Shares of Cohu Inc. (NASDAQ: COHU), a global supplier of equipment and services for semiconductor manufacturing, are soaring 7.39% in pre-market trading on Friday. This surge follows the company's impressive second-quarter 2025 financial results and optimistic third-quarter outlook, which were released after market close on Thursday.

Cohu significantly outperformed analyst expectations in Q2, reporting adjusted earnings per share of $0.02 compared to the anticipated loss of $0.02 per share. Revenue also beat estimates, coming in at $107.7 million versus the expected $106 million, representing a 2.85% year-over-year increase. The company's gross margin for the quarter stood at 43.7%, with a non-GAAP gross margin of 44.4%. Additionally, Cohu's test cell utilization improved, increasing by 3 percentage points quarter-over-quarter to reach 75%.

Investors are particularly encouraged by Cohu's optimistic outlook for the third quarter. The company expects Q3 sales to be in the range of $125 million, plus or minus $7 million, suggesting continued growth momentum. Furthermore, Cohu highlighted several positive business developments, including a $28 million design-win order for the mobile and automotive sectors, the introduction of a new Eclipse handler model, and the qualification of its ULTRA-S contactor for precision analog IC testing. These factors, combined with the company's strong financial performance and expansion into new markets, appear to be driving investor confidence and contributing to the stock's pre-market surge.