Cohu, Inc. Reports Strong Q4 2025 Earnings with Recurring Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy COHU?
Source: seekingalpha
- Recurring Revenue Growth: In Q4 2025, Cohu's recurring revenue accounted for 60% of total revenue, with a sequential increase of 34%, indicating strong demand recovery in service contracts and interface solutions, thereby enhancing the company's competitiveness in the semiconductor market.
- Surge in Systems Demand: Systems orders increased by 47% quarter-over-quarter, primarily driven by higher equipment orders from major global customers, particularly renewed investments from a leading analog and mixed-signal semiconductor customer, signaling a market demand rebound.
- Strong Financial Performance: Q4 revenue reached $122.2 million with a gross margin of 40.8%, although lower than guidance due to one-time inventory charges, the full-year revenue grew 13% year-over-year to $453 million, demonstrating overall financial health.
- Optimistic Outlook: Cohu forecasts Q1 2026 revenue to remain flat at approximately $122 million, with recurring revenue expected to represent 60%, and gross margin projected to rebound to around 45%, reflecting the company's confidence in future growth.
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Analyst Views on COHU
Wall Street analysts forecast COHU stock price to fall
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 32.800
Low
30.00
Averages
32.33
High
35.00
Current: 32.800
Low
30.00
Averages
32.33
High
35.00
About COHU
Cohu, Inc. is engaged in supplying test, interface, automation, inspection and metrology, and software products and related services to the semiconductor industry. The Company sells its products, such as semiconductor automated test equipment (ATE), semiconductor handlers, interface products, inspection metrology, DI-Core data analytics, spares and kits and services. Its semiconductor ATE is used both for wafer level and device package testing. Its solutions consist primarily of two platforms for the system on a chip (SoC) device market: Diamondx tester and PAx tester. Interface Products are comprised of test contactors, probe heads and probe pins. Inspection Metrology are products that provide advanced vision capabilities. DI-Core data analytics is a comprehensive software suite used to optimize Cohu equipment performance. Spares and Kits are consumable, non-consumable and spare items. It provides various parts and labor warranties on its test and handling systems and instruments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cohu's Q4 Earnings Miss Leads to Stock Decline
- Earnings Miss: Cohu reported a non-GAAP loss of $0.15 per share on revenue of $122.2 million for Q4, with sales up approximately 30% year-over-year, yet falling short of Wall Street's expectation of a $0.06 profit per share, leading to a 7.2% drop in stock price.
- Market Reaction: Amid flat trading for the S&P 500 and Nasdaq Composite, Cohu's stock fell 6.86%, reflecting investor disappointment over the company's weaker-than-expected earnings performance.
- Future Guidance: Cohu provided guidance for Q1 sales between $115 million and $129 million, expecting to remain in line with last quarter's revenue, while projecting a gross margin of approximately 45%, a significant improvement from last year's 42.7%, indicating positive cost control efforts.
- High-Bandwidth Memory Sales: Cohu anticipates sales for high-bandwidth memory products to range between $15 million and $20 million, and although this category remains relatively small, its growth potential could further enhance the company's overall gross margins.
See More
Cohu Reports Nearly 30% Revenue Growth in Q3 Despite Loss
- Significant Revenue Growth: Cohu reported Q3 revenue of $122.2 million, reflecting nearly 30% year-over-year growth; however, the company posted an unexpected adjusted loss of $0.15 per share, far exceeding the anticipated profit of $0.06, leading to a 7.2% drop in stock price.
- Negative Market Reaction: Cohu's stock fell by 7.2% during Friday's trading session, contrasting sharply with the flat performance of the S&P 500 and Nasdaq Composite, indicating investor disappointment with the company's financial results.
- Cautious Future Outlook: The company provided guidance for Q1 sales between $115 million and $129 million, expecting revenue to remain roughly in line with the previous quarter, while projecting an improvement in gross margin from 42.7% to approximately 45%, suggesting potential for profitability enhancement.
- High-Bandwidth Memory Sales Prospects: Cohu anticipates sales for high-bandwidth memory products to range between $15 million and $20 million, which, although still a small segment, could contribute to overall margin improvement and bolster future profitability.
See More
Cohu Reports Disappointing Q4 Earnings Results
- Earnings Loss: Cohu reported an adjusted loss of $0.15 per share for Q4, significantly missing the analyst consensus of a $0.06 profit, indicating challenges in profitability that may affect investor confidence.
- Sales Beat: Despite the loss, Cohu's quarterly sales reached $122.23 million, slightly exceeding the analyst estimate of $122.09 million, suggesting the company retains some market competitiveness in sales.
- Outlook Guidance: Cohu forecasts Q1 sales between $115 million and $129 million, below the analyst estimate of $120.136 million, reflecting a cautious outlook on future market demand that could impact stock performance.
- Analyst Rating Changes: Following the earnings announcement, Needham maintained a Buy rating and raised the price target from $30 to $33, while B. Riley Securities lowered its target from $35 to $33, indicating mixed market sentiment regarding Cohu's future performance.
See More
Pinterest Misses Q4 Revenue Expectations
- Revenue Shortfall: Pinterest reported Q4 revenue of $1.32 billion, falling short of analyst expectations of $1.33 billion, indicating competitive pressures that may undermine future investor confidence.
- Earnings Miss: The company posted adjusted earnings of 67 cents per share, below the anticipated 69 cents, reflecting challenges in profitability that could lead to shareholder scrutiny of management.
- Significant Stock Decline: Pinterest shares plummeted 19.5% to $14.95 in pre-market trading, a drastic move that may raise concerns about the company's future performance and influence investor decisions.
- Mixed Market Sentiment: U.S. stock futures showed mixed results, with Dow futures down about 0.2%, reflecting cautious market sentiment potentially linked to Pinterest's earnings report, further exacerbating investor unease.
See More
Applied Materials Reports Strong Q1 Results, Shares Surge
- Strong Financial Results: Applied Materials reported first-quarter revenue of $7.01 billion, exceeding analyst expectations of $6.87 billion, indicating robust demand in the semiconductor equipment market and reinforcing its market leadership.
- Earnings Beat: The company posted adjusted earnings of $2.38 per share for the first quarter, surpassing the $2.20 estimate, reflecting improved cost control and operational efficiency, which is likely to attract more investor interest.
- Stock Surge: Following the earnings report, Applied Materials shares jumped 11.9% to $367.50 in pre-market trading, indicating a positive market sentiment towards the company's growth prospects, potentially boosting investor confidence further.
- Positive Q2 Guidance: The company issued second-quarter guidance above market expectations, demonstrating management's confidence in future performance, which is expected to drive more capital inflows and enhance its competitive position in the industry.
See More
Cohu, Inc. Reports Strong Q4 2025 Earnings with Recurring Revenue Growth
- Recurring Revenue Growth: In Q4 2025, Cohu's recurring revenue accounted for 60% of total revenue, with a sequential increase of 34%, indicating strong demand recovery in service contracts and interface solutions, thereby enhancing the company's competitiveness in the semiconductor market.
- Surge in Systems Demand: Systems orders increased by 47% quarter-over-quarter, primarily driven by higher equipment orders from major global customers, particularly renewed investments from a leading analog and mixed-signal semiconductor customer, signaling a market demand rebound.
- Strong Financial Performance: Q4 revenue reached $122.2 million with a gross margin of 40.8%, although lower than guidance due to one-time inventory charges, the full-year revenue grew 13% year-over-year to $453 million, demonstrating overall financial health.
- Optimistic Outlook: Cohu forecasts Q1 2026 revenue to remain flat at approximately $122 million, with recurring revenue expected to represent 60%, and gross margin projected to rebound to around 45%, reflecting the company's confidence in future growth.
See More
Cohu's Q4 Earnings Miss Leads to Stock Decline
- Earnings Miss: Cohu reported a non-GAAP loss of $0.15 per share on revenue of $122.2 million for Q4, with sales up approximately 30% year-over-year, yet falling short of Wall Street's expectation of a $0.06 profit per share, leading to a 7.2% drop in stock price.
- Market Reaction: Amid flat trading for the S&P 500 and Nasdaq Composite, Cohu's stock fell 6.86%, reflecting investor disappointment over the company's weaker-than-expected earnings performance.
- Future Guidance: Cohu provided guidance for Q1 sales between $115 million and $129 million, expecting to remain in line with last quarter's revenue, while projecting a gross margin of approximately 45%, a significant improvement from last year's 42.7%, indicating positive cost control efforts.
- High-Bandwidth Memory Sales: Cohu anticipates sales for high-bandwidth memory products to range between $15 million and $20 million, and although this category remains relatively small, its growth potential could further enhance the company's overall gross margins.
See More
Cohu Reports Nearly 30% Revenue Growth in Q3 Despite Loss
- Significant Revenue Growth: Cohu reported Q3 revenue of $122.2 million, reflecting nearly 30% year-over-year growth; however, the company posted an unexpected adjusted loss of $0.15 per share, far exceeding the anticipated profit of $0.06, leading to a 7.2% drop in stock price.
- Negative Market Reaction: Cohu's stock fell by 7.2% during Friday's trading session, contrasting sharply with the flat performance of the S&P 500 and Nasdaq Composite, indicating investor disappointment with the company's financial results.
- Cautious Future Outlook: The company provided guidance for Q1 sales between $115 million and $129 million, expecting revenue to remain roughly in line with the previous quarter, while projecting an improvement in gross margin from 42.7% to approximately 45%, suggesting potential for profitability enhancement.
- High-Bandwidth Memory Sales Prospects: Cohu anticipates sales for high-bandwidth memory products to range between $15 million and $20 million, which, although still a small segment, could contribute to overall margin improvement and bolster future profitability.
See More
Cohu Reports Disappointing Q4 Earnings Results
- Earnings Loss: Cohu reported an adjusted loss of $0.15 per share for Q4, significantly missing the analyst consensus of a $0.06 profit, indicating challenges in profitability that may affect investor confidence.
- Sales Beat: Despite the loss, Cohu's quarterly sales reached $122.23 million, slightly exceeding the analyst estimate of $122.09 million, suggesting the company retains some market competitiveness in sales.
- Outlook Guidance: Cohu forecasts Q1 sales between $115 million and $129 million, below the analyst estimate of $120.136 million, reflecting a cautious outlook on future market demand that could impact stock performance.
- Analyst Rating Changes: Following the earnings announcement, Needham maintained a Buy rating and raised the price target from $30 to $33, while B. Riley Securities lowered its target from $35 to $33, indicating mixed market sentiment regarding Cohu's future performance.
See More
Pinterest Misses Q4 Revenue Expectations
- Revenue Shortfall: Pinterest reported Q4 revenue of $1.32 billion, falling short of analyst expectations of $1.33 billion, indicating competitive pressures that may undermine future investor confidence.
- Earnings Miss: The company posted adjusted earnings of 67 cents per share, below the anticipated 69 cents, reflecting challenges in profitability that could lead to shareholder scrutiny of management.
- Significant Stock Decline: Pinterest shares plummeted 19.5% to $14.95 in pre-market trading, a drastic move that may raise concerns about the company's future performance and influence investor decisions.
- Mixed Market Sentiment: U.S. stock futures showed mixed results, with Dow futures down about 0.2%, reflecting cautious market sentiment potentially linked to Pinterest's earnings report, further exacerbating investor unease.
See More
Applied Materials Reports Strong Q1 Results, Shares Surge
- Strong Financial Results: Applied Materials reported first-quarter revenue of $7.01 billion, exceeding analyst expectations of $6.87 billion, indicating robust demand in the semiconductor equipment market and reinforcing its market leadership.
- Earnings Beat: The company posted adjusted earnings of $2.38 per share for the first quarter, surpassing the $2.20 estimate, reflecting improved cost control and operational efficiency, which is likely to attract more investor interest.
- Stock Surge: Following the earnings report, Applied Materials shares jumped 11.9% to $367.50 in pre-market trading, indicating a positive market sentiment towards the company's growth prospects, potentially boosting investor confidence further.
- Positive Q2 Guidance: The company issued second-quarter guidance above market expectations, demonstrating management's confidence in future performance, which is expected to drive more capital inflows and enhance its competitive position in the industry.
See More
Cohu, Inc. Reports Strong Q4 2025 Earnings with Recurring Revenue Growth
- Recurring Revenue Growth: In Q4 2025, Cohu's recurring revenue accounted for 60% of total revenue, with a sequential increase of 34%, indicating strong demand recovery in service contracts and interface solutions, thereby enhancing the company's competitiveness in the semiconductor market.
- Surge in Systems Demand: Systems orders increased by 47% quarter-over-quarter, primarily driven by higher equipment orders from major global customers, particularly renewed investments from a leading analog and mixed-signal semiconductor customer, signaling a market demand rebound.
- Strong Financial Performance: Q4 revenue reached $122.2 million with a gross margin of 40.8%, although lower than guidance due to one-time inventory charges, the full-year revenue grew 13% year-over-year to $453 million, demonstrating overall financial health.
- Optimistic Outlook: Cohu forecasts Q1 2026 revenue to remain flat at approximately $122 million, with recurring revenue expected to represent 60%, and gross margin projected to rebound to around 45%, reflecting the company's confidence in future growth.
See More
