Teradyne reported third‑quarter 2025 revenue of $769 million, up 4.3% year‑over‑year, and GAAP earnings per share of $0.75 versus $0.89 in Q3 2024. Non‑GAAP EPS was $0.85, down 5.5% from the prior year, reflecting higher R&D, sales and marketing spend and increased variable compensation tied to AI initiatives.
The semiconductor test segment generated $606 million of revenue, a 12% year‑over‑year increase, driven by a 12% rise in memory test revenue to $128 million and an 11% sequential rise in SoC test revenue to $440 million. Product test contributed $88 million, while robotics revenue was $75 million, flat quarter‑on‑quarter and down year‑over‑year, impacted by a restructuring that reduced the robotics workforce by about 150 employees.
Teradyne raised its fourth‑quarter 2025 guidance to revenue of $920 million to $1,000 million, GAAP net income per share of $1.12 to $1.39, and non‑GAAP net income per share of $1.20 to $1.46. The company projects a 27% sequential revenue increase from Q4 2024 and a 25% sequential growth within Q4 2025, citing continued demand for AI‑related test solutions.
Additional context shows AI applications now account for roughly 50% of total revenue in Q3 2025, expected to rise to 60% in Q4. Teradyne’s CFO transition is underway, with Michelle Turner taking the role effective November 3 2025. The company returned $246 million in stock repurchases and $19 million in dividends during Q3, totaling $575 million in shareholder returns year‑to‑date. Two customers contributed more than 10% of revenue in Q3, and the company remains competitive in a market where margin pressure from supply‑chain costs is a concern.
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