Why Cohu Stock Is Sinking Today

The Motley Fool

by newsfeedback@fool.com (Keith Noonan)

February 13, 2026

AI-Generated Deep Dive Summary

Cohu (NASDAQ: COHU) stock is experiencing a significant decline today, dropping 7.2% by 3:20 p.m. ET amid relatively stable market performance from the S&P 500 and Nasdaq Composite. The sell-off comes after the company released its fourth-quarter earnings report following market hours yesterday. While Cohu met Wall Street's expectations for revenue, it reported a net loss that far exceeded analyst forecasts, causing investors to flock to the exits. The tech firm’s financial results reveal a challenging quarter. Despite generating sales in line with what analysts predicted, Cohu’s bottom line fell short of expectations. This disparity between top-line performance and bottom-line outcomes likely contributed to the stock’s sharp decline. The company’s earnings report did not meet the profitability benchmarks that investors were anticipating, leading to a sell-off that reflects broader market sentiment toward companies missing earnings targets. For those following the financial markets, Cohu’s situation highlights the importance of closely monitoring both revenue and earnings when evaluating a company’s performance. While meeting sales expectations is positive, failing to deliver on profits can have a significant negative impact on stock prices. This outcome underscores the risks involved in investing in tech companies, where market volatility and earnings pressures are common. Investors may also want to consider the broader implications of Cohu’s financial struggles. The company operates in the semiconductor industry, which has faced challenges due to global supply chain issues and fluctuating demand. These external factors, combined with internal financial pressures, create a complex environment for stakeholders. For finance enthusiasts, Cohu’s stock movement serves as a reminder of how critical it is to analyze both top-line and bottom-line metrics when assessing a company’s health. The disconnect between meeting revenue targets but missing earnings expectations can send shockwaves through the market, as seen in this case. This scenario also emphasizes the importance of staying informed about

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Originally published on The Motley Fool on 2/13/2026