Live: Will Teradyne Stock Rally After Q1 Earnings Tonight?

Levels to Watch at the Open

With Teradyne (NASDAQ:TER) off roughly 9% after-hours from a $380.13 close, the first reference is the 50-day moving average at $327.31. Below that, the $344.59 average analyst target becomes a magnet. Upside reclaim level: $402.

Will the Move Hold?

History argues for a bounce attempt: TER’s average day-of reaction is -1.08%, but the one-week average is +6.09%. The Q2 guide deceleration is the wildcard.

Overnight Catalysts

The 8:30 AM ET call commentary on AI compute, China export controls, and order linearity can flip sentiment. Expect sell-side downgrades or target trims by 7 AM given a forward P/E near 67.

Volume and Volatility

Plan for elevated open volume, wide spreads, and added risk on a 1.79 beta name.

However, keep in mind that Teradyne shares are already recovering from their initial 12% drop, so Wall Street could come to the defense of the stock with management having already telegraphed a slowdown in the back half of the year.

The guidance reaction is the entire story tonight. Teradyne (NASDAQ:TER) just reported Q1 EPS of $2.56 on revenue of $1.28 billion, yet shares are down roughly 12% after-hours because the Q2 outlook implies a sharp sequential slowdown.

Guidance vs. The Whisper

Management guided Q2 revenue of $1.15 billion to $1.25 billion and non-GAAP EPS of $1.86 to $2.15. The midpoint barely clears the Street’s $1.95 EPS and $1.19 billion revenue consensus, and the high end sits below what Q1 just delivered.

That is the bombshell: after a 107.77% year-to-date run, investors were positioned for a raise well above whisper numbers. The full-year framework was maintained rather than raised. Key assumption holding it back is the company’s own warning of slower second-half growth, with AI compute strength insufficient to offset normalization elsewhere. Watch the call for any walk-up of the full-year framework.

Well, it didn’t take long to find the fly in the ointment in Teradyne’s earnings. Here’s what the company said about guidance:

“Guidance for the second quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.83 to $2.12 per diluted share and non-GAAP net income of $1.86 to $2.15 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.”

Earlier we had covered what Wall Street expected next quarter:

“Wall Street expects EPS of $1.95 next quarter on sales of $1.19 billion. While Teradyne has signaled its growth will slow in the back half of the year, the company will likely need to guide a good bit above this level for investors to be happy with its results.”

So, Teradyne exceeded these expectations, but they do represent a steep deceleration. The company has warned that growth would slow in the second half of the year, but this level of deceleration is likely a surprise and below ‘whisper numbers’ on Wall Street.

Headed into Teradyne’s earnings, we had seen nothing but good results after-hours, but investors aren’t happy with what they see.

Earnings of $2.56 crushed expectations of $2.11 while revenue of $1.28b came in well ahead of expectations as well.

We noted the bar had been raised for tonight’s earnings with Teradyne shares rallying throughout 2026, we’ll continue looking at why shares are seeing such a pronounced decline after-hours. 

Teradyne results are expected a little before 4:30 p.m. ET.

We’ll update this live blog once they hit.

Bloom Energy and Seagate have already reported stunning results tonight and are up 13% and 10%, respectively. So it’s been a good night for AI earnings already.

Teradyne (NASDAQ:TER) shares fell 5.44% intraday to $380.12 ahead of tonight’s post-close release, cooling a run that has the stock higher by 423.18% over the past year and 107.77% year-to-date.

KPIs That Matter

• Semiconductor Test revenue, $883M last quarter, is the AI tell.
• Non-GAAP operating margin held 29% in Q4, setting a high bar.
• Robotics trajectory after the ~400-employee 2025 restructuring.

Beat/Miss Triggers

Management guided revenue of $1.15B to $1.25B with non-GAAP EPS of $1.89 to $2.25. Teradyne has beaten EPS estimates in 8 consecutive quarters, including a 30.43% surprise last quarter. Clearing the high end could extend the rally; falling beneath risks profit-taking against a forward P/E of 67, especially with the average analyst target at $344.59, already below the current quote.

The big numbers to watch when Teradyne reports tonight are:

• Revenue: Wall Street expects $1.21 billion
• EPS: Wall Street estimates $2.11 in adjusted earnings

The reality is Teradyne shares are up more than 80% year-to-date, so the company likely will need to surpass both these numbers if shares are going to rise after hours. More important than this quarter’s numbers will be guidance.

Wall Street expects EPS of $1.95 next quarter on sales of $1.19 billion. While Teradyne has signaled its growth will slow in the back half of the year, the company will likely need to guide a good bit above this level for investors to be happy with its results.