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COHU · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Cohu Inc (COHU) stock moving?
Cohu beat fiscal Q3 2026 expectations on Oct 28, with adjusted EPS of $0.43 versus $0.34 expected and sales of $173.0M versus $164.6M, and guided Q4 sales to $171M-$185M against a $168M estimate. Analysts reacted with Buy-type ratings and targets from $60 to $90, with B. Riley trimming its target from $75 to $60 on Nov 9 while keeping Buy. On Nov 10 the company said a customer selected its Eclipse platform for next-generation HPC device testing and that an undisclosed client adopted it for production testing of computing devices, adding a concrete demand signal. The price path is more volatile. After peaking near $57.94 intraday on Oct 29, the stock fell to $34.90 on Nov 5, a drop of about 21% in one session on 3.9M shares, roughly three times normal volume. The news set does not explain that selloff. The stock then rebounded about 25% to $43.57 by Nov 10, which still sits about 18% below the Oct 29 close of $53.40. The rebound is on steady volume after the initial spike, and the HPC wins give it support, but the unexplained Nov 5 drop and the lower B. Riley target keep the outlook mixed.
News behind the analysis
- Cohu's Eclipse Platform Selected for Next-Generation HPC Device TestingCohu announced that a customer selected its Eclipse platform for testing next-generation high-performance computing (HPC) devices.
- Cohu's Eclipse Platform For Production Testing Of Its Computing Devices Tapped By Undisclosed ClientAn undisclosed client has adopted the Eclipse platform for production testing of its computing devices.
- B. Riley Securities Maintains Buy on Cohu, Lowers Price Target to $60B. Riley kept its Buy rating on Cohu but cut its price target to $60.
- B. Riley Adjusts Price Target on Cohu to $60 From $75B. Riley lowered its Cohu price target from $75 to $60 while maintaining a Buy rating.
- B. Riley Adjusts Cohu Price Target to $75 From $69, Maintains Buy RatingB. Riley raised its Cohu price target to $75 from $69 and kept its Buy rating.
- Jefferies Maintains Buy Rating on Cohu, Raises Price Target to $90Jefferies kept its Buy rating on Cohu and raised its price target from $74 to $90.
- Robert W. Baird Reaffirms 'Outperform' Rating on CohuBaird reaffirmed its Outperform rating on Cohu with a price target of $83.
- Needham Reiterates Buy on Cohu, Maintains $65 Price TargetNeedham reiterated its Buy rating on Cohu and kept its $65 price target.
- Cohu Reports Third Quarter 2026 Financial ResultsCohu reported fiscal Q3 2026 net sales of $173.0 million and GAAP income of $12.1 million.
- Cohu Q3 Adj. EPS $0.43 Beats $0.34 Estimate, Sales $172.956M Beat $164.560M EstimateCohu's Q3 adjusted EPS of $0.43 and sales of $172.956M beat consensus estimates of $0.34 and $164.560M.
About Cohu Inc
Cohu is a San Diego-based company, founded in 1947, that makes the equipment chipmakers use to test, handle and inspect semiconductors near the end of production. It is best known for its test handlers (including the Eclipse platform), and it has recently grown on demand for testing AI and high-performance computing (HPC) chips. It also makes testers for GaN power devices used in data-center power systems.
How it makes money
Cohu has two main sources of revenue. The first is recurring sales of consumables, interface products (contactors and test boards), spare parts, services and software analytics, which made up roughly half to 60% of sales in 2026. The second is sales of systems: test handlers, automated test equipment, and inspection and metrology tools. Quarterly revenue grew from about $125 million in Q1 2026 to about $173 million in Q3 2026, helped by HPC sales that the company expects to reach roughly $120 million for the year.
What usually moves COHU
- AI and high-performance computing chip demand
- Semiconductor test capacity utilization and the chip spending cycle
- Automotive and industrial chip demand
- Gross margins and component costs
- New wins and qualifications at large HPC customers