In Q2 2026, Cohu Inc reported a notable revenue increase fueled by its advanced semiconductor test automation products targeting AI processors and wide bandgap semiconductors such as SiC and GaN. The company’s extensive installed base of over 25,000 systems worldwide supports growing recurring revenues from software analytics and interface consumables, driving customer stickiness. While the capital equipment market remains volatile due to semiconductor cycle dynamics, Cohu's strategic investments in R&D and smart manufacturing integration position it to capture high-growth opportunities in complex device testing. Financially, the company maintains strong liquidity and improving operating leverage despite ongoing industry headwinds.