Teradyne

Teradyne reported Q2 FY2026. EPS came in at $2.47 against a $2.09 consensus, beat by 18.2%. Revenue was $1.3B versus $1.2B expected, beat by 9.0%. Gross margin was 59.8%, down 110 bps from last quarter.

Teradyne reported a strong Q1 FY2026, with revenue and EPS both significantly outpacing street estimates. The company's revenue of $1.282 billion and EPS of $2.56 represent a 26% and 241% increase year-over-year, respectively, driven by strong demand in semi test and robotics.

Teradyne did not just clear a low bar: the Q4 beat and Q1 guide reset the debate from cyclical recovery to AI test capacity allocation. The market was priced for $977.2 million of revenue and $1.38 of EPS, but the surprise was the combination of $1,083.3 million, $1.80, and a management framework pointing to about $6.0 billion of 2026 revenue with non-GAAP earnings per share of $9.50 to $11.00.

Teradyne cleared the bar because AI compute and memory test pulled forward faster than the Street had modeled, not because the base business suddenly broadened. The variant view is that investors should treat the Q3 beat as evidence of a sharper AI-driven semi-test upcycle, while refusing to pay full credit for operating leverage until gross margin and OpEx prove the Q4 guide can scale without mix help.

Teradyne barely beat the Street on revenue, but the actionable surprise is that management guided a sharp Q3 rebound while still funding test R&D through a margin dip. The market may be mispricing this as another low-quality semi-cap equipment bounce; the print argues instead for a compute and VIP ASIC test cycle that is arriving before reported margins fully recover.