Boston, Feb 2, 2026, 18:03 EST
- Teradyne projected Q1 2026 revenue between $1.15 billion and $1.25 billion, with non-GAAP EPS expected to range from $1.89 to $2.25
- Revenue for Q4 2025 jumped 44% to $1.083 billion; non-GAAP EPS hit $1.80
- Shares soared to $308 in after-hours trading, up from a close of $249.53.
Teradyne shares jumped in after-hours trading Monday, boosted by a first-quarter forecast that topped Wall Street’s estimates. The company cited strong demand linked to artificial intelligence as the key driver behind sales and profits beating forecasts.
The chip-test equipment maker expects Q1 revenue between $1.15 billion and $1.25 billion, with non-GAAP earnings per share in the $1.89 to $2.25 range. Analysts had forecast $938.7 million in revenue and $1.29 EPS, according to TipRanks. For Q4, the company reported $1.083 billion in revenue and a non-GAAP EPS of $1.80. Shares closed at $249.53, then surged to $308 in after-hours trading. (Teradyne, Inc.)
The numbers are crucial as investors search for clear evidence that spending on AI chips is still ramping up, not just plateauing. Teradyne provides automated test equipment—machines chipmakers rely on to screen and grade chips before shipment—and stricter AI chip specs often translate into more tests per device.
Executives must also persuade investors this isn’t just a one-off quarter. CEO Greg Smith highlighted “sequential growth across semiconductor test, product test and robotics,” driven by “AI-related demand in compute, networking and memory.”
Teradyne posted GAAP net income of $257.2 million, translating to $1.63 per share in the fourth quarter. Adjusted earnings came in at $1.80 per share, stripping out costs like amortization of acquired intangibles and restructuring expenses.
Semiconductor Test brought in $883 million in revenue for Q4, while Product Test added $110 million and Robotics contributed $89 million. The company reported a 13% increase in full-year 2025 revenue, which reached $3.19 billion.
On Monday, the stock climbed 3.5% during regular hours, outpacing several rivals in test and measurement gear. Keysight Technologies rose 3.2%, while Cohu added 2.8%, according to MarketWatch data. (MarketWatch)
Analysts are zeroing in on the AI story. Cantor Fitzgerald’s C.J. Muse predicted management’s tone would remain “as upbeat as ever,” raising the price target to $270. (Investing)
Before the report dropped, 24/7 Wall St. noted that guidance would probably carry more weight than the actual quarter, as investors zero in on the strength of 2026 demand amid expanding AI projects. (24/7 Wall St.)
Still, the upside carries risks of abrupt halts. Teradyne flagged that changes in customer demand, broader economic slowdowns, and U.S.-China export restrictions might derail bookings and revenue, despite AI spending remaining a focus.
Teradyne plans to review its results and outlook during a conference call scheduled for 8:30 a.m. ET on Tuesday.
