Cohu Inc. (NASDAQ: COHU), a global supplier of equipment and services for semiconductor manufacturing, is extending its upward momentum in pre-market trading, surging 5.21% following an impressive performance in the previous session. The stock's continued rise comes on the heels of the company's better-than-expected second-quarter 2025 financial results and an optimistic third-quarter outlook released on Thursday.

In its Q2 report, Cohu significantly outperformed analyst expectations, posting adjusted earnings per share of $0.02 against projections of a $0.02 loss. Revenue also exceeded estimates, reaching $107.7 million compared to the forecasted $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 reported an improvement in test cell utilization, which increased by 3 percentage points quarter-over-quarter to 75%.

Investors appear particularly encouraged by Cohu's optimistic Q3 outlook, with the company projecting sales in the range of $125 million, plus or minus $7 million. This guidance suggests continued growth momentum. The market's positive reaction is further bolstered by several business developments highlighted in the earnings report, 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 Cohu's expansion into new markets, seem to be driving investor confidence and contributing to the stock's impressive pre-market performance following Thursday's 5.88% gain.