Q2 2026 Cohu Inc Earnings Call Transcript

Jul 30, 2026 / 08:30 PM GMT

Release Date Price: €37 (+7.25%)

Transcript 10-Q8-K

Key Points

Positve

Strong Q2 2026 results with sales of $149 million, up 38% year-over-year, and Q3 revenue guidance of approximately $170 million, up 35% year-over-year.
High-performance computing (HPC) pipeline expanded to approximately $850 million annually, with fiscal 2026 HPC revenue estimate raised to $100-$110 million.
Recurring revenue reached 53% of total revenue, driven by consumables, software, and interface solutions, providing a stable revenue base.
Test utilization improved to 80%, a typical turning point for capacity additions, with computing orders up 150% and industrial orders up 87% year-over-year.
Software analytics business delivered its first $1 million revenue quarter, with orders up 140% year-over-year, and is expanding with a major HPC customer.
Manufacturing capacity expansion in Malaysia is on track to double output by year-end, supporting future HPC growth.
Gross margin of 45.5% exceeded guidance, reflecting favorable product mix, and operating leverage is strong with 40% of sequential revenue growth converting to operating profit.

Negative

Automotive segment orders declined 24% year-over-year, and utilization remains below 80%, with recovery not expected until late Q1 or Q2 2027.
Supply chain constraints, particularly for memory and specialty components, are leading to longer lead times and higher input costs, which may pressure margins.
Operating expenses increased to $52.7 million in Q2 and are expected to remain elevated at ~$54 million in Q3, reflecting investments in HPC resources.
HPC capacity is currently maxed out, limiting near-term revenue growth potential until the Malaysia expansion is fully operational.
The company faces a single dominant competitor in the HPC handler market, which could intensify competitive pressures.
Q4 revenue is expected to be flattish sequentially, as core business seasonality and HPC capacity constraints limit growth.
Higher input costs for components may not be fully passed on to customers, potentially impacting gross margins in the near term.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

COHU.OQ - Cohu Inc
Q2 2026 Cohu Inc Earnings Call
Jul 30, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by.

Welcome to COHU second quarter 2026 financial results conference call.

At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question-and-answer session.

To have 1 telephone.

You will then hear an automated message advising your hand is raised to withdraw your question, please press star 11 again.

Please be advised that today's conference is being recorded.

I'd now like to hand the conference over to Matt Hutton, Vice President of Strategy and Investor Relations, please go ahead.

Thank you, operator, and welcome to Chu's second quarter 2026 earnings call.

Our agenda begins with

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