Teradyne (TER) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of $1.282 billion and non-GAAP EPS of $2.56, up 87% and 241% year-over-year, driven by strong AI demand across all business segments.

• Nearly 70% of revenue was AI-driven, up from 60% in Q4 2025, reflecting a successful focus on AI data center markets.

• All business groups—Semiconductor Test, Product Test, and Robotics—delivered strong year-over-year growth.

• Significant new product launches in silicon photonics and server board testing, plus strategic acquisitions to expand capabilities.

• Customer concentration is increasing, leading to potential revenue lumpiness due to reliance on large technology companies.

Financial highlights

• Q1 2026 revenue was $1,282 million, up 87% year-over-year and 18% sequentially; non-GAAP EPS was $2.56, up 241% year-over-year and 42% sequentially.

• Gross margin reached 60.9%, up from 57.2% in Q4 2025, driven by strong Semi Test volume and favorable mix.

• Non-GAAP operating income was $480 million with a 37.5% margin, both all-time records.

• Cash flow from operations was $265.1 million, up from $161.6 million in Q1 2025.

• Robotics revenue grew 32% year-over-year, marking the fourth consecutive quarter of sequential growth.

Outlook and guidance

• Q2 2026 revenue expected between $1.15 billion and $1.25 billion, with non-GAAP EPS of $1.86–$2.15 and gross margin guidance of 58%–59%.

• First half 2026 revenue expected to comprise 55%–60% of annual revenue, reflecting strong demand but acknowledging potential order lumpiness.

• Full-year target model projects ~$6 billion in revenue and $9.50–$11.00 in non-GAAP EPS.