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Cohu
(NASDAQ:COHU)
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Rating:69Neutral
Price Target:
$57.00
▲(38.15% Upside)
Action:Reiterated
Date:07/02/26
The score is driven primarily by strong technical momentum (price well above key moving averages) and a positive earnings call with upgraded 2026 growth outlook and strong order/pipeline indicators. These are offset by still-weak financial performance (ongoing net losses and compressed margins) and limited valuation support (negative P/E, no dividend), with a modest additional overhang from the authorized share increase and convertible-debt complexity.
Positive Factors
High recurring revenue mix
A 60% recurring revenue mix provides durable revenue stability and higher gross margins versus one-time system sales. Over 2-6 months this supports cash conversion, steadier aftermarket demand, and makes margins less cyclical as installed base consumables and services sustain cashflows through semiconductor cycles.
Negative Factors
Ongoing net losses and compressed margins
Persistent net losses and materially compressed margins indicate the company has not yet returned to sustainable profitability. This reduces retained earnings, pressures returns on capital, and means future growth must generate sufficient margin recovery to convert revenue gains into durable earnings and shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
A 60% recurring revenue mix provides durable revenue stability and higher gross margins versus one-time system sales. Over 2-6 months this supports cash conversion, steadier aftermarket demand, and makes margins less cyclical as installed base consumables and services sustain cashflows through semiconductor cycles.
Read all positive factors
Cohu Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Tracks regional trends and shifts in Cohu’s sales mix over time, indicating whether growth is broad-based or concentrated in particular countries. Useful for spotting customer concentration, evaluating how international expansion or local fabs affect future sales, and judging sensitivity to regional economic cycles or policy changes.
Tracks regional trends and shifts in Cohu’s sales mix over time, indicating whether growth is broad-based or concentrated in particular countries. Useful for spotting customer concentration, evaluating how international expansion or local fabs affect future sales, and judging sensitivity to regional economic cycles or policy changes.
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The Fly
The FlyCohu (COHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.65B
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth23.10%
EPS Growth35.49%
CountryUS
Employees2,986
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-1.19
Shares Outstanding47,175,346
10 Day Avg. Volume1,338,448
30 Day Avg. Volume1,577,023
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 Cap1.21
Enterprise Value/Revenue6.66
Enterprise Value/Gross Profit18.38
Enterprise Value/Ebitda361.04
Forecast
1Y Price Target
$63.38Price Target Upside53.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.58
Revenue Forecast (FY)$558.51M
Cohu Business Overview & Revenue Model
Company Description
Cohu, Inc. stands as a prominent global provider of advanced semiconductor test equipment and comprehensive associated services. Operating through its various subsidiaries, the company extends its reach across key international markets including C...
How the Company Makes Money
Cohu makes money primarily by selling semiconductor test and inspection equipment and related consumables and services to semiconductor manufacturers and outsourced semiconductor assembly and test (OSAT) providers. Its key revenue streams generall...
Cohu Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum: revenue beat, materially upgraded guidance, large and growing HPC and inspection pipelines, notable customer wins (including a $100M incremental account opportunity), and improving recurring revenue mix. These positives are moderated by near-term margin pressure from systems mix and initial ramp costs, higher operating expenses to secure growth, supply-chain and capacity constraints, and timing risk for converting a sizable pipeline into 2026 revenue (some likely shifting into 2027). Overall liquidity is healthy but the capital structure includes significant convertible debt. On balance, the strategic wins and upgraded outlook outweigh the manageable execution and timing risks.Positive Updates
Revenue Beat and Upgraded Guidance
Q1 revenue of $125.1 million exceeded the midpoint of guidance. Q2 revenue guidance of approximately $144 million (+15% sequentially, +34% year-over-year). Full-year 2026 revenue outlook raised to growth of 20% to 25% versus prior year.
Negative Updates
Higher Operating Expenses
Q1 operating expenses were $55 million, above guidance, driven by accelerated hiring, design materials, and field support to scale HPC opportunities. Management expects OpEx to remain in the low-$50 million range for the balance of the year (Q2 guidance ~$53M).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Upgraded Guidance
Q1 revenue of $125.1 million exceeded the midpoint of guidance. Q2 revenue guidance of approximately $144 million (+15% sequentially, +34% year-over-year). Full-year 2026 revenue outlook raised to growth of 20% to 25% versus prior year.
Read all positive updates
Company Guidance
Management reported Q1 revenue of $125.1M (above guidance midpoint) with recurring revenue ~60% of sales, Q1 gross margin 46.5% (recurring product gross margin ~50% vs systems ~40%), operating expenses $55M, net interest income ~$2.1M, Q1 tax $4.8M, cash & investments $489M, cash from operations $10M, total debt $305M (including $288M convertible), and Q1 capex ~$2M (targeting ~2% of revenue for 2026). For Q2 they forecast revenue up 15% sequentially and 34% YoY to ~$144M ± $7M, Q2 gross margin ~44%, OpEx about $53M, net interest income ~ $2M, Q2 tax ~$5.3M and diluted shares ~52.6M (4.2M from the convertible, 3.3M offset by a capped call). Full‑year 2026 revenue growth is guided to +20–25% YoY with gross margin in the mid‑40% range and quarterly OpEx remaining in the low‑$50M range; they raised HPC revenue guidance to $80–100M (backed by a ~$750M compute pipeline — ~$650M test handlers + ~$100M HBM inspection), NEON HBM revenue ~ $20M (up ~80% YoY), inspection business ~ $70M, noted semiconductor test orders +163% YoY, inspection orders +64% YoY, overall orders up 57% YoY (2% QoQ), a ~14‑week handler cycle time, and expect Q3 roughly in line with Q2 and a modest mid‑single‑digit seasonal Q4 decline.Cohu Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 481.28M | 452.96M | 401.78M | 636.32M | 812.77M | 887.21M |
| Gross Profit | 174.29M | 156.15M | 179.83M | 302.81M | 382.87M | 386.40M |
| EBITDA | 8.87M | -6.83M | -19.41M | 96.97M | 171.72M | 180.64M |
| Net Income | -55.54M | -74.27M | -69.82M | 28.16M | 96.85M | 167.32M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.24B | 999.41M | 1.15B | 1.23B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 488.70M | 483.98M | 262.09M | 335.70M | 385.58M | 379.90M |
| Total Debt | 327.17M | 359.46M | 18.69M | 58.94M | 103.16M | 144.88M |
| Total Liabilities | 466.04M | 457.44M | 142.52M | 200.18M | 298.57M | 376.54M |
| Stockholders Equity | 768.99M | 785.54M | 856.89M | 950.17M | 928.84M | 882.50M |
Cash Flow | ||||||
| Free Cash Flow | 40.17M | 10.73M | -7.86M | 85.42M | 98.09M | 85.73M |
| Operating Cash Flow | 52.19M | 31.69M | 2.78M | 101.47M | 112.86M | 97.73M |
| Investing Cash Flow | -245.39M | -257.02M | 21.92M | -30.21M | -67.87M | 39.89M |
| Financing Cash Flow | 243.53M | 246.33M | -59.03M | -68.14M | -91.07M | 6.53M |
Cohu Technical Analysis
Positive
41.26
Price Trends
55.02
Positive
44.24
Positive
34.41
Positive
Market Momentum
0.20
Positive
46.83
Neutral
19.35
Positive
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 41.26 is below the 20-day moving average (MA) of 62.71, below the 50-day MA of 55.02, and above the 200-day MA of 34.41, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHU.
Cohu Risk Analysis
Cohu disclosed 42 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.76B | 10.95 | 13.39% | ― | 0.52% | 41.86% | |
69 Neutral | $2.65B | -47.29 | -6.91% | ― | 23.10% | 35.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.57B | 99.15 | 3.46% | 2.25% | 16.77% | -23.42% | |
56 Neutral | $2.28B | -192.68 | -8.87% | ― | -26.39% | -147.85% | |
51 Neutral | $4.76B | -24.77 | -28.05% | ― | -3.24% | -786.94% | |
48 Neutral | $1.12B | -10.55 | -12.98% | ― | 0.60% | -359.56% |
* Technology Sector Average
COHU
Cohu
56.17
36.53
186.00%
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Cohu Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Cohu Shareholders Approve Governance Changes and Share Increase
Positive
May 15, 2026
At its May 15, 2026 annual meeting, Cohu’s stockholders approved an increase in authorized common shares from 90 million to 150 million and the company filed an amended and restated certificate of incorporation in Delaware the same day. The ...
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.