Aehr Test Systems (AEHR) Stock Soars 30% After Blowout Q4 Earnings and Bullish FY2027 Forecast

Key Takeaways

• AEHR shares climbed approximately 30% during premarket hours Wednesday following a Q4 earnings report that exceeded Wall Street projections
• Fourth-quarter revenue reached $18.84 million with earnings per share of $0.11, beating expectations of a $0.01 loss
• Quarterly bookings hit a company record of $60.7 million, representing a massive increase from $11.1 million in the prior-year quarter
• Fiscal year 2027 revenue outlook of $130M-$150M significantly outpaces the analyst consensus estimate of $85.13 million
• The company’s revenue composition has transformed dramatically—approximately 95% of fiscal 2026 revenue originated from non-silicon carbide and non-EV applications

Shares of Aehr Test Systems (AEHR) surged approximately 30% during Wednesday’s premarket session, reaching $93.46, following the semiconductor test equipment maker’s release of fiscal fourth-quarter financial results that substantially exceeded analyst projections and accompanied by forward guidance that dwarfed Wall Street’s expectations.

Aehr Test Systems, AEHR

The semiconductor testing company’s shares had already gained 5.9% during Tuesday’s regular session, closing at $72.01, before the earnings announcement.

Fourth-quarter revenue totaled $18.84 million, representing growth from $14.09 million in the comparable year-ago period and marginally surpassing the Street consensus of $18.69 million. The company delivered earnings per share of $0.11, significantly outperforming analyst expectations that had called for a loss of $0.01.

The standout metric was order bookings. The quarter’s bookings figure of $60.7 million represented more than a five-fold increase compared to the $11.1 million posted during the same quarter last year. This surge was fueled by robust demand for the company’s Sonoma and FOX burn-in test systems, WaferPak products, and solutions targeting AI processor applications.

The company’s backlog reached a record $80.6 million as of fiscal year-end. When factoring in approximately $20 million in orders that came in after the quarter closed, the effective backlog climbed to $100.6 million. Additionally, Aehr secured $8 million worth of new silicon carbide orders during just the last month alone.

Dramatic Transformation in Revenue Composition

Perhaps the most notable revelation from the quarterly report: Aehr’s revenue profile has undergone a complete transformation. The company’s business was previously heavily concentrated in silicon carbide applications serving the electric vehicle sector, representing over 95% of revenue. In fiscal 2026, that concentration flipped—nearly 95% of revenue now originates from applications outside the silicon carbide/EV space.

The segments currently fueling expansion include AI processor testing, silicon photonics applications, and power semiconductor solutions.

Throughout the quarter, Aehr successfully completed over 12 gallium nitride WaferPak designs that have entered the customer evaluation phase. The company also introduced what it characterizes as the semiconductor industry’s first 300-millimeter gallium nitride wafer-level burn-in testing solution designed for high-temperature reverse-bias applications.

Additionally, the company closed its inaugural FOX system sale targeting silicon MOSFET applications and secured its first silicon carbide customer based in Taiwan.

Forward Outlook Substantially Exceeds Street Projections

For fiscal year 2027, Aehr issued revenue guidance of $130 million to $150 million. This projection represents year-over-year growth of approximately 160% to 200% and substantially surpasses the Wall Street consensus estimate of $85.13 million.

Management expects to achieve non-GAAP pre-tax margins in the 18% to 22% range and indicated that manufacturing capacity will not present constraints even if the company reaches the upper end of its guidance range.

Chief Executive Officer Gayn Erickson emphasized that artificial intelligence applications will represent a significantly larger portion of the business during fiscal 2027—both in absolute dollar terms and as a percentage of the revenue mix. “AI is going to be a big chunk of our business this year, both in dollars and percentage,” Erickson stated.

Erickson highlighted that the company’s current guidance relies predominantly on its existing customer base, suggesting that securing additional AI-related design wins could potentially drive results above the projected range.

The company reported cash, cash equivalents, and restricted cash totaling $116.5 million as of fiscal year-end.

AEHR shares have climbed 257% year-to-date through Tuesday’s market close and have surged 387% over the trailing 12-month period.

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