Aehr Raises FY2027 Revenue Outlook to $150 Million After Record Quarter

Key Facts

Aehr raised its fiscal 2027 revenue outlook to $150 million after posting record first-quarter revenue of $33 million, up 200% year over year. Revenue also rose 75% from the previous quarter, the company said in an earnings statement issued on November 2. The new guidance holds the upper end of the range the company previously announced and raises the lower end, which was $130 million, to the same level. Aehr expects net income, on its non-GAAP measure, to be at least 20% of revenue during the fiscal year. The company said the revised outlook reflects first-quarter performance, backlog and greater visibility into customer programs and production and delivery schedules.

First-quarter bookings were $46.7 million, exceeding revenue by more than 40%, the CEO said in the company statement. That resulted in a bookings-to-revenue ratio of about 1.4, according to the quarter’s results. The ratio measures the value of new orders against revenue recorded during the period, while revenue represents sales already realized. Bookings therefore exceeded quarterly revenue as the company raised its annual outlook. Backlog stood at $100.9 million on September 25, the quarter’s end. Actual backlog, including bookings received after the period ended, then rose to $109.3 million on November 1.

On profitability, gross margin was 47.5% under generally accepted accounting principles and 48.5% on the company’s non-GAAP measure. Aehr recorded first-quarter net income of $7.2 million under generally accepted accounting principles. That result contrasts with fiscal 2026, when revenue fell to $50 million from $59 million in the previous year. In fiscal 2026, net income was $0.9 million on the company’s non-GAAP measure. The comparison between that year and the new outlook is based on improved quarterly revenue and higher recorded orders and backlog reported by the company in its results.

Aehr linked growth in demand for AI chip test solutions to its major customer’s production expansion, saying in July that the customer was increasing production capacity, which was expected to raise its needs for the company’s solutions. In August, Aehr announced a $22 million follow-on order from the same customer for wafer-level burn-in test systems for AI processors. It then announced subsequent production orders of about $6 million on October 7 from its major hyperscale computing customer for a next-generation AI processor. The company said the customer’s second processor had passed qualification on Sonoma systems. It added that the follow-on orders support initial production sampling and an expected production ramp in 2027. The company did not name the customer in the information provided in its statement.

Separately, the company plans to install a FOX-XP test cell at a partner’s semiconductor manufacturing, packaging and testing facility in Taiwan in early 2027. Aehr expects a decision on high-volume production within months of the cell’s installation and validation. That timing puts one of the company’s upcoming programs on a timeline extending into calendar 2027. The company cautioned, however, that forward-looking expectations involve risks, including that customer forecasts are nonbinding. It also cited the possibility of orders being canceled, rescheduled or delayed. Aehr said the higher revenue outlook takes into account quarterly performance, backlog and expected production and delivery schedules.

The first quarter of fiscal 2027 ended on September 25, and the company announced its results after the market close on November 2, with a conference call at 5 p.m. Eastern time. Before the announcement, the stock closed at $63.95 on October 27, then fell to $54.89 on October 30, according to EL7 data. These closing prices predate the earnings announcement and do not include information on the stock’s movement after the new guidance was issued. Aehr had announced a fiscal 2027 revenue range of $130 million to $150 million in July. The company then estimated that the range represented 2.6 to 3.0 times fiscal 2026 revenue. The revised guidance raises the lower end to $150 million, the upper end of the previous range.