New: Introducing the Finviz Crypto Map

Learn More

Why Teradyne Stock Soared 18.9% Today

By Johnny Rice | July 30, 2025, 6:15 PM

Key Points

  • The company reported its Q2 earnings, beating most of Wall Street's targets.

  • Guidance for Q3 EPS missed forecasts, but revenue projections suggest a second-half rebound driven by AI.

Shares of Teradyne (NASDAQ: TER) jumped on Wednesday, finishing the day up 18.9%. The spike comes as the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) fell slightly.

Teradyne, an electronics testing company, released mostly better-than-expected earnings today, leading to a prominent analyst maintaining their "overweight" rating for the stock.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Teradyne beats in the second quarter (mostly)

The company's reported earnings per share (EPS) and revenue figures both slightly topped expectations. Analysts had estimated $0.54 per share on sales of $651 million. Teradyne delivered $0.57 per share on sales of $651 million. While the company surpassed expectations for the quarter, its top line fell by 11% year over year (YOY).

Looking ahead, the company expects sales for Q3 of between $710 million and $770 million, above Wall Street targets. It did miss, however, on its EPS guidance. The company set a range of between $0.69 and $0.87, well below the expected $0.89.

A computer chip up close.

Image source: Getty Images.

CEO Greg Smith said he expects AI-related testing to drive growth: "As we progress through the third quarter, we are gaining confidence in AI compute-related revenue inflecting in the second half of the year."

Teradyne has room to grow

Impressed by the performance and not phased by the lower-than-expected earnings guidance, Cantor Fitzgerald analysts maintained their Overweight rating, citing AI growth prospects. I agree. I think AI-related chip testing could drive major growth over the next few years.

Should you invest $1,000 in Teradyne right now?

Before you buy stock in Teradyne, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Teradyne wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,075,791!*

Now, it’s worth noting Stock Advisor’s total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends Teradyne. The Motley Fool has a disclosure policy.

Mentioned In This Article

Latest News