New York, Feb 2, 2026, 21:09 EST — The market has closed.
Teradyne, Inc. (TER) shares surged over 20% in after-hours trading Monday, following a bullish forecast for Q1 revenue and profit driven by AI-related data-center demand. The chip-test equipment maker projects revenue between $1.15 billion and $1.25 billion, with adjusted earnings ranging from $1.89 to $2.25 per share. These figures outpace Street estimates of $934.5 million and $1.26 per share, based on LSEG data. The stock had closed up 3.6% at $249.53 after Teradyne posted fourth-quarter revenue of $1.08 billion, beating expectations of $973.2 million. Its client roster includes Qualcomm and Texas Instruments.
The print arrives at a sensitive time for chip suppliers as investors weigh steady AI spending against one-off pull-ins. Since test tools usually sell when factories scale up, the guidance often acts as a snapshot of the production pipeline.
Automated test equipment handles the crucial job of verifying a chip’s speed, power, and reliability before it ships. It doesn’t grab headlines like other AI tech, but this is where orders land once programs shift from design into mass production.
Teradyne reported fourth-quarter revenue jumped 44% to $1.083 billion, driving full-year sales up 13% to $3.19 billion from 2024. The breakdown showed $883 million from Semiconductor Test, $110 million from Product Test, and $89 million from Robotics. GAAP net income hit $257.2 million, or $1.63 per diluted share. On a non-GAAP basis — which excludes restructuring charges and amortization of acquired intangibles — earnings came in at $1.80 per share. CEO Greg Smith pointed to AI-driven demand in compute, networking, and memory as the key factor pushing results past the high end of guidance.
Cantor Fitzgerald raised its price target on the stock to $270 while maintaining an Overweight rating. Analyst C.J. Muse noted that management’s tone remains “as upbeat as ever” and pointed to potential for even higher guidance. Investing.com
Volume surged in regular trading, hitting 6.2 million shares—over twice Teradyne’s typical 50-day average. Shares of peers Keysight Technologies, Fortive, and Cohu also climbed.
The test-equipment sector tends to fluctuate alongside chipmakers’ capital spending, and sharp after-hours moves often fade by the opening auction. Traders will watch closely to see if orders come from a wide range of sources or just a few AI projects that might falter.
The key question is if Tuesday’s extended-hours gain holds when the regular session opens. Attention turns to the 8:30 a.m. ET earnings call, where investors will look for insight on AI-related demand and whether the outlook is priced in.
