Cohu Inc

Cohu delivered a deeply mixed fourth quarter, posting revenue that narrowly edged past expectations while its bottom line fell well short of what Wall Street had penciled in. The semiconductor test equipment maker reported Q4 FY2025 net sales of $122.23 million, up 29.9% year-over-year and just ahead of the $122.09 million consensus, but its non-GAAP EPS of negative $0.15 missed the $0.06 estimate by 341.94%, underscoring how top-line momentum has yet to translate into profitability. The wider-than-expected loss was driven largely by elevated cost of sales, increased R&D investment, and an $8.69 million income tax provision that weighed heavily on the quarter. On the positive side, recurring revenue grew 25% year-over-year in Q4, reflecting strength in services, interface solutions, and handler-related spares, while test cell utilization climbed to 76% in December, signaling gradual market recovery. Investors are now weighing that growth story against a concerning pattern of persistent losses, with management guiding Q1 FY2026 revenue to approximately $122 million, suggesting sequential performance remains essentially flat as the semiconductor equipment cycle continues its slow-moving recovery.