January 8, 2026
Finance

Aehr Test Systems Faces Revenue Shortfall in Q2, Shares Decline Post-Earnings

Q2 Revenue Trails Estimates Amid Promising Progress in WLBI and PPBI Segments

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Summary

Aehr Test Systems reported a quarterly revenue figure that fell short of market expectations, triggering a decline in its stock price during after-hours trading. Despite the revenue miss, the company maintained earnings in line with forecasts and highlighted advancements in its wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) divisions, projecting positive long-term growth prospects.

Key Points

Aehr Test Systems reported a quarterly loss of $0.04 per share, consistent with analyst expectations.
Second-quarter revenue came in at $9.88 million, which is 14.72% below the forecasted $11.59 million and lower than last year's $13.45 million.
New bookings for the quarter amounted to $6.2 million, with an effective backlog (including post-November 28 bookings) of $18.3 million.
CEO Gayn Erickson highlighted important progress in the company's wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) segments, signaling optimism for future prospects.

Aehr Test Systems, identified by its NASDAQ ticker AEHR, saw its shares decline notably during Thursday's extended trading session following the release of its second-quarter earnings report. The stock movement occurred primarily in reaction to quarterly results that revealed revenue below analyst consensus, despite earnings that met expectations.

In detail, Aehr Test Systems disclosed a quarterly loss of $0.04 per share, closely matching the consensus forecasts from market analysts. However, when it comes to revenue, the company faced challenges; quarterly top-line revenue measured $9.88 million. This figure represents a 14.72% shortfall relative to analysts' projection of $11.59 million and also indicates a decrease from $13.45 million in revenue recorded during the same quarter a year ago.

The shortfall in revenue has driven caution among investors, resulting in a near 8% drop in AEHR's share price during the extended trading session. Specifically, data shows the stock fell approximately 7.75%, reaching $20.94 per share following the earnings release.

Looking closer at sales dynamics, Aehr Test Systems reported new bookings totaling $6.2 million for the quarter. Moreover, the backlog was reported at $11.8 million as of November 28, 2025. When accounting for bookings received subsequent to that date, the company’s effective backlog rose to $18.3 million, reflecting a stronger order position than the official backlog alone would suggest.

From a strategic perspective, the company's chief executive officer, Gayn Erickson, acknowledged the quarter's revenue shortfall but remained optimistic. Erickson emphasized significant strides made in two core areas of business technology: the wafer-level burn-in (WLBI) and packaged-part burn-in (PPBI) segments. He expressed enthusiasm about the potential those business lines hold for future growth, projecting continued progress despite current headwinds.

The stock's decline was captured in market analysis tools, with Benzinga Pro noting the percentage drop and current pricing following the earnings announcement. Overall, Aehr Test Systems is navigating a quarter of mixed results, constrained by lower-than-anticipated revenue but buoyed by earnings alignment and backlog development.

While the company faces short-term pressures reflected in its quarterly sales and subsequent stock reactions, the focused advancements in niche technological segments signal areas where Aehr is investing for sustained competitive advantage. How these evolving dynamics will play out in future quarters remains contingent on execution and external market conditions.

Risks
  • The recent quarterly revenue decline may indicate challenges in sales momentum or market demand.
  • Stock price volatility reflects investor concerns following revenue misses despite earnings meeting expectations.
  • A shrinking top-line compared to the same period last year raises questions regarding growth sustainability.
  • Dependence on progress in WLBI and PPBI segments introduces operational execution risk if anticipated advancements do not materialize.
Disclosure
Education only / not financial advice
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