NEW YORK, July 28, 2026, 17:58 EDT — Regular trading in the U.S. has ended; after-hours trading sees heightened activity.
- Teradyne shares rose 13.6% in after-hours trading to $364.28.
- Revenue for the quarter set a new record at $1.329 billion, surpassing consensus estimates by 8.9%.
- The midpoint of third-quarter revenue guidance is roughly 20% higher than what analysts had forecast.
Shares of Teradyne climbed 13.6% to $364.28 in after-hours trading on Tuesday, recovering from a 4.2% decline recorded during the regular session.
The catalyst was the outlook, rather than simply surpassing quarterly expectations. The third-quarter revenue midpoint, at $1.25 billion, is around 20% higher than the LSEG consensus.
The gap indicates a higher minimum revenue level for the near term. It further suggests that demand for AI-related testing is outpacing analyst forecasts.
Early estimates using the guidance suggest nine-month revenue of approximately $3.86 billion at the midpoint, an increase of 21% compared to full-year 2025.
The following comparison incorporates company results alongside consensus expectations prior to release.
| Measure | Teradyne result or midpoint | Consensus | Difference |
|---|---|---|---|
| Q2 revenue | $1.329 billion | $1.22 billion | 8.9% higher |
| Q2 adjusted EPS | $2.47 | $2.09 | 18.2% higher |
| Q3 revenue | $1.25 billion | $1.04 billion | 20.2% higher |
| Q3 adjusted EPS | $2.00 | $1.53 | 30.7% higher |
Variance is determined using company data and LSEG statistics.
Revenue for the second quarter increased 104% to $1.329 billion. Adjusted earnings were $2.47, up from $0.57 in the same period last year.
Semiconductor Test accounted for $1.122 billion, representing 84% of total revenue. However, sales growth over the previous quarter was more diversified. Product Test and Robotics contributed nearly 75% of the quarterly sales gain.
The breadth is significant as the main test unit showed minimal growth since March. Product Test climbed 34%, and Robotics advanced 10%.
However, profit conversion eased. Gross margin decreased to 59.8% compared with 60.9% in the prior period. Non-GAAP operating margin declined to 33.7% from 37.5%.
Chief Executive Greg Smith stated, “Our Q3 guidance reflects robust AI-related demand.” He attributed future growth to increased investment in wafer-fabrication equipment. Teradyne, Inc.
The stock finished at $320.65, posting its third consecutive loss. The S&P 500 rose 0.2%, as the Nasdaq slipped 0.2%.
Risks: The Q3 midpoint continues to suggest a 6% drop in revenue quarter-on-quarter. Margins have softened, and Semiconductor Test accounts for 84% of sales. Delays from customers, tariffs, and export controls may increase volatility.
The earnings call is set for 08:30 EDT on Wednesday. Investors are expected to pay close attention to memory demand, profit margins and the timing of orders in the second half.
