Aehr Test Systems (NASDAQ: AEHR) experienced a notable increase in its stock price on Friday, reacting positively to its earnings announcement issued the previous day. Investors responded favorably even as the company reported some financial metrics falling below market expectations.
The company revealed quarterly losses of four cents per share, which was consistent with analyst consensus estimates. However, its revenue performance disappointed, coming in at $9.88 million compared to the expected $11.59 million, marking a 14.72% shortfall. Furthermore, this revenue figure represents a decrease from $13.45 million reported during the same quarter last year.
Despite the revenue decline, Aehr Test Systems remains optimistic about its advancements in specific market segments. CEO Gayn Erickson emphasized the company's ongoing development in wafer-level burn-in and packaged-part burn-in technologies. Notably, the firm recorded bookings worth $6.2 million for the quarter, and as of November 28, 2025, it maintained a backlog of $11.8 million, signaling a solid pipeline of future business.
Market conditions on Friday displayed overall positive trends, with major stock indices rallying into the afternoon. The technology sector, in particular, showed considerable strength. This environment potentially offers a supportive backdrop for Aehr Test Systems as it assimilates the mixed signals from its recent financial results.
Analyzing the stock's technical indicators provides further insight into its current outlook. Aehr Test Systems is trading 7.2% above its 20-day simple moving average and 5.7% above the 50-day simple moving average, indicating short-term upward momentum. The stock has appreciated by approximately 47.77% over the last year and is positioned closer to its 52-week high than its 52-week low.
The relative strength index (RSI) stands at 49.89, falling into a neutral range that indicates the stock is neither overbought nor oversold at this time. Concurrently, the Moving Average Convergence Divergence (MACD) indicator is above its signal line, reflecting prevailing bullish momentum. This combination of a neutral RSI with a bullish MACD suggests mixed but overall positive market activity surrounding the stock.
Key technical levels to watch include resistance at $26.50 and support near $21.50. These thresholds may play a pivotal role in guiding investor response and price direction in the near term.
From an analyst perspective, Aehr Test Systems retains a supportive outlook. The consensus rating for the stock is a Buy, accompanied by an average price target of $20.50. Notable recent activity among analysts includes Lake Street initiating coverage with a Buy rating and a target price of $29.00, Craig-Hallum upgrading to Hold with a target of $12.00, and William Blair elevating its stance to Market Perform.
Furthermore, Aehr Test Systems earned a strong momentum rating in the Benzinga Edge rankings. The stock scored 92.41 out of 100 on momentum metrics—indicating robust outperformance relative to the broader market. Such a high score reflects the stock’s strength compared to peer companies and suggests potential for continued price appreciation.
Market data as of Friday shows Aehr Test Systems’ shares trading at $24.64, up 8.55% at the time of publication. This brisk upward movement underscores investor interest following the earnings announcement.
In summary, Aehr Test Systems reported earnings that matched expectations but faced a decline in revenue compared to estimates and the prior year. Despite this, operational progress and a solid order backlog contribute to a cautiously optimistic outlook. Positive sector momentum and favorable technical conditions provide further support, though the revenue miss invites investors to closely monitor upcoming developments.