Teradyne Q2 results beat on record memory sales; shares soar

Teradyne

28/07/2026 21:46

Overview
Automated test equipment maker's Q2 revenue more than doubled yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose sharply and beat analyst expectations
Company cites strong semiconductor test demand, especially in DRAM and NAND final test
Shares of the company were up about 13.4% in extended trading

Outlook
Teradyne sees Q3 revenue between $1.2 bln and $1.3 bln
Company expects Q3 GAAP EPS of $1.79 to $2.09 and non-GAAP EPS of $1.85 to $2.15
Teradyne says Q3 outlook reflects robust AI-related demand

Result Drivers
MEMORY TEST DEMAND - Co said record Memory revenue was driven by continued strength in DRAM and a resurgence in NAND final test
MARKET EXPANSION - Co said all three business groups saw year-on-year market expansion
AI-RELATED DEMAND - CEO said strategy to capture test and robotics opportunities from wafer to AI data center drove record quarter

Company press release: ID:nBw4PwGBka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.33 bln
$1.22 bln (15 Analysts)
Q2 Adjusted EPS
Beat
$2.47
$2.09 (16 Analysts)
Q2 EPS
 
$2.38
 
Q2 Adjusted Net Income
Beat
$389 mln
$322.39 mln (12 Analysts)
Q2 Net Income
 
$374.89 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "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 $446.00, about 33.2% above its July 27 closing price of $334.77
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 44 three months ago

Reuters Recommended Reads
July 28 - KLA Corp forecasts upbeat quarter on sustained AI investment
July 27 - Rambus Q2 revenue rises 20%, beats analyst estimates
July 27 - What is CXMT and how did it become China's DRAM champion?

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.)