Cohu Reports Strong Q2 Performance and Raised Fiscal Outlook for 2026
Cohu, Inc. reported a strong second-quarter performance with year-over-year sales growth of 38%, driven by increased demand for advanced thermal test handlers used in AI processors and HBM inspection. Semiconductor utilization improved to 80% at the end of Q2, signaling renewed capital spending among key IDM customers. The computing segment led system orders with a 150% year-over-year increase due to growth from its Eclipse handler in high-performance computing (HPC). Industrial segment orders also rose by 87%, while automotive remains underperforming. Cohu's strategic focus on software analytics reached $1 million revenue for the quarter, using an 'on-site AI appliance' that meets data sovereignty requirements. The HPC customer pipeline is now estimated at $850 million annually across 19 customers in various qualification stages. Recurring revenue accounted for 53% of total sales due to consumables and subscription software models. The company raised its fiscal 2026 revenue growth outlook to approximately 35%, projecting a full-year range between $610 million and $615 million, with HPC revenue expected to reach up to $110 million. Cohu is expanding manufacturing in Malaysia to increase HPC handler output by mid-2027.
Tickers: $COHU
Topics: ai processors hpc growth manufacturing expansion revenue guidance semiconductor