Teradyne has delivered one of the strongest quarters in its history, riding the artificial intelligence buildout to a 70% jump in revenue. The chip-testing equipment maker reported third-quarter revenue of $1.306 billion for the three months ended in September 2026, up from $769 million a year earlier and above Wall Street's consensus of about $1.27 billion, as demand for testing AI chips, memory and data-centre hardware surged.
Earnings rose even faster. GAAP net income reached $342.4 million, or $2.17 per diluted share, up from $0.75 a year earlier. On a non-GAAP basis, earnings came in at $2.29 per share, up from $0.85 and ahead of the roughly $2.04 analysts had expected — the company's fourth straight quarterly beat.
AI demand drives record test revenue
The core Semiconductor Test business did the heavy lifting, bringing in $1,072 million of the quarter's revenue. Teradyne said it set records in Memory test and Integrated Systems Test, both driven by artificial intelligence, as chipmakers race to validate the high-bandwidth memory and accelerators going into AI servers.
"Our wafer to data center strategy and the breadth of our portfolio sustained positive momentum in Q3," chief executive Greg Smith said. "Demand extended across the AI value chain, from memory and hard disk drive test to high-speed interconnect and robotics, driving results above the high end of our guidance."
Product Test added $138 million, while Robotics contributed $96 million — its highest third-quarter revenue to date — and, notably, the robotics unit achieved profitability in the quarter.
Robotics turns the corner
The robotics result matters because Teradyne has spent years building that business through its Universal Robots and Mobile Industrial Robots brands, and investors have long waited for it to make money. A profitable quarter, on record third-quarter sales, suggests the unit is finally scaling alongside its factory-automation customers.
Teradyne's broader story is tied to the same AI infrastructure boom lifting chipmakers and storage companies: every accelerator, memory stack and high-speed interconnect that ships must be tested first, and testing capacity has become a bottleneck in its own right.
What comes next
For the fourth quarter, Teradyne guided to revenue of $1.25 billion to $1.35 billion, with GAAP earnings of $1.88 to $2.18 per share and non-GAAP earnings of $1.95 to $2.25. The midpoint implies a steady quarter rather than a further acceleration — a cautious guide after a blowout print.
The market's first reaction echoed the pattern seen across AI hardware names this earnings season: shares rose 4.8% in Tuesday's regular session to $323.68, then gave back about 5.5% in after-hours trading despite the beat, as investors weighed whether the AI test boom can keep compounding at this pace.
Even after the pullback, the stock is up about 60% since the start of the year, far ahead of the broader market — a sign of how central testing has become to the AI supply chain.