Cohu Reports 29.3% Revenue Growth to $125.1 Million in Q1 Fiscal 2026

Cohu, Inc. reported its financial results for the first quarter of fiscal 2026, revealing a net sales increase of 29.3% year-over-year, reaching $125.1 million compared to $96.8 million in the same period of fiscal 2025. The company attributed this growth primarily to heightened demand in mobile and AI-based computing applications, which helped offset declines in automotive, industrial, and consumer markets. Despite the overall increase in revenue, Cohu recorded a net loss of $12.1 million for the quarter, an improvement from the $30.8 million loss reported in the prior year.

The company's gross margin improved to 46.3% in the first quarter of fiscal 2026, up from 43.7% in the same quarter of the previous year. This increase was driven by a favorable product mix and higher overall business volume, which enhanced the utilization of existing manufacturing capabilities. Research and development expenses rose to $26.4 million, representing 21.1% of net sales, reflecting ongoing investments in product development. Selling, general, and administrative expenses also increased to $34.6 million, or 27.7% of net sales, primarily due to higher business activity.

Cohu's balance sheet as of March 28, 2026, showed total assets of $1.24 billion, with cash and cash equivalents amounting to $210.9 million, a decrease from $227.1 million at the end of the previous fiscal year. The company’s total liabilities were reported at $466.4 million, with long-term debt comprising $284.9 million. Cohu's restructuring efforts, initiated in fiscal 2025, have led to a reduction in restructuring charges to $0.8 million in the first quarter of fiscal 2026, down from $6.6 million in the same period last year.

In terms of operational developments, Cohu continues to focus on expanding its market presence, particularly in AI-related applications. The company has also been managing its cost structure to maintain profitability amid fluctuating market conditions. As of the end of the first quarter, Cohu had 47,175,347 shares of common stock outstanding. Looking ahead, the company remains optimistic about its long-term growth prospects, driven by increasing semiconductor complexity and the demand for advanced testing and inspection solutions.