Teradyne Stock Soars After-hours As AI Demand Spurs Q3 Beat, CFO To Step Down
- The Q3 growth was driven primarily by System-on-a-Chip solutions for AI applications and strong performance in memory.
- Teradyne said Sanjay Mehta, who has served as CFO since 2019, will step down and be replaced by Michelle Turner, effective Nov. 3.
- Teradyne stock has gained 15% year-to-date.
Teradayne, Inc.’s (TER) stock jumped nearly 22% in Tuesday’s extended trading after the semiconductor testing solutions company reported a quarterly beat and issued a strong outlook, citing strong artificial intelligence (AI)-related demand in compute and memory.
If the after-hours buoyancy carries over into Wednesday’s session, Teradyne stock is on track to record its best day ever.
Teradayne’s Q3 Earnings Snapshot
North Reading, Massachusetts-based Teradyne attributed its better-than-expected third-quarter fiscal year 2025 results to substantial chip-testing revenue. CEO Greg Smith said, “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.”
“Growth was driven primarily by System-on-a-Chip (SOC) solutions for artificial intelligence applications and strong performance in memory.”
Here’s how the headline numbers compare to the consensus:
– Revenue: $769 million (up 4% YoY) Vs. $743.85 million consensus (Fiscal.ai-compiled)
-Adjusted earnings per share (EPS): $0.85 Vs. $0.79
Teradyne’s Q4 Outlook
Looking ahead, Smith signaled robust AI-related test demand across compute, networking and memory segments in the fourth quarter. The company forecast fourth-quarter revenue of $920 million to $1 billion, marking a 25% year-over-year (YOY) growth and a 27% sequential increase. It also expects adjusted EPS of $1.20 to $1.46, excluding amortization of acquired intangible assets and amortization of the company’s investment in Technoprobe, as well as the related tax impact.
The guidance exceeds the consensus estimates, which call for revenue of $816.64 million and adjusted EPS of $1.02.
What Retail Says About Teradyne’s Results
On Stocktwits, retail sentiment toward Teradyne stock improved to ‘extremely bullish’ as of late Tuesday, from ‘bullish’ a day earlier. The message volume on the Teradyne stream over the 24 hours leading up to late Tuesday jumped 3,700%.
A bullish user said they added the Teradyne stock to the ‘longs’ list as they predicted a breakout following a long period of consolidation.
Another user expected the stock to hit $200 soon. It ended Tuesday’s session down 2.12% at $144.38.
CFO Transition
Separately, Teradyne said Sanjay Mehta, who has served as CFO since 2019, will step down and be replaced by Michelle Turner, effective Nov. 3. Mehta will remain as an executive advisor to support capacity expansion driven by semiconductor testing demand before retiring in 2026.
Teradyne stock has gained 15% year-to-date. The average price target for the stock is $143.81, according to Koyfin, implying downside potential of 0.40%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Read Next: Nvidia Mania Deepens: Wedbush Calls Its Chips The ‘New Oil’ As $500B AI Backlog Fuels Bulls
