Teradyne Q4 profit forecast signals sequential slowdown as quarterly margins narrow

Teradyne

27/10/2026 20:41

Overview
Automated test equipment maker's Q3 revenue rose 70% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company attributes growth to AI-driven demand in Memory and Integrated Systems Test

Outlook
Teradyne sees Q4 revenue between $1.25 bln and $1.35 bln
Company expects Q4 non-GAAP EPS of $1.95 to $2.25
Company says it enters 2027 with a more diversified business and expanding opportunities

Result Drivers
ROBOTICS GROWTH - Robotics segment posted its highest Q3 revenue and reached profitability
BROAD AI VALUE CHAIN - Co said demand extended across memory, hard disk drive test, high-speed interconnect and robotics

Company press release: ID:nBw70MywTa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.31 bln
$1.26 bln (14 Analysts)
Q3 Adjusted EPS
Beat
$2.29
$2.08 (15 Analysts)
Q3 EPS
 
$2.17
 
Q3 Adjusted Net Income Attributable 
Beat
$359.90 mln
$320.27 mln (12 Analysts)
Q3 Consolidated Net Income
 
$347.74 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 5 "hold" and no "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 $420.00, about 35.9% above its October 26 closing price of $309.00
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 56 three months ago

Reuters Recommended Reads
Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales
Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates
Oct 27 - Seagate Technology Q1 revenue and adjusted EPS beat estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)