Teradyne Stock (TER) Soars 22% as AI Drives Q3 Beat and Robust Q4 Guidance

Teradyne (TER) stock jumped 22% in Wednesday’s pre-market trading as the maker of chip-testing equipment announced better-than-expected third-quarter results and robust fourth-quarter guidance, thanks to artificial intelligence (AI)-led demand. The company also announced the appointment of Michelle Turner as its CFO, effective November 3, replacing Sanjay Mehta. Notably, Mehta has served as Teradyne’s CFO since 2019. 

Teradyne Delivers Q3 Beat and Strong Outlook

Teradyne’s Q3 revenue grew 4.3% year-over-year to $769.21 million, surpassing the Street’s estimate of $744.13 million. Meanwhile, Q3 adjusted earnings per share (EPS) declined 5.6% to $0.85 but exceeded analysts’ consensus estimate of $0.79. The company attributed its Q3 results to the strength in its Semiconductor Test Group.

Teradyne CEO Greg Smith stated that Q3 growth was driven primarily by demand for System-on-a-Chip (SOC) solutions for AI applications and the strong performance in the memory business.

Meanwhile, Teradyne expects Q4 2025 sales (at the midpoint of its guidance range) to increase 25% sequentially and 27% year-over-year, driven by AI-related test demand across its compute, networking, and memory segments.

Specifically, Teradyne expects Q4 2025 revenue in the range of $920 million to $1.0 billion, ahead of the Street’s expectation of $815.3 million. Meanwhile, the company expects its fourth-quarter adjusted EPS to be in the range of $1.20 to $1.46, ahead of the consensus estimate of $1.03.

Is TER Stock a Good Buy?

Wall Street has a Moderate Buy consensus rating on Teradyne stock based on eight Buys, four Holds, and two Sell recommendations. The average TER stock price target of $143.92 indicates that shares are fully priced at current levels.

However, these ratings and price targets are expected to be revised as more analysts react to the solid Q3 results and guidance.

See more TER analyst ratings