10-Q · May 1, 2026
Cohu reported solid growth in Q1 FY 2026, with net sales of $125.1 million, an increase of 29.3% year-over-year, driven by demand in mobile and AI-based computing. Although the company continued to experience losses…
Earnings analysis · 10-Q
COHU earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Cohu delivered a strong third quarter, with revenue up 37.0% year over year to $172.956 million, gross margin expanding to 45.5%, and operating margin turning positive at 7.4%. GAAP diluted EPS improved to $0.22 from a…
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Cohu delivered a strong third quarter, with revenue up 37.0% year over year to $172.956 million, gross margin expanding to 45.5%, and operating margin turning positive at 7.4%. GAAP diluted EPS improved to $0.22 from a $0.09 loss, while AI-related demand and improving industrial and automotive markets supported growth. Liquidity remained robust and operating cash flow improved materially, although receivables, inventories, convertible debt, and cyclical semiconductor demand remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.22
What stood out
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Revenue Accelerated Sharply
Third-quarter net sales were $172.956 million, up 16.1% from $149.0 million in Q2 FY2026 and 37.0% from $126.249 million in Q3 FY2025. Management attributed growth to AI-based computing, industrial, and automotive demand.
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Margins Turned Positive
Gross margin increased to 45.5% from 45.4% sequentially and 43.8% year over year, driven by favorable systems mix and higher manufacturing utilization. Operating margin improved to 7.4% from 0.2% in Q2 and negative 7.7% in the prior-year quarter.
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GAAP Earnings Rebounded
GAAP diluted EPS was $0.22 versus $0.00 in Q2 FY2026 and a $(0.09) loss in Q3 FY2025. Net income was $12.129 million compared with a $4.101 million net loss in the prior-year quarter.
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Year-to-Date Recovery Continued
Nine-month revenue rose 35.2% to $447.077 million from $330.726 million, while the nine-month net loss narrowed to $0.098 million from $51.785 million. Nine-month operating margin improved to 0.4% from negative 16.4%.
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Liquidity Remained Strong
Cash and cash equivalents increased to $272.303 million from $227.053 million at December 27, 2025. Including short-term investments, liquidity was $507.948 million, up 5.0%, and working capital was $674.103 million, up 5.2%.
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Cash Generation Improved
Operating cash flow was $26.354 million in the first nine months versus negative $8.144 million in the prior-year period. Capital expenditures were $6.961 million versus $17.583 million, implying positive internally generated cash after capex of approximately $19.393 million.
What to watch
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Working Capital Absorption
Accounts receivable increased to $145.243 million from $108.754 million at December 27, 2025, while inventories increased to $149.049 million from $129.006 million. Nine-month operating cash flow was reduced by a $40.236 million increase in receivables and a $29.195 million increase in inventories.
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Inventory Reserve Risk
The company recorded $7.792 million of inventory-related charges in the first nine months, compared with $4.327 million in the prior-year period, including $2.3 million of excess and obsolete inventory charges in Q3. Further demand or product changes could require additional reserves and pressure the 45.5% gross margin.
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Convertible Debt and Dilution
Net debt-related obligations remain material, including $279.8 million of convertible notes net of discount and $15.3 million of Malaysian revolving borrowings. The notes became convertible again from October 26 through December 7, 2026, and the company may need to satisfy conversion obligations with cash, shares, or both.
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Customer and Cycle Exposure
The filing states that there were no material changes to the risk factors disclosed in the 2025 10-K and Q1 2026 10-Q. Nonetheless, one customer represented 15% of third-quarter sales, and customer concentration or semiconductor-cycle weakness could affect results.
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Foreign Currency Volatility
Foreign operations create translation and transaction exposure: accumulated other comprehensive loss increased to $40.691 million from $32.470 million, including a $7.128 million nine-month reduction from foreign currency translation. Management estimates a 10% dollar appreciation would produce an approximately $34.1 million negative translation adjustment.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management expects existing liquidity to meet operating and capital requirements for at least the next 12 months and anticipates continued capital expenditures to support the business.
Earlier filings 4
10-K · February 17, 2026
Cohu positions itself as a diversified supplier of semiconductor test, automation, inspection and software analytics with an installed base exceeding 25,000 systems and a strategy focused on R&D-driven growth into HBM,…
10-Q · October 30, 2025
Cohu reported Q3 net sales of $126,249,000 and a GAAP diluted loss per share of $0.09. Revenue grew materially year-over-year (+$30,907,000; +32.4%), gross margin remained ~43.8%, and operating loss narrowed to…
10-Q · May 2, 2025
Cohu reported Q1 net sales of $96,797,000, down from $107,614,000 in Q1 2024, producing a GAAP operating loss of $27,326,000 (operating margin -28.2%) and a net loss of $30,804,000 (diluted loss per share $0.66). Cash…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.