TERADYNE, INC (TER) Earnings History

TERADYNE, INC - Q1 2026 EarningsBeat

Filed at: Apr 29, 2026, 6:00 AM EDT|Read from source

EXECUTIVE SUMMARY

Teradyne reported record first-quarter results driven by strong AI-related demand across its compute segments. The company experienced significant year-over-year growth in revenue and earnings, with all business groups contributing positively. Management expects this AI-driven momentum to continue.

POSITIVE HIGHLIGHTS

  • •

    Record revenue of $1,282.5 million, up 87% year-over-year.

    positive
  • •

    GAAP diluted EPS of $2.53, a significant increase from $0.61 in Q1 2025.

    positive
  • •

    Non-GAAP diluted EPS of $2.56, a substantial increase from $0.75 in Q1 2025.

    positive
  • •

    Strong year-over-year growth across all business groups: Semiconductor Test, Product Test, and Robotics.

    positive
  • •

    Approximately 70% of revenue tied to AI-related demand, indicating strong market positioning.

    positive

CONCERNS & RISKS

  • •

    Inventories increased by $20.8 million year-over-year, while accounts receivable increased significantly by $322 million.

    attention
  • •

    Restructuring and other charges were $3.4 million in Q1 2026, compared to $15.1 million in Q4 2025, indicating ongoing restructuring activities.

    attention
  • •

    Acquired intangible assets amortization decreased from $4.6 million in Q1 2025 to $2.2 million in Q1 2026, which is a positive but reflects the nature of amortization schedules.

    neutral
  • •

    Short-term debt was $0 in Q1 2026, down from $200 million in Q4 2025, indicating debt repayment.

    neutral

FINANCIAL METRICS

Revenue
Quarterly
$1.28B
+87.1%
Prior year: $685.68M
Net Income
Quarterly
$398.91M
+303.4%
Prior year: $98.90M
EPS (Diluted)
Quarterly
$2.53
+316.4%
Prior year: $0.61
Operating Income
Quarterly
$473.00M
+291.6%
Prior year: $120.80M
EPS (Basic)
Quarterly
$2.55
+318.0%
Prior year: $0.61

MARGIN ANALYSIS

Gross Margin
Current Quarter
60.9%
Prior Year
60.6%
YoY Change
+30 bps
Operating Margin
Current Quarter
36.9%
Prior Year
17.6%
YoY Change
+1930 bps
Net Margin
Current Quarter
31.1%
Prior Year
14.4%
YoY Change
+1670 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Semiconductor Test
0.0%
N/A
Robotics
0.0%
N/A
Product Test
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Semiconductor Test
N/A———
Robotics
N/A———
Product Test
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

Q2 2026

revenue
$1150000.0B—$1250000.0B
Mid-point: $1200000.0B
GAAP net income per diluted share
1.83—2.12
Mid-point: 1.975
Non-GAAP net income per diluted share
1.86—2.15
Mid-point: 2.005

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-29
Tone
N/A
Hedge density
N/A
Deflection rate
N/A

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Acquisition and divestiture related expenses
+$1.7M
Q1 2026
Employee severance
+$0.9M
Q1 2026
Other restructuring and other
+$0.9M
Q4 2025
Employee severance
Primarily relates to Robotics restructuring impacting approximately 200 employees.
+$10.9M
Q4 2025
Asset impairment
+$3.3M
Q4 2025
Acquisition and divestiture related expenses
+$0.6M
Q4 2025
Other restructuring and other
+$0.3M
Q1 2025
Employee severance
Primarily relates to Robotics restructuring impacting approximately 150 employees.
+$11.4M
Q1 2025
Acquisition and divestiture related expenses
+$2M
Q1 2025
Asset impairment
+$1.1M
Total Impact
+$33.1M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Our Q1 results reached a new record high.

— TERADYNE, INC, Q1 2026 2026 Earnings Call

With approximately 70% of our revenue tied to AI-related demand, our results reflect the strength of our wafer to AI data center strategy.

— TERADYNE, INC, Q1 2026 2026 Earnings Call

All of our business groups - Semiconductor Test, Product Test, and Robotics - delivered strong year-over-year growth which we expect to continue with robust AI driven momentum as the catalyst.

— TERADYNE, INC, Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Provision For Excess And Obsolete Inventory
4.7M
-5.3% YoY
Prior year: 4.9M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

Related Research

Analysis

Teradyne Is a Cyclical Duopoly Priced as a Secular AI Winner