The chip burn-in specialist raised its full-year target to $150 million after a record quarter driven by hyperscale AI demand
Aehr Test Systems just posted the kind of quarter that makes a small-cap chip equipment maker suddenly very interesting. Revenue for fiscal Q1 2027 came in at a record $33.0 million, up 200% from $11.0 million a year earlier.
Shares climbed about 17% in after-hours trading.
A record quarter, and a fuller order book
The quarter ended September 25, 2026. Beyond the year-over-year tripling, revenue also rose 75% from the previous quarter.
Profitability flipped too. Aehr reported GAAP net income of $7.2 million, or $0.21 per diluted share, compared with a loss of $2.1 million previously.
Non-GAAP gross margin landed at 48.5% for the quarter.
Then there are the orders. Bookings totaled $46.7 million in the quarter, which is $13.7 million more than the company actually recognized as revenue. When customers order faster than you can ship, the backlog grows, and that is exactly what happened.
Effective backlog reached $109.3 million as of November 1, 2026.
Guidance goes to the top of the range
On the strength of the quarter, Aehr raised its full-year FY2027 revenue outlook to $150 million. The prior forecast was a range of $130-$150 million, so management essentially picked the ceiling and called it the plan.
FY2026 revenue was approximately $50 million. Hitting the new target would mean a potential tripling of annual sales in a single year.
The backlog does a lot of the heavy lifting in making that number credible. Add the $33.0 million already recognized to the $109.3 million in backlog, and the total is $142.3 million. That leaves a relatively small gap to close against the $150 million goal with three quarters still to go.
What burn-in testing actually is
Aehr builds systems that push chips with elevated heat and power, deliberately trying to make weak units fail early.
Aehr sells both wafer-level and package-level burn-in solutions. Wafer-level testing happens before chips are cut from the silicon wafer and packaged. Package-level testing happens after the chip is assembled into its final form.
Both now support the production of AI processors.
The AI connection
The demand surge traces back to AI processors used in hyperscale data centers. A key hyperscale customer in the data center sector is driving much of the growth.
What this means for investors and the sector
With $109.3 million in backlog and bookings running well ahead of revenue, Aehr has an unusually clear view of the next several quarters.
Customer concentration is the risk worth watching. Much of the growth leans on a single hyperscale customer.
Margins are another signal to track. A 48.5% non-GAAP gross margin during a growth spurt is encouraging.
