Teradyne posts strong Q3 2026 results and raises Q4 guidance

Teradyne reported third‑quarter 2026 revenue of $1.306 billion, a 69.8% year‑over‑year increase, and net income of $342.4 million, up 186.4% YoY. Diluted earnings per share rose to $2.17 from $0.75 a year earlier. The company guided Q4 gross margins to 57.5%‑58.5% of sales and operating expenses to 28.5%‑29.5% of sales, and noted inventory has risen by $200 million over the past six months while the memory business is expected to grow strongly in 2027.

The earnings beat and higher‑margin guidance suggest improved profitability, which may lift TER’s share price. The inventory build and guidance on margins give investors a clearer view of near‑term cash flow and cost structure.

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