By Nate Wolf
Shares of Teradyne rose sharply Wednesday after the maker of test systems for semiconductors and robotics beat quarterly earnings expectations and issued a blockbuster outlook.
The company posted adjusted earnings of 85 cents a share for the third quarter, ahead of Wall Street's call for 79 cents. Revenue totaled $769 million, up from $737 million a year ago and above analysts' consensus estimate of $744 million.
More importantly, Teradyne's fourth-quarter guidance blew investors' expectations out of the water. The company anticipates revenue between $920 million and $1 billion for the current quarter, much higher than the $816 million analysts had forecast.
Shares rose 21% in premarket trading Wednesday, putting the S&P 500 member on track for its best day since 1973.
Investors can thank artificial intelligence. The third-quarter growth came primarily from system-on-a-chip solutions for AI applications and strong results in memory.
"As we look ahead to Q4, AI-related test demand remains robust across compute, networking and memory segments," CEO Greg Smith said in a statement.
Write to Nate Wolf at nate.wolf@barrons.com
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October 29, 2025 07:53 ET (11:53 GMT)
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