Cohu's Q2 2025 Earnings Call: Unraveling Contradictions on Orders, Margins, and Market Dynamics

Customer orders and market recovery, utilization rate trends, gross margin expectations, mobile market dynamics, and automotive industry growth are the key contradictions discussed in Cohu's latest 2025Q2 earnings call.



Revenue Performance and Growth:
- Cohu, Inc. reported revenue of $107.7 million for Q2 2025, in line with guidance.
- The growth was driven by increased test cell utilization and strong orders from the mobile end market.

Test Cell Utilization Improvement:
- Cohu's test cell utilization increased by 3 points to 75% quarter-over-quarter.
- This increase indicates that the semiconductor industry is entering a recovery cycle.

Mobile End Market Recovery:
- Orders from the mobile end market improved quarter-over-quarter, contributing significantly to Cohu's revenue growth.
- This improvement was driven by a large design win order and recovery in demand for Cohu's test automation and inspection systems.

Product and Market Expansion:
- Cohu secured its first system order from a customer in India, opening a new geographical opportunity for its products.
- The company also qualified its Ultra-S contactor for precision analog test, expanding its footprint in the precision analog space.