EarningsQ2 2026 Earnings Report
MX:TER Q2 2026 EPS Results
Actual EPS$44.70
Consensus EPS$37.89
Beat/MissBeat by +$6.80
One Year Ago EPS$10.31
MX:TER Q2 2026 Revenue Results
Actual Revenue$24.05B
Expected Revenue$22.07B
Beat/MissBeat by +$1.98B
YoY Revenue Growth+103.99%
Earnings Announcement Details
QuarterQ2 2026
Date07/28/2026
TimeAfter Close
Conference CallTuesday, July 28, 2026
MX:TER Upcoming Earnings
Teradyne's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:TER Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong, broad-based operational and financial momentum driven by AI demand—record revenue, substantial YoY EPS gains, robust cash flow, and multiple end-market expansions. Management reinforced confidence in multiyear TAM growth and midterm share gains while signaling continued investment and a tightened but cautious near-term guide. Key near-term risks include product-mix and memory-driven margin pressure, inventory buildup, supply-chain/qualification timing, and uncertainty in some emerging TAM estimates (e.g., CPO and silicon photonics). Overall, positives around revenue, margins (YoY), cash generation and AI-driven demand outweigh the flagged near-term headwinds and uncertainties.Company Guidance
Record Revenue and Earnings
Total company revenue topped $1.3 billion (Q2 2026), up over 100% year-over-year. Non-GAAP EPS was $2.47, up over 300% year-over-year. First half 2026 revenue was $2.6 billion and non-GAAP EPS was $5.02 (approximately +100% and +275% YoY, respectively).
AI as Primary Growth Driver
More than 60% of revenue was AI-driven, cited as the key proof point for the wafer-to-AI data center strategy and the primary engine behind record results and midterm optimism.
Semi Test Strength and Compute Acceleration
Semi Test revenue exceeded $1.0 billion (Q2), up 128% YoY. SoC revenue was $843 million with compute representing ~70% of SoC and compute revenue growing nearly 600% YoY. Management completed correlation with a second hyperscaler and shipped the first merchant GPU order.
Memory Momentum
Memory revenue was $212 million (Q2), a record and the third consecutive quarter over $200 million. Management expects the 2026 memory TAM to be more than 40% larger than 2025 and noted strong HBM and DRAM demand with NAND resurgence and a book-to-bill >2 for the quarter.
IST, Product Test and Robotics Growth
IST revenue was $67 million (Q2), up ~94% YoY and described as ~2.5x quarter-over-quarter on HDD/storage strength. Product Test revenue was $107 million (+26% YoY, +33% QOQ). Robotics revenue was $100 million (+33% YoY, +9% QOQ) with electronics manufacturing/semiconductor up 50% from Q1.
Strong Margins and Operating Profit
Gross margin was 59.8% for the quarter, up 250 basis points YoY (sequential decline of 110 bps attributed to Q1 one-time benefits). Non-GAAP operating income was $448 million with an operating margin of 33.7%.
Robust Cash Flow and Capital Allocation
Ended the quarter with $517 million in cash and investments (up >30% QoQ). Q2 free cash flow was $351 million; first-half free cash flow was $579 million (up 150% YoY). Capital allocation included $20 million in dividends and $69 million in share buybacks; CapEx was $26 million in the quarter.
Narrowed and Strengthened Outlook
Q3 guidance: revenue $1.2B–$1.3B; non-GAAP EPS $1.85–$2.15; gross margin 58%–59%; OpEx ~29%–30% of sales; non-GAAP operating profit rate 28%–30%. Management updated first-half weighting to 50%–52% of annual revenue and noted the second-half outlook has strengthened with increased visibility.
Long-Term TAM and Market Share Opportunity
Management cited long-term WFE forecasts (approaching $250B) and sees a path for overall ATE TAM to reach or exceed $20B by the end of the decade. Company expects to gain share in compute and DRAM/HBM exposure positions it well for midterm growth.
MX:TER Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed