NORTH READING, Massachusetts, August 12, 2026, 13:18 EDT
- Teradyne shares rose 6.39% to $403.81 in active trading.
- Second-quarter revenue doubled as AI-related business exceeded 60% of sales.
- Third-quarter revenue guidance midpoint topped the prior Street view by 21%.
Teradyne, Inc. NASDAQ:TER shares jumped 6.39% to $403.81 on Wednesday. The semiconductor-test specialist traded between $393.16 and $408.55 by 13:08 EDT. That placed it among the session’s stronger large-cap technology performers.
The move extends a sharp repricing around artificial-intelligence test demand. More than 60% of second-quarter sales were AI-related, management said. That exposure is unusually direct: larger and more complex chips require more test time.
The key number is forward revenue. Teradyne’s $1.25 billion third-quarter midpoint stands 21.4% above the prior $1.03 billion analyst consensus. Its $2.00 adjusted earnings midpoint exceeds the earlier $1.44 view by 38.9%.
| Second-quarter measure | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $1.329 billion | $652 million | +104% |
| GAAP EPS | $2.38 | $0.49 | +386% |
| Non-GAAP EPS | $2.47 | $0.57 | +333% |
| GAAP net income | $374.5 million | — | — |
Revenue more than doubled from a year earlier. GAAP earnings per share nearly quintupled. Semiconductor Test contributed $1.122 billion, or 84% of sales. Product Test added $107 million, while Robotics supplied $100 million.
“Our strategy to capture test and robotics opportunities from wafer to AI data center has driven another record quarter,” Chief Executive Greg Smith said. The company called it a second straight revenue record. Company statement
| Forward measure | Teradyne guidance | Prior Street view | Midpoint premium |
|---|---|---|---|
| Q3 revenue | $1.20B-$1.30B | $1.03B | 21.4% |
| Q3 non-GAAP EPS | $1.85-$2.15 | $1.44 | 38.9% |
| Q2 AI-related revenue share | More than 60% | Not applicable | Not applicable |
| Q2 free cash flow | $378 million | Not applicable | Not applicable |
The mix matters as much as the growth. Semiconductor Test generated roughly five-sixths of quarterly revenue. That concentration gives Teradyne leverage to AI accelerators, memory and data-center equipment. It also raises earnings sensitivity if those budgets pause.
Wednesday’s sector backdrop helped. U.S. chip shares advanced as strong AI-linked earnings revived demand for technology stocks. The Philadelphia semiconductor index gained about 3% during the session.
Wall Street remains constructive, though the price now discounts much of that strength. The latest 17-analyst compilation shows 13 buy ratings, three holds and one sell. Its $449.80 average target implies about 11% upside from Wednesday’s observed price.
| Analyst or consensus | Rating | Target | Latest action |
|---|---|---|---|
| JPMorgan | Buy | $465 | Maintained, July 30 |
| Morgan Stanley | Hold | $397 | Maintained, July 30 |
| Baird | Buy | $420 | Maintained, July 30 |
| TD Cowen | Buy | $450 | Maintained, July 29 |
| 17-analyst consensus | Buy | $449.80 average | 13 buy, 3 hold, 1 sell |
The targets are not uniform. Morgan Stanley’s $397 objective sits below Wednesday’s trading price. JPMorgan’s $465 target leaves more room. That spread captures the central debate: exceptional growth versus a premium valuation.
Teradyne traded near 56 times trailing earnings at the observed price. Its 1.79 beta also signals above-market volatility. Those figures leave less margin for execution errors.
Risks: AI capital spending could slow, or major customers could delay test orders. Memory remains cyclical. Export controls and tariffs may constrain sales. Robotics growth may not offset a semiconductor downturn.
The next test is delivery. Investors will look for third-quarter revenue near the $1.25 billion midpoint. They will also watch whether AI-related sales remain above 60%. A miss on either measure would challenge Wednesday’s rally.
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