Teradyne Raises Outlook as Chip-Test Demand Surges

Management says rising wafer fabrication equipment spending could drive multi-year growth for its automated test systems.

Overview

Teradyne reported second-quarter revenue of $1.33 billion and adjusted earnings of $2.47 per share, both ahead of analyst expectations.
The company forecast third-quarter revenue between $1.20 billion and $1.30 billion and adjusted EPS of $1.85 to $2.15, which exceed consensus estimates compiled by LSEG.
CEO Greg Smith said a rapid rise in wafer fabrication equipment investment creates a structural tailwind that can support growth into 2027 and beyond.
Investors reacted strongly to the guidance, sending Teradyne shares up about 13.5% in extended trading.
Automated test equipment checks chip quality before shipment and grows most when chips get more complex; higher foundry spending on wafer fab tools typically leads to more demand for test gear, which could lift suppliers and affect chipmakers’ costs and production timing.