Teradyne (TER) Stock Soars After-Hours as Q3 Earnings Crush Estimates Amid Explosive AI Demand

Testing equipment giant Teradyne just delivered a knockout quarter that sent shares skyrocketing in extended trading.

Q3 Earnings Blowout

The numbers don't lie—Teradyne smashed through Wall Street's expectations with revenue and EPS both clearing the high bar. Strong AI-driven demand for semiconductor testing equipment fueled the beat, proving that when AI hardware heats up, Teradyne's machines are the first to feel the burn.

After-Hours Rocket Fuel

Traders piled into TER as the closing bell rang, sending the stock surging in after-hours action. The move signals that institutional money finally understands what crypto natives have known for years—real-world AI infrastructure plays are the new blue chips.

AI Demand Tsunami

Every chip designer rushing to capitalize on the AI boom needs Teradyne's testing magic. From crypto mining ASICs to AI accelerators, their equipment validates the silicon that powers our digital future—while making short-sighted bankers question why they didn't buy this dip last quarter.

Another quarter, another beat—but this time, the market actually noticed. Maybe Wall Street's finally learning that in the age of AI, you don't bet against the companies holding the testing keys to the kingdom.

TLDR

• Teradyne posted Q3 revenue of $769 million, beating the $743.85 million consensus estimate by about 3%
• The company reported adjusted EPS of $0.85, topping analyst expectations of $0.79 by $0.06
• Q4 guidance calls for revenue between $920 million and $1 billion, well above the $816.64 million consensus
• Teradyne stock jumped nearly 22% in after-hours trading, positioning for its best single-day performance ever
• CFO Sanjay Mehta will step down effective November 3, with Michelle Turner taking over the role

Teradyne shares rocketed 22% in Tuesday’s after-hours session following a third-quarter earnings report that beat expectations across the board. The semiconductor testing equipment Maker also issued forward guidance that crushed analyst estimates.

Teradyne, Inc., TER

The company reported Q3 revenue of $769 million, up 4% year-over-year. This topped the consensus estimate of $743.85 million compiled by Fiscal.ai.

Adjusted earnings per share came in at $0.85. Analysts had expected $0.79.

CEO Greg Smith attributed the results to strong chip-testing revenue. “Our Semiconductor Test Group delivered third quarter sales that exceeded expectations, driving company sales and profit to the high end of our Q3 guidance range,” Smith said.

The growth came primarily from System-on-a-Chip solutions for AI applications. Memory testing also performed well during the quarter.

$TER earnings:

AI Demand Drives Strong Beat and Massive Q4 Raise

Teradyne reported strong Q3 results that met the high end of revenue guidance and beat on EPS, driven by accelerating demand for AI-related semiconductor testing. More importantly, the company provided blockbuster… pic.twitter.com/GWb7pILVzB

— Finsee (@Finsee_main) October 28, 2025

For Q4, Teradyne forecast revenue between $920 million and $1 billion. That represents 25% year-over-year growth and a 27% sequential increase.

The company expects adjusted EPS of $1.20 to $1.46 for the fourth quarter. This excludes amortization of acquired intangible assets and the company’s investment in Technoprobe.

The guidance topped analyst expectations by a wide margin. The Street had been looking for Q4 revenue of $816.64 million and adjusted EPS of $1.02.

Strong AI Testing Demand Expected

Smith pointed to robust AI-related test demand across multiple segments. Compute, networking, and memory are all showing strength heading into the fourth quarter.

The North Reading, Massachusetts-based company has benefited from the surge in AI chip production. Testing equipment is critical for ensuring these complex processors meet quality standards.

Teradyne closed Tuesday’s regular session at $144.38, down 2.12%. The stock has gained 15% year-to-date.

Leadership Change

The company announced that CFO Sanjay Mehta will step down effective November 3. Mehta has held the position since 2019.

Michelle Turner will replace Mehta as CFO. Mehta will stay on as an executive advisor to help with capacity expansion driven by semiconductor testing demand.

He plans to retire in 2026. The transition comes as Teradyne navigates increased demand for its testing equipment.

The average analyst price target for Teradyne sits at $143.81 according to Koyfin. That implies a slight 0.40% downside from Tuesday’s closing price.

If the after-hours gains hold, Teradyne WOULD record its best single trading day ever. The stock has gained 27.50% over the past 12 months and 38.61% over the last three months.