Chip testing firm Teradyne's Q4 revenue beats estimates, fueled by AI-related demand

Teradyne

02/02/2026 21:41

Overview

Automated test equipment maker's Q4 revenue rose 44% yr/yr, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company's Q4 growth driven by AI-related demand in compute and memory

Outlook

Teradyne projects Q1 2026 revenue between $1.150 bln and $1.250 bln

Company expects Q1 2026 GAAP EPS of $1.82 to $2.19

Teradyne anticipates growth in 2026 driven by AI demand in compute

Result Drivers

AI DEMAND - Q4 growth driven by strong AI-related demand in compute, networking, and memory within Semi Test business

SEGMENT GROWTH - Sequential growth across all business groups: Semi Test, Product Test, and Robotics

SEMICONDUCTOR TEST - Semiconductor Test segment contributed $883 mln to Q4 revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.08 bln
$971.09 mln (14 Analysts)
Q4 Adjusted EPS
Beat
$1.80
$1.36 (15 Analysts)
Q4 EPS
$1.63
Q4 Adjusted Net Income
Beat
$283 mln
$212.84 mln (12 Analysts)
Q4 Net Income
$257.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

Wall Street's median 12-month price target for Teradyne Inc is $224.50, about 6.9% below its January 30 closing price of $241.05

The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nBw4kSxsza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)