Teradyne (NASDAQ:TER) shares climbed 4.4% in pre-market trading after the semiconductor testing equipment manufacturer reported a second consecutive quarter of record revenue and issued third-quarter guidance that significantly exceeded Wall Street expectations, extending gains that began in after-hours trading following the earnings release.
The company reported its second-quarter 2026 results after the market closed on July 28, posting adjusted earnings per share of $2.47. The figure exceeded analyst expectations of approximately $2.06 by $0.41. Revenue reached $1.33 billion, outperforming the consensus estimate of $1.22 billion and more than doubling from the same period a year earlier with 104% year-over-year growth.
Q3 Forecast Tops Wall Street Expectations
The strongest driver behind the market’s reaction was Teradyne’s outlook for the third quarter of 2026.
The company forecast revenue between $1.2 billion and $1.3 billion, with the midpoint standing roughly 21% above analysts’ consensus estimate of $1.03 billion. Teradyne also projected adjusted earnings per share of between $1.85 and $2.15, comfortably ahead of the market expectation of $1.44.
CEO Greg Smith said “our Q3 guidance reflects robust AI-related demand,” adding that accelerating investment in wafer fabrication equipment is expected to support continued expansion through 2027 and beyond.
AI Demand Continues to Drive Growth
Teradyne’s Semiconductor Test division remained the company’s largest revenue contributor during the quarter, generating $1.122 billion.
The business benefited from record Memory performance across both DRAM and NAND final testing, while operating margin improved sharply to 32.9%, compared with 13.9% in the same quarter last year.
Company Performance Outshines Broader Market
Teradyne’s gains came despite a largely muted broader market backdrop. The S&P 500 traded broadly flat, the Dow Jones Industrial Average was little changed, and the NASDAQ slipped around 0.3%, highlighting that investor enthusiasm was driven primarily by the company’s earnings report and outlook.
Investors are also looking ahead to Teradyne’s earnings conference call scheduled for 8:30 a.m. ET, where management is expected to provide additional insight into the sustainability of AI-driven demand for semiconductor testing equipment, as well as the outlook for the Robotics business.
The combination of a substantial earnings beat, revenue guidance well above consensus and management’s positive comments on AI infrastructure spending helped lift the stock above its previous closing price of $320.65, with shares reaching $334.88 in pre-market trading.
Teradyne stock price
