Teradyne's stock soars after this 'absolute blowout' forecast that was fueled by AI

MarketWatch

By Emily Bary

The company, which makes equipment for testing semiconductors, gives profit guidance that was about 60% above what analysts were expecting

AI is driving demand for Teradyne's products, which help test chips.

Teradyne just issued an earnings forecast so strong that it wasn't even in the neighborhood of what analysts were expecting, and its stock is soaring.

The company makes equipment that tests semiconductors and circuits, and its business seems well exposed to the different categories of artificial-intelligence chips that are seeing momentum lately. In a sparse press release Monday, Teradyne (TER) noted that its latest results reflected "AI-related demand in compute, networking and memory."

For the fourth quarter, Teradyne posted $1.08 billion in revenue and $1.80 in adjusted earnings per share. Analysts were expecting $977 million in revenue and $1.38 in adjusted EPS, with Evercore ISI analyst Vedvati Shrotre noting that the earnings figure was 30% above the consensus view.

See also: This Micron stock chart is sending an ominous signal, if history is any guide

Teradyne beat by even more with its outlook, as the company is targeting $1.15 billion to $1.25 billion in revenue along with $1.89 to $2.25 in adjusted EPS. Analysts were modeling $958 million in revenue as well as $1.34 in EPS. The midpoint of Teradyne's outlook is 61% above what analysts were expecting, Shrotre wrote.

Shares rose 19% in Monday's extended session.

"We were bullish into this report, but.... wow," Cantor Fitzgerald analyst C.J. Muse said in a note to clients. Extrapolating out Teradyne's fourth-quarter profit performance and first-quarter guidance gets to an annualized run rate of about $8 in adjusted earnings per share, he said. That "compares quite favorably" not just to the consensus view for 2026 but also to what analysts had been expecting for 2027, he added. The FactSet consensus is for $5.74 in adjusted earnings per share this year and $6.41 next year.

He called the report "an absolute blowout and one that highlights [Teradyne's] leverage to AI-related strength across networking, compute and memory."

In double-upgrading Teradyne's stock last fall, Bank of America analyst Vivek Arya predicted a multiyear acceleration fueled in part by the "faster pace of new manufacturing process introduction at TSMC," which has been moving to an annual cadence from a prior timespan of two to three years. Additionally, Arya noted "faster adoption and hence greater testing complexity of AI compute and memory," calling out high-bandwidth memory as well as NAND memory chips.

The market for memory and storage has been especially hot lately, as evidenced by recent earnings guidance from NAND player Sandisk (SNDK) that was about 150% ahead of what analysts were projecting.

Don't miss: Sandisk's stock gets 'one of the most delayed upgrades in history' after blowout earnings

Investors will learn more about Teradyne's business drivers when the company hosts its earnings call at 8:30 a.m. Eastern on Tuesday.

-Emily Bary

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Teradyne Stock Rockets 20% Today – What’s Driving The Rally?

Stocktwits

Teradyne

-4.92%

Shares of Teradyne (TER) rallied more than 20% during extended hours of trading on Monday after the company posted fourth quarter (Q4) earnings that beat analyst estimates, according to data from Fiscal.ai.

The company said Q4 growth was driven by strong AI-related demand in compute and memory.

Upbeat Results

Teradyne’s net income in Q4 2025 was $283.0 million, or $1.80 per diluted share, jumping nearly 90% from the year-ago quarter and surging past analyst estimates of $1.36 per share, as per Fiscal.ai.

The company reported revenue of $1.08 billion for the quarter, 44% higher than the same period last year, and well above analyst estimates of $970.5 million. Of the total revenue, $883 million came from its Semiconductor Test segment, $110 million came from Product Test, and $89 million from Robotics.

“Our Q4 results were above the high end of our guidance range, fueled by AI-related demand in compute, networking and memory within our Semi Test business. Across all of our business groups – Semi Test, Product Test, and Robotics – we experienced sequential growth, and at the company level we achieved 13% growth in 2025,” said Teradyne CEO, Greg Smith.

Outlook

The company provided guidance for the first quarter of 2026, with revenue expectations of $1.15 billion to $1.25 billion, and adjusted net income of $1.89 to $2.25 per diluted share.

“In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI,” Smith said.

Upbeat Analyst

Earlier on Monday, Evercore ISI raised the price target on Teradyne to $280 from $200 and kept an ‘Outperform’ rating on the shares.

The firm said that it believes the fundamentals on Teradyne are positive, as it sees multiple paths for upside to estimates, according to TheFly. With near-term strength in compute, and high bandwidth memory test revenue as well as 2026 growth led continued strength in compute, with added benefit from potential market share gain in merchant GPU, the analyst told investors in a research note.

How Did Stocktwits Users React?

Retail sentiment around TER trended in ‘extremely bullish’ territory amid ‘extremely high’ message volumes.

Shares of the company have jumped 122% over the past 12 months.

Also Read: Snap Shares Are Tumbling Today As Focus Turns To Q4 Earnings – What Are Investors Expecting?

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Teradyne Inc. Q4 Profit Rises

dpa-AFX

Teradyne

-4.92%

WASHINGTON (dpa-AFX) - Teradyne Inc. (TER) released earnings for its fourth quarter that Increases, from the same period last year

The company's earnings totaled $257.220 million, or $1.63 per share. This compares with $146.253 million, or $0.90 per share, last year.

Excluding items, Teradyne Inc. reported adjusted earnings of $283.0 million or $1.80 per share for the period.

The company's revenue for the period rose 43.8% to $1.083 billion from $752.884 million last year.

Teradyne Inc. earnings at a glance (GAAP) :

-Earnings: $257.220 Mln. vs. $146.253 Mln. last year.

-EPS: $1.63 vs. $0.90 last year.

-Revenue: $1.083 Bln vs. $752.884 Mln last year.

-Guidance:

Next quarter EPS guidance: $ 1.89 To $ 2.25

Next quarter revenue guidance: $ 1.150 B To $ 1.250 B

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Teradyne (NASDAQ:TER) Reports Upbeat Q4, Stock Jumps 10.2%

Stock Story

Teradyne

-4.92%

Semiconductor testing company Teradyne announced better-than-expected revenue in Q4 CY2025, with sales up 43.9% year on year to $1.08 billion. On top of that, next quarter’s revenue guidance ($1.2 billion at the midpoint) was surprisingly good and 25.8% above what analysts were expecting. Its non-GAAP profit of $1.80 per share was 30.1% above analysts’ consensus estimates.

Teradyne (TER) Q4 CY2025 Highlights:

Revenue: $1.08 billion vs analyst estimates of $975.6 million (43.9% year-on-year growth, 11% beat)
Adjusted EPS: $1.80 vs analyst estimates of $1.38 (30.1% beat)
Adjusted Operating Income: $314 million vs analyst estimates of $249.8 million (29% margin, 25.7% beat)
Revenue Guidance for Q1 CY2026 is $1.2 billion at the midpoint, above analyst estimates of $954 million
Adjusted EPS guidance for Q1 CY2026 is $2.07 at the midpoint, above analyst estimates of $1.25
Operating Margin: 27.1%, up from 20.4% in the same quarter last year
Free Cash Flow Margin: 20.2%, down from 29.9% in the same quarter last year
Inventory Days Outstanding: 74, down from 104 in the previous quarter
Market Capitalization: $37.75 billion

Company Overview

Sporting most major chip manufacturers as its customers, Teradyne is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Teradyne struggled to consistently increase demand as its $3.19 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a rough starting point for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.

We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Teradyne’s annualized revenue growth of 9.2% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Teradyne reported magnificent year-on-year revenue growth of 43.9%, and its $1.08 billion of revenue beat Wall Street’s estimates by 11%. Company management is currently guiding for a 75% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 21.8% over the next 12 months, an improvement versus the last two years. This projection is admirable and suggests its newer products and services will fuel better top-line performance.

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Product Demand & Outstanding Inventory

Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.

This quarter, Teradyne’s DIO came in at 74, which is 15 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.

Key Takeaways from Teradyne’s Q4 Results

We were impressed by Teradyne’s strong improvement in inventory levels. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 10.2% to $275.31 immediately after reporting.

Sure, Teradyne had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

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What To Expect From Teradyne’s (TER) Q4 Earnings

Stock Story

Teradyne

-4.92%

Semiconductor testing company Teradyne will be announcing earnings results this Monday after market hours. Here’s what to expect.

Teradyne beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $769.2 million, up 4.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Is Teradyne a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Teradyne’s revenue to grow 29.6% year on year to $975.6 million, improving from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradyne has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.

Looking at Teradyne’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 22.1%, beating analysts’ expectations by 1.8%, and KLA Corporation reported revenues up 7.2%, topping estimates by 1.3%. Lam Research traded up 3.4% following the results while KLA Corporation was down 15.2%.

Read our full analysis of Lam Research’s results here and KLA Corporation’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 12.1% on average over the last month. Teradyne is up 16.8% during the same time and is heading into earnings with an average analyst price target of $220 (compared to the current share price of $241.13).

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Palantir, NXP, Disney, and more set to report earnings Monday

Investing.com

Healthpeak Properties

Earnings season continues, below we highlight companies expected to report earnings the next trading day so you can prepare for the action. Leading the charge on Monday are several market heavyweights including Palantir Technologies, NXP Semiconductors, Walt Disney, IDEXX Laboratories, and Simon Property Group, offering investors a diverse mix of tech, entertainment, real estate, and industrial sectors to monitor.

Earnings Before the Open

• Alliance Resource (ARLP) - EPS estimate: $0.624, Revenue estimate: $555.1M

• Delphi Automotive (APTV) - EPS estimate: $1.84, Revenue estimate: $5.09B

• TDK Corp (TTDKY) - EPS estimate: $0.2123, Revenue estimate: $3.96B

• Julius Baer Group Ltd (JBAXY) - EPS estimate: $0.5777, Revenue estimate: None

• Hess Midstream Partners LP (HESM) - EPS estimate: $0.7198, Revenue estimate: $417.05M

• IDEXX Laboratories (IDXX) - EPS estimate: $2.93, Revenue estimate: $1.07B

• Perkinelmer (RVTY) - EPS estimate: $1.55, Revenue estimate: $758.53M

• Twist Bioscience Corporation (TWST) - EPS estimate: -$0.428, Revenue estimate: $100.72M

• Tyson Foods (TSN) - EPS estimate: $0.9268, Revenue estimate: $14B

• NAPCO Security Technologies (NSSC) - EPS estimate: $0.3203, Revenue estimate: $47.8M

• Disney (DIS) - EPS estimate: $1.57, Revenue estimate: $25.62B

Earnings After the Close

• Mgic Inv (MTG) - EPS estimate: $0.7528, Revenue estimate: $308.19M

• Woodward (WWD) - EPS estimate: $1.66, Revenue estimate: $890.37M

• Kforce (KFRC) - EPS estimate: $0.4689, Revenue estimate: $328.79M

• Flexsteel Industries (FLXS) - EPS estimate: $0.79, Revenue estimate: $107.51M

• NewJersey Resources Corp (NJR) - EPS estimate: $1.01, Revenue estimate: $549.2M

• HCP Inc (DOC) - EPS estimate: $0.0687, Revenue estimate: $691.7M

• DaVita Inc (DVA) - EPS estimate: $3.24, Revenue estimate: $3.51B

• Palantir Technologies Inc (PLTR) - EPS estimate: $0.2297, Revenue estimate: $1.32B

• Two Harbors Investment Corp (TWO) - EPS estimate: $0.3694, Revenue estimate: -$9.15M

• Simon Prop Grp (SPG) - EPS estimate: $1.84, Revenue estimate: $1.49B

• Rambus Inc (RMBS) - EPS estimate: $0.68, Revenue estimate: $188.21M

• Capital Southwest (CSWC) - EPS estimate: $0.574, Revenue estimate: $58.01M

• NXP Semiconductors (NXPI) - EPS estimate: $3.3, Revenue estimate: $3.3B

• Teradyne Inc (TER) - EPS estimate: $1.36, Revenue estimate: $969.33M

• Ashland Inc (ASH) - EPS estimate: $0.2327, Revenue estimate: $402.05M

• Ono Pharmaceutical Co Ltd (OPHLY) - EPS estimate: $0.0908, Revenue estimate: $830.2M

• Fabrinet (FN) - EPS estimate: $3.25, Revenue estimate: $1.08B

Be sure to check back daily for updates and insights into the earnings season and real-time results at Investing.com’s Earnings Calendar and Headlines section. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Up 174%+ in January ALONE, this AI-picked stock has just smashed earnings

Investing.com

Sandisk Corporation Common Stock When-Issued

Investing.com — InvestingPro members—who subscribed to our monthly updated list of AI-picked stocks for less than $9—are closing what can only be called an unmatched January for stock market gains.

On top of receiving timely calls on several names that went on to rally more than +25% during the month, such as:

Amkor Technology Inc (NASDAQ:AMKR): +26.65% in January ALONE
Onto Innovation Inc (NYSE:ONTO): +35.01% in January ALONE
Teradyne Inc (NASDAQ:TER): +30.13% in January ALONE
Stride Inc (NYSE:LRN): +29.43% in January ALONE

(Among more than fifteen other 25%+ gainers)

Those following our premium list of picks are also enjoying a game-changing +174.2% MTD rally on a tech stock that has been considered a high-conviction pick by our AI models since November: SanDisk Corporation (NASDAQ:SNDK).

In fact, since added by our AI three months ago, InvestingPro members have already compounded an incredible +227.38% gain. SanDisk ProPicks Performance

But it wasn’t just our InvestingPro members who benefited from the rally in SanDisk. Readers of this column were warned a few times this month about this potential winner; once back when the stock was up 48%, a second time when the stock was up 71%, and yet a THIRD TIME when the stock was up 112%.

Now, with the rally in SanDisk stock, our composed list of tech picks for January is up a massive +13.30% MTD. That compares to a much smaller +1.80% gain for the S&P 500 during the same period—that’s more than 11% higher in a single month.

Longer term, results are arguably even greater, with our actively managed selection of tech picks notching a massive +182.53% since its official launch in November 2023. That’s a +118.04% outperformance over the S&P 500 during the same period.

*These are real-world results, recorded since the official launch of our AI models.

But if you missed these returns, here’s a piece of good news: a fresh list of AI-picked stocks is out on February first. Make sure to get to the list early, so you don’t risk missing the next SanDisk.

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Is There Still Time to Buy SanDisk Stock?

The storage solutions provider was called an ’AI-Fueled Memory Market Superstar’ by our AI models when added to our list of stock picks, that is BEFORE it went on to notch the crazy returns.

Here’s our AI’s full reasoning behind the pick, published by our AI in November last year:

• SanDisk Corporation has delivered extraordinary market performance with a staggering 527% price return over 6 months and 468% year-to-date, placing it near its 52-week high.
• The company is capitalizing on explosive AI-driven demand for NAND memory, with analysts projecting the AI NAND chip market to reach $29 billion by 2029, positioning SanDisk as a primary beneficiary of this secular growth trend.
• Revenue growth of 10.4% and remarkable EBITDA growth of 362% demonstrate strong operational execution in a rapidly expanding market.
• Multiple analyst upgrades reflect growing confidence, with Mizuho doubling their price target to $112, Morgan Stanley raising theirs to $96 and naming SanDisk a Top Pick, and Bernstein initiating coverage with an Outperform rating.
• SanDisk is reportedly seeking 10% price increases while securing large hyperscaler orders, further strengthening their growth outlook.

(Similarly, the AI publishes its rationale for every stock it decides to either add to or remove from the portfolio)

Now, three months later, revenue jumped 64%, driven by strong adoption among AI infrastructure builders, semi-custom customers, and technology companies deploying AI at scale.

However, at the same time, price action has made the stock much more expensive in terms of its valuation, with our Fair Value Models indicating a potential −32.45% downside from here.

So, ride the momentum or look for the next SanDisk?

Well, check out our AI’s list of picks for February to see whether the stock was kept or removed. Unlike simpler, single-signal models, our AI evaluates a complex combination of more than 150 leading indicators to reach a decision.

Still not a member? Then here’s your chance to get the full list of picks with a special discount now.

Here’s How the AI Stock Picker Works

At the start of each month, our AI refreshes each strategy with up to 20 stock picks. These selections are based on a blend of more than 150 well-established financial models compiled by our machine learning model on over 15 years of financial data worldwide.

Some stocks are added, others retained, and a few are removed, reflecting how the model reassesses each company’s medium-term growth potential.

To track performance, each strategy uses equal weighting across all selected stocks. While you’re not required to follow that weighting exactly, it offers a consistent benchmark to evaluate how well the model identifies opportunities across the board.

At the end of the day, stock picking is still a game of probabilities. But the key isn’t just finding winners — it’s knowing when to move on from the ones that no longer stack up.

Since launch, the model has done just that — delivering more than a few standout success stories along the way.

Disclaimer: Prices mentioned in articles are accurate at the time of publication. We regularly test different offers for our members, which may vary by region.

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