Teradyne (TER) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $1.33 billion, up 104% year-over-year, with non-GAAP EPS of $2.47, up 333% year-over-year, driven by strong AI demand across all business segments, especially Semiconductor Test.

• All business groups—Semiconductor Test, Product Test, and Robotics—grew year-over-year, reflecting broad-based AI-driven growth and robust demand in memory and compute.

• Strategic acquisitions, including controlling interests in MultiLane Test Products and Quantifi Photonics, expanded AI Data Center test solutions.

• Management anticipates a multi-year growth phase, supported by ongoing AI build-out, data center investments, and continued capital allocation to R&D, buybacks, and dividends.

• Balanced capital allocation between growth investments and shareholder returns, with significant buybacks and dividends.

Financial highlights

• Q2 2026 revenue: $1.33 billion, up 104% year-over-year and 4% sequentially; six-month revenue: $2.61 billion, up 95% year-over-year.

• Non-GAAP EPS: $2.47 in Q2 2026, up 333% year-over-year; first half non-GAAP EPS: $5.02, up 275% year-over-year.

• Gross margin for Q2 2026: 59.8%, up 2.6 points year-over-year; operating margin: 33.7%.

• Free cash flow for Q2 2026: $378 million; cash and investments at quarter-end: $517 million.

• Q2 2026 net income: $374.5 million (GAAP); operating cash flow for six months: $734.3 million.

Outlook and guidance

• Q3 2026 revenue guidance: $1.2–$1.3 billion; non-GAAP EPS: $1.85–$2.15; gross margin: 58%–59%.

• Management expects continued robust AI-related demand, growth in memory, robotics, and product test, and a resurgence in 2027 driven by ATE TAM expansion.

• Second half of 2026 expected to contribute 48%–50% of full-year revenue, with broad-based strengthening beyond compute.

• Ongoing investments in AI, data center, and robotics markets to support future expansion.