Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 3 of last 6 quarters
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Cohu's results reinforce the AI infrastructure buildout thesis, with HPC-driven demand for advanced thermal handling and HBM inspection accelerating. The raised HPC revenue outlook and expanded pipeline signal continued investment in AI data center compute and memory, which should benefit the broader test and inspection supply chain. Management's capacity expansion in Malaysia and supply chain pre-buys indicate confidence in sustained AI-driven demand into 2027.
Cohu delivered Q2 revenue of $149M, up 38% YoY, with recurring revenue at 53% of total. Gross margin of 45.5% exceeded guidance, and non-GAAP EPS was $0.26. Computing orders led with 46% of system orders, up 150% YoY, while industrial orders rose 87% YoY; automotive orders declined 24% YoY. The HPC pipeline expanded to $850M annually, with 4 qualified customers, 5 in qualification, and 10 in early engagement. The company shipped additional HBM inspection systems and booked $500K in silicon photonics interface orders. Cash and investments rose to $498M.
Management raised full-year 2026 revenue growth outlook to approximately 35% year-over-year (from 20%-25% previously). Q3 revenue is guided to ~$170M ±$7M, with gross margin ~45% and OpEx ~$54M. The HPC revenue estimate for fiscal 2026 was raised to $100M-$110M, and the HPC pipeline grew to $850M annually across 19 customers. Capacity expansion in Malaysia is on track to double Eclipse output by year-end and support further step-ups into mid-2027, with a path to triple output by end of next year. Management noted higher input costs for certain semiconductors and specialty components, and is taking proactive steps to secure critical components to minimize impacts on lead times, profitability, and customer pricing. The tone was confident, with strong visibility into Q4.
“We delivered a strong quarter with sales of $149 million up 38% year over year and recurring revenue of approximately 53% of total.”
on Quarterly results
“We are raising our fiscal 2026 high performance computing revenue estimate to between $100 million and $110 million.”
on HPC guidance
“We are increasing our full-year 2026 revenue outlook for growth over last year to approximately 35%.”
on Full-year guidance
Is the $850M pipeline split as 3 HPC and 1 HBM qualified, and when do the in-qualification customers convert to revenue?
Luis confirmed 3 HPC and 1 HBM qualified, with ~$190M annual opportunity. One customer is close to qualification, with production config shipping end of August; the last of the in-qualification bucket should qualify around mid-Q1 next year.
What drove the $100M increase in the pipeline, and can you break down the recurring revenue components?
Luis attributed the increase to better visibility and added customers in early engagement. Recurring revenue includes device application kits, thermal heads, maintenance/spares, and software subscriptions (a fourth component).
What is the relative contribution of HPC vs core business to Q3 growth, and what is the Q4 seasonality?
Jeffrey said roughly 50% HPC and 50% core, about $10M each. Luis noted Q4 is expected flattish as HPC capacity is maxed out, but a $26M Eclipse order booked in early Q3 will ship largely in Q4, providing strong visibility.