Teradyne Inc. reported its full year (FY) 2025 financial results, posting sales of USD 3.19 billion, representing a 13 percent year-on-year increase. Non-GAAP earnings per share $(EPS)$ reached USD 3.96, up 23 percent compared to the previous year. Gross margin for the year stood at 58.3 percent, while operating profit margin was 22.3 percent. The company reported 160 million diluted shares outstanding at year-end. Semiconductor Test continued to be the dominant segment, comprising approximately 80 percent of the portfolio with revenue of USD 2.52 billion. The compute product line showed strong momentum, recording about 90 percent year-on-year growth. Over 60 percent of Teradyne's full-year revenue was driven by AI-related products. For the first quarter (Q1) of 2026, Teradyne expects revenue of USD 1.2 billion, which would mark a new quarterly record and reflect a 75 percent year-on-year increase. The company anticipates non-GAAP EPS of USD 2.07 for Q1 2026, representing a 176 percent year-on-year rise. Teradyne noted that revenue patterns remain "lumpy and unpredictable," driven by continued growth in the compute portfolio, and expects over 70 percent of 2026 sales to be AI-driven. Looking ahead, Teradyne's target model assumes annual revenue of approximately USD 6.0 billion and non-GAAP EPS between USD 9.50 and USD 11.00, supported by an Automated Test Equipment (ATE) total addressable market (TAM) of around USD 12 billion to USD 14 billion and continued strong demand for AI-driven solutions.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Teradyne Inc. published the original content used to generate this news brief on February 03, 2026, and is solely responsible for the information contained therein.
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