Aehr Test Systems 2026 Q1 Earnings Posts Loss Amid Revenue Decline

Aehr Test Systems reported fiscal 2026 Q1 earnings on Oct 8, 2025, with results falling short of profitability but outperforming Wall Street expectations in revenue and bottom-line performance. The company did not provide formal guidance for the quarter.

Revenue
Total revenue declined by 16.4% year-over-year to $10.97 million in Q1 2026, with the Systems segment contributing $6.76 million, Contactors at $2.61 million, and Services at $1.59 million. This represents a notable drop from the $13.12 million reported in the same period the previous year, highlighting a challenging quarter for the semiconductor test and burn-in equipment provider.

Earnings/Net Income
The company swung to a net loss of $2.08 million, or $0.07 per share, compared to net income of $660,000, or $0.02 per share, in Q1 2025. This reflects a 415.8% deterioration in net income and a 450.0% negative change in EPS, indicating a significant financial decline.

Price Action
Aehr Test Systems' stock edged up 0.47% on the latest trading day, but faced a sharp weekly decline of 22.26%. The stock showed a more modest recovery of 2.62% month-to-date.

Post Earnings Price Action Review
Gayn Erickson, President and CEO, highlighted Q1 2026 as a strong start to the fiscal year, with revenue and profitability exceeding Wall Street expectations despite typical low first-quarter trends. Growth drivers included increased demand for Sonoma ultra-high-power systems for AI processor burn-in, driven by follow-on orders from a leading hyperscaler and ongoing engagements with multiple AI customers. Strategic priorities included expanding wafer-level burn-in capabilities and showcasing the Sonoma and FOX-XP systems. Erickson expressed optimism about long-term market opportunities in AI, silicon photonics, GaN, and silicon carbide, but remained cautious about tariff-related uncertainties and did not provide formal guidance for the quarter.

CEO Commentary
Erickson emphasized the broad-based growth opportunities in AI and other markets, expecting increased orders and revenue in fiscal 2026, particularly in wafer-level and package burn-in for AI processors. He noted anticipation of follow-on orders from a leading AI customer as production volumes rise and expressed confidence in the company’s ability to meet evolving customer requirements, including high-power wafer-level burn-in. However, Aehr chose to withhold formal guidance for the quarter due to ongoing tariff-related uncertainties. The CEO also highlighted ongoing capacity expansion and facility upgrades in Fremont, enabling higher production of high-power systems, but no specific revenue, EPS, or CAPEX targets were provided.

Guidance
Aehr Test Systems did not provide formal guidance for Q1 2026 due to ongoing tariff-related uncertainties. The company remains cautious about providing forward-looking financial estimates but expressed confidence in its ability to meet future demand in AI and other markets.

Additional News
Aehr Test Systems announced the acquisition of Incal Technology, enhancing its capabilities in high-power packaged part burn-in systems and consumables. This acquisition has allowed Aehr to introduce several enhancements to the Sonoma system, including expanded power-per-device to 2000W, increased parallelism, and full automation with an integrated package device handler. These upgrades have attracted significant industry interest, with 10 companies visiting Aehr’s Fremont facility to review the enhanced Sonoma system. Additionally, Aehr has delivered the world’s first production wafer-level burn-in (WLBI) systems for AI processors, installed at a leading global OSAT, marking a significant milestone. The company is also developing strategic partnerships to provide advanced wafer-level test and burn-in solutions for high-performance computing (HPC) and AI processors. Aehr recently launched a benchmark evaluation program with a top-tier AI processor supplier to validate its FOX-XP production systems for WLBI and functional test of high-performance AI processors. Beyond AI, the company is seeing increasing demand in segments such as silicon photonics, gallium nitride, and silicon carbide, further broadening its market opportunities.