Aehr Test stock price drops 5% due to revenue falling short of expectations despite a surge in orders

Fremont, California — Aehr Test Systems (NASDAQ:AEHR) reported third-quarter results that missed revenue expectations; despite strong order momentum, the stock price still fell 5%.

The semiconductor test equipment maker reported a quarterly adjusted loss per share of -$0.05 for the quarter ended February 27, better than analysts’ expectations of -$0.07. However, revenue was $10.3 million, below the market’s general expectation of $10.8 million, down 44% year over year from $18.3 million in the same period last year. The company reported quarterly orders of $37.2 million; the order-to-shipment ratio was more than 3.5x, reflecting demand for wafer-level and package-level aging test applications.

President and Chief Executive Officer Gayn Erickson said: “We are very pleased with the strong momentum across multiple market areas, with quarterly orders exceeding $37 million and an order-to-shipment ratio of more than 3.5x, which clearly demonstrates this.”

For the second half of fiscal year 2026 ending May 29, Aehr reiterated revenue guidance of $25 million to $30 million, with a midpoint of $27.5 million. The company also maintained expectations for adjusted net loss per share of between -$0.09 and -$0.05, with a midpoint of -$0.07. Aehr expects second-half orders to reach the upper end of the $60 million to $80 million range.

The company reported a backlog of orders of $38.7 million as of February 27, and effective order backlog of $50.9 million including follow-on orders. Total cash and cash equivalents were $37.1 million, higher than $31.0 million in the prior quarter. Aehr expects to receive an important near-term production order from its key hyperscale customer for customized AI processor package-level aging test systems.

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