Aehr Test Systems (NASDAQ:AEHR) Announces Earnings Results

Aehr Test Systems (NASDAQ:AEHR) posted its quarterly earnings data on Monday. The semiconductor company reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.17, FiscalAI reports. The firm had revenue of $33.01 million during the quarter, compared to analyst estimates of $27.53 million. Aehr Test Systems had a negative net margin of 14.25% and a negative return on equity of 3.83%.

Here are the key takeaways from Aehr Test Systems’ conference call:

• Record first-quarter performance: Revenue reached $33.0 million, up 200% year over year and 75% sequentially, while bookings were $46.7 million for a 1.4 book-to-bill ratio. Effective backlog, including post-quarter bookings, rose to $109.3 million as of November 1.
• Management raised fiscal 2027 revenue guidance to $150 million, representing approximately 200% growth from fiscal 2026, and continues to expect non-GAAP net income of at least 20% of revenue.
• AI-related demand is expanding across both wafer-level FOX systems and package-level Sonoma systems. Aehr is shipping more than a dozen Sonoma systems monthly to a lead hyperscale customer, while that customer’s second AI processor has completed qualification and is expected to reach higher production volumes than its first.
• A major AI processor supplier plans to install a fully configured FOX wafer-level burn-in cell at a Taiwan OSAT in early calendar 2027, with a high-volume production decision expected several months after validation. Management describes this as one of its largest potential opportunities, but it remains a qualification opportunity rather than a confirmed production order.
• Execution and timing remain risks: quarterly customer shipments may vary, second-quarter gross margin is expected to be below the first quarter because of heavy Sonoma deliveries, and operating cash flow was negative $3.1 million as the company purchased long-lead components and invested in capacity. Aehr remains debt-free with $105.1 million in cash and restricted cash.

Aehr Test Systems Price Performance

Shares of NASDAQ:AEHR opened at $65.11 on Wednesday. The company’s 50-day moving average price is $82.04 and its two-hundred day moving average price is $74.09. Aehr Test Systems has a 12 month low of $18.70 and a 12 month high of $147.40.

Analysts Set New Price Targets

A number of analysts have recently issued reports on AEHR shares. Wall Street Zen raised shares of Aehr Test Systems from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Weiss Ratings reissued a “sell (e+)” rating on shares of Aehr Test Systems in a research report on Tuesday, October 27th. Lake Street Capital reduced their price objective on Aehr Test Systems from $110.00 to $90.00 and set a “buy” rating for the company in a research report on Tuesday. Oppenheimer initiated coverage on Aehr Test Systems in a research note on Thursday, September 10th. They set an “outperform” rating and a $120.00 price target on the stock. Finally, Zacks Research lowered shares of Aehr Test Systems from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $118.75.

Key Headlines Impacting Aehr Test Systems

Here are the key news stories impacting Aehr Test Systems this week:

• Positive Sentiment: Aehr reported Q1 revenue of $33.0 million, above analyst expectations of about $27.5 million, and earnings per share of $0.28, also ahead of consensus. The company swung to a quarterly profit, with management citing stronger demand for semiconductor testing tied to AI. MarketWatch article
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $150 million, above the roughly $138 million consensus and about triple fiscal 2026 revenue. Effective backlog reached $109.3 million as of November 1, supporting the growth outlook; the company also highlighted a goal of at least a 20% non-GAAP net income margin. Motley Fool article
• Neutral Sentiment: Lake Street Capital and Jefferies cut their price targets to $90 and $140, respectively, but both maintained Buy ratings. The reductions signal more cautious assumptions even as the analysts continue to see potential upside. Benzinga article

Insider Transactions at Aehr Test Systems

In other news, EVP Alberto Salamone sold 9,672 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $127.72, for a total value of $1,235,307.84. Following the transaction, the executive vice president directly owned 41,962 shares in the company, valued at $5,359,386.64. This trade represents a 18.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Adil Engineer sold 15,000 shares of Aehr Test Systems stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $131.02, for a total transaction of $1,965,300.00. Following the transaction, the chief operating officer directly owned 46,977 shares in the company, valued at $6,154,926.54. The trade was a 24.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 87,475 shares of company stock valued at $11,459,240. 4.60% of the stock is currently owned by insiders.

About Aehr Test Systems

Aehr Test Systems (NASDAQ: AEHR) develops and manufactures test and burn-in equipment used to qualify and screen semiconductor devices. Its systems are designed to identify manufacturing defects and reliability issues before chips are shipped to customers, helping semiconductor manufacturers improve production yields and product quality.

The company’s product portfolio includes the FOX family of semiconductor test systems, including the FOX-XP, FOX-NP and FOX-1P platforms. Aehr also provides wafer contactors, DiePak carriers and related test fixtures and software.