Key Highlights

  • Consensus EPS of 2.09 compares with reported second-quarter diluted EPS of 2.38, against 0.49 a year earlier.
  • Consensus revenue of USD 1.27 billion compares with second-quarter revenues of USD 1,328,990 thousand, against USD 651,797 thousand.
  • Semiconductor Test revenues rose USD 629.9 million, or 128.1%, driven primarily by AI-related compute and memory sales.
  • Operating income was USD 437,810 thousand against USD 90,743 thousand, and gross profit was USD 794,618 thousand.

Teradyne (NASDAQ:TER) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 2.09 on revenue of USD 1.27 billion, and the company has a market capitalization of USD 48.31 billion.

Teradyne reports Semiconductor Test, Product Test and Robotics operations, and its quarter ended June 28, 2026. Revenues were USD 1,328,990 thousand against USD 651,797 thousand, and net income attributable to the company was USD 374,533 thousand against USD 78,372 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 2.09 is below the diluted EPS of 2.38 reported for the second quarter, which compared with 0.49 a year earlier, and the estimates table does not state its EPS basis. The revenue estimate of USD 1.27 billion is below the USD 1,328,990 thousand reported.

Basic EPS was 2.39 against 0.49. Income before income taxes was USD 443,619 thousand against USD 96,559 thousand, and the effective tax rate was 15.1% against 12.7%.

Segment Revenue and AI Demand

Semiconductor Test revenues were USD 1,121,825 thousand against USD 491,878 thousand. The filing attributes the USD 629.9 million, or 128.1%, increase primarily to higher compute and memory sales for artificial intelligence applications, and describes the segment's revenue as a new record high.

Product Test revenues rose USD 22.1 million, or 26.0%, on AI-related demand and growth in defense and aerospace. Robotics revenues rose USD 25.0 million, or 33.4%, primarily from collaborative robotic arms and autonomous mobile robots.

Taiwan accounted for 40% of revenues against 35%, and Korea for 20% against 7%.

Cost of Revenues, Gross Profit and Operating Expenses

Cost of revenues was USD 534,372 thousand against USD 278,785 thousand, and gross profit was USD 794,618 thousand against USD 373,012 thousand. Selling and administrative expenses were USD 192,520 thousand against USD 157,782 thousand.

Engineering and development expenses were USD 156,284 thousand against USD 118,382 thousand, and total operating expenses were USD 356,808 thousand against USD 282,269 thousand. Interest expense was USD 2,964 thousand against USD 805 thousand.

Cash Flow, Capital Returns and Balance Sheet

For the six months, net cash provided by operating activities was USD 734,262 thousand against USD 343,726 thousand, and purchases of property, plant and equipment were USD 155,439 thousand against USD 114,429 thousand. The company repurchased 0.2 million shares for USD 74.2 million and paid a quarterly dividend of 0.13 per share.

Cash and cash equivalents were USD 349,538 thousand against USD 293,751 thousand at the prior year-end, and accounts receivable were USD 1,109,711 thousand against USD 786,913 thousand. Total assets were USD 4,925,617 thousand against USD 4,183,599 thousand. The estimates table lists a market capitalization of USD 48.31 billion.

Items to Track in the Report

Diluted EPS against 2.09 and revenues against USD 1.27 billion are the headline comparisons. Other markers are Semiconductor Test revenues, gross profit and engineering and development expenses.