Teradyne Revenue Jumps 70% on AI-Driven Test Demand, Beating Its Own Forecast

Teradyne said demand tied to AI kept its testers busy in the third quarter, pushing revenue up 70% from a year earlier and landing results above the top of the company's own guidance.

The North Reading, Massachusetts, maker of semiconductor test equipment and industrial robots reported third-quarter revenue of $1.306 billion, compared with $769 million a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Revenue was slightly below the $1.329 billion posted in the second quarter of 2026.

Earnings more than double

Net income attributable to Teradyne was $342.4 million, or $2.17 per diluted share, versus 75 cents a share a year earlier. On a non-GAAP basis, which excludes acquired intangible amortization, restructuring and related tax effects, earnings were $359.9 million, or $2.29 a share, up from 85 cents.

The company said earnings rose more than 150% year over year.

Where the growth came from

Semiconductor Test, the company's largest business, generated $1.072 billion of the quarter's revenue. Product Test contributed $138 million and Robotics $96 million.

Teradyne said it posted record revenue in both Memory test and Integrated Systems Test, which it attributed to "all things AI." Robotics delivered its highest third-quarter revenue to date and was profitable in the period, according to the release.

"Demand extended across the AI value chain, from memory and hard disk drive test to high-speed interconnect and robotics, driving results above the high end of our guidance," CEO Greg Smith said. He added that the company approaches 2027 "with a more diversified business and an expanding set of opportunities."

Fourth-quarter outlook

For the fourth quarter, Teradyne guided to revenue of $1.25 billion to $1.35 billion. It expects GAAP earnings of $1.88 to $2.18 per diluted share and non-GAAP earnings of $1.95 to $2.25 per share.

The midpoint of that revenue range, $1.30 billion, is roughly in line with the third quarter, suggesting the company sees its elevated run rate holding into year-end rather than accelerating further. The non-GAAP guidance excludes acquired intangible amortization and amortization tied to its investment in Technoprobe.

What to watch

Teradyne scheduled a conference call for 8:30 a.m. ET on Wednesday to discuss results and its business outlook. Investors will likely look for more detail on how durable memory and data center test demand is heading into 2027, and whether the robotics business can sustain profitability after its first profitable quarter in this stretch.

The company's mix shift matters: a business historically tied to smartphone and PC test cycles is now drawing much of its growth from data center buildouts, according to management's commentary in the release.

Sources

1. Teradyne Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001193125-26-434981)

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