Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump

Teradyne

28/07/2026 21:59

July 28 (Reuters) - Chip-testing equipment maker Teradyne TER.O forecast third-quarter revenue above Wall Street estimates on Tuesday, betting on a sustained rise in investment in wafer fabrication equipment, sending the company's shares up 13.5% in extended trading.
Growing demand for more complex and powerful chips used in AI data centers and vehicles has driven the need for sophisticated, higher-priced testing equipment, benefiting suppliers such as Teradyne.
The company is a supplier of automated test equipment used to verify the quality and reliability of semiconductors.

Here are some details:
Teradyne expects third-quarter revenue between $1.20 billion and $1.30 billion, ahead of analysts' average estimate of $1.04 billion, according to data compiled by LSEG.
It forecast adjusted earnings in the range of $1.85 to $2.15 per share for the quarter, also ahead of an estimate of $1.53.
"Looking further ahead, rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond," CEO Greg Smith said in a statement.
The company's second-quarter revenue more than doubled to $1.33 billion, beating estimates of $1.22 billion.
Adjusted profit came in at $2.47 per share, compared with an estimate of $2.09.  

 (Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
 ((Juby.Babu@thomsonreuters.com))