Teradyne beat third-quarter estimates with revenue of $1,306 million, up 70% year on year, and non-GAAP earnings of $2.29 per share, but shares fell about 6% after hours as fourth-quarter guidance implied little sequential growth.
Teradyne reported third-quarter 2026 revenue of $1,306 million, up about 70% from $769 million a year earlier, with non-GAAP earnings per share of $2.29, beating estimates, the company announced on 27 October. GAAP net income was $342.4 million, or $2.17 per share, while non-GAAP net income was $359.9 million. Shares nevertheless fell about 6% in after-hours trading after the release.
Semiconductor Test revenue was $1,072 million, Product Test $138 million and Robotics $96 million. The company said revenue rose 70% and earnings more than 150% compared with the third quarter of 2025, above the high end of its third-quarter guidance, with record Memory and Integrated Systems Test revenue and the highest third-quarter Robotics revenue to date, with Robotics profitable.
For the fourth quarter, Teradyne guided revenue to $1,250 million to $1,350 million, with GAAP earnings per share of $1.88 to $2.18 and non-GAAP earnings per share of $1.95 to $2.25, implying little sequential growth from the third quarter. That modest sequential outlook, rather than the third-quarter beat, appears to explain the after-hours fall.
The company's release confirms the revenue, segment, earnings and guidance figures, and chief executive Greg Smith attributed the result to demand extending across the AI value chain, driving results above the high end of guidance. The share-price figure is reported with care: one tracker put the initial after-hours fall at 6.25% in the first 10 minutes after the 16:30 ET headline, while another put the extended-hours price 5.10% lower at 8pm ET, so this story reports a fall of about 6% in after-hours trading rather than a single closing figure.
A beat that still sends shares lower is a familiar pattern when guidance disappoints, and Teradyne's case is unusually clear: the quarter itself set records in its test businesses, but the fourth-quarter range centres barely above the third quarter's level. For a company riding AI infrastructure demand, the market is now asking whether growth pauses in the final quarter or merely takes a breath before resuming.
The fourth-quarter results will answer that question, and the Robotics business, profitable and at a third-quarter record, will be watched as a second growth leg alongside semiconductor test.