10-Q · May 1, 2026
Teradyne's Q1 2026 results showcased significant revenue growth driven by a remarkable 104.8% increase in the Semiconductor Test segment, primarily due to AI-related demand. The company achieved a revenue of $1.282…
Earnings analysis · 10-Q
TER earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Teradyne delivered a very strong third quarter, with revenue of $1,305.950 million, up 69.8% year over year, and GAAP diluted EPS of $2.17 versus $0.75. Semiconductor Test remained the primary driver, while Product Test…
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Teradyne delivered a very strong third quarter, with revenue of $1,305.950 million, up 69.8% year over year, and GAAP diluted EPS of $2.17 versus $0.75. Semiconductor Test remained the primary driver, while Product Test and Robotics also grew, with Robotics returning to profitability. Margins softened sequentially and working-capital investment was substantial, but nine-month operating cash flow reached $1,047.9 million and the company ended the quarter with $624.9 million of cash and marketable securities and no short-term debt. The 10-Q states that the risk factors in the 2025 10-K remain applicable and discloses no material risk-factor changes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.17
What stood out
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AI-driven revenue and EPS growth
Revenue was $1,305.950 million, up $536.740 million or 69.8% from $769.210 million in the prior-year quarter, but down 1.8% from $1.33 billion in Q2 2026. GAAP diluted EPS was $2.17 versus $0.75 year over year and $2.38 in Q2 2026.
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Margins expanded year over year
Gross margin was 59.1%, up 0.7 percentage points from 58.4% year over year but down from 59.8% in Q2 2026. Operating margin was approximately 30.8%, versus 18.9% a year ago and 32.9% in Q2 2026.
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Semiconductor Test led growth
Semiconductor Test revenue increased 76.9% year over year to $1,072.0 million, driven by higher memory and compute sales related to artificial intelligence applications. Memory revenue reached a record $301 million and was above $200 million for the fourth consecutive quarter.
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All segments grew
Product Test revenue rose 56.4% year over year to $138.1 million, reflecting AI-related demand plus Wireless, Defense and Aerospace growth. Robotics revenue increased 27.6% to $95.8 million, its highest third-quarter revenue, and produced $0.3 million of pre-tax income versus a $17.6 million loss.
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Cash generation strengthened
Nine-month operating cash flow was $1,047.9 million versus $392.8 million in the prior-year period. Using reported operating cash flow less $241.8 million of property, plant and equipment purchases, implied nine-month free cash flow was approximately $806.1 million versus $231.7 million previously.
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Liquidity and debt position improved
Cash, cash equivalents and marketable securities increased to $624.9 million from $448.3 million at December 31, 2025, while short-term debt declined to $0 from $200.0 million. Teradyne also has a new $1.0 billion revolving facility maturing in August 2031.
What to watch
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Inventory and working-capital risk
Inventory increased to $575.0 million from $379.6 million at December 31, 2025, while inventory reserves were $165.6 million. Nine-month operating cash flow absorbed $178.8 million from inventory growth, creating exposure to excess or obsolete inventory if AI-related demand normalizes.
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Receivables and customer concentration
Accounts receivable increased to $1,110.8 million from $786.9 million at December 31, 2025, and nine-month cash flow included a $302.7 million use from receivables. Management also states that a limited number of significant customers account for a substantial portion of test-equipment purchases, increasing customer-concentration and collection risk.
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Large supply and investment commitments
Teradyne had purchase commitments of approximately $2,252.9 million as of September 27, 2026, including $1,906.4 million due in less than one year. The company also agreed to make a $300.0 million FormFactor equity investment expected to close in Q4 2026, which adds future liquidity and execution commitments.
Management's outlook
The 10-Q does not provide numeric quarterly or annual guidance. Q4 2026 guidance of $1,250-$1,350 million revenue and $1.95-$2.25 non-GAAP EPS was disclosed in the October 28, 2026 earnings release, not in the filing.
Earlier filings 4
10-Q · October 30, 2025
Teradyne reported Q3 revenue of $769.21M (vs. $737.30M a year ago), beating consensus and showing sequential recovery. Gross margin was 58.4% and operating margin 18.9%; diluted EPS was $0.75. Balance sheet shows…
10-Q · May 2, 2025
Teradyne reported quarter revenues of $685.68M (up from $599.82M a year ago) and GAAP diluted EPS of $0.61 (vs $0.40 a year ago). Gross margin expanded to 60.6% and operating income rose to $120.8M, supported by strong…
10-Q · November 1, 2024
Teradyne reported Q3 revenue of $737,298,000 (up vs. $703,732,000 a year ago) and GAAP diluted EPS of $0.89 (vs. $0.78 a year ago), both beating consensus. Gross margin expanded to 59.2% and operating income was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.