Companies /Technology

Teradyne Inc

NASDAQ: TER Semiconductor Equipment & Materials

Q2 2025 Earnings

Reported Jul 30, 2025, 7:00am ET · SEC source
$0.57
Beat +14.00%
EPS · est. $0.50
$651.8M
Beat +0.16%
Revenue · est. $650.8M
+11.0%
Beating market
TER vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+6%+12%+18%Jul 30Jul 31report 7:00am ETearnings+0.2%+13.7%
0+6%+12%+18%Jul 30Jul 31earnings+0.2%+13.7%
TER +13.7%S&P 500 +0.2%
0+6%+12%+18%Jul 30Jul 31report 7:00am ETearnings+0.2%+13.7%
0+6%+12%+18%Jul 30Jul 31earnings+0.2%+13.7%
TER +13.7%NASDAQ +0.2%
−7%0+7%+14%Jul 29Aug 7report 7:00am ETearnings+0.0%+11.4%
−7%0+7%+14%Jul 29Aug 7earnings+0.0%+11.4%
TER +11.4%S&P 500 +0.0%
−7%0+7%+14%Jul 29Aug 7report 7:00am ETearnings+0.5%+11.4%
−7%0+7%+14%Jul 29Aug 7earnings+0.5%+11.4%
TER +11.4%NASDAQ +0.5%
−0.20%
Day of report
−3.04%
Next session
−0.90%
One week
+12.27%
30 days

S&P 500 over the same 30 days: +1.30%.

Did TER Beat Earnings? Q2 2025 Results

Teradyne delivered a modest but clean beat in Q2 2025, with revenue of $651.80 million and non-GAAP EPS of $0.57 edging past consensus estimates of $650.79 million and $0.54, respectively, the latter by 5.91%. The results came despite a 10.7% year-over-year revenue decline from Q2 2024's $729.90 million, a drop largely tied to a prior-year period inflated by a $57.50 million gain on the DIS business sale. The real story was inside the Semiconductor Test segment, which generated $492.00 million in revenue as AI-driven demand for System-on-a-Chip testing emerged as the quarter's clearest growth catalyst, a theme that caught the attention of analysts and prompted at least one firm to raise its price target meaningfully following results. Management's forward guidance reinforced the improving trajectory, with Q3 revenue projected between $710.00 million and $770.00 million and non-GAAP EPS of $0.69 to $0.87, as CEO Greg Smith pointed to strengthening demand across compute, networking, and memory as drivers of an expected second-half acceleration.

Key Takeaways
  • Semiconductor Test Group drove better than expected Q2 results
  • System-on-a-Chip (SOC) testing for AI applications was the strongest growth driver
  • Strengthening demand in compute, networking, and memory

“Our Semiconductor Test Group drove better than expected results in the second quarter. System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver.”

Teradyne CEO, on the earnings call

Forward Guidance & Outlook

Teradyne guided Q3 2025 revenue of $710 million to $770 million, GAAP EPS of $0.62 to $0.80, and non-GAAP EPS of $0.69 to $0.87. Management noted that visibility into the remainder of the year has improved, with demand in compute, networking, and memory strengthening. AI is expected to drive strong second half performance, though exact timing of program ramps and capacity additions remains uncertain.

TER YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$300.0M$600.0M$729.9M$651.8MRevenue$425.9M$373.0MGross Profit$210.3M$90.7MOperating Income$186.3M$78.4MNet Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

TER Revenue by Segment

Semiconductor Test$492.0M
Product Test$85.0M
Robotics$75.0M

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