Teradyne Inc. (Teradyne (TER)) stock climbed in premarket trading Wednesday after the semiconductor testing equipment maker reported second-quarter results that beat Wall Street estimates and issued stronger-than-expected guidance for the current quarter.

The company reported adjusted earnings of $2.47 per share, topping the analyst consensus estimate of $2.09. Revenue more than doubled from a year earlier to $1.329 billion, ahead of the consensus estimate of $1.223 billion.

Revenue Doubles On AI, Memory Demand

Revenue increased 104% year over year, while adjusted earnings rose more than 300%. Teradyne said the quarter marked its second consecutive record for revenue, exceeding the high end of its own guidance.

The Semiconductor Test segment generated $1.122 billion in revenue during the quarter. Product Test contributed $107 million, while Robotics added $100 million.

The company also reported record memory revenue, driven by sustained DRAM demand and a recovery in NAND final test activity.

Chief Executive Officer Greg Smith said strong demand across semiconductor test and robotics, particularly AI-related opportunities spanning wafer production to data centers, drove another record quarter.

Smith added that near-term AI demand remains robust, while higher investments in wafer fabrication equipment are expected to support growth beyond 2027.

Teradyne Third-Quarter Outlook Beats Expectations

For the third quarter, Teradyne expects adjusted earnings of $1.85 to $2.15 per share, above the analyst consensus estimate of $1.53.

The company also forecast third-quarter revenue of $1.20 billion to $1.30 billion, exceeding the consensus estimate of $1.042 billion.

TER Price Action: Teradyne shares were up 7.84% at $345.80 during premarket trading on Wednesday, according to market data.