Cohu (COHU)
NASDAQ:COHU
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Cohu
(NASDAQ:COHU)
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Rating:55Neutral
Price Target:
$31.00
▲(3.40% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak profitability and the recent rise in leverage, despite some improvement in cash generation. Offsetting these are improving technical momentum (price above key moving averages with positive MACD) and a relatively upbeat earnings call with clearer margin recovery guidance and demand/backlog signals. Valuation is constrained by losses (negative P/E) and no dividend support.
Positive Factors
Recurring Revenue Stability
A 60% recurring-revenue mix with 25% YoY growth provides durable revenue stability from consumables, service contracts and spares. This recurring stream smooths cyclicality in systems sales, supports predictable margins and underpins long-term customer relationships and aftermarket cash generation.
Negative Factors
Weak Profitability
Transition from multi-year profitability to consecutive net losses indicates structural margin pressure and cyclicality. Negative returns on equity and volatile margins constrain reinvestment capacity and shareholder returns, making sustained margin recovery critical for durable financial health over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Stability
A 60% recurring-revenue mix with 25% YoY growth provides durable revenue stability from consumables, service contracts and spares. This recurring stream smooths cyclicality in systems sales, supports predictable margins and underpins long-term customer relationships and aftermarket cash generation.
Read all positive factors
Cohu (COHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)795.68K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-4.50%
EPS Growth-45.79%
CountryUS
Employees2,986
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.15
Shares Outstanding46,888,325
10 Day Avg. Volume671,684
30 Day Avg. Volume795,681
Financial Highlights & Ratios
PEG Ratio-2.20
Price to Book (P/B)1.40
Price to Sales (P/S)2.42
P/FCF Ratio102.25
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.40
Enterprise Value/Gross Profit8.26
Enterprise Value/Ebitda-182.07
Forecast
1Y Price Target
$32.67Price Target Upside8.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.53
Revenue Forecast (FY)$509.59M
Cohu Business Overview & Revenue Model
Company Description
Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-el...
How the Company Makes Money
Cohu generates revenue primarily through the sale of its test and inspection equipment, as well as through service and support contracts for its installed base of products. The Semiconductor Test segment is a significant revenue driver, where the ...
Cohu Key Performance Indicators (KPIs)
Cohu Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive outlook: strong sequential bookings and systems demand, solid recurring revenue (60% of Q4), multiple strategic design wins (Eclipse, HBM/Neon, Krypton, test interface wins), improving utilization across end markets, a strengthened cash position from a sizable convertible offering, and clear gross margin recovery guidance tied to higher volumes. Offsetting items are largely one-time or manageable: a material Q4 gross margin hit from inventory consolidation, a non-cash $5M tax reserve increase, higher reported debt from the convertible offering (with measures to limit dilution), and temporary customer concentration in Q4. Overall, the positive operational momentum and liquidity improvements outweigh the transitory financial charges and timing uncertainties.Positive Updates
Strong Recurring Revenue Mix
Recurring revenue represented ~60% of Q4 revenue and grew 4% sequentially and 25% year-over-year, demonstrating stability from consumables, service contracts and spares.
Negative Updates
Q4 Gross Margin Impact from One-Time Inventory Charges
Q4 gross margin was 40.8%, below guidance, primarily due to one-time inventory charges tied to discontinuing certain product lines and consolidating offerings. Management indicated the one-time charge accounted for the majority of the variance versus guidance (management commentary implied a several-hundred-basis-point effect).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Recurring Revenue Mix
Recurring revenue represented ~60% of Q4 revenue and grew 4% sequentially and 25% year-over-year, demonstrating stability from consumables, service contracts and spares.
Read all positive updates
Company Guidance
Management guided Q1 revenue of approximately $122 million ± $7 million, with recurring revenue expected to be ~60% of total and systems ~40% (about 70% of guided systems revenue is in backlog entering Q1 with a majority of the balance shipping in Q2); Q1 gross margin is expected to return to the corporate average at ~45%; operating expenses are forecast to be flat at about $50 million; net interest income about $1.9 million; Q1 tax provision ≈ $5.5 million; diluted share count ≈ 48.5 million; and 2026 capital expenditures targeted at ~2% of revenue (normal maintenance each quarter). Management reiterated they expect 2026 revenue growth, and noted gross‑margin leverage scenarios of roughly 46.7–46.8% at ~$130M/quarter, just under 48% at ~$150M/quarter, and ~48% at a normalized ~$160M/quarter.Cohu Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
58
Neutral
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 452.96M | 401.78M | 636.32M | 812.77M | 887.21M |
| Gross Profit | 154.40M | 179.83M | 302.81M | 382.87M | 386.40M |
| EBITDA | -7.79M | -19.41M | 96.97M | 171.72M | 180.64M |
| Net Income | -74.27M | -69.82M | 28.16M | 96.85M | 167.32M |
Balance Sheet | |||||
| Total Assets | 1.24B | 999.41M | 1.15B | 1.23B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 483.98M | 262.09M | 335.70M | 385.58M | 379.90M |
| Total Debt | 359.46M | 18.69M | 58.94M | 103.16M | 144.88M |
| Total Liabilities | 457.44M | 142.52M | 200.18M | 298.57M | 376.54M |
| Stockholders Equity | 785.54M | 856.89M | 950.17M | 928.84M | 882.50M |
Cash Flow | |||||
| Free Cash Flow | 10.73M | -7.86M | 85.42M | 98.09M | 85.73M |
| Operating Cash Flow | 31.69M | 2.78M | 101.47M | 112.86M | 97.73M |
| Investing Cash Flow | -257.02M | 21.92M | -30.21M | -67.87M | 39.89M |
| Financing Cash Flow | 246.33M | -59.03M | -68.14M | -91.07M | 6.53M |
Cohu Technical Analysis
Positive
29.98
Price Trends
29.83
Positive
26.97
Positive
23.67
Positive
Market Momentum
0.31
Negative
50.99
Neutral
60.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHU, the sentiment is Positive. The current price of 29.98 is above the 20-day moving average (MA) of 29.45, above the 50-day MA of 29.83, and above the 200-day MA of 23.67, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 60.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHU.
Cohu Risk Analysis
Cohu disclosed 41 risk factors in its most recent earnings report. Cohu reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cohu Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.34B | 12.15 | 11.84% | ― | -2.04% | 8.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.68B | -6.51 | -24.06% | ― | 6.65% | -4652.36% | |
56 Neutral | $1.24B | 16.34 | 2.07% | 2.25% | 0.96% | -85.27% | |
55 Neutral | $1.41B | -14.78 | -9.07% | ― | -4.50% | -45.79% | |
54 Neutral | $996.00M | -53.42 | -7.08% | ― | -3.23% | -122.16% | |
48 Neutral | $656.23M | -11.11 | -12.29% | ― | 5.81% | -376.55% |
* Technology Sector Average
COHU
Cohu
29.98
15.27
103.81%
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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.