Revenue rebounded 40.2% year-over-year to $19.8M in 2026Q4, but operating income remained negative at -$993K, with gross margin recovering to 40.6% from a trough of 25.7% in 2026Q2.
Aehr Test Systems (AEHR) annual income statement — 30-year revenue, gross profit & net income history
| Metric | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 50M | 58.97M | 66.22M | 64.96M | 50.83M | 16.6M | 22.29M | 21.06M | 29.55M | 18.9M | 14.5M | 10.02M | 19.68M | 16.49M | 15.52M | 13.74M | 11.67M | 21.41M | 39.04M | 27.35M | 23.8M | 16.08M | 15.8M | 15.09M | 12.57M | 31.04M | 24.5M | 18.15M | 40.8M | 42M |
| Revenue Growth % | -15.21% | -10.95% | 1.93% | 27.8% | 206.2% | -25.53% | 5.87% | -28.76% | 56.39% | 30.32% | 44.75% | -49.11% | 19.38% | 6.23% | 12.99% | 17.67% | -45.47% | -45.17% | 42.74% | 14.92% | 48.02% | 1.77% | 4.69% | 20.08% | -59.51% | 26.66% | 35.04% | -55.53% | -2.85% | - |
| Cost of Goods Sold | 32.35M | 35.03M | 33.67M | 32.22M | 27.16M | 10.57M | 13.92M | 13.45M | 17.17M | 12.12M | 9.36M | 6.18M | 9.46M | 9.71M | 9.31M | 8.22M | 5.57M | 19.82M | 19.07M | 13.44M | 13.16M | 11.82M | 10.09M | 9.35M | 6.49M | 17.92M | 17.27M | 12.2M | 24.36M | 25.1M |
| COGS % of Revenue | 64.7% | 59.41% | 50.85% | 49.59% | 53.44% | 63.66% | 62.45% | 63.9% | 58.09% | 64.12% | 64.52% | 61.69% | 48.07% | 58.9% | 60.01% | 59.87% | 47.72% | 92.6% | 48.85% | 49.13% | 55.31% | 73.49% | 63.87% | 61.98% | 51.62% | 57.74% | 70.46% | 67.24% | 59.7% | 59.76% |
| Gross Profit | 17.65M | 23.93M | 32.54M | 32.75M | 23.66M | 6.03M | 8.37M | 7.6M | 12.39M | 6.78M | 5.14M | 3.84M | 10.22M | 6.78M | 6.21M | 5.51M | 6.1M | 1.18M | 19.97M | 13.91M | 10.64M | 4.26M | 5.71M | 5.74M | 6.08M | 13.12M | 7.24M | 5.95M | 16.45M | 16.9M |
| Gross Margin % | 35.3% | 40.59% | 49.15% | 50.41% | 46.56% | 36.34% | 37.55% | 36.1% | 41.91% | 35.88% | 35.48% | 38.31% | 51.93% | 41.1% | 39.99% | 40.13% | 52.28% | 5.53% | 51.15% | 50.87% | 44.69% | 26.51% | 36.13% | 38.02% | 48.38% | 42.26% | 29.54% | 32.76% | 40.3% | 40.24% |
| Gross Profit Growth % | -26.25% | -26.46% | -0.62% | 38.37% | 292.32% | -27.94% | 10.12% | -38.62% | 82.68% | 31.78% | 34.05% | -62.45% | 50.86% | 9.17% | 12.61% | -9.68% | 415.46% | -94.07% | 43.53% | 30.81% | 149.5% | -25.32% | -0.52% | -5.63% | -53.64% | 81.21% | 21.75% | -63.85% | -2.69% | - |
| Operating Expenses | 31.8M | 28.25M | 22.46M | 19.37M | 15.87M | 10.21M | 10.92M | 11.88M | 11.47M | 11.71M | 11.3M | 10.53M | 9.72M | 10.08M | 10.71M | 10.53M | 10.85M | 26.39M | 14.16M | 12.86M | 10.18M | 9.24M | 10.22M | 10.46M | 10.58M | 11.64M | 12.43M | 10.58M | 12.25M | 13.2M |
| OpEx % of Revenue | 63.6% | 47.9% | 33.93% | 29.82% | 31.21% | 61.53% | 48.97% | 56.41% | 38.81% | 61.96% | 77.92% | 105.13% | 49.41% | 61.15% | 69.03% | 76.66% | 92.96% | 123.25% | 36.26% | 47.03% | 42.78% | 57.45% | 64.66% | 69.32% | 84.21% | 37.51% | 50.73% | 58.29% | 30.01% | 31.43% |
| Selling, General & Admin | 19.16M | 17.78M | 13.75M | 12.24M | 10.05M | 6.56M | 7.53M | 7.72M | 7.29M | 7.05M | 6.97M | 6.47M | 6.32M | 6.87M | 6.53M | 5.96M | 6.09M | 20.62M | 7.66M | 6.54M | 5.84M | 5.21M | 5.57M | 5.92M | 6.55M | 7.26M | 7.93M | 6.89M | 8.62M | 8.9M |
| SG&A % of Revenue | 38.32% | 30.16% | 20.76% | 18.84% | 19.77% | 39.53% | 33.78% | 36.68% | 24.67% | 37.32% | 48.1% | 64.58% | 32.12% | 41.68% | 42.05% | 43.42% | 52.2% | 96.34% | 19.61% | 23.9% | 24.55% | 32.43% | 35.27% | 39.22% | 52.09% | 23.4% | 32.36% | 37.98% | 21.12% | 21.19% |
| Research & Development | 12.63M | 10.46M | 8.72M | 7.13M | 5.82M | 3.65M | 3.39M | 4.15M | 4.18M | 4.66M | 4.32M | 4.06M | 3.4M | 3.21M | 4.19M | 4.57M | 4.76M | 5.76M | 6.5M | 6.32M | 4.34M | 4.02M | 4.64M | 4.54M | 4.04M | 4.38M | 4.5M | 3.69M | 3.63M | 3.7M |
| R&D % of Revenue | 25.27% | 17.74% | 13.17% | 10.98% | 11.45% | 22% | 15.19% | 19.72% | 14.15% | 24.64% | 29.82% | 40.55% | 17.28% | 19.47% | 26.98% | 33.25% | 40.76% | 26.92% | 16.65% | 23.12% | 18.23% | 25.02% | 29.4% | 30.1% | 32.11% | 14.12% | 18.37% | 20.31% | 8.89% | 8.81% |
| Other Operating Expenses | 6K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 600K |
| Operating Income | -14.15M | -4.31M | 10.08M | 13.38M | 7.8M | -4.18M | -2.54M | -4.28M | 915K | -4.93M | -6.15M | -6.69M | 497K | -3.31M | -4.51M | -5.02M | -4.75M | -24.8M | 5.81M | 1.05M | 455K | -4.97M | -4.51M | -4.72M | -4.5M | 1.47M | -5.19M | -4.63M | 4.2M | 3.7M |
| Operating Margin % | -28.3% | -7.31% | 15.22% | 20.59% | 15.35% | -25.19% | -11.42% | -20.3% | 3.1% | -26.08% | -42.44% | -66.82% | 2.52% | -20.06% | -29.04% | -36.54% | -40.68% | -115.85% | 14.88% | 3.84% | 1.91% | -30.94% | -28.54% | -31.3% | -35.83% | 4.74% | -21.19% | -25.53% | 10.29% | 8.81% |
| Operating Income Growth % | -228.05% | -142.8% | -24.65% | 71.47% | 286.51% | -64.32% | 40.47% | -567.21% | 118.56% | 19.91% | 8.07% | -1446.88% | 115.03% | 26.63% | 10.2% | -5.69% | 80.85% | -526.79% | 452.9% | 130.99% | 109.15% | -10.33% | 4.55% | -4.91% | -405.91% | 128.35% | -12.11% | -210.31% | 13.49% | - |
| EBITDA | -11.74M | -925K | 11.44M | 13.82M | 8.11M | -3.87M | -2.16M | -3.84M | 1.33M | -4.66M | -5.95M | -6.56M | 638K | -2.98M | -4.02M | -4.45M | -4.06M | -24.16M | 6.29M | 1.37M | 795K | -4.65M | -4.13M | -4.14M | -3.84M | 2.12M | -4.49M | -4.18M | 4.68M | 4.3M |
| EBITDA Margin % | -23.47% | -1.57% | 17.28% | 21.28% | 15.95% | -23.33% | -9.69% | -18.26% | 4.51% | -24.65% | -41.04% | -65.47% | 3.24% | -18.1% | -25.87% | -32.37% | -34.77% | -112.85% | 16.1% | 5.02% | 3.34% | -28.93% | -26.11% | -27.45% | -30.56% | 6.84% | -18.32% | -23.03% | 11.46% | 10.24% |
| EBITDA Growth % | -1168.76% | -108.09% | -17.24% | 70.53% | 309.38% | -79.18% | 43.78% | -388.59% | 128.6% | 21.73% | 9.27% | -1128.06% | 121.37% | 25.67% | 9.67% | -9.53% | 83.2% | -484.36% | 357.42% | 72.83% | 117.09% | -12.78% | 0.41% | -7.84% | -280.92% | 147.28% | -7.44% | -189.33% | 8.79% | - |
| D&A (Non-Cash Add-back) | 0 | 3.39M | 1.36M | 450K | 307K | 310K | 384K | 431K | 417K | 271K | 203K | 135K | 141K | 322K | 491K | 573K | 690K | 644K | 474K | 323K | 340K | 323K | 384K | 582K | 662K | 651K | 703K | 453K | 479K | 600K |
| EBIT | -11.74M | -4.29M | 12.46M | 14.62M | 9.54M | -2.16M | -2.77M | -4.96M | 854K | -4.95M | -6.17M | -6.48M | 433K | -3.34M | -3.4M | -3.42M | -620K | -25.06M | 5.97M | 2.5M | 789K | -4.73M | -4.51M | -4.72M | -4.5M | 1.47M | -5.19M | -4.63M | 4.2M | 3.68M |
| Net Interest Income | 1.36M | 1.4M | 2.39M | 1.25M | 13K | -46K | 10K | -252K | -399K | -678K | -605K | -130K | -26K | -49K | -4K | 3K | 5K | 142K | 231K | 1.43M | 374K | 155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.36M | 1.4M | 2.39M | 1.25M | 13K | 0 | 10K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 5K | 142K | 231K | 1.43M | 374K | 155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 46K | 0 | 252K | 399K | 678K | 605K | 130K | 26K | 49K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.41M | 22K | 2.38M | 1.24M | 1.74M | 1.98M | -221K | -933K | -460K | -699K | -621K | 81K | -90K | -82K | 1.1M | 1.6M | 4.13M | -255K | 160K | 1.45M | 334K | 241K | 626K | 106K | 477K | 1.06M | 1.47M | 1.63M | 540K | -1.14M |
| Pretax Income | -11.74M | -4.29M | 12.46M | 14.62M | 9.54M | -2.2M | -2.77M | -5.21M | 455K | -5.63M | -6.78M | -6.61M | 407K | -3.39M | -3.4M | -3.42M | -620K | -25.06M | 5.97M | 2.5M | 789K | -4.73M | -3.88M | -4.62M | -4.03M | 2.53M | -3.72M | -3.01M | 4.74M | 2.6M |
| Pretax Margin % | -23.47% | -7.28% | 18.81% | 22.5% | 18.77% | -13.28% | -12.41% | -24.73% | 1.54% | -29.78% | -46.72% | -66.01% | 2.07% | -20.55% | -21.93% | -24.91% | -5.31% | -117.05% | 15.29% | 9.15% | 3.31% | -29.44% | -24.58% | -30.6% | -32.03% | 8.16% | -15.18% | -16.57% | 11.61% | 6.19% |
| Income Tax | -4.61M | -381K | -20.7M | 60K | 91K | -177K | 36K | 27K | -73K | 25K | 10K | 34K | -15K | 30K | -15K | -49K | -139K | 4.92M | -4.6M | 75K | -21K | 136K | 76K | -74K | 1.24M | 1.05M | -1.12M | -677K | 2.33M | -700K |
| Effective Tax Rate % | 39.28% | 8.88% | -166.14% | 0.41% | 0.95% | 8.03% | -1.3% | -0.52% | -16.04% | -0.44% | -0.15% | -0.51% | -3.69% | -0.89% | 0.44% | 1.43% | 22.42% | -19.62% | -77.07% | 3% | -2.66% | -2.87% | -1.96% | 1.6% | -30.82% | 41.28% | 29.99% | 22.51% | 49.25% | -26.92% |
| Net Income | -7.13M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M | -2.8M | -5.24M | 528K | -5.65M | -6.79M | -6.65M | 422K | -3.42M | -3.39M | -3.37M | -481K | -29.97M | 10.57M | 2.43M | 810K | -4.87M | -3.96M | -4.54M | -5.27M | -141K | -2.6M | -2.33M | 2.4M | 3.3M |
| Net Margin % | -14.25% | -6.63% | 50.07% | 22.41% | 18.59% | -12.21% | -12.57% | -24.86% | 1.79% | -29.91% | -46.79% | -66.35% | 2.14% | -20.74% | -21.83% | -24.55% | -4.12% | -140.01% | 27.08% | 8.88% | 3.4% | -30.29% | -25.06% | -30.11% | -41.91% | -0.45% | -10.63% | -12.84% | 5.89% | 7.86% |
| Net Income Growth % | -82.25% | -111.79% | 127.77% | 54.04% | 566.21% | 27.66% | 46.48% | -1091.48% | 109.34% | 16.68% | -2.08% | -1675.12% | 112.34% | -0.89% | -0.47% | -601.25% | 98.4% | -383.47% | 335.46% | 199.75% | 116.63% | -23.01% | 12.87% | 13.73% | -3635.46% | 94.59% | -11.8% | -196.88% | -27.12% | - |
| Net Income (Continuing) | -7.13M | -3.91M | 33.16M | 14.56M | 9.45M | -2.03M | -2.8M | -5.24M | 528K | -5.65M | -6.79M | -6.65M | 422K | -3.42M | -3.39M | -3.37M | -481K | -29.97M | 10.57M | 2.43M | 810K | -4.87M | -3.96M | -4.54M | -5.27M | 1.49M | -2.6M | -2.33M | 2.4M | 3.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | -21K | -19K | -20K | -19K | -20K | -18K | -21K | -20K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.23 | -0.13 | 1.12 | 0.50 | 0.34 | -0.09 | -0.12 | -0.23 | 0.02 | -0.35 | -0.52 | -0.55 | 0.04 | -0.36 | -0.38 | -0.38 | -0.06 | -3.55 | 1.24 | 0.30 | 0.11 | -0.66 | -0.55 | -0.63 | -0.74 | -0.02 | -0.38 | -0.34 | 0.36 | 0.74 |
| EPS Growth % | -76.92% | -111.61% | 124% | 47.06% | 493.52% | 28% | 48.67% | -1269% | 105.71% | 32.69% | 5.45% | -1475% | 111.11% | 5.26% | 0% | -533.33% | 98.31% | -386.29% | 313.33% | 172.73% | 116.67% | -20% | 12.7% | 14.86% | -3675.51% | 94.84% | -11.76% | -194.44% | -51.35% | - |
| EPS (Basic) | -0.23 | -0.13 | 1.15 | 0.52 | 0.36 | -0.09 | -0.12 | -0.23 | 0.02 | -0.35 | -0.52 | -0.55 | 0.04 | -0.36 | -0.38 | -0.38 | -0.06 | -3.55 | 1.32 | 0.31 | 0.11 | -0.66 | -0.55 | -0.63 | -0.74 | -0.02 | -0.38 | -0.34 | 0.38 | 0.77 |
| Diluted Shares Outstanding | 30.67M | 29.58M | 29.62M | 29.21M | 27.77M | 23.46M | 22.88M | 22.39M | 22.78M | 16.27M | 13.09M | 12.05M | 11.89M | 9.55M | 9.02M | 8.78M | 8.56M | 8.44M | 8.51M | 8.22M | 7.61M | 7.42M | 7.25M | 7.16M | 7.15M | 7.18M | 6.81M | 6.85M | 6.76M | 4.5M |
| Basic Shares Outstanding | 30.67M | 29.58M | 28.82M | 27.79M | 26.01M | 23.46M | 22.88M | 22.39M | 21.73M | 16.27M | 13.09M | 12.05M | 10.88M | 9.55M | 9.02M | 8.78M | 8.56M | 8.44M | 8.01M | 7.75M | 7.51M | 7.42M | 7.25M | 7.16M | 7.15M | 7.07M | 6.81M | 6.85M | 6.33M | 4.3M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AEHR stock.
For fiscal year 2026, Aehr Test Systems (AEHR) reported total revenue of $50.0M. This represents a 19.1% increase compared to $42.0M in 1997.
Aehr Test Systems (AEHR) reported a net loss of $7.1M for the fiscal year ending 2026.
Aehr Test Systems (AEHR) reported an operating income of $-14.1M, resulting in an operating profit margin of -28.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Aehr Test Systems (AEHR) generated $17.7M in gross profit for the year, representing a gross profit margin of 35.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue concentration and volatility
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Demand
AEHR's revenue swung from $7.6M in 2024Q3 to $19.8M in 2026Q4, a 160% increase, but quarterly growth rates have been erratic, ranging from -56% to +142%, indicating unstable demand patterns.
The most recent quarter (2026Q4) shows a 40.2% year-over-year revenue growth, a sharp rebound from the -43.7% decline in 2026Q3. This volatility suggests lumpy customer orders, possibly tied to specific semiconductor capital equipment cycles. Investors should monitor whether this growth is sustainable or a one-time surge, as the prior year's revenue declined in three of four quarters.
Gross Margin Recovery Remains Incomplete
Gross margin improved to 40.6% in 2026Q4 from a trough of 25.7% in 2026Q2, but remains below the 54.0% peak in 2025Q1, indicating pricing power and cost control are still recovering.
The gross margin trajectory shows a V-shaped recovery, but the latest level is still 13.4 percentage points below the 2025Q1 high. This suggests that while revenue is rebounding, the product mix or pricing may not be as favorable as in the past. The company's gross margin is now closer to peer Cohu's 34.5% but below Axcelis's 44.9%, implying potential competitive pressure.
Operating Leverage Still Elusive
Despite a 40% revenue surge in 2026Q4, operating income remained negative at -$993K, while SG&A and R&D expenses grew to $9.2M, indicating that cost structure has not yet scaled with revenue.
In 2026Q4, revenue jumped to $19.8M, but operating expenses (R&D + SG&A) totaled $9.2M, leaving an operating loss. This suggests that the company's cost base is relatively fixed, and it needs sustained revenue above $20M to achieve operating profitability. The operating margin of -5.0% in 2026Q4 is an improvement from -41.0% in 2026Q3, but still negative, highlighting that operating leverage has not yet kicked in.
Net Income Boosted by Non-Operating Items
In 2026Q4, net income of $1.4M was positive despite an operating loss of -$993K, implying a significant non-operating gain, while 2024Q4 net income of $23.9M on $16.6M revenue suggests a one-time tax benefit.
The divergence between operating and net income in 2026Q4 (operating loss but net profit) indicates that non-operating items, possibly tax credits or investment gains, are masking underlying operational weakness. Similarly, 2024Q4's net margin of 143.8% on modest revenue points to a substantial one-time tax benefit. Investors should adjust for these items to assess true earnings power.
R&D and SG&A Outpacing Revenue Growth
Combined R&D and SG&A expenses rose from $5.9M in 2024Q3 to $9.2M in 2026Q4, a 56% increase, while revenue grew only 160% from a low base, indicating aggressive investment in future growth.
The company has consistently increased R&D spending, from $2.1M in 2024Q3 to $3.6M in 2026Q4, reflecting a commitment to product development. SG&A has also grown, from $3.1M to $5.6M, which may be necessary to support sales efforts. However, these expenses have kept the company in an operating loss for most of the period, suggesting that cost discipline is secondary to growth initiatives.
2026Q4 Marks a Potential Turnaround
The 2026Q4 quarter stands out as a potential inflection point, with revenue jumping 40% year-over-year and gross margin recovering to 40.6%, the highest since 2025Q1, though operating income remains negative.
After a prolonged downturn from 2024Q4 through 2026Q3, where revenue declined and losses widened, 2026Q4 shows a significant rebound. Revenue of $19.8M is the highest in the dataset, and gross margin improved by 7.9 percentage points sequentially. This could signal the start of a new growth cycle, but the persistence of operating losses suggests that the company has not yet reached the scale needed for profitability.
What Could Invalidate the Base Case
The recent revenue rebound may be unsustainable, as operating losses persist and gross margins remain below prior peaks, suggesting that the company's cost structure and pricing power may not support durable profitability.
Short-sellers might argue that the 2026Q4 revenue surge is a one-time event, given the extreme volatility in prior quarters and the fact that operating income is still negative. The gross margin, while improved, is still below the 54% level seen in 2025Q1, indicating that the company may not have regained full pricing power. Additionally, the reliance on non-operating items to achieve net profitability raises questions about the quality of earnings. If revenue growth does not continue at this pace, the company could quickly return to deeper losses, making the current valuation difficult to justify.