Live: Complete Teradyne’s Q3 Earnings Coverage
Key Points
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Wall Street expects Q3 FY2025 EPS of $0.79 on $744 million in revenue, implying a modest –12% EPS contraction YoY before a major FY2026 recovery.
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Management says AI compute and HBM memory will drive most of Semi Test revenue in 2H25, marking a demand inflection.
Live Updates
Guidance, Guidance, Guidance
Why is Teradyne up so much after hours? It’s thanks to the company’s guidance.
Wall Street expected $816 million in revenues next quarter. Teradyne just guided to $920 million to $1 billion in sales next quarter.
That’s a massive beat.
Teradyne Just Reported Q3 Earnings and Is Up 19%: Here's the Main Figures From Their Release
Teradyne just reported their Q3 earnings and shares immediately popped 19%, here’s all the need to know figures:
TER | Teradyne Q3’25 Earnings Highlights:
- Adj. EPS: $0.85 [✅]; [DOWN] -5.56% YoY
- Revenue: $769.2M [✅]; [UP] +4% YoY
- Adj. Gross Margin: 58.5% [✅]; [UP] +13 bps YoY
- Net Income: $119.6M [✅]; [DOWN] -17.88% YoY
Q4’25 Outlook:
- Revenue: $920M to $1,000M [➖]
- Guidance reflects strong demand in AI-related testing across compute, networking, and memory segments.
- Q4’25 sales are expected to increase 25% sequentially and 27% from Q4’24.
Q3 Segment Performance:
- Semiconductor Test Revenue: $606M [✅]
- Product Test Revenue: $88M [✅]
- Robotics Revenue: $75M [✅]
Other Key Q3 Metrics:
- Adj. Operating Income: $156.9M [✅]; [UP] +59.3% YoY
- Adj. Operating Expenses: $304.0M [✅]; [UP] +7.5% YoY
- Free Cash Flow: $49.1M; [DOWN] -70.5% YoY
- Effective Tax Rate: 15.7% (vs. 7.7% YoY)
- Cash Dividend Declared: $0.12 per share
CEO Commentary:
- Greg Smith: “Our Semiconductor Test Group delivered third quarter sales that exceeded expectations, driving company sales and profit to the high end of our Q3 guidance range. 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. Q4’25 sales are expected to increase 25% sequentially and 27% from Q4’24.”
Teradyne's Numbers
Here’s what Teradyne reported in Q3:
- Revenue: $769 million (versus expectations of $743.9 million )
- Adjusted EPS: $.85 (versus expectations of $.79)
Teradyne Shares Lift Off
Teradyne just dropped their earnings and shares are up 19% immediately.
We will continue updating this live blog, stay tuned.
Where Are Teradyne's Earnings?
If you’re joining the blog and wondering where Teradyne’s earnings are, the company isn’t expected to report until 5:05 p.m. ET.
Keep this blog open as we’ll post live earnings analysis the moment their earnings hit the news wires. Updates will post automatically as long as you leave this page open!.
Teradyne closed down 2.12%
Teradayne ended the trading session down over 2% with earnings up next, expected at 5:05 PM ET.
The stock is has seen heavy options interest which could be a big catalyst on how strong the share price will move when earnings come out.
Teradyne (NASDAQ: TER | TER Price Prediction) reports fiscal Q3 2025 results tonight with investors watching for confirmation that the AI-driven test recovery is broadening beyond semiconductors.
The company beat expectations in Q2 with EPS of $0.57 vs. $0.54 est. and revenue of $651.8 million, driven by strength in AI compute system-on-chip (SOC) testing and better utilization across Semi Test lines. CEO Greg Smith said demand in AI compute “has strengthened and forecasts are materializing into orders,” adding that Teradyne has turned the corner from mobile weakness to AI compute-led growth.
Semi Test revenue reached $492 million, with SOC accounting for $397 million. Management expects AI compute and memory to represent “the majority of semi test revenue in the second half,” supported by record UltraFLEXplus system demand and a newly secured HBM4 memory test win. Robotics also improved sequentially, up 9%, and is on track for its first major customer ramp in 2026.
What to Expect When Teradyne Reports
| Metric | Consensus | YoY Growth |
|---|---|---|
| Revenue | $743.9 million | +0.9% |
| EPS (Normalized) | $0.79 | –12.1% |
| FY2025 Revenue | $2.90 billion | +2.7% |
| FY2025 EPS | $3.13 | –2.6% |
| FY2026 Revenue | $3.48 billion | +20.2% |
| FY2026 EPS | $4.58 | +45.9% |
Key Areas to Watch
1. AI Compute & GPU Test Expansion – Teradyne’s SOC test business is riding AI’s surge. Compute now represents ~20% of SOC revenue and is on pace to dominate 2H25 results. The company’s UltraFLEXplus platform is winning new AI and networking sockets, and management said it’s competing for merchant GPU test slots, a multi-billion-dollar TAM it hasn’t accessed in 20 years.
2. Memory Testing and HBM4 Demand – HBM4-related test equipment orders are ramping, driven by AI memory integration. CEO Smith confirmed new wins in both post-stack wafer and singulated die test steps, which could expand TAM through longer test cycles.
3. Robotics Segment Recovery – The reorganization combining Universal Robots (UR) and MiR under a unified sales and service structure is showing early progress, with Q2 robotics revenue up 9% sequentially. A “plan of record” decision from a major customer is expected to meaningfully lift 2026 results.
4. Margin Trajectory – CFO Sanjay Mehta guided Q3 gross margins of 56.5–57.5%, roughly flat QoQ, with non-GAAP operating profit projected at 19.5%. Watch for early signals of a return toward the 59–60% range as volume ramps and product mix normalizes.
5. Long-Term Mix Shift and AI Design Wins – Management reiterated that AI compute and verticalization are now the company’s main growth engines. Visibility has improved significantly versus 90 days ago, with major design wins in both memory and SOC carrying into FY2026
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
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