Does Teradyne (TER) have what it takes to be a top stock pick for momentum investors? Let's find out.
Teradyne, Inc. ( TER ) Q3 2025 Earnings Call October 29, 2025 8:30 AM EDT Company Participants Amy McAndrews Gregory Smith - President, CEO & Director Sanjay Mehta - CFO, VP & Treasurer Conference Call Participants Christopher Muse - Cantor Fitzgerald & Co., Research Division Mehdi Hosseini - Susquehanna Financial Group, LLLP, Research Division Timothy Arcuri - UBS Investment Bank, Research Division Shane Brett - Morgan Stanley, Research Division James Schneider - Goldman Sachs Group, Inc., Research Division Samik Chatterjee - JPMorgan Chase & Co, Research Division Brian Chin - Stifel, Nicolaus & Company, Incorporated, Research Division Vedvati Shrotre - Evercore ISI Institutional Equities, Research Division David Duley - Steelhead Securities LLC Presentation Operator Ladies and gentlemen, good afternoon, and welcome to the Teradyne Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded.
The headline numbers for Teradyne (TER) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Teradyne (TER) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.9 per share a year ago.
The company expects fourth-quarter revenue to jump 27%, a big pickup from the third-quarter as AI-related test demand boost sales across its business.
Teradyne's Q3 results may showcase AI compute strength and UltraFLEXplus demand, offset by weakness in the robotics end-market.
Teradyne, Inc. is downgraded to Hold after a strong rally driven by AI-related demand and improved management outlook. Q2 2025 results beat expectations, with Semiconductor Test buoyed by AI compute, but Robotics remains a headwind, and memory test was also weak. Valuation now appears full, with multiples near historical peaks and TER stock close to long-term fair value, limiting further upside.
Teradyne (TER) closed at $133.21 in the latest trading session, marking a -1.09% move from the prior day.
The maker of semiconductor test equipment has a better chance to snap up market share, analysts say.
Examine the evolution of Teradyne's (TER) overseas revenue trends and their effects on Wall Street's forecasts and the stock's prospects.
I rate Teradyne as a hold, believing the current stock price is already incorporating its long-term growth potential, taking a conservative view. Teradyne's strength lies in its leading semiconductor test and industrial automation divisions, which together contribute over 80% of total revenues. The business is cyclical, but high gross and free cash flow margins, plus low debt, provide resilience and unique value for long-term investors.
A double-digit price move always turns heads, but the real story behind Teradyne's surge lies in the details. The stock's rally was powered by a trading volume of nearly 20 million shares, a figure more than five times its daily average.