Cohu, Inc. reported its financial results for the third quarter of fiscal 2026, which ended September 26, 2026. The company announced net sales of $173.0 million for the quarter, representing a 37% increase compared to the same period in the prior year. This figure is an increase from the $149.0 million in net sales reported for the second quarter of fiscal 2026.
On a GAAP basis, Cohu recorded net income of $12.1 million, or $0.22 per share, for the third quarter of fiscal 2026. This compares to a net loss of $4.1 million, or $0.09 per share, for the third quarter of fiscal 2025. For the first nine months of fiscal 2026, net sales totaled $447.1 million, and the company reported a GAAP net loss of $0.1 million, or $0.00 per share.
The company also reported non-GAAP financial measures. For the third quarter of fiscal 2026, non-GAAP net income was $23.3 million, or $0.43 per share. For the first nine months of fiscal 2026, non-GAAP net income was $37.9 million, or $0.73 per share. Cohu reported a gross margin of 45.5% for the third quarter of fiscal 2026, with a non-GAAP gross margin of 45.7%.
In terms of operational metrics, Cohu reported that estimated test cell utilization increased by 200 basis points sequentially to 82%. The company also noted that bookings increased 126% year-over-year, driven by a 318% increase in systems and a 36% increase in recurring revenue. The company’s annual AI-driven compute opportunity pipeline grew 18% sequentially to approximately $1.0 billion.
Regarding its balance sheet, Cohu reported total cash and investments of $507.9 million at the end of the third quarter of fiscal 2026. The company did not repurchase any shares of its common stock during the quarter.
Looking ahead, Cohu expects fourth quarter 2026 sales to be up 46% year-over-year and in the range of $178 million +/- $7 million. The company also raised its fiscal year 2026 high-performance computing revenue outlook to approximately $120 million.
