Teradyne Reports Strong Third Quarter 2026 Results, Driven by AI Demand and Robotics Growth
Teradyne, Inc, a global provider of automated test equipment and advanced robotics solutions, has reported revenue of $1.306 billion for the third quarter of 2026, reflecting strong demand across its semiconductor testing, product testing, and robotics businesses. The company’s performance was supported by growing opportunities throughout the artificial intelligence (AI) value chain, including memory testing, hard disk drive testing, high-speed interconnects, and robotics.
Of the total revenue reported for the quarter, the Semiconductor Test segment contributed $1.072 billion, while Product Test generated $138 million. The Robotics segment accounted for the remaining $96 million, demonstrating the company’s presence across multiple technology markets.
On a Generally Accepted Accounting Principles (GAAP) basis, Teradyne reported net income attributable to the company of $342.4 million, equivalent to $2.17 per diluted share. On a non-GAAP basis, net income reached $359.9 million, or $2.29 per diluted share. The non-GAAP results exclude acquired intangible asset amortization, restructuring and other charges, and the associated tax impact of these adjustments.
AI Demand Supports Business Momentum
Teradyne CEO Greg Smith highlighted the company’s strategic progress and strong quarterly performance, emphasizing the importance of its wafer-to-data-center strategy and diversified product portfolio.
According to Smith, demand remained positive across several areas of the AI ecosystem during the third quarter. Opportunities in memory testing, hard disk drive testing, high-speed interconnect technology, and robotics contributed to results that exceeded the upper end of the company’s previously issued guidance.
Smith also noted that Teradyne’s combination of semiconductor testing capabilities and robotics solutions provides multiple avenues for future expansion. With a broader range of growth opportunities emerging across its businesses, the company expects to enter 2027 with a more diversified operating model and an expanding market opportunity.
The results highlight the increasing importance of testing technologies and automation as semiconductor complexity rises and demand for AI-related infrastructure continues to create opportunities across the technology industry.
Fourth Quarter 2026 Financial Outlook
Teradyne has provided its financial outlook for the fourth quarter of 2026, projecting revenue between $1.25 billion and $1.35 billion. The guidance reflects the company’s expectations for continued business activity across its operating segments.
The company expects GAAP net income attributable to Teradyne to range from $1.88 to $2.18 per diluted share. On a non-GAAP basis, earnings are projected to be between $1.95 and $2.25 per diluted share.
The non-GAAP earnings guidance excludes acquired intangible asset amortization, amortization related to Teradyne’s investment in Technoprobe, and the associated tax effects of these adjustments.
These projections provide investors with an indication of management’s near-term expectations as Teradyne continues to pursue opportunities in semiconductor testing, electronics testing, and advanced robotics. Actual results may differ from the company’s estimates due to market conditions, customer demand, supply chain developments, and other business risks.
Conference Call and Webcast Details
Teradyne will discuss its third-quarter 2026 financial performance and business outlook during a conference call scheduled for October 28, 2026, at 8:30 a.m. Eastern Time.
Investors and other interested participants can access the webcast through the company’s official website at www.teradyne.com by navigating to the Investors section. Participants are encouraged to access the webcast at least five minutes before the scheduled start time.
Presentation materials will be available beginning at 7:30 a.m. Eastern Time on the day of the call. Following the event, a replay will be accessible through the company’s investor relations website at www.teradyne.com/investors.
The conference call is expected to provide additional information about the company’s financial results, operational performance, market conditions, and expectations for the coming quarter.
Understanding Teradyne’s Non-GAAP Financial Results
In addition to reporting financial results under GAAP, Teradyne provides selected non-GAAP performance measures to offer investors further insight into its underlying operating performance.
These measures exclude certain items, including acquired intangible asset amortization, restructuring and other expenses, enterprise resource planning (ERP)-related expenses, inventory step-up costs, pension mark-to-market adjustments, pension actuarial gains and losses, discrete income tax adjustments, and the related tax impact of non-GAAP adjustments.
Although these expenses and adjustments are included in GAAP financial statements, management believes that presenting supplementary non-GAAP results can help investors better evaluate the company’s ongoing business performance.
Teradyne uses these measures to support operational decision-making, employee compensation determinations, forecasting, and comparisons with internal business plans, historical results, and competitors.
The company also believes these disclosures provide greater transparency into the financial information management considers when assessing business performance. They can help investors compare results across reporting periods by highlighting performance before certain items that may not reflect the company’s underlying operations.
Reconciliations between GAAP and non-GAAP financial measures are provided in the accompanying financial exhibits and through Teradyne’s website. Investors can visit the Investor Relations section and select Financials to locate the relevant GAAP-to-non-GAAP reconciliation materials.
Teradyne cautions that its non-GAAP measures may differ from similarly titled measures used by other companies. These measures should therefore be considered alongside, rather than as a replacement for, the company’s GAAP financial results.
About Teradyne
Teradyne, Inc. designs, develops, and manufactures automated test equipment and advanced robotics systems for customers worldwide. Its semiconductor and electronics testing solutions help manufacturers evaluate product performance and maintain quality standards across increasingly complex technologies.
The company’s robotics portfolio includes collaborative robots and autonomous mobile robots designed to support manufacturing, material handling, and warehouse operations. These solutions serve organizations of different sizes and help businesses improve automation and operational efficiency.
By combining semiconductor testing expertise with advanced robotics technologies, Teradyne serves markets that are important to the development of AI infrastructure, electronic devices, and automated industrial operations.
For additional information about the company and its products, visit www.teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the United States and other countries.
Forward-Looking Statements and Business Risks
Teradyne’s announcement contains forward-looking statements concerning its future business prospects, financial performance, financial position, and operating results. Such statements may include terms such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” and “estimate.”
These statements include the company’s financial guidance and expectations for future business performance. They are subject to risks and uncertainties that could cause actual outcomes to differ materially from current projections.
Potential risks include changes in macroeconomic conditions, weaker or delayed customer demand, delays in developing or delivering new products, challenges in expanding the Robotics business, increased research and development expenses, supply chain disruptions, and the effects of epidemics or pandemics.
Other factors include the outcome of mergers and acquisitions, unexpected cash requirements, changes in tax regulations, tariffs, export controls, restrictions affecting semiconductor technologies, and geopolitical conflicts. Regulatory developments in the United States and China could also influence Teradyne’s ability to serve certain markets and customers.
The company notes that these risks are not exhaustive and encourages investors to review its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, for additional information about potential risk factors.
Teradyne cautions investors against placing undue reliance on forward-looking statements, which reflect expectations only as of the date of the announcement. The company disclaims any obligation to update these statements, except where required by applicable law.
Overall, Teradyne’s third-quarter 2026 results demonstrate the contribution of AI-related demand and its diversified technology portfolio, while its fourth-quarter guidance outlines management’s expectations for continued business activity amid evolving market conditions.
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