Cohu, Inc. (COHU) AI Stock Analysis

Cohu, Inc. provides advanced semiconductor test equipment and services across global markets, including China, the United States, Taiwan, Malaysia, and the Philippines. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and automated test equipment for semiconductor manufacturers and test subcontractors. Cohu also offers wafer-level and package testing systems, pick-and-place, turret, and strip handlers, interface products, and maintenance training. Additionally, it offers DI-Core, a data analytics software suite designed for real-time online performance monitoring and process control to optimize equipment efficiency.

Cohu's revenue dropped from $887.2M in FY2021 to $401.8M in FY2024 before rising 12.7% to $453.0M in FY2025, reflecting a 5-year revenue CAGR of -6.6%. Gross margin contracted from 43.6% in FY2021 to 34.5% in FY2025, while operating margin fell from 22.7% to -13.3%. The company posted a net loss of -$74.3M in FY2025, following a net loss of -$69.8M in FY2024. Over the trailing twelve months, revenue reached $522.6M with a profit margin of -7.4% and an operating margin of 0.6%. For the latest quarter ended June 30, 2026, quarterly revenue grew 38.4% year-over-year, while quarterly earnings declined 84.3%.

As of June 30, 2026, Cohu held $498.2M in cash and short-term investments against $326.9M in total debt, resulting in net cash of $171.2M. The company reported a current ratio of 5.74 and a debt-to-equity ratio of 0.42, supported by $774.6M in shareholders' equity and $1.26B in total assets. During FY2025, operating cash flow stood at $31.7M and free cash flow was $10.7M. Cohu directed $21.0M toward capital expenditures and $7.4M toward share buybacks in FY2025, with its share count falling 4.2% over five years.

Cohu trades at an enterprise value of $2.88B and a market cap of $2.41B. Its forward P/E of 33.7x and price-to-sales ratio of 4.6x trade at a premium to the median of its US-listed Technology peers of 18.8x and 2.8x, respectively. The company's EV-to-EBITDA ratio of 135.1x also sits well above the peer median of 16.6x. Over the past year, Cohu shares gained 128.1%, outperforming the S&P 500 return of 16.8%. However, its 5-year return of 65.6% trails the S&P 500 return of 83.0%.

Wall Street analyst coverage consists of 7 Strong Buy ratings and 1 Buy rating, with zero Hold or Sell ratings. The mean price target of $70.88 represents a 39.5% premium to the last closing price of $50.81 on October 16, 2026. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $612.7M and EPS of $0.95, representing 531.8% EPS growth. Cohu has beaten EPS estimates in 2 of the last 4 quarters, with its next earnings announcement set for October 28, 2026.

This page is an AI-written research summary of Cohu, Inc. (COHU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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