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Teradyne Soars on Blockbuster Q4 Outlook as AI Test Orders Accelerate

Soaring demand for AI chip plus memory testing drives a sharp outlook upgrade, signaling a near-term revenue inflection.

Overview

  • Q3 revenue came in at $769 million with adjusted EPS of $0.85, topping consensus expectations.
  • Management guided Q4 revenue to $920 million–$1.0 billion with adjusted EPS of $1.20–$1.46, implying about 25% sequential and 27% year-over-year sales growth.
  • CEO Greg Smith cited strength in System-on-a-Chip solutions for AI applications and robust memory testing as key drivers, with recent wins tied to UltraFLEXplus and HBM4 programs.
  • Shares jumped roughly 20%–23% in after-hours and premarket trading, with the stock setting a new all-time high as analysts raised estimates.
  • Michelle Turner will become CFO on November 3 as Sanjay Mehta transitions to an advisory role ahead of a planned 2026 retirement.