Shares of Aehr Test Systems (AEHR) plummeted 23.76% in pre-market trading on Tuesday following the release of disappointing first-quarter fiscal 2026 earnings results. The semiconductor test and burn-in equipment supplier reported mixed results after the market close on Monday, triggering a significant selloff.
While Aehr Test Systems reported Q1 revenue of $10.97 million, slightly beating analyst estimates of $10.78 million, the company's profitability metrics raised serious concerns among investors. Adjusted earnings came in at just one cent per share, down significantly from seven cents per share in the same quarter last year. More alarmingly, the company reported an adjusted loss from operations of $1.83 million, missing analyst expectations and signaling potential profitability issues.
Adding to investor concerns, CEO Gayn Erickson stated that the company remained cautious due to ongoing tariff-related uncertainty and wasn't reinstating formal guidance yet. This cautious outlook, combined with the earnings miss and the swing to a loss from a year earlier, appears to have spooked investors. Despite Erickson's positive comments about momentum in sales and customer engagements in AI processor testing, the market's reaction suggests growing concerns about the company's ability to maintain profitability in the face of increasing demand for AI processors and semiconductor testing equipment. The steep decline in share price reflects the market's disappointment and uncertainty about Aehr Test Systems' near-term prospects.
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