Teradyne Reports Strong Q4 2025 Earnings Driven by AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Significant Revenue Growth: Teradyne reported $1.083 billion in revenue for Q4 2025, a 43.7% increase year-over-year, with Semiconductor Test contributing $883 million, highlighting strong AI-related demand that solidifies the company's market leadership.
- Substantial Profit Increase: The company achieved a GAAP net income of $257.2 million, or $1.63 per share, up 76.5% from the previous year, indicating significant progress in cost control and operational efficiency, which enhances investor confidence.
- Optimistic Future Outlook: Teradyne expects Q1 2026 revenue between $1.15 billion and $1.25 billion, with GAAP EPS projected at $1.82 to $2.19, reflecting management's confidence in sustained growth driven by AI demand, which could further boost stock prices.
- Continued Strategic Investment: With a 13% revenue growth in 2025, CEO Greg Smith noted growth across all business segments, particularly in computing, demonstrating the company's agility in responding to technological innovations and market demand shifts, with plans to increase investments in AI and robotics technologies.
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Analyst Views on TER
Wall Street analysts forecast TER stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TER is 206.12 USD with a low forecast of 161.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
4 Hold
1 Sell
Moderate Buy
Current: 241.050
Low
161.00
Averages
206.12
High
240.00
Current: 241.050
Low
161.00
Averages
206.12
High
240.00
About TER
Teradyne, Inc. is a global supplier of automated test equipment and robotics solutions. It designs, develops, manufactures and sells automated test systems and robotics products. Its segment includes Semiconductor Test, Robotics, and Product Test. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services, inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Its offerings also include defense/aerospace test instrumentation and systems, circuit-board test and inspection (production board test) systems, and wireless test systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Teradyne Q4 Earnings Preview: Strong Estimates Ahead
- Earnings Announcement Date: Teradyne is set to release its Q4 earnings on February 2nd after market close, with a consensus EPS estimate of $1.36, reflecting a robust 43.2% year-over-year growth that could solidify its leadership in the semiconductor sector.
- Strong Revenue Expectations: The anticipated revenue for Q4 is $970.46 million, representing a 28.9% year-over-year increase, indicating that the company is experiencing strong business momentum driven by sustained market demand and technological innovation.
- Impressive Historical Performance: Over the past two years, Teradyne has consistently beaten EPS estimates 100% of the time and has surpassed revenue estimates 88% of the time, showcasing the company's stability and reliability in financial performance.
- Analyst Optimism: In the last three months, EPS estimates have seen 16 upward revisions with no downward adjustments, while revenue estimates have experienced 13 upward revisions, reflecting strong market confidence in Teradyne's future performance, particularly driven by AI infrastructure buildout.
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