Teradyne's Q2 Earnings Beat Expectations, Driven by AI Chip Testing Demand

Teradyne beats quarterly revenue estimates on robust chip-testing demand

July 29 (Reuters) - Teradyne (TER.O), opens new tab beat Wall Street estimates for second-quarter revenue on Tuesday, helped by steady demand for the company's semiconductor-testing equipment, sending its shares 3.5% higher in extended trading. Companies such as Teradyne, which make testing tools for chips, have seen a surge in demand as semiconductor makers invest in quality control while scaling up capacity to meet an artificial intelligence-led boom. "Visibility into the remainder of the year has improved, and demand in compute, networking and memory is strengthening. The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second half performance for Teradyne," said CEO Greg Smith. Teradyne designs and develops technology for chips and electronic equipment testing, and also sells robotic systems to customers in the manufacturing sector. The company caters to customers such as Qualcomm (QCOM.O), opens new tab and Texas Instruments (TXN.O), opens new tab. The company posted revenue of $651.8 million for the second quarter ended June 29, above the average estimate of $649.9 million, according to data compiled by LSEG. On an adjusted basis, Teradyne earned 57 cents per share, compared with estimates of 54 cents apiece. The semiconductor test segment, Teradyne's largest, posted $492 million in revenue for the quarter. The company forecast third-quarter revenue in the range of $710 million to $770 million, compared with analysts' average estimate of $752.9 million. Reporting by Juby Babu in Mexico City; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Teradyne Stock Leads S&P 500 Gainers After Better-Than-Expected Results

A former Senior Publishing Editor on the Dow Jones Newswires team at The Wall Street Journal, Aaron earned a Bachelor's degree in Economics from the University of Michigan and a Master's in Journalism from Columbia University. Shares of Teradyne (TER) paced S&P 500 advancers Wednesday, a day after the automatic test equipment manufacturer posted strong second-quarter results, paced by gains in its Semiconductor Test Group. The North Reading, Mass.-based firm reported adjusted earnings per share of $0.57, while analysts surveyed by Visible Alpha had anticipated $0.54. Revenue fell nearly 11% year-over-year to $651.8 million but also beat estimates. Semiconductor Test Group revenue of $492 million topped expectations of $488.6 million. Teradyne also generated revenue of $75 million in Robotics and $85 million in its Product Test segment. "System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver," Teradyne CEO Greg Smith said. "Visibility into the remainder of the year has improved, and demand in compute, networking and memory is strengthening. The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second half performance for Teradyne." Teradyne's third-quarter projections of adjusted EPS between $0.69 and $0.87 and revenue of $710 million to $770 million were mostly below estimates but represent sequential growth from Q2. Shares soared about 20% in recent trading but remain more than 12% lower in 2025.

Teradyne Stock Trades Higher Wednesday: What's Going On? - Teradyne (NASDAQ:TER)

Teradyne, Inc. TER shares are trading higher on Wednesday after the company reported better-than-expected second quarter earnings per share and sales. TER stock is on the move, climbing higher. Check the price action here. What To Know: The company reported adjusted earnings per share of 57 cents, beating the consensus estimate of 54 cents. In addition, it reported sales of $651.79 million, beating the consensus estimate of $647.90 million. The company broke down revenue further, reporting $492 million from Semiconductor Test, $85 million from Product Test and $75 million from Robotics. "Our Semiconductor Test Group drove better-than-expected results in the second quarter. System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver," said Teradyne CEO Greg Smith. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started "Visibility into the remainder of the year has improved, and demand in compute, networking and memory is strengthening. The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second-half performance for Teradyne." Q3 Outlook: The company expects GAAP earnings per share from 62 cents to 80 cents, versus the consensus estimate of 87 cents. Furthermore, the company anticipates adjusted earnings per share from 69 cents to 87 cents, versus the consensus estimate of 89 cents. Teradyne sees sales from $710 million to $770 million, versus the consensus estimate of $757.60 million. TER Price Action: Teradyne stock closed up 18.88% at $107.65 on Wednesday, according to data from Benzinga Pro. See Also: * What's Going On With Penske Automotive Stock Today? Image: This illustration was generated using artificial intelligence via Midjourney. TERTeradyne Inc$108.2019.5%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum15.10Growth88.79Quality58.37Value53.56Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Teradyne Stock Soared 18.9% Today | The Motley Fool

Teradyne, an electronics testing company, released mostly better-than-expected earnings today, leading to a prominent analyst maintaining their "overweight" rating for the stock. The company's reported earnings per share (EPS) and revenue figures both slightly topped expectations. Analysts had estimated $0.54 per share on sales of $651 million. Teradyne delivered $0.57 per share on sales of $651 million. While the company surpassed expectations for the quarter, its top line fell by 11% year over year (YOY). Looking ahead, the company expects sales for Q3 of between $710 million and $770 million, above Wall Street targets. It did miss, however, on its EPS guidance. The company set a range of between $0.69 and $0.87, well below the expected $0.89. CEO Greg Smith said he expects AI-related testing to drive growth: "As we progress through the third quarter, we are gaining confidence in AI compute-related revenue inflecting in the second half of the year." Impressed by the performance and not phased by the lower-than-expected earnings guidance, Cantor Fitzgerald analysts maintained their Overweight rating, citing AI growth prospects. I agree. I think AI-related chip testing could drive major growth over the next few years.