Teradyne tops Q3 profit estimates as AI demand lifts revenue 70%
Teradyne reported third-quarter revenue of $1,306 million, up 70% from a year earlier, and non-GAAP earnings of $2.29 per diluted share, against estimates of $1.28 billion and $2.06.
Key takeaways
- Teradyne Inc. (TER) said on Oct. 27 that third-quarter 2026 revenue rose 70% from a year earlier to $1,306 million, and non-GAAP earnings reached $2.29 per diluted share, topping the $2.06 consensus estimate compiled by Finnhub. Fourth-quarter revenue guidance is $1,250 million to $1,350 million.
Teradyne Inc. (TER) said on Oct. 27 that third-quarter 2026 revenue rose 70% from a year earlier to $1,306 million, and that non-GAAP earnings reached $2.29 per diluted share.
The results topped the $2.06 per share estimate for non-GAAP earnings and the $1.28 billion revenue estimate, according to Finnhub.
Here's how the company did:
- Non-GAAP EPS: $2.29 vs. $2.06 expected, according to Finnhub
- GAAP EPS: $2.17 vs. 75 cents a year earlier
- Revenue: $1,306 million vs. $1.28 billion expected, according to Finnhub
- Revenue: $1,306 million vs. $769.2 million a year earlier
GAAP net income attributable to Teradyne was $342.4 million, compared with $119.6 million a year earlier.
The company said Memory and Integrated Systems Test posted record revenue, and Robotics delivered its highest third-quarter revenue to date and achieved profitability.
Segment results
Semiconductor Test revenue was $1,072 million, Product Test revenue was $138 million and Robotics revenue was $96 million.
Revenue has risen in each of the last three quarters, from $769.2 million in the third quarter of 2025 to $1.33 billion in the second quarter of 2026, according to its SEC filings.
CEO Greg Smith said: “Our wafer to data center strategy and the breadth of our portfolio sustained positive momentum in Q3.” He added: “With multiple growth engines across test and robotics, we approach 2027 with a more diversified business and an expanding set of opportunities.”
Guidance
For the fourth quarter of 2026, the company guided to revenue of $1,250 million to $1,350 million.
It expects GAAP net income attributable to Teradyne of $1.88 to $2.18 per diluted share, and non-GAAP net income of $1.95 to $2.25 per diluted share.
Non-GAAP guidance excludes acquired intangible asset amortization and amortization on its investment in Technoprobe, as well as the related tax impact.
The third-quarter revenue guidance given on July 29 was $1,200 million to $1,300 million, so the $1,306 million result came in above the high end of that range.
Costs and charges
Restructuring and other charges were $2.0 million in the quarter, down from $6.6 million a year earlier.
Selling and administrative expenses included $3.7 million directly related to an ERP system implementation.