TLDR
- Teradyne stock jumped 20% in pre-market trading after beating Q4 earnings expectations with revenue of $1.08B, up 44% year-over-year.
- The company reported non-GAAP net income of $1.80 per share, beating analyst estimates of $1.36 by $0.44.
- Q1 2026 guidance came in well above expectations, with revenue projected at $1.15B to $1.25B versus consensus of $966.57M.
- All three business segments showed growth, with Semiconductor Test leading at $883M in Q4 revenue.
- AI demand in compute, networking, and memory drove the strong performance, with the company expecting year-over-year growth across all businesses in 2026.
Teradyne stock surged 20% in pre-market trading Tuesday after the automated test equipment maker delivered a strong earnings beat and raised guidance. The company’s Q4 results crushed analyst expectations across the board.
Revenue for the quarter reached $1.08B, jumping 44% compared to the same period last year. This topped consensus estimates of $969.33M by a comfortable margin.
Non-GAAP net income came in at $1.80 per share, beating the analyst estimate of $1.36 by $0.44. GAAP net income reached $257.2M, or $1.63 per share.
Results:
š Adj. EPS: $1.80 š¢
š° Revenue: $1.08B š¢
š Net Income: $257.2M
š AI-driven demand fueled strong growth in semiconductor test across compute and memory pic.twitter.com/amWcKYjCJC— EarningsTime (@Earnings_Time) February 2, 2026
The strong performance came from growth across all business segments. Semiconductor Test generated $883M in revenue. Product Test contributed $110M, while Robotics added $89M.
CEO Greg Smith pointed to broad-based strength in the results. “Across all of our business groups ā Semi Test, Product Test, and Robotics ā we experienced sequential growth, and at the company level we achieved 13% growth in 2025,” Smith said.
AI demand played a key role in driving the quarter’s success. The company saw particular strength in compute, networking, and memory testing applications tied to artificial intelligence workloads.
Strong Q1 Guidance Points to Continued Momentum
The real surprise came with Teradyne’s Q1 2026 outlook. The company expects revenue between $1.15B and $1.25B, well above the consensus estimate of $966.57M.
Non-GAAP earnings per share are projected at $1.89 to $2.25 for the first quarter. Analysts had been expecting just $1.25 per share. That represents a potential upside of over 80% at the high end of guidance.
Smith expressed confidence in the company’s momentum heading into 2026. “In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI,” he said.
HBM Testing Market Provides Growth Opportunity
The company’s position in the high-bandwidth memory testing market looks promising. Teradyne holds roughly 50% of the HBM market share currently.
The recent release of its Magnum 7H system strengthens this position. The product was designed to support testing needs for HBM3E and HBM4. It can also upgrade to test HBM4E and HBM5.
Teradyne began volume shipments of the system in Q3 2025. The HBM testing market adds complexity across wafer and final testing, creating opportunities for specialized equipment providers.
Analyst Michael Del Monte highlighted this positioning. He noted that Teradyne may expand its market share as HBM testing requirements become more demanding.
The stock received a quant rating of Hold, with its highest ratings in momentum and profitability categories. Over the last three months, the stock gained 34.89%. In the past year, shares climbed 124.66%.
Analyst Green Mage Capital noted management’s ambitious targets. The company aims for $8 to $9.50 EPS by 2028. At a 25x multiple, the current valuation appears fair but offers upside potential if growth catalysts materialize.
The stock closed at $249.57 before the pre-market surge. Teradyne saw 16 positive EPS revisions and zero negative revisions in the last 90 days.
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