Companies /Technology

Teradyne Inc

NASDAQ: TER Semiconductor Equipment & Materials

Q1 2025 Earnings

Reported Apr 29, 2025, 7:30am ET · SEC source
$0.75
Beat +20.97%
EPS · est. $0.62
$685.7M
Beat +0.75%
Revenue · est. $680.5M
+0.2%
Beating market
TER vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Apr 29Apr 30report 7:30am ETearnings−0.3%−9.0%
−8%−4%0Apr 29Apr 30earnings−0.3%−9.0%
TER −9.0%S&P 500 −0.3%
−8%−4%0Apr 29Apr 30report 7:30am ETearnings−0.4%−9.0%
−8%−4%0Apr 29Apr 30earnings−0.4%−9.0%
TER −9.0%NASDAQ −0.4%
−8%−4%0Apr 28May 7report 7:30am ETearnings+1.8%−4.6%
−8%−4%0Apr 28May 7earnings+1.8%−4.6%
TER −4.6%S&P 500 +1.8%
−8%−4%0+4%Apr 28May 7report 7:30am ETearnings+2.4%−4.6%
−8%−4%0+4%Apr 28May 7earnings+2.4%−4.6%
TER −4.6%NASDAQ +2.4%
−0.91%
Day of report
−0.58%
Next session
+1.19%
One week
+7.11%
30 days

S&P 500 over the same 30 days: +6.88%.

Did TER Beat Earnings? Q1 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$200.0M$400.0M$600.0M$599.8M$685.7MRevenue$339.3M$415.3MGross Profit$77.8M$120.8MOperating Income$64.2M$98.9MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

TER Revenue by Segment

Semiconductor Test$543.0M
Product Test$74.0M
Robotics$69.0M

Figures from SEC filings and company reports. Not investment advice.