NEW YORK, July 26, 2026, 09:23 EDT — U.S. markets have closed.
- The stock ended Friday’s session at $76.32, a decline of 13.8%, bringing the weekly loss to 5.8%.
- The effective backlog stands at $100.6 million, representing 67% to 77% of the projected revenue for fiscal 2027.
- The $2.34 billion market capitalization on Friday represented a multiple of 15.6 to 18.0 times the company’s projected sales.
Aehr shares closed 13.8% lower on Friday at $76.32. The stock finished the session 24.6% under its Wednesday high of $101.22.
The turnaround shifts the focus for investors. Demand can be seen, making conversion a more significant factor.
Aehr’s effective backlog stands at $100.6 million, representing 77% of the guidance’s lower bound and 67% of the upper bound. The difference between the backlog and the guidance ranges from $29.4 million to $49.4 million.
The $2.34 billion market cap on Friday represented a multiple of 15.6 to 18.0 times the company’s projected revenue. This puts a strong focus on shipment schedule, customer acceptance, and the conversion of orders as key to supporting the valuation.
Revenue for the fourth quarter increased by 33%, reaching $18.8 million. Bookings hit a record $60.7 million, resulting in a book-to-bill ratio of 3.2. However, full-year revenue declined by 15% to $50 million.
Chief Executive Gayn Erickson pointed to “substantial visibility” for revenue through fiscal 2027. The company’s goal continues to be $130 million to $150 million. Aehr projects non-GAAP net income at 18%-22% of revenue. Aehr Test Systems
Lake Street lifted its price target to $110 from $56 and maintained a Buy recommendation. The firm described Aehr’s forecast as “well above” its own previous projection of $84 million. TipRanks
Aehr surged 27.9% to $98.91 on Tuesday before declining over the next three sessions. The attempted recovery faded.
Semiconductor-test stocks declined on Friday. Aehr underperformed throughout the week.
| Company | July 24 close | Friday move | Weekly move |
|---|---|---|---|
| Aehr Test Systems | $76.32 | fell 13.8% | declined 5.8% |
| Teradyne NASDAQ:TER | $349.92 | dropped 6.4% | rose 8.5% |
| Cohu (NASDAQ:COHU) | $50.70 | lost 7.0% | slipped 1.0% |
Week-on-week changes reflect the difference between the July 17 and July 24 closing prices.
The Nasdaq Composite slipped 0.6% on Friday, recording a weekly loss of 2.1%. Aehr lagged behind the index by roughly 3.7 percentage points across the past five sessions.
This week features two updates from the test equipment sector. Teradyne will post its second-quarter earnings on Tuesday after markets close. The company’s earnings call is scheduled for Wednesday at 8:30 a.m. EDT.
Cohu will report its results on Thursday at 4 p.m. EDT, followed by its conference call, which begins 30 minutes after that.
Investors are set to monitor AI-linked test demand, order schedules and customer expenditure. Neither competitor serves as a direct proxy for Aehr.
Risks: Customer concentration is still significant. The most recent detailed filing shows that a single customer accounted for 42.1% of revenue in the fiscal third quarter. Delays or cancellations from this customer could move sales to different quarters. Fiscal 2026 revenue declined by 15%.
Aehr’s backlog has lowered demand uncertainty but has not eliminated conversion or valuation risks.
