From The Motley Fool · Motley Fool Transcribing · · 2m
Teradyne Q3 2026 Earnings Report Highlights AI Growth
Teradyne reports 70% revenue growth driven by AI demand across all business groups.
In brief
Teradyne reports 70% revenue growth driven by AI demand across all business groups. Teradyne's Q3 2026 earnings show $1.3 billion revenue with 70% year-over-year growth fueled by AI demand across all business segments. Originally reported by The Motley Fool.
Q3 Revenue
Teradyne reported $1,306 million in net revenue, representing 70% year-over-year growth driven by AI demand across all business groups.
Non-GAAP EPS
Non-GAAP EPS reached $2.29, up over 150% year-over-year reflecting operating leverage and high-margin product mix.
Semiconductor Test Revenue
Semiconductor test revenue grew 77% year-over-year to $1,072 million due to record performance in memory and integrated systems test.
Memory Revenue
Memory revenue reached $301 million, setting a record for the fourth consecutive quarter above $200 million behind HBM and DRAM demand.
Robotics Revenue
Robotics revenue reached $96 million, achieving a third-quarter record and profitability during the period.
AI Revenue Contribution
AI revenue contributed 60% of total revenue, illustrating the scale of Teradyne's wafer-to-data center strategy.
SoC Revenue
SoC revenue reached $676 million, growing nearly 50% year-over-year on continued AI infrastructure needs.
Integrated Systems Test Revenue
Integrated systems test revenue grew 150% year-over-year to $95 million as AI-related hard disk drive storage demand increased.
Automotive and Industrial Revenue
Automotive and industrial revenue reached $600 million in 2026, up from less than $400 million in 2025 due to power management requirements in data centers.
Product Test Revenue
Product test revenue grew 56% year-over-year to $138 million behind broad-based growth in AI infrastructure build-outs.
Gross Margin
Gross margin increased to 59.1%, up 60 basis points from last year's third quarter driven by volume and product mix.
Non-GAAP Operating Margin
Non-GAAP operating margin reached 31.6%, supported by sustained step change in revenue volume.
Product Test Book-to-Bill
Product test book-to-bill ratio reached 1.4x, showing strength in MultiLane joint venture for data center interconnect solutions.
Q4 Revenue Guidance
Q4 revenue guidance of $1.25 billion to $1.35 billion would bring full-year revenue to approximately $5.2 billion.
Q4 Non-GAAP EPS Guidance
Q4 non-GAAP EPS guidance of $1.95 to $2.25 reflects seasonal mix and new product launch investments.
2026 Total Investment
2026 total investment of $1 billion across R&D and capital expenditures focused on innovation from wafers to data centers.
The main idea
Teradyne's Q3 2026 earnings show $1.3 billion revenue with 70% year-over-year growth fueled by AI demand across all business segments.
