The company said fourth-quarter earnings growth was driven by strong AI-related demand in compute and memory.
- The company reported revenue of $1.08 billion for the quarter, 44% higher than the same period last year, and well above analyst estimates of $970.5 million.
- Teradyne CEO Greg Smith said that in 2026, the company expects year-over-year growth across all of its businesses, with strong momentum in compute, driven by AI.
- Teradyne’s revenue guidance for the first quarter of 2026 is $1.15 billion to $1.25 billion.
Shares of Teradyne (TER) rallied more than 20% during extended hours of trading on Monday after the company posted fourth quarter (Q4) earnings that beat analyst estimates, according to data from Fiscal.ai.
The company said Q4 growth was driven by strong AI-related demand in compute and memory.
Upbeat Results
Teradyne’s net income in Q4 2025 was $283.0 million, or $1.80 per diluted share, jumping nearly 90% from the year-ago quarter and surging past analyst estimates of $1.36 per share, as per Fiscal.ai.
The company reported revenue of $1.08 billion for the quarter, 44% higher than the same period last year, and well above analyst estimates of $970.5 million. Of the total revenue, $883 million came from its Semiconductor Test segment, $110 million came from Product Test, and $89 million from Robotics.
“Our Q4 results were above the high end of our guidance range, fueled by AI-related demand in compute, networking and memory within our Semi Test business. Across all of our business groups – Semi Test, Product Test, and Robotics – we experienced sequential growth, and at the company level we achieved 13% growth in 2025,” said Teradyne CEO, Greg Smith.
Outlook
The company provided guidance for the first quarter of 2026, with revenue expectations of $1.15 billion to $1.25 billion, and adjusted net income of $1.89 to $2.25 per diluted share.
“In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI,” Smith said.
Upbeat Analyst
Earlier on Monday, Evercore ISI raised the price target on Teradyne to $280 from $200 and kept an ‘Outperform’ rating on the shares.
The firm said that it believes the fundamentals on Teradyne are positive, as it sees multiple paths for upside to estimates, according to TheFly. With near-term strength in compute, and high bandwidth memory test revenue as well as 2026 growth led continued strength in compute, with added benefit from potential market share gain in merchant GPU, the analyst told investors in a research note.
How Did Stocktwits Users React?
Retail sentiment around TER trended in ‘extremely bullish’ territory amid ‘extremely high’ message volumes.
Shares of the company have jumped 122% over the past 12 months.
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