal project timing, long lead times, or reliance on a few big customers.
Data provided by:
The Fly
The FlyAehr Test Systems Earnings Call Summary
Earnings Call Date:Apr 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong commercial momentum and near-term financial softness. Positive takeaways include a dramatic bookings surge (Q3 $37.2M vs $6.2M in Q2), a record effective backlog ($50.9M), multiple large customer wins across wafer-level AI, silicon photonics, package-level hyperscaler production, and expanded manufacturing capacity (>20 Sonoma/month). These items underpin management's guidance for fiscal '26 revenue to be on the high side of prior guidance and a return to non-GAAP profitability in Q4. Offsetting these positives are a sizable YOY revenue decline (-44% to $10.3M), gross margin contraction (-6.2 percentage points), a non-GAAP net loss in the quarter versus prior-year profit, lumpy timing of large orders, and some technical delays in benchmark evaluations. Overall, the forward-looking bookings, backlog and customer engagements are substantial and suggest meaningful future growth potential, while near-term operational and margin pressures create short-term risk.Positive Updates
Record Bookings and Backlog
Q3 bookings of $37.2M (vs $6.2M in Q2, ~+500%) with book-to-bill >3.5x; quarter-end backlog $38.7M and effective backlog of $50.9M after $12.2M of additional bookings in the first 5 weeks of Q4 (new company record).
Negative Updates
Significant Year-over-Year Revenue Decline
Q3 revenue of $10.3M, down 44% from $18.3M in the prior year period; Q3 revenue slightly below consensus and impacted by delayed orders.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Bookings and Backlog
Q3 bookings of $37.2M (vs $6.2M in Q2, ~+500%) with book-to-bill >3.5x; quarter-end backlog $38.7M and effective backlog of $50.9M after $12.2M of additional bookings in the first 5 weeks of Q4 (new company record).
Read all positive updates
Company Guidance
Management reiterated FY‑2026 guidance, expecting full‑year revenue to be on the high side of the $45–$50 million range and second‑half bookings to be on the high side of the $60–$80 million range; Q3 bookings were $37.2 million (management said >$37M) with a book‑to‑bill >3.5x and an effective backlog of $50.9 million (Q3 backlog $38.7M plus $12.2M in the first five weeks of Q4). Q3 revenue was $10.3M (down 44% YoY from $18.3M), non‑GAAP gross margin was 36.5% (vs. 42.7% a year ago), non‑GAAP operating expenses were $6.3M, and management expects gross margin to improve and to return to non‑GAAP profitability in Q4 while guiding FY‑26 non‑GAAP net loss per diluted share of negative $0.13 to negative $0.09. Cash at quarter‑end was $37.1M (up from $31.0M), operating cash used in Q3 was $3.7M, and the company has drawn $40M from its ATM program (over 1.13M shares sold at an average $35.38, including $10.5M in Q3 and $19.5M post‑quarter).Aehr Test Systems Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
33
Negative
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.26M | 58.97M | 66.22M | 64.96M | 50.83M | 16.60M |
| Gross Profit | 13.90M | 23.93M | 32.54M | 32.75M | 23.66M | 6.03M |
| EBITDA | -13.56M | -903.00K | 13.82M | 15.07M | 9.85M | -1.85M |
| Net Income | -11.42M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M |
Balance Sheet | ||||||
| Total Assets | 157.05M | 148.51M | 127.91M | 98.14M | 62.33M | 21.66M |
| Cash, Cash Equivalents and Short-Term Investments | 36.91M | 25.23M | 49.16M | 47.91M | 31.48M | 4.58M |
| Total Debt | 10.03M | 10.83M | 6.20M | 6.30M | 1.01M | 4.82M |
| Total Liabilities | 18.25M | 25.64M | 16.32M | 22.54M | 11.34M | 10.22M |
| Stockholders Equity | 138.79M | 122.87M | 111.59M | 75.60M | 50.99M | 11.45M |
Cash Flow | ||||||
| Free Cash Flow | -11.57M | -12.39M | 1.01M | 8.65M | 1.09M | -2.93M |
| Operating Cash Flow | -6.82M | -7.40M | 1.76M | 10.01M | 1.51M | -2.70M |
| Investing Cash Flow | -6.55M | -16.07M | 17.25M | -18.66M | -416.00K | -227.00K |
| Financing Cash Flow | 19.70M | 625.00K | 139.00K | 7.32M | 25.76M | 1.96M |
Aehr Test Systems Technical Analysis
Positive
70.43
Price Trends
37.25
Positive
30.52
Positive
26.62
Positive
Market Momentum
7.15
Negative
77.06
Negative
94.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Positive. The current price of 70.43 is above the 20-day moving average (MA) of 42.86, above the 50-day MA of 37.25, and above the 200-day MA of 26.62, indicating a bullish trend. The MACD of 7.15 indicates Negative momentum. The RSI at 77.06 is Negative, neither overbought nor oversold. The STOCH value of 94.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEHR.
Aehr Test Systems Risk Analysis
Aehr Test Systems disclosed 21 risk factors in its most recent earnings report. Aehr Test Systems reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aehr Test Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.99B | -12.29 | -7.72% | ― | 16.86% | -26.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $3.45B | -6.51 | -24.06% | ― | 6.65% | -4652.36% | |
55 Neutral | $1.75B | -14.78 | -9.07% | ― | -4.50% | -45.79% | |
54 Neutral | $2.22B | -89.67 | -8.87% | ― | -3.23% | -122.16% | |
48 Neutral | $773.19M | -11.11 | -12.29% | ― | 5.81% | -376.55% | |
47 Neutral | $650.85M | -4.89 | -37.84% | ― | -4.99% | -12.11% |
* Technology Sector Average
AEHR
Aehr Test Systems
70.43
62.13
748.55%
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Aehr Test Systems Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Aehr Test Systems Launches $60 Million ATM Offering
Neutral
Apr 8, 2026
On April 8, 2026, Aehr Test Systems entered into an equity distribution agreement with William Blair Company and Craig-Hallum Capital Group to offer and sell up to $60 million of its common stock through an at-the-market program under an effectiv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.