TLDR
- Teradyne posted Q3 revenue of $769 million, beating the $743.85 million consensus estimate by about 3%
- The company reported adjusted EPS of $0.85, topping analyst expectations of $0.79 by $0.06
- Q4 guidance calls for revenue between $920 million and $1 billion, well above the $816.64 million consensus
- Teradyne stock jumped nearly 22% in after-hours trading, positioning for its best single-day performance ever
- CFO Sanjay Mehta will step down effective November 3, with Michelle Turner taking over the role
Teradyne shares rocketed 22% in Tuesday’s after-hours session following a third-quarter earnings report that beat expectations across the board. The semiconductor testing equipment maker also issued forward guidance that crushed analyst estimates.
The company reported Q3 revenue of $769 million, up 4% year-over-year. This topped the consensus estimate of $743.85 million compiled by Fiscal.ai.
Adjusted earnings per share came in at $0.85. Analysts had expected $0.79.
CEO Greg Smith attributed the results to strong chip-testing revenue. “Our Semiconductor Test Group delivered third quarter sales that exceeded expectations, driving company sales and profit to the high end of our Q3 guidance range,” Smith said.
The growth came primarily from System-on-a-Chip solutions for AI applications. Memory testing also performed well during the quarter.
$TER earnings:
AI Demand Drives Strong Beat and Massive Q4 Raise
Teradyne reported strong Q3 results that met the high end of revenue guidance and beat on EPS, driven by accelerating demand for AI-related semiconductor testing. More importantly, the company provided blockbuster… pic.twitter.com/GWb7pILVzB
— Finsee (@Finsee_main) October 28, 2025
For Q4, Teradyne forecast revenue between $920 million and $1 billion. That represents 25% year-over-year growth and a 27% sequential increase.
The company expects adjusted EPS of $1.20 to $1.46 for the fourth quarter. This excludes amortization of acquired intangible assets and the company’s investment in Technoprobe.
The guidance topped analyst expectations by a wide margin. The Street had been looking for Q4 revenue of $816.64 million and adjusted EPS of $1.02.
Strong AI Testing Demand Expected
Smith pointed to robust AI-related test demand across multiple segments. Compute, networking, and memory are all showing strength heading into the fourth quarter.
The North Reading, Massachusetts-based company has benefited from the surge in AI chip production. Testing equipment is critical for ensuring these complex processors meet quality standards.
Teradyne closed Tuesday’s regular session at $144.38, down 2.12%. The stock has gained 15% year-to-date.
Leadership Change
The company announced that CFO Sanjay Mehta will step down effective November 3. Mehta has held the position since 2019.
Michelle Turner will replace Mehta as CFO. Mehta will stay on as an executive advisor to help with capacity expansion driven by semiconductor testing demand.
He plans to retire in 2026. The transition comes as Teradyne navigates increased demand for its testing equipment.
The average analyst price target for Teradyne sits at $143.81 according to Koyfin. That implies a slight 0.40% downside from Tuesday’s closing price.
If the after-hours gains hold, Teradyne would record its best single trading day ever. The stock has gained 27.50% over the past 12 months and 38.61% over the last three months.
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