TER $249.55 -5.38%

TER · Teradyne, Inc

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$249.55 -14.20 (-5.38%) At close · Nov 13 Play latest call Q3 2026 earnings call transcript

S&P 500 member Nasdaq-100 member Russell 1000 member Rebalance outlook locked

Market Cap

$38.96B

156.12M

Volume · Nov 13 3.08M Avg daily vol (3M) 3.14M

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Earnings call · FY2026 Q2

Teradyne, Inc (TER) Q2 2026 Earnings Call

Concluded Jul 29, 2026

Jul 29, 2026

Period: FY2026 Q2
Runtime: —
Sources: 3 artifacts

Revenue $1.33B +103.9% YoY

Diluted EPS $2.38 +385.7% YoY

Gross margin 59.8% +2.6 pp YoY

Net income $374.53M +377.9% YoY

Open full screen Slides 23 8-K 10-Q

Executive readout · one minute

What matters this quarter

Teradyne reported a second consecutive quarter of record revenue of $1,329M (up 104% YoY) and non-GAAP EPS of $2.47 (up over 300% YoY), driven by AI demand across all three segments. The company tightened full-year guidance to 50%-52% of annual revenue in 1H with a stronger second half outlook, while Q3 guidance of $1.2B-$1.3B and $1.85-$2.15 non-GAAP EPS represents a sequential decline from the record Q2.

Dual-vendor compute customer strategy and share gains 53 AI-driven revenue growth and data center strategy 45 ATE TAM expansion driven by WFE and advanced packaging 30 Memory test growth (HBM, DRAM, NAND) 29 Networking growth (CPO, XPO, copper, pluggables) 20 Auto/Industrial/Flash recovery 12

Management tone

Confident

Net tone +82 · low hedging

Grounding quotes

“For the second quarter in a row, we delivered record revenue, and once again, AI was the driver.”
“At more than 60%, AI-driven revenue is the key proof point that our wafer-to-AI data center strategy is delivering results.”
“I'd like to use my time today to set context for what we believe is a multi-year growth phase for our entire business driven by the continued ai build out”
“with the ramp of merchant GPU and the initial dual-platform qualification in our second major hyperscaler we are positioned to gain share in the core compute segment”

Forward guidance

3 guided metrics

Management's latest ranges and targets are included below.

Research coverage

3 live sources

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Research materials

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Presentation 23 pages 8-K earnings release Filed Jul 29, 2026 10-Q report Filed Jul 31, 2026

Key takeaways

What improved, and what deserves a closer read.

↑ Constructive signals

Record memory revenue with book-to-bill over 2 and 2026 memory TAM likely >40% larger than 2025
Compute revenue grew nearly 600% YoY; completed second hyperscaler correlation and shipped first merchant GPU order
Free cash flow of $378M in Q2; first half FCF of $579M up 150% YoY
Tightened full-year revenue outlook: 1H weighted to 50%-52% of annual with stronger 2H

↓ Risks & pressure points

Q3 guidance implies sequential revenue decline at midpoint and EPS step-down from $2.47 to ~$2.00
Gross margin guided down to 58%-59% in Q3 from 59.8% in Q2 on mix and new product launches
Compute revenue expected to decline in 2H on order timing after being flat Q/Q in Q2
Mobile revenue remains muted and below historical levels
OPEX rising to 29%-30% of sales in Q3 from continued R&D and go-to-market investment
Q3 non-GAAP operating margin guided to 28%-30%, below Q2's 33.7%

Key moments

Read the management remarks selected from the transcript.

“Our optimism around 2026 and 2027 and through the midterm has grown. We are leaning further into investments to capture opportunities across the value chain, both organically and inorganically. And we are investing in next generation products across our entire portfolio.” Greg Smith, CEO

“Based on current customer order visibility, we are updating our first half weighted revenue to 50% to 52% of annual revenue. The outlook for the second half has strengthened, and we've narrowed the range from three months ago with increased visibility and continued robust demand signals from our customers.” Michelle Turner, CFO

Forward guidance

From the 8-K filed Jul 29, 2026.

Metric	Period	Guided	Basis	Actual
Revenue third quarter of 2026	third quarter of 2026	$1.2B – $1.3B	—	$1.31B above
GAAP net income attributable to Teradyne per diluted share third quarter of 2026	third quarter of 2026	$1.79 – $2.09	GAAP	$2.17 above
Non-GAAP net income attributable to Teradyne third quarter of 2026	third quarter of 2026	$1.85 – $2.15	Non-GAAP	—

Quarter detail

How the reported period landed and where the business moved.

Result vs. guidance

Revenue Above

Diluted EPS Above

Revenue · segments

Semiconductor Test$1.12B +128.1% YoY

Product Test$107.25M +26.1% YoY

Robotics$99.92M +33.5% YoY

Capital returned

Buybacks · derived: $68.72M
Dividend / share: $0.13

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