Cohu's stock surged 5.55% in after-hours trading following the release of its first-quarter 2026 financial results and significantly stronger-than-expected guidance for the second quarter.

The semiconductor equipment company reported Q1 sales of $125.1 million, beating analyst estimates of $122.1 million and representing a 29.2% year-over-year increase. While the company posted a GAAP net loss of $12.1 million, this represented a substantial improvement from the $30.8 million loss in the prior year period, and adjusted EBITDA turned positive to $7 million.

The primary driver for the after-hours surge appears to be Cohu's Q2 revenue forecast of $144 million, plus or minus $7 million, which significantly exceeds the consensus estimate of $127 million. Management cited accelerating demand for artificial intelligence and high-performance computing, raised its full-year outlook for high-performance computing revenue to $80-$100 million, and noted that approximately 60% of Q1 sales were recurring revenue.