Cohu (COHU) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 37% YoY to $173.0M; GAAP net income was $12.1M, versus a $4.1M net loss a year earlier.

• Bookings increased 126% YoY; FY2026 HPC revenue outlook rose to ~$120M, and the annual HPC pipeline reached ~$1.0B.

• Preliminary 2027 revenue growth outlook is 30%-40%, supported by HPC opportunity conversion and recovery in core markets.

Financial highlights

• Q3 non-GAAP gross margin was 45.7%; GAAP gross margin was 45.5%.

• Non-GAAP operating expenses were $53.5M; non-GAAP EPS was $0.43 and Adjusted EBITDA margin was 16.6%.

• GAAP operating income was $12.8M versus a $9.7M loss a year earlier; Q3 diluted EPS was $0.22 versus a $0.09 loss per share.

• 9M sales were $447.1M, up 35.2% YoY; 9M net loss was $0.1M versus $51.8M.

Outlook and guidance

• Q4 revenue guidance is $178M ± $7M, implying 46% YoY growth; FY2026 revenue outlook indicates 38% YoY growth.

• Q4 non-GAAP gross margin is expected at ~44%, operating expenses at ~$57M and Adjusted EBITDA margin at ~14%; FY2026 gross margin outlook is ~45%.

• 2027 revenue growth outlook is 30%-40%; gross margin is expected at 46%-48%, with quarterly operating expenses of $54M-$56M.

• Management targets ~50% of incremental revenue flowing to operating income; the high end of 2027 growth guidance depends on qualification, production-ramp timing and market conditions.