Aehr Test Systems reported second‐quarter fiscal 2026 revenue of $9.9 million, falling roughly 15% short of consensus estimates. Net sales declined from $13.5 million in the year-ago quarter, while gross margin contracted to its lowest level since FY2022. The margin deterioration was driven by higher fixed cost absorption and increased warranty reserves tied to earlier shipments of its burn-in systems.

Despite continued negative operating cash flow of approximately $5 million for the quarter, Aehr leveraged the strength of AI sector interest to raise fresh capital. Management sold newly issued shares into the open market at premiums to book value, boosting cash balances by an incremental $12 million. The company indicated these proceeds will extend its runway into late FY2027 under current spending plans.

On its earnings conference call, Aehr identified a series of execution challenges, including delayed qualification of key test modules at two hyperscale data center customers and yield issues on its latest FOX-P burn-in carriers. As a result, several orders originally slated for shipment in Q2 were pushed into the second half of the fiscal year, impacting near-term revenue visibility.

Management reiterated that second-half fiscal 2026 results are projected to undershoot consensus forecasts, forecasting combined H2 revenue of $25 million to $30 million versus the street’s $38 million outlook. The shortfall reflects lingering qualification delays and a softer macro environment for memory burn-in services. Aehr cautioned that until customer programs clear critical milestones, visibility remains limited for FY2027 bookings.