Teradyne earnings: third quarter 2026

Teradyne, which makes machines that test computer chips, sold about 70% more than a year ago in the third quarter of 2026, and its profit per share nearly tripled. Both slipped a little from the previous quarter, and the company expects a fourth quarter with similar sales but somewhat lower profit per share. ¹

Against what analysts expected

Teradyne's adjusted earnings per share of $2.29, and its official figure of $2.17, were both above the analysts' average forecast of $2.04, as collected by Nasdaq's earnings calendar. ¹²

The strong points

• Sales were $1,306 million, about 70% more than a year ago and above the top of the company's own forecast for the quarter. ¹
• Profit per share nearly tripled from a year ago, to $2.29 on the company's adjusted basis. ¹
• The profit showed up as real cash: about $227 million was left after running the business and paying for new equipment. ¹

The weak points

• Operating profit before one-off items fell to 31.6% of sales, down from the previous quarter, as running costs rose while sales dipped slightly. ¹
• Even at the top of its range, the company expects adjusted profit per share next quarter below this quarter's $2.29. ¹

What the company expects

• For the fourth quarter, Teradyne expects sales of $1,250 million to $1,350 million, roughly level with this quarter. ¹
• It expects adjusted profit per share of $1.95 to $2.25 in the fourth quarter. ¹

Our verdict on the quarter

A strong report. A very strong quarter against a year ago, above the company's own forecast and above what analysts expected, with the profit turning into cash - held back by a small dip from the previous quarter and a fourth-quarter forecast that points to lower profit per share.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. Teradyne's results release, 27 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 29 October 2026. ↩