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Aehr Test Systems
(NASDAQ:AEHR)
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Rating:59Neutral
Price Target:
$106.00
▲(38.89% Upside)
Action:Reiterated
Date:08/22/26
The score reflects a tension between (1) weak recent profitability and cash flow (dragging financial performance) and (2) a very strong forward outlook from the latest earnings call with record bookings/backlog and aggressive FY27 growth/profitability guidance. Technicals are moderately supportive due to a strong longer-term uptrend, while valuation is pressured by a negative P/E and no dividend support.
Positive Factors
Record bookings and backlog
The sharp increase in bookings and backlog improves forward revenue visibility and indicates growing customer adoption. A larger committed order base can support production scale, recurring consumables demand, and more predictable execution over the next several quarters.
Negative Factors
Persistent cash burn
Negative operating and free cash flow weaken financial quality and increase dependence on the strengthened cash balance. If the planned revenue ramp is delayed, continued investment and working-capital needs could consume liquidity and constrain strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Record bookings and backlog
The sharp increase in bookings and backlog improves forward revenue visibility and indicates growing customer adoption. A larger committed order base can support production scale, recurring consumables demand, and more predictable execution over the next several quarters.
Read all positive factors
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.
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The Fly
The FlyAehr Test Systems (AEHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.32B
Dividend YieldN/A
Average Volume (3M)2.58M
Price to Earnings (P/E)―
Beta (1Y)2.70
Revenue Growth-15.21%
EPS Growth-81.50%
CountryUS
Employees138
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.23
Shares Outstanding32,620,450
10 Day Avg. Volume4,490,234
30 Day Avg. Volume2,578,872
Financial Highlights & Ratios
PEG Ratio-5.22
Price to Book (P/B)12.90
Price to Sales (P/S)56.63
P/FCF Ratio-526.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$130.00Price Target Upside70.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.66
Revenue Forecast (FY)$128.00M
Aehr Test Systems Business Overview & Revenue Model
Company Description
Aehr Test Systems, founded in 1977 and based in Fremont, California, specializes in the global provision of advanced burn-in and test systems for integrated circuits, encompassing logic, optical, and memory devices. Its extensive product lineup in...
How the Company Makes Money
Aehr Test Systems primarily makes money by selling semiconductor test and burn-in capital equipment and the recurring consumables that are required to operate that equipment in production.
1) Capital equipment (systems) revenue: Aehr sells comple...
Aehr Test Systems Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 01, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong operational and commercial positives: record bookings and backlog, robust Q4 revenue and margin expansion, large hyperscaler and AI customer momentum, successful technical benchmarks (including with a major AI processor supplier), technological milestones (300mm GaN), a much stronger cash position, and expanded manufacturing capacity. These positives underpin an aggressive FY27 revenue and profitability outlook. Headwinds include FY26 full-year revenue and margin declines, ongoing litigation costs, supplier/parts cost and lead-time pressures, higher operating expenses, and continued uncertainty around some end markets (silicon carbide recovery and memory opportunities). Overall, the constructive commercial wins, backlog, cash runway, and explicit guidance for substantial growth materially outweigh the lowlights, supporting a positive outlook for fiscal 2027, while acknowledging execution and supply-chain/legal risks that could affect delivery.Positive Updates
Record Quarterly Bookings and Backlog
Q4 bookings were $60.7M, up more than 500% YoY (from $11.1M). Year-end backlog was a record $80.6M (vs $15.2M a year earlier) and increased to an effective ~$100.6M after ~$20M of subsequent bookings.
Negative Updates
Full-Year Revenue Decline and Margin Compression
FY26 revenue was $50M, down 15% YoY. Full-year non-GAAP gross margin declined to 38.5% from 44% in the prior year (down ~5.5 percentage points), and full-year non-GAAP net income fell to $0.9M ($0.03/share) from $4.6M ($0.15/share) in FY25.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Bookings and Backlog
Q4 bookings were $60.7M, up more than 500% YoY (from $11.1M). Year-end backlog was a record $80.6M (vs $15.2M a year earlier) and increased to an effective ~$100.6M after ~$20M of subsequent bookings.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $130 million to $150 million (2.6x–3x the just-completed fiscal 2026 revenue of $50M; ~160%–200% growth year‑over‑year), with non‑GAAP pretax profitability of 18%–22% of revenue; the outlook is based on current backlog and customer forecasts, they say they are not capacity‑limited at the $150M level and could raise guidance if more orders materialize. Key supporting metrics disclosed on the call included record Q4 bookings of $60.7M (up >500% vs. $11.1M a year ago), year‑end backlog of $80.6M plus ~$20M of subsequent bookings (effective backlog ≈ $100.6M), Q4 revenue of $18.8M (up 34% YoY) and full‑year revenue of $50M (down 15% YoY). Profitability and cash metrics highlighted were Q4 non‑GAAP gross margin of 45% (+1,000 bps vs. prior year Q4’s 35%), full‑year non‑GAAP gross margin of 38.5% (vs. 44% prior year), Q4 non‑GAAP net income of $3.6M or $0.11 per diluted share (vs. a non‑GAAP loss last year), full‑year non‑GAAP net income of $0.9M or $0.03, cash and equivalents of $116.5M (vs. $26.5M a year ago) after raising about $100M (ATM), and only $2.1M of capex in fiscal 2026.Aehr Test Systems Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
35
Negative
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.00M | 58.97M | 66.22M | 64.96M | 50.83M |
| Gross Profit | 17.65M | 23.93M | 32.54M | 32.75M | 23.66M |
| EBITDA | -11.74M | -903.00K | 13.82M | 15.07M | 9.85M |
| Net Income | -7.13M | -3.91M | 33.16M | 14.56M | 9.45M |
Balance Sheet | |||||
| Total Assets | 246.69M | 148.51M | 127.91M | 98.14M | 62.33M |
| Cash, Cash Equivalents and Short-Term Investments | 116.36M | 25.23M | 49.16M | 47.91M | 31.48M |
| Total Debt | 9.88M | 10.83M | 6.20M | 6.30M | 1.01M |
| Total Liabilities | 27.18M | 25.64M | 16.32M | 22.54M | 11.34M |
| Stockholders Equity | 219.51M | 122.87M | 111.59M | 75.60M | 50.99M |
Cash Flow | |||||
| Free Cash Flow | -5.38M | -12.39M | 1.01M | 8.65M | 1.09M |
| Operating Cash Flow | -3.31M | -7.40M | 1.76M | 10.01M | 1.51M |
| Investing Cash Flow | -3.87M | -16.07M | 17.25M | -18.66M | -416.00K |
| Financing Cash Flow | 97.21M | 625.00K | 139.00K | 7.32M | 25.76M |
Aehr Test Systems Technical Analysis
Neutral
76.32
Price Trends
95.03
Positive
91.67
Positive
59.98
Positive
Market Momentum
5.75
Positive
46.77
Neutral
7.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Neutral. The current price of 76.32 is below the 20-day moving average (MA) of 104.32, below the 50-day MA of 95.03, and above the 200-day MA of 59.98, indicating a neutral trend. The MACD of 5.75 indicates Positive momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEHR.
Aehr Test Systems Risk Analysis
Aehr Test Systems disclosed 1 risk factors in its most recent earnings report. Aehr Test Systems reported the most risks in the "Legal & Regulatory" 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $2.57B | -61.73 | -4.91% | ― | 32.66% | 55.60% | |
62 Neutral | $2.25B | -48.59 | -5.61% | ― | 9.10% | -92.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $3.32B | -419.26 | -4.66% | ― | -15.21% | -81.50% | |
53 Neutral | $3.46B | -139.96 | -3.48% | ― | 2.53% | 84.78% | |
50 Neutral | $962.01M | -5.30 | -44.79% | ― | 6.19% | 11.87% | |
49 Neutral | $789.84M | -18.35 | -0.02% | ― | -2.48% | 56.59% |
* Technology Sector Average
AEHR
Aehr Test Systems
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70.54
272.46%
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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.