Teradyne (TER) Is Up 14.5% After Q3 Earnings Beat and Upgraded Q4 Outlook – What's Changed

• In the past week, Teradyne reported non-GAAP earnings of US$0.85 per share for the third quarter of 2025, exceeding analyst expectations, with revenues rising compared to last year.
• The company's higher-than-expected Q3 performance and robust Q4 guidance have prompted analysts to raise their estimates, reflecting a shift in investor confidence and outlook.
• We'll assess how Teradyne's improved Q4 guidance and strong earnings beat could impact the company's investment narrative moving forward.

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Teradyne Investment Narrative Recap

Being a Teradyne shareholder today relies on the belief in ongoing demand for advanced semiconductor and robotics testing, as well as the company’s ability to capitalize on automation and AI themes. The latest earnings surprise and upbeat guidance reinforce near-term confidence, but geopolitical and trade policy uncertainty remain the most significant risks, these could quickly outweigh operational momentum if global conditions shift.

Among recent developments, Teradyne’s launch of the Titan HP SLT platform for AI and cloud customers stands out. Aligned with industry trends driving automation and AI compute, this product launch connects directly to the increasing short-term demand for more advanced test systems, the very catalyst underlying the strong Q4 outlook. But when considering the positive developments, investors should not overlook...

Read the full narrative on Teradyne (it's free!)

Teradyne's outlook anticipates $4.1 billion in revenue and $952.0 million in earnings by 2028. This is based on an assumed annual revenue growth rate of 13.2% and represents an earnings increase of $482.8 million from current earnings of $469.2 million.

Uncover how Teradyne's forecasts yield a $184.69 fair value, in line with its current price.

Exploring Other Perspectives

Private fair value estimates from 9 Simply Wall St Community members range from US$74 to US$184.69 per share. While many are optimistic about Teradyne’s automation focus, global trade policy risks could shift these outlooks, see how your view compares.

Explore 9 other fair value estimates on Teradyne - why the stock might be worth less than half the current price!

Build Your Own Teradyne Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Teradyne research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Teradyne research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Teradyne's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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