Companies /Technology

Teradyne Inc

NASDAQ: TER Semiconductor Equipment & Materials

Q3 2025 Earnings

Reported Oct 29, 2025, 7:00am ET · SEC source
$0.85
Beat +7.59%
EPS · est. $0.79
$769.2M
Beat +3.41%
Revenue · est. $743.9M
+7.1%
Beating market
TER vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0Oct 29Oct 30report 7:00am ETearnings−0.7%+0.2%
−6%−3%0Oct 29Oct 30earnings−0.7%+0.2%
TER +0.2%S&P 500 −0.7%
−6%−3%0Oct 29Oct 30report 7:00am ETearnings−0.9%+0.2%
−6%−3%0Oct 29Oct 30earnings−0.9%+0.2%
TER +0.2%NASDAQ −0.9%
−16%−8%0+8%Oct 28Nov 6report 7:00am ETearnings−1.5%+10.2%
−16%−8%0+8%Oct 28Nov 6earnings−1.5%+10.2%
TER +10.2%S&P 500 −1.5%
−16%−8%0+8%Oct 28Nov 6report 7:00am ETearnings−1.9%+10.2%
−16%−8%0+8%Oct 28Nov 6earnings−1.9%+10.2%
TER +10.2%NASDAQ −1.9%
+1.69%
Day of report
+2.76%
Next session
+4.60%
One week
+7.38%
30 days

S&P 500 over the same 30 days: +0.25%.

Did TER Beat Earnings? Q3 2025 Results

Teradyne delivered a convincing beat across the board in Q3 2025, with revenue of $769.21 million topping the $743.85 million consensus by 3.41% and non-GAAP EPS of $0.85 clearing the $0.79 estimate by 7.45%, capping a quarter that arrived at the high end of guidance. The primary engine was the Semiconductor Test segment, which generated $606.00 million in revenue as surging demand for AI-driven System-on-a-Chip test solutions and memory test systems drove volume well above internal targets. Year-over-year revenue growth came in at 4.3%, a measured but steady pace that belies the sharper acceleration management is now projecting. <a href="https://247wallst.com/investing/2025/10/28/live-complete-teradynes-q3-earnings-coverage/">Q4 guidance tells the larger story</a>, with Teradyne forecasting revenue of $920 million to $1.00 billion, roughly 27% above the year-ago quarter, and non-GAAP EPS of $1.20 to $1.46, as CEO Greg Smith cited broad-based AI test demand spanning compute, networking, and memory as the catalyst for that expected sequential surge.

Key Takeaways
  • Semiconductor Test Group exceeded expectations, driving sales and profit to high end of Q3 guidance
  • Growth driven primarily by SOC solutions for artificial intelligence applications
  • Strong performance in memory test
  • AI-related demand in Compute and Memory expected to grow in Q4 2025

“Our Semiconductor Test Group delivered third quarter sales that exceeded expectations, driving company sales and profit to the high end of our Q3 guidance range. Growth was driven primarily by System-on-a-Chip (SOC) solutions for artificial intelligence applications and strong performance in memory. As we look ahead to Q4, AI-related test demand remains robust across compute, networking and memory segments. Q4'25 sales are expected to increase 25% sequentially and 27% from Q4'24.”

Teradyne CEO, on the earnings call

Forward Guidance & Outlook

Teradyne provided Q4 2025 guidance of $920 million to $1,000 million in revenue, representing approximately 25% sequential growth and 27% year-over-year growth. GAAP EPS guidance is $1.12 to $1.39 per diluted share, and non-GAAP EPS guidance is $1.20 to $1.46 per diluted share. The strong outlook is driven by robust AI-related test demand across compute, networking, and memory segments.

TER YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$300.0M$600.0M$737.3M$769.2MRevenue$436.5M$449.3MGross Profit$152.1M$145.3MOperating Income$145.6M$119.6MNet Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

TER Revenue by Segment

Semiconductor Test$606.0M
Product Test$88.0M
Robotics$75.0M

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