Teradyne beats Q3 revenue, adjusted EPS estimates on AI-related test demand

Teradyne

28/10/2025 21:12

Overview

Semiconductor testing tools maker Teradyne Q3 revenue rises 4% yr/yr to $769 mln, beating analyst expectations

Adjusted EPS for Q3 beats consensus, driven by Semiconductor Test performance

Company expects Q4 revenue to rise 25% sequentially, driven by AI demand

Outlook

Teradyne expects Q4 2025 revenue between $920 mln and $1,000 mln

Company forecasts Q4 2025 GAAP EPS of $1.12 to $1.39

Teradyne anticipates Q4 2025 non-GAAP EPS of $1.20 to $1.46

Result Drivers

SEMICONDUCTOR TEST - Strong performance in Semiconductor Test, especially in System-on-a-Chip solutions for AI applications, drove Q3 results

AI DEMAND - Robust AI-related demand in compute, networking, and memory segments expected to continue into Q4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$769 mln
$743.77 mln (14 Analysts)
Q3 Adjusted EPS
Beat
$0.85
$0.78 (15 Analysts)
Q3 EPS
$0.75
Q3 Adjusted Net Income
Beat
$135.90 mln
$124.17 mln (12 Analysts)
Q3 Net Income
$119.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 3 "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 $135.00, about 9.3% below its October 27 closing price of $147.50

The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw7VMCXna

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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.)