Shares of Cohu (NASDAQ: COHU), a global supplier of equipment and services for semiconductor manufacturing, surged 5.88% in Thursday's trading session following the release of its second-quarter 2025 financial results and third-quarter outlook. The company's performance significantly exceeded analyst expectations, driving investor enthusiasm.

Cohu reported adjusted earnings per share of $0.02 for Q2, beating analysts' expectations of a $0.02 loss per share. Revenue also surpassed estimates, coming in at $107.7 million compared to the consensus forecast of $106 million, marking a 2.85% increase in sales compared to the same period last year. The company's gross margin for the quarter stood at 43.7%, with a non-GAAP gross margin of 44.4%.

Investors were particularly encouraged by Cohu's optimistic outlook for the third quarter, with the company expecting Q3 sales to be in the range of $125 million, plus or minus $7 million. This guidance suggests continued growth momentum. Additionally, 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 an improvement in test cell utilization, which increased by 3 percentage points quarter-over-quarter to reach 75%, appear to be driving investor confidence in Cohu's future prospects.