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Aehr Test: Aehr Test Systems' Fiscal 2026 Second-Quarter Earnings: A Deeper Dive

Aehr Test Systems reported a revenue of $9.9 million for the fiscal 2026 second quarter, a decline of 27% from the $13.5 million recorded in the same period last year. The decrease was primarily attributed to lower WaferPak shipments. The company's non-GAAP gross margin stood at 29.8%, while the non-GAAP net loss was $1.3 million or negative $0.04 per diluted share, compared to a net income of $0.7 million or $0.02 per diluted share in the second quarter of fiscal 2025. Notably, the actual EPS of -$0.04 beat estimates of -$0.08. The non-GAAP operating expense was $5.7 million, down 4% from the same quarter last year.

AEHR

USD 26.32

15.95%

A-Score: 4.0/10

Publication date: January 8, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Decline Q2 revenue fell 27% to $9.9M from $13.5M YoY, driven by lower WaferPak shipments.
  • Strong Backlog Growth Backlog rose to $18.3M after Q3 bookings surged $6.5M in first six weeks.
  • 2027 Outlook Booking guidance of $60–80M in H2 FY2026 sets stage for $70–80M revenue in FY2027.
  • AI & Advanced Tech Wins Secured major AI ASIC forecast and expanded into GaN, silicon photonics, and flash memory.
  • Financial Metrics Non-GAAP gross margin at 29.8%, but net loss widened to $1.3M vs. $0.7M profit YoY.

Bookings and Backlog

Despite the revenue decline, Aehr Test Systems' bookings were $6.2 million, and the backlog stood at $11.8 million. However, during the first six weeks of the third quarter, bookings surged by $6.5 million, growing the effective backlog to $18.3 million. The company expects bookings of $60 million to $80 million in the second half of fiscal 2026, driven primarily by the AI accelerator processor line, with some contribution from silicon carbide and silicon photonics. This sets the stage for a strong fiscal 2027, with analysts estimating revenue growth of 42.4% for next year.

Product Developments and Customer Wins

Aehr Test Systems made significant progress in wafer-level burn-in and packaged-part burn-in segments, particularly in AI processors, flash memory, silicon photonics, and gallium nitride power semiconductors. The company secured key new device wins for its Sonoma system, supporting high-temperature operating life qualifications for AI devices. Aehr's CEO, Gayn Erickson, stated that the AI business could be measured in hundreds of millions of dollars for Aehr Test a few years out. The company is working with a notable customer on a benchmark for wafer-level burn-in, with some delays due to differences between package and wafer-level testing.

Valuation and Outlook

With a current P/S Ratio of 14.83 and an EV/EBITDA of -83.5, the market is pricing in significant growth expectations for Aehr Test Systems. The company's revenue guidance for the second half of fiscal 2026 is between $25 million and $30 million, with a non-GAAP net loss per diluted share expected between negative $0.09 and negative $0.05. As the company continues to invest in R&D, particularly in AI wafer-level burn-in, packaging, and memory systems, the expectation is for increased revenue and a strong year heading into fiscal 2027.

Aehr Test's A-Score