New York, July 15, 2026, 07:09 (EDT)
- Aehr’s effective backlog stands at $100.6 million, enough to cover around 72% of the company’s $140 million fiscal 2027 revenue midpoint.
- Fiscal second-half bookings came in at $97.9 million, topping the upper end of the company’s previous outlook by 22%.
- Aehr’s equity traded at $93.30 in premarket, putting its valuation near 92x to 130x the company’s guided pretax non-GAAP profit range.
Aehr Test Systems shares jumped 29.6% to $93.30 in premarket trading Wednesday after the chip equipment maker guided for fiscal 2027 revenue between $130 million and $150 million, which is 2.6 to 3 times last year’s result. The company cited an effective backlog of $100.6 million, with orders placed after May 29 and covering roughly 72% of the target’s midpoint.
The new order adjusts the company’s forecast. Investors no longer have to bet only on possible future deals. Aehr said demand from current production programs still figures into its outlook. At the premarket price, and based on 32.48 million shares outstanding as of May 29, Aehr’s market cap clocks in near $3.03 billion, or 21.6 times the midpoint of sales guidance. On the earnings call, management said the 18%-22% profit goal is pretax and non-GAAP.
Order intake is outpacing sales for a second quarter. Fiscal Q4 bookings came in at $60.7 million while revenue was $18.8 million, putting the book-to-bill at 3.2. In Q3, the ratio was above 3.5.
| $ millions, except ratios | Fiscal Q3 2026 | Fiscal Q4 2026 | Fiscal H2 2026 |
|---|---|---|---|
| Revenue | 10.3 | 18.8 | 29.1 |
| Bookings | 37.2 | 60.7 | 97.9 |
| Book-to-bill | 3.6x | 3.2x | 3.4x |
| Reported effective backlog | 50.9 | 100.6 | Not applicable |
Effective backlog counts in orders that came in after the period closed. Half-year numbers and ratios are company-reported.
Second-half bookings landed 22% over the top of Aehr’s $80 million April projection. The company’s effective backlog almost doubled from $50.9 million in that period. That’s a clearer sign of demand than just the fourth-quarter earnings beat, which had come off a small revenue base.
CEO Gayn Erickson said Aehr’s backlog gives the company “substantial visibility” and pointed to “multiple customers entering or expanding production.” Aehr makes burn-in gear that stresses chips before they ship to catch early failures. Management said its top AI customer is adding wafer-level capacity, and a big processor supplier showed interest in pilot production validation after benchmark testing. SEC
Management sees AI accounting for around 70% of fiscal 2027 revenue and silicon photonics making up 15% to 20%. Power semiconductors and other segments will cover the rest. The company doesn’t expect any memory revenue, even if it hits $150 million at the top end. Most of the new forecast depends on products where Aehr already has production deals or current customer work.
The guide math keeps the bar high for the stock. Using the low end for revenue and margin, the midpoints, and the high end points, here’s where those numbers land:
| Fiscal 2027 scenario | Revenue ($m) | Pretax non-GAAP margin | Implied pretax profit ($m) | Backlog coverage | Equity value / pretax profit |
|---|---|---|---|---|---|
| Low | 130 | 18% | 23.4 | 77% | 130x |
| Midpoint | 140 | 20% | 28.0 | 72% | 108x |
| High | 150 | 22% | 33.0 | 67% | 92x |
Calculations by the reporter use the $93.30 premarket price and 32.48 million shares out. No separate scenario breakdown from the company, and cash isn’t taken out of the equity value.
Even in the high scenario, the stock is trading at roughly 92 times forecast pretax non-GAAP earnings. That’s an unusual metric, but it helps show the level of growth baked into the shares. Investors are pricing in not just a smooth conversion of the order book but also a big jump in profit this fiscal year. If the company just delivers a solid result, that might not cut it.
But backlog doesn’t count as revenue. For the fourth quarter, three customers each made up more than 10% of sales. The forecast also counts on future demand that hasn’t been booked yet. Sales or margins could miss targets if a large customer pushes back orders or if the product mix brings in less profit.
Aehr’s balance sheet is in better shape, but shareholders covered most of that. The company finished May with $116.5 million in cash and equivalents, including restricted cash, after it brought in $97.4 million net from public stock sales. Operations burned $3.3 million so far in fiscal 2026, and shares outstanding climbed 8.7% from last year.
Fourth-quarter unaudited numbers posted a non-GAAP gross margin of 44.7%, up from 34.7% a year ago. Adjusted net income was $3.6 million, or 11 cents per share. Management described fiscal second-quarter revenue as “very strong” and said most of a $41 million April order will ship then. That will be the first big test for the backlog that now supports its valuation. SEC
