Teradyne (TER) Stock: Test Equipment Manufacturer Rises on AI-Powered Earnings Surpass

Posted on by

TLDR

  • After surpassing Q4 earnings expectations with a revenue of $1.08B, which is 44% higher year-over-year, Teradyne stock leaped 20% in pre-market trading.
  • The company reported a non-GAAP net income of $1.80 per share, outperforming analyst estimates of $1.36 by $0.44.
  • The Q1 2026 guidance came in significantly above expectations, with revenue projected to be between $1.15B and $1.25B compared to the consensus of $966.57M.
  • All three business segments demonstrated growth, with Semiconductor Test leading at $883M in Q4 revenue.
  • AI demand in compute, networking, and memory drove the robust performance, and the company anticipates year-over-year growth across all businesses in 2026.

Teradyne stock soared 20% in pre-market trading on Tuesday after the automated test equipment maker delivered a strong earnings beat and increased its guidance. The company’s Q4 results thoroughly exceeded analyst expectations.

TER Stock Card

Revenue for the quarter reached $1.08B, rising 44% compared to the same period last year. This comfortably exceeded the consensus estimate of $969.33M.

Non-GAAP net income was $1.80 per share, beating the analyst estimate of $1.36 by $0.44. GAAP net income reached $257.2M, or $1.63 per share.