By Kelly Cloonan

Shares of Teradyne declined after the company gave a softer forecast than some investors were expecting, despite posting a surge in profit and revenue in its latest quarter.

The stock slipped 16%, to $318.60, midday Wednesday. Shares have jumped 65% year to date.

Teradyne forecast revenue between $1.15 billion and $1.25 billion for the second quarter, compared with analysts' estimate of $1.18 billion, according to FactSet.

The company also projected adjusted per-share earnings between $1.86 and $2.15, versus analyst estimates for $1.98 a share.

JPMorgan analysts said that while the forecasts were largely in line with Wall Street's estimates, they weren't enough to satisfy investor expectations given the stock's outperformance this year. Additionally, the company's revenue forecast implies a sequential decline at the midpoint, compared to about 18% quarter-over-quarter growth in the latest quarter, the analysts said.

That "could suggest management is opting to stay conservative/cautious around the sustainability of demand drivers into 2Q and potentially 2H26, despite beating near-term revenue guides consistently for the last few quarters," the analysts said in a note.

The guidance came as the North Reading, Mass., company recorded a jump in profit and revenue in its latest quarter as artificial-intelligence demand boosts its business for providing testing equipment for semiconductors and other sectors.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

April 29, 2026 12:31 ET (16:31 GMT)

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