TERADYNE, INC (TER): Results of Operations and Financial Condition
TERADYNE, INC (TER) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Teradyne Reports Second Quarter 2026 Results • Second consecutive quarter of record revenue, exceeding the high end of our Q2 Guidance • Revenue up 104% and earnings up over 300% from Q2’25 • Record Memory revenue driven by continued strength in DRAM and a resurgence
How this was made
The 30-second read
Why it matters
The combination of record revenue/earnings and quantified Q3 guidance (revenue and GAAP/non-GAAP EPS ranges) is actionable for traders adjusting near-term expectations and risk around the earnings call.
Market read
Record Q2 performance and explicit Q3 guidance are likely to drive immediate positioning changes for TER, especially for traders focused on semiconductor test and robotics demand signals.
What to watch
The release emphasizes non-GAAP adjustments and excludes specific items; traders should reconcile GAAP versus non-GAAP trends and watch for any commentary on memory test mix (DRAM/NAND) sustainability.
Second consecutive quarter of record revenue, exceeding the high end of our Q2 Guidance
Teradyne reported record revenue of $1,329 million, up 104% from Q2'25, with GAAP EPS of $2.38 and third-quarter revenue guidance of $1,200 million to $1,300 million. Management cited robust AI-related demand and record Memory revenue.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $ 1,328,990 | – | up 104% |
| Cost of revenuesGAAP | $ 534,372 | – | – |
| Gross profitGAAP | $ 794,618 | – | – |
| Selling and administrative expensesGAAP | $ 192,520 | – | – |
| Engineering and developmentGAAP | $ 156,284 | – | – |
| Acquired intangible assets amortizationGAAP | $ 4,972 | – | – |
| Restructuring and otherGAAP | $ 3,032 | – | – |
| Operating expensesGAAP | $ 356,808 | – | – |
| Income from operationsGAAP | $ 437,810 | – | – |
| Interest and other (income) expenseGAAP | $ (5,809 ) | – | – |
| Income before income taxesGAAP | $ 443,619 | – | – |
| Income tax provisionGAAP | $ 66,788 | – | – |
| Income before equity in net earnings of affiliateGAAP | $ 376,831 | – | – |
| Equity in net earnings of affiliateGAAP | $ (1,946 ) | – | – |
| Consolidated net incomeGAAP | $ 374,885 | – | – |
| Net income attributable to noncontrolling interestsGAAP | $ 352 | – | – |
| Net income attributable to TeradyneGAAP | $ 374,533 | – | earnings up over 300% from Q2'25 |
| Basic earnings per common share attributable to TeradyneGAAP | $ 2.39 | – | – |
| Diluted earnings per common share attributable to TeradyneGAAP | $ 2.38 | – | – |
| Weighted average common shares - basicGAAP | 156,470 | – | – |
| Weighted average common shares - dilutedGAAP | 157,693 | – | – |
| Cash dividend declared per common shareGAAP | $ 0.13 | – | – |
| Net income attributable to Teradynenon-GAAP | $389.0 million | – | – |
| Net income attributable to Teradyne per diluted sharenon-GAAP | $2.47 | – | – |
| Provision for excess and obsolete inventoryGAAP | $ 3,599 | – | – |
| Inventory step-upGAAP | — | – | – |
| Sale of previously written down inventoryGAAP | $ (563 ) | – | – |
| ERP system implementation expensesGAAP | $2.5 million | – | – |
| Acquisition and divestiture related expensesGAAP | $ 1,532 | – | – |
| Employee severanceGAAP | $ 1,404 | – | – |
| Asset impairmentGAAP | — | – | – |
| Other restructuring and other expensesGAAP | $ 96 | – | – |
| Pension actuarial losses (gains)GAAP | $ (157 ) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Semiconductor TestRecord Memory revenue driven by continued strength in DRAM and a resurgence in NAND final test. | $1,122 million | – | – |
| Product TestManagement said year-on-year market expansion occurred across all three business groups. | $107 million | – | – |
| RoboticsManagement said year-on-year market expansion occurred across all three business groups. | $100 million | – | – |
third quarter of 2026 outlook
- Revenue$1,200 million to $1,300 million
- NoteGAAP net income attributable to Teradyne of $1.79 to $2.09 per diluted share
- Notenon-GAAP net income attributable to Teradyne of $1.85 to $2.15 per diluted share
- NoteNon-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.
Capital returns
- Cash dividend declared per common share: $ 0.13
What drove it
- Second consecutive quarter of record revenue.
- Record Memory revenue driven by continued strength in DRAM and a resurgence in NAND final test.
- Management said its strategy to capture test and robotics opportunities from wafer to AI data center drove another record quarter.
- Third-quarter guidance reflects robust AI-related demand.
- Management said rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond.
Concerns
- Third-quarter revenue guidance is $1,200 million to $1,300 million, compared with reported second-quarter revenue of $1,329 million.
- The filing identifies risks including macroeconomic slowdowns, decreased or delayed demand from significant customers, supply shortages, tariffs, export controls, geopolitical conflicts, and the ability to grow the Robotics business.
- Selling and administrative expenses included $2.5 million of expenses directly related to an ERP system implementation.
What to watch
- Delivery against third-quarter revenue guidance of $1,200 million to $1,300 million.
- AI-related demand cited in management's third-quarter outlook.
- Continued DRAM strength and the resurgence in NAND final test supporting Memory revenue.
- The pace of wafer fab equipment investment and management's outlook for growth in 2027 and beyond.
- Robotics business growth.
Analysis
Teradyne reported a second consecutive quarter of record revenue. Net revenues were $ 1,328,990, compared with $ 651,797 in the prior-year quarter and $ 1,282,494 in the prior quarter. The company characterized revenue as up 104% from Q2'25. Semiconductor Test contributed $1,122 million, Product Test contributed $107 million, and Robotics contributed $100 million.
Profitability expanded substantially from the prior-year quarter. Gross profit was $ 794,618 versus $ 373,012, while income from operations was $ 437,810 versus $ 90,743. GAAP net income attributable to Teradyne was $ 374,533, or $2.38 per diluted share, compared with $ 78,372 and $0.49 per diluted share in Q2'25. Non-GAAP net income attributable to Teradyne was $389.0 million, or $2.47 per diluted share.
Compared with the preceding quarter, revenue increased from $ 1,282,494 to $ 1,328,990, while gross profit increased from $ 780,949 to $ 794,618. Income from operations was $ 437,810 compared with $ 473,002 in the first quarter, and GAAP diluted earnings per share were $2.38 compared with $2.53. Operating expenses were $ 356,808, compared with $ 307,947 in the prior quarter, including $ 192,520 of selling and administrative expense and $ 156,284 of engineering and development expense.
Management identified record Memory revenue, continued DRAM strength, and a resurgence in NAND final test as important demand drivers. It also said all three business groups experienced year-on-year market expansion. The release frames AI-related demand as robust in the near term and cites increasing wafer fab equipment investment as a basis for continued growth in 2027 and beyond.
For the third quarter of 2026, Teradyne guided to revenue of $1,200 million to $1,300 million, GAAP net income attributable to Teradyne of $1.79 to $2.09 per diluted share, and non-GAAP net income attributable to Teradyne of $1.85 to $2.15 per diluted share. Capital returns disclosed in the provided filing text consist of a cash dividend declared per common share of $ 0.13. Investors should monitor execution against the revenue range, the durability of Memory demand, AI-related demand, and progress in Robotics.
Management, verbatim
Our strategy to capture test and robotics opportunities from wafer to AI data center has driven another record quarter. This strength became evident in the year-on-year market expansion for all three of our business groups,
Greg Smith, Teradyne CEO
In the short term, our Q3 guidance reflects robust AI-related demand. Looking further ahead, rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond.
Greg Smith, Teradyne CEO
Not in the filing
stated, not guessed- GAAP gross margin
- non-GAAP gross margin
- GAAP operating margin
- non-GAAP operating income
- non-GAAP operating margin
- cash balance
- debt balance
- operating cash flow
- free cash flow
- share repurchases
- share repurchase authorization
- cash dividend payment date
- forward gross-margin guidance
- forward operating-expense guidance
- forward tax-rate guidance
- previous-quarter outlook for comparison
- numeric year-over-year and quarter-over-quarter revenue changes for each operating segment
- complete interest and other (income) expense detail, as the provided filing text is truncated
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with Exhibit 99.1 reporting Teradyne’s Q2 2026 results and providing Q3 2026 guidance.
Ticker impact
Teradyne reported Q2 2026 revenue of $1,329M and guided Q3 revenue to $1,200M to $1,300M with EPS ranges.
Likely positive bias into the next session as guidance and record revenue/earnings confirm strength, though the stock may still react to the midpoint versus expectations.
The filing includes both reported Q2 results (revenue, GAAP and non-GAAP EPS) and forward guidance for Q3 (revenue and GAAP/non-GAAP EPS ranges), which are direct inputs to valuation and positioning.
Market effects
Strength in semiconductor test and robotics demand signals continued capex and automation tailwinds for the broader test and factory-automation supply chain.
Limited direct regional read-through beyond US-listed semiconductor equipment sentiment.
AI data-center and wafer-fab equipment investment commentary supports global semiconductor equipment demand expectations into 2027.
Counterpoint
AI-related demand may be front-loaded into Q3, and the guidance range could still disappoint if consensus expected a higher midpoint.
Key entities
- companyTeradyne, Inc.
Reports Q2 2026 results and issues Q3 2026 revenue and EPS guidance tied to AI-related demand.
