Teradyne Reports Third Quarter 2026 Results
TERADYNE, INC (TER) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Teradyne Reports Third Quarter 2026 Results • Revenue up 70% and earnings up over 150% from Q3'25, exceeding the high end of our Q3 Guidance • Record revenue in Memory and Integrated Systems Test driven by all things AI • Robotics delivered its highest third quarter
How this was made
The 30-second read
Why it matters
The earnings beat and solid guidance may attract momentum traders and reinforce long positions in the test equipment niche.
Market read
Teradyne's results underscore robust AI‑related demand, likely buoying related semiconductor and automation stocks.
What to watch
Potential supply‑chain constraints or slower AI spending could temper growth despite strong Q3 numbers.
Teradyne Reports Third Quarter 2026 Results
Revenue was up 70% and earnings were up over 150% from Q3'25, results exceeded the high end of Q3 guidance, and the company cited record Memory and Integrated Systems Test revenue driven by AI demand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenues (In thousands)GAAP | $1.31B | – | up 70% |
| Q3 2026 cost of revenues (In thousands)GAAP | $534.7M | – | – |
| Q3 2026 gross profit (In thousands)GAAP | $771.3M | – | – |
| Q3 2026 gross profit as a percentage of net revenuesGAAP | 59.1 % | – | – |
| Q3 2026 gross profit as a percentage of net revenuesnon-GAAP | 59.1 % | – | – |
| Q3 2026 selling and administrative expenses (In thousands)GAAP | $199.0M | – | – |
| Q3 2026 engineering and development expenses (In thousands)GAAP | $163.1M | – | – |
| Q3 2026 acquired intangible assets amortization (In thousands)GAAP | $5.25M | – | – |
| Q3 2026 restructuring and other (In thousands)GAAP | $2.00M | – | – |
| Q3 2026 operating expenses (In thousands)GAAP | $369.3M | – | – |
| Q3 2026 income from operations (In thousands)GAAP | $402.0M | – | – |
| Q3 2026 income from operations as a percentage of net revenuesGAAP | 30.8 % | – | – |
| Q3 2026 income from operations (In millions)non-GAAP | $412.9M | – | – |
| Q3 2026 non-GAAP income from operations as a percentage of net revenuesnon-GAAP | 31.6 % | – | – |
| Q3 2026 income tax provision (In thousands)GAAP | $59.83M | – | – |
| Q3 2026 consolidated net income (In thousands)GAAP | $347.7M | – | – |
| Q3 2026 net income attributable to Teradyne (In thousands)GAAP | $342.4M | – | – |
| Q3 2026 net income attributable to Teradyne as a percentage of net revenuesGAAP | 26.2 % | – | – |
| Q3 2026 net income attributable to Teradyne (In millions)non-GAAP | $359.9M | – | – |
| Q3 2026 non-GAAP net income attributable to Teradyne as a percentage of net revenuesnon-GAAP | 27.6 % | – | – |
| Q3 2026 basic earnings per common share attributable to TeradyneGAAP | $ 2.19 | – | – |
| Q3 2026 diluted earnings per common share attributable to TeradyneGAAP | $ 2.17 | – | – |
| Q3 2026 non-GAAP basic earnings per common share attributable to Teradynenon-GAAP | $ 2.30 | – | – |
| Q3 2026 non-GAAP diluted earnings per common share attributable to Teradynenon-GAAP | $ 2.29 | – | – |
| Q3 2026 weighted average common shares - dilutedGAAP | 157,502 | – | – |
| Q3 2026 cash dividend declared per common shareGAAP | $ 0.13 | – | – |
| Nine months ended September 27, 2026 net revenues (In thousands)GAAP | $3.92B | – | – |
| Nine months ended September 27, 2026 gross profit (In thousands)GAAP | $2.35B | – | – |
| Nine months ended September 27, 2026 income from operations (In thousands)GAAP | $1.31B | – | – |
| Nine months ended September 27, 2026 net income attributable to Teradyne (In thousands)GAAP | $1.12B | – | – |
| Nine months ended September 27, 2026 diluted earnings per common share attributable to TeradyneGAAP | $ 7.08 | – | – |
| Nine months ended September 27, 2026 non-GAAP net income attributable to Teradyne (In millions)non-GAAP | $1.15B | – | – |
| Nine months ended September 27, 2026 non-GAAP diluted earnings per common share attributable to Teradynenon-GAAP | $ 7.31 | – | – |
| Q3 2026 net cash provided by operating activities (In thousands)GAAP | $313.6M | – | – |
| Nine months ended September 27, 2026 net cash provided by operating activities (In thousands)GAAP | $1.05B | – | – |
| Q3 2026 purchases of property, plant and equipment (In thousands)GAAP | −$86.32M | – | – |
| Nine months ended September 27, 2026 purchases of property, plant and equipment (In thousands)GAAP | −$241.8M | – | – |
| Q3 2026 repurchase of common stock (In thousands)GAAP | −$99.26M | – | – |
| Q3 2026 dividend payments (In thousands)GAAP | −$20.31M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Semiconductor TestDemand extended across the AI value chain, from memory and hard disk drive test to high-speed interconnect. | $1.07B | – | – |
| Product TestNo segment-specific driver was reported. | $138M | – | – |
| RoboticsRobotics delivered its highest third quarter revenue to date and achieved profitability; management cited demand in robotics. | $96M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter of 2026 outlook
- Revenue$1,250 million to $1,350 million
- NoteGAAP net income attributable to Teradyne of $1.88 to $2.18 per diluted share
- NoteNon-GAAP net income attributable to Teradyne of $1.95 to $2.25 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
- Q3 2026 repurchase of common stock: $ (99,264 ) (In thousands).
- Nine months ended September 27, 2026 repurchase of common stock: $ (173,502 ) (In thousands).
- Q3 2026 dividend payments: $ (20,314 ) (In thousands).
- Nine months ended September 27, 2026 dividend payments: $ (61,024 ) (In thousands).
- Cash dividend declared per common share for Q3 2026: $ 0.13.
What drove it
- Record revenue in Memory and Integrated Systems Test was driven by all things AI.
- Management said demand extended across the AI value chain, including memory, hard disk drive test, high-speed interconnect and robotics.
- The company said its wafer to data center strategy and portfolio breadth sustained positive momentum in Q3.
- Robotics achieved profitability and its highest third quarter revenue to date.
Concerns
- Q3 2026 revenue of $ 1,305,950 (In thousands) was below Q2 2026 revenue of $ 1,328,990.
- Q3 2026 GAAP income from operations of $ 401,968 (In thousands) was below Q2 2026 income from operations of $ 437,810.
- Q3 2026 GAAP diluted earnings per share of $ 2.17 was below Q2 2026 GAAP diluted earnings per share of $ 2.38.
- The company identified macroeconomic slowdowns, delayed significant-customer demand, product development and acceptance, supply shortages, tariffs, export controls and geopolitical conflicts among its risk factors.
What to watch
- Fourth-quarter revenue guidance of $1,250 million to $1,350 million.
- Fourth-quarter GAAP net income attributable to Teradyne guidance of $1.88 to $2.18 per diluted share.
- Fourth-quarter non-GAAP net income attributable to Teradyne guidance of $1.95 to $2.25 per diluted share.
- Continuation of AI-related demand across memory, hard disk drive test and high-speed interconnect.
- Sustained Robotics profitability and revenue momentum.
- Inventory balance of $ 574,992 (In thousands) and accounts receivable balance of $ 1,110,798 (In thousands) as of September 27, 2026.
Balance sheet and cash flow
- Cash and cash equivalents as of September 27, 2026: $ 460,742 (In thousands), compared with $ 293,751 as of December 31, 2025.
- Marketable securities as of September 27, 2026: $ 5,847 (In thousands) current and $ 158,276 (In thousands) non-current.
- Short-term debt as of September 27, 2026: —, compared with 200,000 as of December 31, 2025.
- Accounts receivable, net as of September 27, 2026: $ 1,110,798 (In thousands), compared with $ 786,913 as of December 31, 2025.
- Inventories, net as of September 27, 2026: $ 574,992 (In thousands), compared with $ 379,552 as of December 31, 2025.
- Total assets as of September 27, 2026: $ 5,449,193 (In thousands), compared with $ 4,183,599 as of December 31, 2025.
- Total liabilities as of September 27, 2026: $ 1,712,232 (In thousands), compared with $ 1,387,847 as of December 31, 2025.
- Total Teradyne shareholders' equity as of September 27, 2026: $ 3,687,896 (In thousands), compared with $ 2,795,752 as of December 31, 2025.
- Q3 2026 net cash used for investing activities: $ (97,159 ) (In thousands).
- Q3 2026 net cash used for financing activities: $ (104,697 ) (In thousands).
Analysis
Teradyne reported Q3 2026 net revenues of $ 1,305,950 (In thousands), compared with $ 769,210 in Q3 2025 and $ 1,328,990 in Q2 2026. The release stated that revenue was up 70% from Q3'25 and that results exceeded the high end of Q3 guidance. Semiconductor Test contributed $1,072 million of revenue, Product Test contributed $138 million, and Robotics contributed $96 million. Management attributed the performance to demand across the AI value chain and said Memory and Integrated Systems Test set revenue records.
GAAP gross profit was $ 771,276 (In thousands), with gross profit as a percentage of net revenues of 59.1 %, versus 58.4 % in Q3 2025 and 59.8 % in Q2 2026. GAAP income from operations was $ 401,968 (In thousands), or 30.8 % of net revenues, compared with $ 145,303 and 18.9 % in Q3 2025. Non-GAAP income from operations was $ 412.9 million, or 31.6 % of net revenues. The year-over-year improvement occurred alongside higher selling and administrative expenses and engineering and development expenses, while restructuring and other expense was $ 1,997 (In thousands), below $ 6,585 in Q3 2025.
GAAP net income attributable to Teradyne was $ 342,407 (In thousands), or $ 2.17 per diluted share, compared with $ 119,558 and $ 0.75 per diluted share in Q3 2025. Non-GAAP net income attributable to Teradyne was $ 359.9 million, or $ 2.29 per diluted share, compared with $ 135.9 million and $ 0.85 per diluted share a year earlier. Sequentially, revenue, operating income, and GAAP and non-GAAP diluted EPS were below their Q2 2026 reported values.
Cash generation was $ 313,614 (In thousands) of operating cash flow in Q3 and $ 1,047,875 (In thousands) for the nine months ended September 27, 2026. The company repurchased $ (99,264 ) (In thousands) of common stock and paid $ (20,314 ) (In thousands) of dividends during Q3. Cash and cash equivalents ended the period at $ 460,742 (In thousands), while short-term debt was —. Receivables and inventories stood at $ 1,110,798 (In thousands) and $ 574,992 (In thousands), respectively.
For Q4 2026, Teradyne guided revenue to $1,250 million to $1,350 million, GAAP net income attributable to Teradyne to $1.88 to $2.18 per diluted share, and non-GAAP net income attributable to Teradyne to $1.95 to $2.25 per diluted share. The guidance places AI-related test demand and the durability of Robotics profitability at the center of the next-quarter setup. Management also identified macroeconomic conditions, customer demand timing, supply chain conditions, tariffs, export controls and geopolitical conflicts as risks to forward-looking results.
Management, verbatim
Our wafer to data center strategy and the breadth of our portfolio sustained positive momentum in Q3.
Greg Smith, CEO
Demand extended across the AI value chain, from memory and hard disk drive test to high-speed interconnect and robotics, driving results above the high end of our guidance.
Greg Smith, CEO
With multiple growth engines across test and robotics, we approach 2027 with a more diversified business and an expanding set of opportunities.
Greg Smith, CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, comparison of actual Q3 2026 results with prior guidance is unavailable.
- Q3 2026 segment revenue prior-year and prior-quarter comparisons were not reported for Semiconductor Test, Product Test, or Robotics.
- Q4 2026 gross margin guidance was not reported.
- Q4 2026 operating expenses guidance was not reported.
- Q4 2026 tax rate guidance was not reported.
- Free cash flow was not reported.
- Long-term debt was not reported.
AlphAI 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
Teradyne's Q3 2026 earnings beat expectations, driven by AI‑related test demand across memory, HDD, and robotics.
Ticker impact
Teradyne reported Q3 2026 revenue of $1.306 B and GAAP EPS of $2.17, beating its own guidance and issuing Q4 guidance of $1.25‑$1.35 B revenue.
likely support as investors price in the strong earnings and provided guidance
Revenue jumped 70% YoY and earnings rose over 150% YoY, with record memory and robotics sales; guidance remains at the high end of expectations, suggesting continued upside.
Market effects
Highlights strength in semiconductor test and industrial robotics, reinforcing bullish sentiment for test equipment and automation sectors.
Positive for U.S. technology earnings landscape and may lift related peers in the test equipment space.
Shows continued AI‑driven demand for test equipment worldwide, supporting broader tech sector optimism.
Counterpoint
If the guidance is already priced in, any shortfall in Q4 could trigger a pullback.
Key entities
- ExecutiveGreg Smith
CEO of Teradyne, quoted on the company's AI‑driven momentum.
