Teradyne reported a sharp year-over-year increase in third-quarter revenue and earnings, with results above the high end of its guidance. The test-equipment maker said demand tied to artificial intelligence supported growth across semiconductor testing and other parts of its business, while its robotics segment also returned to profitability.
Revenue was $1.306 billion for the quarter ended Sept. 27, up 70% from a year earlier but slightly below the $1.329 billion recorded in the second quarter. Teradyne forecast fourth-quarter revenue of $1.25 billion to $1.35 billion.
Key details
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Earnings rose substantially from a year earlier. GAAP net income was $342.4 million, or $2.17 per diluted share, compared with earnings per share of $0.75 in the third quarter of 2025. On a non-GAAP basis, net income was $359.9 million, or $2.29 per share, versus $0.85 a year earlier.
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Most revenue came from semiconductor testing. The segment generated $1.072 billion. Product Test contributed $138 million, and Robotics contributed $96 million.
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AI-related demand extended across several product areas. Teradyne said Memory and Integrated Systems Test achieved record revenue, with demand spanning memory and hard-disk-drive testing as well as high-speed interconnect products.
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Robotics reached a milestone. The segment posted its highest third-quarter revenue to date and was profitable. Teradyne did not provide a robotics profit figure in the results release.
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Fourth-quarter guidance points to revenue near the third-quarter level. Teradyne expects revenue of $1.25 billion to $1.35 billion, GAAP diluted earnings per share of $1.88 to $2.18, and non-GAAP diluted earnings per share of $1.95 to $2.25.
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The non-GAAP figures exclude certain costs. For the third quarter, those adjustments included acquired-intangible amortization, restructuring and other charges, and related tax effects. The fourth-quarter non-GAAP guidance also excludes amortization related to Teradyne’s investment in Technoprobe, along with the associated tax impact.
Plain-English implications
The results show strong year-over-year growth, led by semiconductor testing, while Robotics added a profitable business line. Revenue and per-share earnings were lower than in the second quarter, and the fourth-quarter revenue range spans both below and above the third-quarter result.