Teradyne, Inc. (TER) shares surged over 21% in after-hours trading Monday after the semiconductor testing equipment maker delivered a quarterly report that made Wall Street's estimates look almost quaint.
The Numbers Tell the Story
Teradyne posted fourth-quarter earnings of $1.80 per share, demolishing the consensus estimate of $1.35 by nearly 33%. Revenue came in at $1.08 billion, comfortably ahead of the $971.09 million forecast and representing a healthy jump from the $752.88 million reported in the year-ago quarter.
"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.
The AI tailwind isn't slowing down, either. "In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI," Smith added.
Looking Ahead
The company's first-quarter outlook suggests the momentum continues. Teradyne expects adjusted EPS between $1.89 and $2.25, significantly above the $1.24 analyst estimate. Revenue guidance of $1.15 billion to $1.25 billion towers over the Street's $927.72 million expectation.
Teradyne stock jumped 21.37% to $302.85 in extended trading, reflecting investor enthusiasm for the company's AI-driven growth trajectory.
