Teradyne's Semiconductor Test revenue exceeded $1.0 billion for the third consecutive quarter and increased 77% year over year on AI demand. Robotics became profitable on $96 million of revenue, and it agreed to invest $300.0 million in FormFactor.
TER · Teradyne, Inc
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Teradyne’s third quarter 2026 revenue topped $1.3 billion, up 70% year-over-year, with AI-driven revenue representing more than 60%; fourth-quarter revenue is guided to $1.25 billion to $1.35 billion and non-GAAP EPS to $1.95 to $2.25.
Teradyne reported third-quarter 2026 revenue of $1,306 million, GAAP diluted EPS of $2.17 and non-GAAP diluted EPS of $2.29; Robotics achieved profitability and record third-quarter revenue. Fourth-quarter revenue guidance is $1,250 million to $1,350 million.
Metrics snapshot
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Quarterly results
* Q4 derived as the full year minus Q1 to Q3.
AI Brief
Q2 FY26 earnings call · Jul 29, 2026TL;DR. 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.
- + 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
- − 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%
AI-generated from the earnings call and 8-K · may contain errors · not investment advice
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Key metrics
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Versus peers
Semiconductor Equipment & Materials — same industry group| Company | Mkt cap | YTD | Rev growth Y/Y | P/E | Short % shares |
|---|---|---|---|---|---|
|
TER
this stock
Teradyne, Inc
|
$38.96B | +28.9% | +13.1% | 28.7 | 5.1% |
|
ASML
Asml Holding NV
|
$576.26B | +39.8% | — | — | 0.3% |
|
AMAT
Applied Materials Inc
|
$294.03B | +44.2% | -12.6% | 32.0 | 1.8% |
|
LRCX
Lam Research Corp
|
$282.21B | +32.0% | +51.7% | 33.7 | 2.2% |
|
KLAC
Kla Corp
|
$198.47B | — | +11.7% | 38.2 | 1.7% |
Peers by industry group · P/E from as-reported trailing EPS · short % is of shares outstanding
At a glance
key data from every section- Filed
- Oct 30, 2026
- This year
- 15
Teradyne's Semiconductor Test revenue exceeded $1.0 billion for the third consecutive quarter and increased 77% year over year on AI demand. Robotics became profitable on $96 million of revenue, and it agreed to invest $300.0 million in FormFactor.
ViewPerformance
| 5D | 20D | 120D | MTD | YTD | |
|---|---|---|---|---|---|
| TER | +14.4% | -23.2% | -35.9% | -9.1% | +28.9% |
| SPY | +2.6% | -1.2% | +0.5% | -0.2% | +10.6% |
| vs SPY | +11.8% | -22.1% | -36.4% | -8.9% | +18.3% |
Capital returns
Dividends per share over the trailing 365 days by ex-date · buyback figures as last reported in SEC filings ("spent" derived as authorized − remaining; when several programs run concurrently, authorized is their combined total per the newest filing) · components shown separately — trailing-year buyback spend isn't tracked, so no combined shareholder yield is derived.