Aehr Test Systems Reports Q2 Revenue Miss, Reinstates Guidance Amid AI-Driven Pipeline
Semiconductor test equipment specialist Aehr Test Systems (NASDAQ:AEHR) reported financial results for its fiscal second quarter of 2026 that fell short of analyst expectations on the top line, while providing a forward-looking outlook that signals confidence in a significant rebound driven by artificial intelligence (AI) processor demand.
Quarterly Financial Performance Versus Estimates
The company's results for the quarter ended November 28, 2025, presented a mixed picture relative to Wall Street forecasts. Revenue declined year-over-year and came in below what analysts had anticipated.
- Reported Revenue: $9.9 million
- Analyst Estimated Revenue: $11.8 million
- Variance: A miss of approximately $1.9 million, or 16%.
On the bottom line, the company's adjusted earnings per share (EPS) was slightly worse than the consensus estimate.
- Reported Non-GAAP EPS: A loss of $0.04 per share.
- Analyst Estimated Non-GAAP EPS: A loss of $0.037 per share.
The company reported a GAAP net loss of $3.2 million, or $0.11 per diluted share, compared to a GAAP net loss of $1.0 million in the prior-year period. Management highlighted increased investments in research and development and sales to support new market initiatives as factors impacting near-term profitability.
Market Reaction and Price Action
Following the earnings release, Aehr's stock experienced notable selling pressure in after-hours trading, declining approximately 7.8%. This immediate reaction suggests investor disappointment with the quarterly revenue shortfall and the continued losses. The stock's performance over recent weeks has been muted, with a slight gain over the past week but declines over the past two-week and one-month periods, indicating a cautious market sentiment leading up to the report.
Reinstated Guidance and Forward Outlook
A key takeaway from the report was management's decision to reinstate financial guidance for the second half of fiscal 2026, citing "improved visibility" into future demand. The company provided the following outlook for the period spanning November 29, 2025, to May 29, 2026:
- Revenue: Between $25 million and $30 million.
- Non-GAAP Net Loss per Diluted Share: Between $(0.09) and $(0.05).
This guidance implies a substantial sequential acceleration in revenue. When compared to current analyst estimates, which project sales of approximately $16.6 million for the upcoming Q3 and $60.5 million for the full fiscal year 2026, Aehr's second-half forecast appears to set a trajectory that could meet or exceed full-year expectations if the projected ramp materializes.
Strategic Highlights and Business Developments
Beyond the financials, the earnings press release was heavily focused on strategic progress, particularly in high-growth AI and data center markets. President and CEO Gayn Erickson expressed optimism about the company's pipeline, driven by several catalysts:
- AI Processor Demand: Strong momentum was reported for both wafer-level and packaged-part burn-in systems for AI processors. The company noted a "substantial forecast" from a lead production customer for AI ASIC capacity, with shipments expected to begin in fiscal 2027.
- Sonoma Platform Orders: Separately, Aehr announced receiving over $5.5 million in new orders for its ultra-high-power Sonoma packaged-part burn-in systems in the current quarter, already exceeding total orders from the prior quarter.
- Customer Diversification: Management emphasized significant progress in expanding beyond its core silicon carbide business into new markets, including AI processors, gallium nitride power semiconductors, silicon photonics, and flash memory. This diversification is intended to reduce customer concentration and expand the total addressable market.
- Benchmark Evaluations: The company is engaged in multiple benchmark evaluation programs with top-tier AI processor suppliers, which could lead to future design wins and orders.
Conclusion
Aehr Test Systems' fiscal Q2 results reflect a period of transition and investment as the company pivots to capitalize on the rigorous testing requirements of next-generation AI and high-performance computing semiconductors. While the quarterly revenue miss and ongoing losses prompted a negative after-market reaction, the reinstatement of guidance and the detailed commentary on a strengthening pipeline suggest management sees a clear path to recovery and growth in the back half of the fiscal year. The company's performance will likely hinge on its ability to convert its cited customer forecasts and benchmark evaluations into firm, high-volume purchase orders.
For a detailed breakdown of future earnings estimates and historical performance, view the full earnings and estimates data for Aehr Test Systems (NASDAQ:AEHR).
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
