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Cohu
(NASDAQ:COHU)
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Rating:60Neutral
Price Target:
$56.00
▲(9.67% Upside)
Action:Reiterated
Date:10/29/26
COHU scores as moderately attractive primarily due to improving financial trajectory (recovering revenue, margins, and notably stronger free cash flow) and a very upbeat earnings call with raised 2026–2027 growth and margin expectations. These positives are tempered by continued TTM net losses, higher leverage versus prior years, and weak near-term technical momentum with the stock trading below key moving averages.
Positive Factors
Recurring Revenue Base
Recurring revenue from consumables, services, and other installed-base products gives Cohu a more durable earnings foundation than equipment sales alone. At 48% of quarterly revenue, this base can support customer retention, aftermarket demand, and cash generation through periods of uneven semiconductor capital spending.
Negative Factors
Incomplete Profit Recovery
Cohu has not yet restored consistent bottom-line profitability despite improving revenue, gross margin, and EBITDA. Continued losses alongside higher leverage reduce financial flexibility, make earnings recovery more important, and could constrain capital allocation if semiconductor demand weakens or the recovery takes longer.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Base
Recurring revenue from consumables, services, and other installed-base products gives Cohu a more durable earnings foundation than equipment sales alone. At 48% of quarterly revenue, this base can support customer retention, aftermarket demand, and cash generation through periods of uneven semiconductor capital spending.
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.
Data provided by:
The Fly
The FlyCohu (COHU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.52B
Dividend Yield1.11%
Average Volume (3M)1.12M
Price to Earnings (P/E)―
Beta (1Y)1.89
Revenue Growth32.66%
EPS Growth55.60%
CountryUS
Employees2,777
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.48
Shares Outstanding47,338,432
10 Day Avg. Volume1,279,823
30 Day Avg. Volume1,119,753
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 Cap1.38
Enterprise Value/Revenue6.09
Enterprise Value/Gross Profit14.53
Enterprise Value/Ebitda82.85
Forecast
1Y Price Target
$77.43Price Target Upside51.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.93
Revenue Forecast (FY)$612.48M
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 primarily makes money by selling semiconductor test and handling equipment and associated products and services used during the back-end of the semiconductor production flow (after wafer fabrication). Key revenue streams include: (1) Sales of...
Cohu Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by 37% year-over-year revenue growth, 126% bookings growth, record software analytics performance, improving utilization, expanding HPC qualifications and a raised 2026 and 2027 growth outlook. The main challenges were specialty-component tightness, higher input costs, qualification and production-ramp timing, a small seasonal mobile business and a projected fourth-quarter gross margin decline to approximately 44%.Positive Updates
Strong Third-Quarter Revenue and Bookings Growth
Third-quarter revenue increased 37% year-over-year to $173 million. Book-to-bill was solidly above 1, total bookings grew 126% year-over-year, systems bookings increased 318%, and recurring bookings grew 36%. Systems represented 59% of bookings and recurring business represented 41%.
Negative Updates
Component Tightness and Higher Input Costs
Rapid growth in high-performance computing demand is creating longer lead times and higher input costs for certain semiconductors and specialty components. Cohu reported some tightness in specialty components and is working with suppliers, evaluating alternatives and expanding supply capacity to limit impacts on lead times, profitability and customer pricing.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue and Bookings Growth
Third-quarter revenue increased 37% year-over-year to $173 million. Book-to-bill was solidly above 1, total bookings grew 126% year-over-year, systems bookings increased 318%, and recurring bookings grew 36%. Systems represented 59% of bookings and recurring business represented 41%.
Read all positive updates
Company Guidance
Cohu raised its fiscal year 2026 high-performance computing revenue outlook to approximately $120 million and expects to deliver approximately 3x as many Eclipse handlers in 2027 as in 2026; Q4 revenue is expected to be approximately $178 million, plus or minus $7 million, representing year-over-year growth of 46%, with Q4 gross margin of approximately 44%, operating expenses of approximately $57 million, net interest income of approximately $1.4 million at current interest rates, a tax provision of about $3.3 million and diluted shares of approximately 55 million, including 5.8 million shares attributable to the convertible debt, of which 2.4 million shares will be fully offset by the capped call; full year 2026 revenue growth is expected to be approximately 38% over 2025, gross margin approximately 45% and total capital expenditures approximately 2% of revenue; for 2027, revenue growth is expected to be 30% to 40% over 2026, gross margin 46% to 48%, quarterly operating expenses $54 million to $56 million and approximately 50% of incremental revenue falling to operating income, with the high end of the range depending on the timing of customer qualifications and production ramps provided market conditions remain strong.Cohu Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 569.31M | 452.96M | 401.78M | 636.32M | 812.77M | 887.21M |
| Gross Profit | 238.56M | 156.15M | 179.83M | 302.81M | 382.87M | 386.40M |
| EBITDA | 41.84M | -6.83M | -19.41M | 96.97M | 171.72M | 180.64M |
| Net Income | -22.59M | -74.27M | -69.82M | 28.16M | 96.85M | 167.32M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 1.24B | 999.41M | 1.15B | 1.23B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 507.95M | 483.98M | 262.09M | 335.70M | 385.58M | 379.90M |
| Total Debt | 332.09M | 327.77M | 18.69M | 58.94M | 103.16M | 144.88M |
| Total Liabilities | 506.74M | 457.44M | 142.52M | 200.18M | 298.57M | 376.54M |
| Stockholders Equity | 790.98M | 785.54M | 856.89M | 950.17M | 928.84M | 882.50M |
Cash Flow | ||||||
| Free Cash Flow | 55.85M | 10.73M | -7.86M | 85.42M | 98.09M | 85.73M |
| Operating Cash Flow | 66.19M | 31.69M | 2.78M | 101.47M | 112.86M | 97.73M |
| Investing Cash Flow | -191.47M | -257.02M | 21.92M | -30.21M | -67.87M | 39.89M |
| Financing Cash Flow | 249.10M | 246.33M | -59.03M | -68.14M | -91.07M | 6.53M |
Cohu Technical Analysis
Neutral
51.06
Price Trends
57.08
Negative
56.85
Negative
46.88
Positive
Market Momentum
-3.01
Positive
44.34
Neutral
46.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHU, the sentiment is Neutral. The current price of 51.06 is below the 20-day moving average (MA) of 59.95, below the 50-day MA of 57.08, and above the 200-day MA of 46.88, indicating a neutral trend. The MACD of -3.01 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 46.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $48.97B | 35.72 | 42.04% | 0.16% | 74.93% | 218.54% | |
70 Outperform | $8.62B | 49.69 | 15.83% | ― | 18.01% | 161.14% | |
70 Outperform | $4.16B | 35.95 | 13.55% | 1.03% | 44.44% | 2283.94% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.52B | -109.93 | -2.90% | 1.11% | 32.66% | 55.60% | |
58 Neutral | $206.50M | 126.18 | 1.50% | 3.31% | 5.44% | ― | |
48 Neutral | $2.11B | -280.61 | -4.66% | ― | -15.21% | -81.50% |
* Technology Sector Average
COHU
Cohu
53.14
29.13
121.32%
AEHR
Aehr Test Systems
64.54
37.54
139.04%
FORM
Formfactor
110.31
62.59
131.16%
INTT
inTEST
16.10
7.52
87.65%
KLIC
Kulicke & Soffa
79.44
40.20
102.46%
TER
Teradyne
313.24
139.64
80.43%
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.