Teradyne reported higher second-quarter revenue and profit as the artificial intelligence boom fueled growth in its business providing testing equipment for semiconductors.

The company reported net income of $374.5 million, or $2.38 a share, up from $78.4 million, or 49 cents a share, the year prior.

Adjusted earnings were $2.47 a share. Analysts polled by FactSet expected $2.09 a share.

Revenue rose to $1.33 billion from $652 million. Wall Street expected $1.22 billion.

The company guided for third-quarter revenue of $1.2 billion to $1.3 billion and adjusted earnings of $1.85 to $2.15 a share. Analysts see third-quarter sales of $1.06 billion and adjusted earnings of $1.56 a share.

"In the short term, our Q3 guidance reflects robust AI-related demand. Looking further ahead, rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond," said Chief Executive Greg Smith.