Teradyne (TER) Q1 2025 Earnings
How Did TER Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.88%.
Did TER Beat Earnings? Q1 2025 Results
Yes. Teradyne reported Q1 2025 earnings of $0.75 a share on Apr 29, 2025, beating the $0.62 consensus estimate by 21.0%. Revenue was $685.7M against a $680.5M estimate.
Teradyne opened 2025 with a strong first quarter, posting earnings per share of $0.75 against a consensus estimate of $0.62, a beat of 21.83%, while revenue of $685.68 million edged past the $680.54 million consensus and grew 14.3% year over year. The primary engine behind the results was Semiconductor Test, which contributed $543.00 million of the quarter's total revenue, with SOC testing for mobile applications identified as the strongest growth driver within that segment. GAAP gross margin expanded meaningfully to 60.6% from 56.6% a year earlier, reflecting improved operating leverage and a favorable revenue mix. The company also announced an aggressive expansion of its share repurchase program, lifting the 2025 target to up to $1.00 billion to be completed by end of 2026, having already bought back $157.47 million in Q1. Looking ahead, Teradyne guided Q2 revenue to a range of $610.00 million to $680.00 million, with non-GAAP EPS of $0.41 to $0.64, a wide range that reflects CEO Greg Smith's candid acknowledgment of limited second-half visibility amid evolving trade policy uncertainty.
- Strong year-over-year growth driven by Semiconductor Test
- System-on-a-Chip (SOC) for Mobile was the strongest growth driver
- GAAP gross margin expanded to 60.6% from 56.6% in Q1 2024
- Non-GAAP operating margin improved to 20.5% from 14.8% year-over-year
“Teradyne delivered 14% year-over-year growth in the first quarter driven by strong results in Semiconductor Test. System-on-a-Chip (SOC), primarily for Mobile, was the strongest growth driver.”
Teradyne CEO, on the earnings call
What Was Teradyne's Outlook in Q1 2025?
Q2 2025 guidance calls for revenue of $610 million to $680 million, GAAP EPS of $0.35 to $0.58, and non-GAAP EPS of $0.41 to $0.64. CEO noted limited visibility in the second half of the year with trade policy impacts on end-market demand still in flux. Despite current market uncertainty, the company believes it is well positioned for long-term demand drivers of AI, electrification, and verticalization.
TER YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $685.7M | $599.8M | +14.3% |
| Gross Profit | $415.3M | $339.3M | +22.4% |
| Operating Income | $120.8M | $77.8M | +55.3% |
| Net Income | $98.9M | $64.2M | +54.1% |
TER Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.