Teradyne soars on strong results and outlook, company sees Q4 adjusted EPS guidance of $1.20 to $1.46
Teradyne is up more than 15% in premarket trading on Wednesday after the semiconductor manufacturing company reported better-than-expected Q3 results and bumped its outlook for the rest of the year.
Revenue for the latest quarter came in at $769 million, surpassing analysts’ expectations for $745 million (estimates compiled by Bloomberg), driven by strong sales from its Semiconductor Test division.
“Growth was driven primarily by System-on-a-Chip (SOC) solutions for artificial intelligence applications and strong performance in memory. As we look ahead to Q4, AI-related test demand remains robust across compute, networking and memory segments,” CEO Greg Smith said in the press release.
The company now expects adjusted earnings per share in the fourth quarter to fall between $1.20 and $1.46, way ahead of analyst estimates for $1.05, driven by strong AI-related test demand. Revenue is expected to come in between $920 million and $1 billion.
The outlook “implies the highest revenue on a quarterly basis for the company since 2Q21,” per JPMorgan analysis cited by Bloomberg, which added that the “key focus of investors would be the sustainability of the high levels of demand implied in the 4Q25 guide.”
The company also named Michelle Turner as its new CFO on Tuesday, effective November 3, as its current CFO, Sanjay Mehta, prepares for retirement.
