TERADYNE, INC (TER) Earnings History

TERADYNE, INC - Q4 2025 EarningsBeat

Filed at: Feb 3, 2026, 6:01 AM EST|Read from source

EXECUTIVE SUMMARY

Teradyne reported strong Q4 2025 results with revenue and earnings exceeding guidance, driven by significant AI-related demand in its Semiconductor Test business. The company anticipates year-over-year growth across all segments in 2026, with continued strength in compute driven by AI.

POSITIVE HIGHLIGHTS

  • •

    Q4 2025 revenue of $1,083 million, up 44% from Q4 2024 and 41% from Q3 2025.

    positive
  • •

    Full year 2025 revenue of $3.19 billion, up 13% from 2024.

    positive
  • •

    GAAP diluted EPS of $1.63 in Q4 2025, up from $0.90 in Q4 2024.

    positive
  • •

    Non-GAAP diluted EPS of $1.80 in Q4 2025, up from $0.95 in Q4 2024.

    positive
  • •

    Sequential revenue growth across all business groups in Q4 2025.

    positive

CONCERNS & RISKS

  • •

    Inventories increased to $379.6 million in Q4 2025 from $298.5 million in Q4 2024, a 27% YoY increase.

    attention
  • •

    Accounts receivable increased to $773.6 million in Q4 2025 from $471.4 million in Q4 2024, a 64% YoY increase.

    attention
  • •

    Restructuring and other charges were $15.1 million in Q4 2025, compared to $4.6 million in Q4 2024, primarily due to Robotics restructuring impacting approximately 200 employees.

    attention
  • •

    Employee severance costs related to restructuring were $10.9 million in Q4 2025, up significantly from $0.4 million in Q4 2024.

    attention
  • •

    Short-term debt increased to $200 million in Q4 2025 from $0 in Q4 2024.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.08B
+43.8%
Prior year: $753.00M
Annual (YTD)
$3.19B
N/A
Prior year: $2.82B
Net Income
Quarterly
$257.22M
+75.9%
Prior year: $146.25M
Annual (YTD)
$554.05M
N/A
Prior year: $542.37M
EPS (Diluted)
Quarterly
$1.63
+81.1%
Prior year: $0.90
Operating Income
Quarterly
$293.20M
+90.9%
Prior year: $153.58M
Annual (YTD)
$650.05M
N/A
Prior year: $593.79M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
57.2%
Prior Year
59.4%
YoY Change
-219 bps
Operating Margin
Current Quarter
27.1%
Prior Year
20.4%
YoY Change
+668 bps
Net Margin
Current Quarter
23.8%
Prior Year
19.4%
YoY Change
+432 bps

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

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

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

DETAILED BREAKDOWN

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

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

Q1 2026

revenue
$1150000.0B—$1250000.0B
Mid-point: $1200000.0B
GAAP net income per diluted share
1.82—2.19
Mid-point: 2.005
non-GAAP net income per diluted share
1.89—2.25
Mid-point: 2.07

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

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Acquired intangible asset amortization
+$3.451M
Q4 2025
Restructuring and other charges
Includes employee severance related to Robotics restructuring impacting approximately 200 employees.
+$15.081M
FY 2025
Acquired intangible asset amortization
+$15.27M
FY 2025
Restructuring and other charges
Includes employee severance related to Robotics restructuring impacting approximately 400 employees.
+$38.554M
Total Impact
+$72.356M

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 Q4 results were above the high end of our guidance range, fueled by AI-related demand in compute, networking and memory within our Semi Test business.

— TERADYNE, INC, Q4 2025 2025 Earnings Call

Across all of our business groups – Semi Test, Product Test, and Robotics – we experienced sequential growth, and at the company level we achieved 13% growth in 2025.

— TERADYNE, INC, Q4 2025 2025 Earnings Call

In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI.

— TERADYNE, INC, Q4 2025 2025 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
6.6M
+94.0% YoY
Prior year: 3.4M
dollars

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

Related Research

Analysis

TER 10-K Analysis: A Cyclical Duopoly Priced as a Secular AI Winner