Teradyne Beats Q3 Estimates on AI Test Demand as Stock Slides 6%

Teradyne (TER) reported third-quarter 2026 revenue of $1,306 million, up about 70% from $769 million a year earlier, with non-GAAP earnings of $2.29 per diluted share against a consensus of about $2.06. GAAP earnings were $2.17 per share. Shares fell about 6% after the release despite the beat.

Management tied the strength to AI. The company said it posted record revenue in Memory and Integrated Systems Test "driven by all things AI," and its CEO said demand extended across the AI value chain, from memory and hard disk drive test to high-speed interconnect and robotics. Results came in above the high end of the company's own guidance.

By segment, Semiconductor Test brought in $1,072 million, Product Test $138 million and Robotics $96 million, which was its highest third-quarter revenue to date and a profitable quarter. Semiconductor Test therefore made up roughly four-fifths of total revenue. Revenue edged down from $1,329 million in the second quarter.

For the fourth quarter, Teradyne guided revenue to $1,250 million to $1,350 million and non-GAAP EPS to $1.95 to $2.25, with GAAP EPS of $1.88 to $2.18. The midpoints of about $1.3 billion and $2.10 sat above analyst consensus of roughly $1.28 billion and $2.03, per one report, so the stock drop is not explained by a guide below expectations, and none of the sources says why shares fell. What to watch: whether sequential revenue stays near $1.3 billion, how concentrated results remain in Semiconductor Test, and whether Robotics profitability holds.