Abstract

Teradyne will release its quarterly results on February 02, 2026 Post Market; this preview summarizes market forecasts, last quarter performance, the current quarter outlook, and the prevailing analyst opinions for the period through January 26, 2026.

Market Forecast

Consensus forecasts indicate Teradyne’s current-quarter revenue at USD 0.97 billion, with adjusted EPS of USD 1.36 and EBIT of USD 0.25 billion; year-over-year, revenue is expected to grow by 31.09%, EPS by 48.96%, and EBIT by 49.28%. The company is projected to maintain a solid margin profile, though specific gross profit margin and net profit margin guidance for the current quarter is not provided; the main business outlook points to sustained demand in semiconductor test, supported by ongoing investments in leading-edge nodes and device complexity. The most promising segment is semiconductor test, which remains the revenue anchor; last quarter, semiconductor test revenue was USD 0.61 billion and continued to benefit from AI/accelerator and advanced SoC test demand.

Last Quarter Review

Teradyne’s previous quarter delivered revenue of USD 0.77 billion, a gross profit margin of 58.41%, GAAP net profit attributable to the parent company of USD 0.12 billion, a net profit margin of 15.54%, and adjusted EPS of USD 0.85, with revenue rising 4.33% year-over-year and adjusted EPS decreasing 5.56% year-over-year. A notable highlight was strong quarter-on-quarter net profit momentum, with GAAP net profit up 52.55% quarter-on-quarter, reflecting improving mix and cost control. Main business highlights included semiconductor test revenue of USD 0.61 billion, product test revenue of USD 0.09 billion, and industrial automation revenue of USD 0.08 billion.

Current Quarter Outlook

Semiconductor Test

Semiconductor test is Teradyne’s primary revenue driver and the center of investor attention this quarter. The forecast points to revenue growth acceleration amid higher test intensity for AI accelerators, advanced application processors, and 5G-related devices. Device complexity at cutting-edge nodes increases vector counts and parallelism requirements, which typically translates to stronger system and instrumentation demand, supporting both revenue and margin resilience. The company enters the quarter with a healthier order backdrop compared with recent periods, and unit shipments into advanced SoC and memory test are positioned to expand as customers ramp new platforms.

Product Test

Product test, which includes system-level testing for electronics and other end products, is expected to show steady performance. The segment benefits from secular growth in connected devices and higher quality assurance thresholds, although it is smaller in scale than semiconductor test. This quarter’s revenue contribution is likely stable to modestly higher against last quarter’s USD 0.09 billion, driven by a mix of automotive electronics and communications end markets. Margins in product test tend to be less volatile due to a more diversified customer base and lower cyclicality relative to chip test.

Industrial Automation

Industrial automation is the most watched emerging business for Teradyne given its long-run growth potential in robotics and factory automation. Last quarter’s USD 0.08 billion revenue sets a baseline; near-term progress hinges on order activity from collaborative robots and precision automation markets. The quarter’s stock performance sensitivity will relate to bookings trajectory, the pace of new product adoption, and integration productivity. While macro-sensitive, the business has an expanding solution set that could lift mix, though investors will look for visibility on improved profitability to support a stronger narrative alongside the core test franchises.

Factors Most Impacting the Stock Price

The stock this quarter will be most affected by the magnitude of upside or downside relative to EPS and revenue forecasts, and any commentary on semiconductor test order momentum into the next fiscal quarter. Gross margin color, especially around instrumentation mix and services attachment, will influence how investors extrapolate profitability into the remainder of the year. Management’s narrative on AI-related test capacity additions, customer ramp timing, and supply chain execution will frame the sustainability of growth and guide expectations for bookings and backlog quality.

Analyst Opinions

Analyst previews collected in recent weeks skew bullish, with the majority expecting a beat-or-raise type quarter supported by strengthening semiconductor test demand and improving book-to-bill dynamics. Several widely followed institutions highlight EPS upside potential given operational leverage as volumes recover; consensus sees adjusted EPS near USD 1.36 and revenue near USD 0.97 billion, framing a constructive setup. The bullish camp argues that AI accelerator and advanced SoC proliferation are increasing test intensity and capacity requirements, which favors Teradyne’s portfolio and should support double-digit year-over-year growth in both revenue and EBIT. On balance, the prevailing view emphasizes margin resilience tied to instrumentation mix and services, while monitoring the pace of industrial automation improvement as a secondary catalyst.