Shares of Teradyne (TER) soared 21.21% in after-hours trading on Tuesday following the release of its third-quarter 2025 financial results and fourth-quarter outlook, both of which exceeded analyst expectations. The semiconductor test equipment manufacturer demonstrated resilience in a challenging market environment, with its performance boosted by growing demand for AI-related testing solutions.

Teradyne reported adjusted earnings per share of $0.85 for Q3, surpassing the analyst consensus estimate of $0.79. While this represents a slight decrease from $0.90 per share in the same period last year, it showcases the company's ability to maintain profitability. Revenue for the quarter came in at $769.21 million, beating the expected $743.78 million and marking a 4.33% increase compared to the previous year.

The company's optimistic fourth-quarter forecast further fueled investor enthusiasm. Teradyne expects Q4 revenue to be between $920 million and $1 billion, significantly higher than the analyst consensus of $814.3 million. CEO Greg Smith attributed this projected 27% sequential increase to robust AI-related test demand across compute, networking, and memory segments. The company also anticipates adjusted earnings per share of $1.20 to $1.46 for Q4, well above the $1.02 estimate. This strong outlook underscores Teradyne's crucial role in ensuring the quality and reliability of complex chips and electronic systems in the rapidly evolving AI-driven semiconductor industry.

In addition to its financial performance, Teradyne announced a leadership change, appointing Michelle Turner as its new Chief Financial Officer effective November 3, 2025. Turner, who previously served as CFO at L3Harris Technologies, brings extensive experience from various senior financial roles in major corporations. This strategic move is seen as positive for the company's future growth and financial management.