$TER · TERADYNE, INC
Teradyne reported Q3 FY2026 results with revenue of $1.306B, up 70% YoY from $769M, and GAAP diluted EPS of $2.17 (non-GAAP $2.29). Revenue exceeded the high end of guidance, driven by record Memory and Integrated Systems Test results tied to AI demand. Q4 guidance calls for revenue of $1.25B-$1.35B and non-GAAP EPS of $1.95-$2.25, with the EPS midpoint below Q3's $2.29.
- Q3 revenue of $1.306B grew 70% YoY from $769M, exceeding the high end of guidance
- GAAP diluted EPS of $2.17 vs $0.75 in Q3'25; non-GAAP EPS of $2.29 vs $0.85
- Robotics segment achieved profitability with its highest Q3 revenue ever at $96M
- Q4 revenue guidance of $1.25B-$1.35B, with non-GAAP EPS of $1.95-$2.25 — midpoint below Q3's $2.29
- Nine-month revenue of $3.917B nearly doubled the $2.107B from the same period last year
Extended-hours trading shows TER at $313.65, down 3.10% from the regular-session close of $323.68. The after-hours decline suggests the Q4 guidance midpoint ($1.95-$2.25 non-GAAP EPS vs Q3's $2.29) disappointed despite the massive YoY beat.
Teradyne's 70% YoY revenue growth confirms AI demand is flooding the semiconductor test equipment market, but the Q4 guidance implies the torrid pace may be moderating.
Teradyne's 70% YoY revenue surge mirrors the AI-fueled boom across semiconductor capital equipment, with record Memory and Integrated Systems Test revenue underscoring that AI demand is flowing through the entire chip supply chain, not just GPU makers.
Forward-looking risks flagged include potential U.S./China export controls on semiconductor manufacturing equipment, tariffs, and customer concentration — any of which could disrupt the AI-driven demand cycle fueling current growth.