Teradyne stock gains AI momentum as robotics turns profitable

Teradyne reported a sharp increase in third-quarter business on October 27, 2026, as artificial intelligence demand lifted semiconductor testing, memory systems and robotics. The company said revenue reached 1.306 billion US dollars, up 70 percent from the year-earlier quarter and above the high end of its guidance. The results were published in the Teradyne investor release.

Semiconductor Test generated 1.072 billion US dollars, Product Test contributed 138 million US dollars and Robotics delivered 96 million US dollars. Revenue in the latest quarter compared with 769 million US dollars a year earlier and 1.329 billion US dollars in the second quarter. GAAP net income attributable to Teradyne increased to 342.4 million US dollars, or 2.17 US dollars per diluted share, from 119.6 million US dollars, or 0.75 US dollars, in the prior-year period.

Memory demand remains the key driver

Teradyne said memory revenue reached a record 301 million US dollars, supported by demand for high-bandwidth memory, DRAM and a recovery in NAND. The company is benefiting from testing requirements across the AI infrastructure chain, including memory, high-speed interconnects and compute-related systems.

Chief Executive Greg Smith said the company's wafer-to-data-center strategy and broader portfolio created momentum across the quarter. He described Teradyne as entering 2027 with a more diversified business and several growth opportunities. The statement points to demand breadth rather than reliance on a single semiconductor application, although memory remains central to the near-term outlook.

Robotics revenue rose 28 percent from a year earlier to 96 million US dollars. The group achieved profitability in the quarter and posted its highest third-quarter revenue to date. That progress gives investors a second operating area to monitor as Teradyne expands beyond semiconductor and electronics test equipment.

Fourth-quarter guidance sets the next test

Teradyne forecast fourth-quarter revenue of 1.250 billion to 1.350 billion US dollars. GAAP earnings guidance is 1.88 to 2.18 US dollars per diluted share, while non-GAAP earnings guidance is 1.95 to 2.25 US dollars. The non-GAAP measure excludes acquired intangible asset amortization, amortization related to the Technoprobe investment and related tax effects.

The company also reported a third-quarter GAAP gross margin of 59.1 percent and non-GAAP operating income of 412.9 million US dollars, equal to a 31.6 percent operating margin. The reported non-GAAP earnings figure was 2.29 US dollars per diluted share, compared with 0.85 US dollars a year earlier. These adjusted figures exclude specified amortization, restructuring, enterprise resource planning costs and other items, so investors should view them alongside the GAAP result.

Teradyne stock traded at 250.90 euros on Lang & Schwarz at 11:45 CET on Friday, October 30, 2026.

Investors can follow the real-time quote of Teradyne stock during the session.

Broader technology markets remain focused on whether AI infrastructure spending can sustain demand for semiconductor equipment and related automation.

For more company developments, see more news and analyses on Teradyne stock.