EarningsQ3 2026 Earnings Report
MX:TER Q3 2026 EPS Results
Actual EPS$43.02
Consensus EPS$39.21
Beat/MissBeat by +$3.81
One Year Ago EPS$15.97
MX:TER Q3 2026 Revenue Results
Actual Revenue$24.53B
Expected Revenue$23.82B
Beat/MissBeat by +$715.17M
YoY Revenue Growth+69.77%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeAfter Close
Conference CallTuesday, October 27, 2026
MX:TER Upcoming Earnings
Teradyne's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TER Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record revenue and EPS, broad AI-driven growth across all business groups, record memory and robotics results, strong cash flow, expanding backlog and positive 2027 expectations. The main challenges were mobile remaining below historical levels, quarterly and compute-program timing variability, near-term robotics visibility, CPO ramp uncertainty, supply-chain lead times and product-mix and inflationary pressure on margins. Highlights significantly outweighed lowlights.Company Guidance
Record Quarterly Revenue and EPS Growth
Third-quarter revenue topped $1.3 billion, up 70% year over year and consistent quarter over quarter, while non-GAAP EPS was $2.29, up over 150% year over year. Revenue and non-GAAP EPS were both above the high end of guidance.
Strong Nine-Month Results
For the first nine months of 2026, Teradyne delivered $3.9 billion in revenue and $7.31 of non-GAAP EPS, up over 85% and 235% year over year, respectively, driven by All Things AI.
AI Demand Across the Portfolio
AI-driven revenue represented more than 60% of total revenue. All three business groups—Semi Test, Product Test and Robotics—grew versus the prior year, and Teradyne stated that its wafer-to-data-center strategy is delivering results.
Semiconductor Test Exceeded $1 Billion
Semi Test revenue exceeded $1 billion, up 77% from the third quarter of 2025. Revenue consisted of $676 million from SoC, $301 million from memory and $95 million from IST.
Compute and Auto/Industrial Growth
Compute revenue grew nearly 50% year over year on continued AI-related demand. Auto and industrial revenue increased nearly 90% year over year, driven primarily by power-management demand for AI data-center build-outs.
Record Memory Revenue and HBM Momentum
Memory revenue reached a record $301 million, exceeding the previous record set in the prior quarter and marking the fourth consecutive quarter above $200 million. Growth was driven by robust HBM and DRAM test-solutions demand and a resurgence in NAND. Management expects significant year-over-year memory growth in 2027, with HBM identified as the largest growth contributor.
IST Reached a New Revenue Record
IST revenue reached a new record of $95 million, up approximately 150% from the prior year, supported by continued strength in AI-related HDD storage demand from all three major suppliers.
Product Test Broad-Based Growth and Strong Book-to-Bill
Product Test revenue was $138 million, up 56% year over year, with growth across production board test, optical and high-speed interconnect applications tied to AI infrastructure build-outs. Book-to-bill was 1.4x, with particular strength from MultiLane Test Products JV.
Robotics Reached Record Third-Quarter Revenue and Profitability
Robotics revenue was $96 million, up 28% year over year. The group delivered its highest third-quarter revenue ever and achieved profitability during the quarter, supported by demand for robot-assisted testing and assembly across the data-center value chain.
Portfolio Expansion Beyond Compute
Outside of compute, the rest of Teradyne's portfolio delivered close to 80% of overall sales in the quarter. Automotive and industrial product revenue grew from less than $400 million in 2025 to over $600 million in 2026.
New Product Introductions Addressing AI and Advanced Testing
Teradyne introduced the UltraPin 5000XM with up to 80x deeper memories than its current instrument, the UltraVolt 64HP for accelerators consuming up to 15,000 amps, and the UltraPort PCIe6, described as the industry's first ATE solution for PCIe Gen6. It also introduced KRONOS 100 for optical testing, new Titan burn-in capabilities, UltraFLEXplus S for edge-AI devices and the Magnum V2 next-generation DRAM tester.
Expanded Capacity and Dual-Vendor Progress
Teradyne said its primary UltraFLEX Plus SoC test-platform capacity is approximately 4x the level of 18 months ago and that it is planning another capacity step-up. A second contract manufacturer was qualified for the platform in 2026, with dual-vendor qualification underway for the memory test platform. Customer dual-vendor programs are progressing, including one mature hyperscaler program, a merchant GPU customer in the fast-follower phase and a second hyperscaler in fast follower after qualification.
Networking, Storage and Interconnect Opportunities
Networking devices are growing proportionately with compute, while NPO and CPO markets are expected to grow strongly from a small base. HDD nearline-storage demand drove annual exabyte growth above 20% in 2026, and the addition of a third major customer contributed to HDD test-revenue expansion. MultiLane's TDR and BERT equipment benefited from higher data rates in copper backplanes and cable spines.
Open Ecosystem Partnerships
Teradyne is working with Technoprobe and ficonTEC and announced a partnership with FormFactor to address optical testing and other opportunities. The company described its open, nonexclusive ecosystem of probing, handling and interface partners as a way to validate complete test-cell solutions and provide customers with more interoperability and supply-chain control.
Physical AI and Robotics Partnerships
Teradyne introduced the Universal Robots Gen7 cobot platform and tailored Polyscope X for electronics assembly work cells. The Robotics Group has partnerships with NVIDIA, Analog Devices, Intrinsic AI, Generalist, Bright Machines and Se-Ro. Management said the robotics opportunity pipeline is expanding and expects robust growth from its largest customer in 2027.
Healthy Gross Margin and Operating Profitability
Third-quarter gross margin was 59.1%, up 60 basis points year over year. Non-GAAP operating income was $413 million, representing a 31.6% operating margin. Full-year 2026 gross margin is expected to be approximately 59.4%, up about 110 basis points year over year.
Strong Cash Flow and Capital Position
Cash and investments ended the quarter at $625 million, up 21% from the prior quarter. Quarterly free cash flow was $227 million, while nine-month free cash flow was $806 million, up nearly 250% from the prior-year period. Teradyne paid $20 million in dividends and repurchased $99 million of shares.
Continued Investment in Growth
Teradyne expects to invest close to $1 billion across R&D and CapEx in 2026, with R&D investment representing a double-digit percentage of sales. Management said reinvesting in the business remains the top capital-allocation priority while also maintaining cash for dividends, share repurchases and accretive M&A.
Positive Fourth-Quarter and 2027 Outlook
Fourth-quarter revenue guidance is $1.25 billion to $1.35 billion and non-GAAP EPS guidance is $1.95 to $2.25. The midpoint of revenue guidance represents approximately 20% growth over the fourth quarter of last year and would bring full-year 2026 revenue to approximately $5.2 billion, up over 60%. Management expects another year of healthy growth in 2027, with each quarter expected to grow compared with 2026.
Growing Visibility and Backlog
Management said visibility has expanded from the historical 13 weeks to a couple of quarters, supported by strong backlog exiting 2026. The company expects Q1 to show some level of growth and said demand signals remain strong into 2027.
Expanded Long-Term ATE and Hyperscaler Opportunity
Management said the previously modeled $12 billion to $14 billion ATE TAM has grown very quickly and that it is developing an updated model against a much larger ATE TAM. The company expects 2027 to be a good year for hyperscaler programs and 2028 to be even better, while pursuing additional engagements with hyperscalers and AI labs.
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