Financial Performance and Market Reaction for Aehr Test Systems – Q2 2026
1. Quarterly Results
- Revenue: Aehr Test Systems reported $9.9 million in revenue for the quarter ended 30 November 2025, falling short of analyst expectations by approximately $1.7 million.
- Earnings per Share: The company posted a diluted loss of $0.11 per share, compared with a loss of $0.03 per share reported in the same quarter last year.
- Non‑GAAP EPS: A non‑GAAP earnings per share of –$0.04 was in line with guidance.
2. Drivers of the Results
- Revenue Decline: The drop in quarterly revenue was attributed largely to a temporary dip in the semiconductor market, particularly in the memory and logic test segment.
- AI & HPC Bookings: Despite the revenue miss, the company highlighted a surge in orders for its Sonoma Ultra‑High‑Power System, designed for testing and burning‑in AI processors. These orders were reported to exceed $5.5 million and are expected to bolster future revenue.
- Backlog Expansion: Aehr’s backlog and effective backlog increased, indicating growing customer commitments, especially in the AI and high‑performance computing (HPC) sectors.
- Cash Position: Cash levels improved, providing additional working capital to support the company’s investment in advanced test platforms.
3. Guidance and Forward Outlook
- Reinstated Guidance: The company reaffirmed its guidance for the remaining fiscal year, citing improved visibility in the AI processor and data‑center semiconductor test markets.
- Strategic Focus: Aehr continues to invest in AI and HPC testing solutions, positioning itself to capture demand from next‑generation semiconductor manufacturers.
4. Analyst Coverage
| Analyst | Rating | Target Price | Notes |
|---|---|---|---|
| William Blair | Hold | Unchanged | Maintained a hold rating, emphasizing the company’s AI‑related potential. |
| Craig‑Hallum | Hold | Reduced | Lowered the price target due to a weaker outlook for the short‑term but retained a hold recommendation. |
| Other | – | – | General commentary on the company’s performance and market sentiment. |
5. Market Performance
- Stock Movement: Following the earnings release, the stock experienced a 16 % increase on 9 January 2026, reflecting investor confidence in the company’s AI and HPC focus.
- Price Target Adjustment: Despite the share price surge, analysts such as Craig‑Hallum lowered their price targets, citing a cautious outlook for the near term.
- Long‑Term View: Analysts view the current dip in revenue as temporary, with the company’s backlog and cash position positioning it favorably for sustained growth in the AI and HPC markets.
6. Key Takeaways
- Revenue and Earnings Miss: The quarter ended with a revenue shortfall and widened losses, mainly driven by a broader semiconductor market slowdown.
- Strength in AI/HPC: Orders for high‑power AI processor testing systems have surged, expanding the backlog and improving future revenue prospects.
- Guidance Restored: The company has reiterated its fiscal‑year guidance, citing clearer visibility in AI and HPC segments.
- Analyst Consensus: While analysts maintained hold ratings, they have adjusted price targets downward, balancing optimism for AI-driven growth with caution regarding short‑term volatility.
- Market Reaction: The stock’s 16 % jump on 9 January reflects positive sentiment toward the company’s strategic focus on AI and HPC testing solutions.
These points summarize the financial results, strategic direction, and market reaction for Aehr Test Systems as of the most recent quarterly reporting period.
