Cohu Inc
NASDAQ:COHU
Cohu Inc
Cohu Inc. stands at the crossroads of innovation and precision within the semiconductor industry, a sector that thrives on relentless advancement and technological prowess. Founded in 1947, the company has continually evolved, consistently adapting to the dynamic demands of semiconductor testing and inspection—a crucial phase that ensures chips and components meet rigorous quality standards before entering the global market. Cohu operates through a multi-faceted approach involving test handlers, semiconductor test hardware, and inspection systems. Each of these pillars plays an integrated role in manufacturing processes, serving a broad spectrum of markets including automotive, consumer electronics, and telecommunications.
The company's revenue model reflects its comprehensive role in the semiconductor supply chain, deriving income from the sale of sophisticated capital equipment as well as a suite of service offerings. This includes not only equipment sales but also maintenance, support, and the licensing of related software. By offering a range of services that extend beyond the initial sale, Cohu ensures that it remains an integral partner to its clients over the lifespan of its products. Through this diversified portfolio, the company mitigates the cyclical nature of semiconductor manufacturing, ensuring a consistent revenue stream while enabling electronic innovation on a global scale.
Cohu Inc. stands at the crossroads of innovation and precision within the semiconductor industry, a sector that thrives on relentless advancement and technological prowess. Founded in 1947, the company has continually evolved, consistently adapting to the dynamic demands of semiconductor testing and inspection—a crucial phase that ensures chips and components meet rigorous quality standards before entering the global market. Cohu operates through a multi-faceted approach involving test handlers, semiconductor test hardware, and inspection systems. Each of these pillars plays an integrated role in manufacturing processes, serving a broad spectrum of markets including automotive, consumer electronics, and telecommunications.
The company's revenue model reflects its comprehensive role in the semiconductor supply chain, deriving income from the sale of sophisticated capital equipment as well as a suite of service offerings. This includes not only equipment sales but also maintenance, support, and the licensing of related software. By offering a range of services that extend beyond the initial sale, Cohu ensures that it remains an integral partner to its clients over the lifespan of its products. Through this diversified portfolio, the company mitigates the cyclical nature of semiconductor manufacturing, ensuring a consistent revenue stream while enabling electronic innovation on a global scale.
Revenue Growth: Cohu reported Q4 2025 revenue of $123 million, up 30% year-over-year, and full-year 2025 revenue of $453 million, up 13% year-over-year.
Recurring Business Strength: Recurring business made up about 60% of Q4 revenue, grew 4% sequentially and 25% year-over-year, and bookings rose 34% quarter-over-quarter.
Systems Demand: Systems demand surged 47% quarter-over-quarter, with strong orders from analog, automotive, RF, and computing customers.
Gross Margin Impact: Q4 gross margin came in at 40.8%, below guidance due to one-time inventory charges from discontinuing product lines. Normalized margins are expected to recover in Q1 2026.
Strong Orders and Backlog: Orders increased 29% for the year and systems orders were up 47% quarter-over-quarter, with about 70% of Q1 revenue already in backlog.
HBM/AI Market Momentum: Cohu exited 2025 with $11 million in high-bandwidth memory (HBM) revenue and expects $15–20 million in HBM revenue for 2026, citing continued demand and multiple new orders.
Solid Outlook: Q1 2026 revenue is guided to be flat with Q4 at approximately $122 million (plus or minus $7 million), and gross margin is expected to return to about 45%.
