Teradyne Stock Surges 22% on AI-Driven Earnings Beat and Strong Q4 Outlook

Teradyne (TER) shares soared 22% in pre-market trading after the chip-testing equipment Maker reported third-quarter results that exceeded expectations. Revenue climbed 4.3% year-over-year to $769.21 million, outpacing analyst estimates of $744.13 million. Adjusted earnings per share of $0.85 also topped consensus views, despite a 5.6% decline from the prior year.

The company credited strong performance in its Semiconductor Test Group, particularly demand for System-on-a-Chip solutions powering AI applications. CEO Greg Smith highlighted growing test demand across compute, networking, and memory segments. Teradyne anticipates fourth-quarter sales will jump 27% year-over-year at the midpoint of its guidance range.

Leadership changes accompany the robust financials. Michelle Turner will succeed Sanjay Mehta as CFO effective November 3, marking a transition after Mehta's four-year tenure. The market's response underscores investor confidence in Teradyne's positioning at the intersection of semiconductor testing and artificial intelligence infrastructure.