Teradyne reports record revenue as semiconductor test demand climbs
The automated test equipment maker saw revenue rise 104% year-over-year to $1,329 million.
Teradyne (TER) reported record revenue for the second consecutive quarter, driven by a sharp increase in semiconductor test demand.
The results marked a significant inflection in the company's growth trajectory. Revenue rose 104% year-over-year to $1,329 million, compared to $652 million in the same period last year.
Earnings followed a similar upward trend. GAAP earnings per share increased over 300% year-over-year to $2.38, up from $0.49 in the prior-year quarter. Non-GAAP earnings per share were $2.47, a slight decrease from the $2.56 reported in the first quarter of 2026.
Semiconductor Test remained the primary driver of the company's top line, with revenue reaching $1,122 million, up from $1,111 million in the previous quarter. Other segments also saw sequential growth, as Robotics revenue increased to $100 million from $91 million, and Product Test revenue rose to $107 million from $80 million.
Profitability metrics improved over the first half of the year. For the six months ended June 28, 2026, non-GAAP operating margin expanded to 35.6%, compared to 17.9% for the same period in 2025. GAAP gross margin for the same period rose to 60.3% from 58.9%.
Teradyne provided a lower outlook for the third quarter of 2026. Revenue is expected to range between $1,200 million and $1,300 million, down from the $1,329 million achieved in the second quarter.
Non-GAAP earnings per share for the third quarter are projected to be between $1.85 and $2.15, a decrease from the $2.47 reported in the most recent quarter.