Teradyne's stock surged 20.01% in after-hours trading on Monday, following the release of its fourth-quarter financial results that significantly exceeded market expectations.

The semiconductor testing equipment maker reported adjusted earnings per share of $1.80 for Q4 2025, beating the consensus estimate of $1.35. Revenue came in at $1.083 billion, well above the forecast of $971.1 million. The company attributed this strong performance to robust artificial intelligence-related demand in compute, networking, and memory within its semiconductor test business.

Furthermore, Teradyne provided an optimistic outlook for the first quarter of 2026, forecasting revenue between $1.15 billion and $1.25 billion and adjusted EPS in the range of $1.89 to $2.25, both figures surpassing analyst estimates. CEO Greg Smith stated, "In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI," reinforcing investor confidence in the company's growth trajectory fueled by the ongoing expansion of AI data centers.