Teradyne earnings exceeded analyst estimates in the third quarter of 2026 as revenue rose 70% from a year earlier, but the semiconductor test equipment maker’s shares fell 4.6% on October 28 following the results.

Key Takeaways

  • Third-quarter revenue reached $1.306 billion, led by $1.072 billion from semiconductor testing.
  • Adjusted earnings were $2.29 per share, above the $2.06 analyst estimate.
  • Teradyne forecast fourth-quarter revenue of $1.25 billion to $1.35 billion.

Teradyne earnings and AI demand

Revenue increased from $769 million in the third quarter of 2025, although it was lower than the $1.329 billion reported in the second quarter of 2026. Teradyne’s third-quarter results also showed net income attributable to the company of $342.4 million, or $2.17 per diluted share, under generally accepted accounting principles.

On a non-GAAP basis, earnings were $2.29 per diluted share, up from $0.85 a year earlier. The adjusted figure excluded items including acquired intangible asset amortization and restructuring charges.

CEO Greg Smith said demand extended across the artificial intelligence value chain, including memory and hard disk drive testing, high-speed interconnect and robotics. The company said its results exceeded the high end of its own third-quarter guidance.

Alongside semiconductor testing, product test revenue was $138 million and robotics revenue was $96 million. Teradyne said robotics achieved its highest third-quarter revenue to date and was profitable.

Fourth-quarter outlook and share reaction

For the fourth quarter of 2026, Teradyne projected non-GAAP earnings of $1.95 to $2.25 per diluted share, alongside its revenue forecast. Its GAAP earnings guidance was $1.88 to $2.18 per diluted share. These ranges are forecasts, not completed results.

The shares declined after the company released its results on October 27. The available information does not establish what caused the subsequent share-price movement.

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