Teradyne reported a record Q1 with $1.28B revenue and $2.56 EPS, driven by 70% AI-related revenue. Management guided Q2 revenue $1.15-1.25B and maintained full-year targets of $6B revenue and $9.50-11 EPS. Key alpha: first merchant GPU test orders and a $300-700M silicon photonics test opportunity. Record Q1 revenue $1.28B and EPS $2.56, above guidance; AI revenue reached 70% of total from 60% in Q4.
Teradyne reported a record Q1 with $1.28B revenue and $2.56 EPS, driven by 70% AI-related revenue. Management guided Q2 revenue $1.15-1.25B and maintained full-year targets of $6B revenue and $9.50-11 EPS. Key alpha: first merchant GPU test orders and a $300-700M silicon photonics test opportunity. Record Q1 revenue $1.28B and EPS $2.56, above guidance; AI revenue reached 70% of total from 60% in Q4.
AI-related demand accounted for nearly 70% of Q1 revenue, up from ~60% in Q4 2025, driven by a three-wave AI buildout: general-purpose data center capacity, inference at scale, and edge AI. Management cited durable AI demand drivers and the acceleration of their wafer-to-AI…
Management's tone was confident, driven by record Q1 revenue and EPS, robust AI demand, and strong execution, while acknowledging potential lumpiness and limited second-half visibility due to customer ordering patterns.
Guidance · revenue to $6B
First merchant GPU production orders received. Management's tone was confident, driven by record Q1 revenue and EPS, robust AI demand, and strong execution, while acknowledging potential lumpiness and limited second-half visibility due to customer ordering patterns.
AI-related demand accounted for nearly 70% of Q1 revenue, up from ~60% in Q4 2025, driven by a three-wave AI buildout: general-purpose data center capacity, inference at scale, and edge AI. Management cited durable AI demand drivers and the acceleration of their wafer-to-AI data center strategy.
First merchant GPU production orders received. Management's tone was confident, driven by record Q1 revenue and EPS, robust AI demand, and strong execution, while acknowledging potential lumpiness and limited second-half visibility due to customer ordering patterns.
Capital expenditures were flat year over year in Q1, but expected to increase in Q2 to support investments in innovation and operations scaling. Management highlighted a multi-source contract manufacturing strategy providing flexibility to meet demand without supply constraints.
Management's tone was confident, driven by record Q1 revenue and EPS, robust AI demand, and strong execution, while acknowledging potential lumpiness and limited second-half visibility due to customer ordering patterns.
“For the year, we have line of sight to about $50 million in revenue for merchant GPU, but our visibility into the second half is quite limited with increasing contributions over the midterm period.”
“uh so we were surprised by that we you know for this particular end customer we have a very good relationship and for the the parts of their business that we serve we're able to deliver the testers that they need in the lead time that they”
“We have received our first multi-system production test orders for Merchant GPU in Q1. We expect these systems to ship, be installed, and be in production in Q2.”
“Memory test demand appears to be even stronger than our view in January, with AI compute demand for both HBM and DRAM continuing to act as an accelerator.”
“I think efficiency is going to go up by like a factor of 10 over the next couple of years. Despite that, I think this is still going to be $300 to $700 million worth of equipment.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | $9.50–$11.00 | $10.25 | MAINTAINED |
| EPS | FY2026 Q2 | $1.86–$2.15 | $2.00 | GUIDED |
| Gross margin | FY2026 Q2 | 58%–59% | 58.5% | GUIDED |
| Revenue | FY2026 | $6B | $6B | MAINTAINED |
| Revenue | FY2026 Q2 | $1.15B–$1.25B | $1.2B | GUIDED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2025 Q4 | EPS | FY2026 Q1 | $1.89–$2.25 | $2.56 | Met / beat |
| FY2025 Q4 | Gross margin | FY2026 Q1 | 58.5%–59.5% | 60.89% | Met / beat |
| FY2025 Q4 | Revenue | FY2026 Q1 | $1.15B–$1.25B | $1.2825B | Met / beat |
Teradyne booked first multi-system production test orders for a Merchant GPU in Q1, shipping in Q2; signals potential share gains in GPU ATE market currently dominated by Advantest. — Breaks Advantest's near-monopoly on high-volume GPU test; Teradyne can now capture a slice of the fastest-growing ATE segment.
“we recently demonstrated a complex physical AI work cell in partnership with Generalist as part of the recent NVIDIA GTC”
… quarter of sequential growth. This is particularly notable because Q4 is typically our strongest quarter and Q1 is typically down. We're seeing strong customer engagement across e-commerce, electronics manufacturing, and semiconductor end markets. Robotics is a key part of our wafer to AI data center strategy with robotic-assisted assembly, test, and data center operations. Our robots are being used in environmental sensing in data centers, and we recently demonstrated a complex physical AI work cell in partnership with Generalist as part of the recent NVIDIA GTC. In prior calls, we have often talked about the investments that we are making to capture growth opportunities coming from our wafer to data center strategy. In Q1, these investments have resulted in two significant new product introductions. The first is Photon 100, which is our platform for silicon photonics and co-packaged optics testing. The Photon 100 is based on our proven Ultraflex Plus tester and is bringing SIFO testing from lab to fab. I'll remind you that silicon photonics and co-packaged optics are in the very early stages of a ramp that will likely be substantial. There is uncertainty about the timing and …
Teradyne booked first multi-system production test orders for a Merchant GPU in Q1, shipping in Q2; signals potential share gains in GPU ATE market currently dominated by Advantest. — Breaks Advantest's near-monopoly on high-volume GPU test; Teradyne can now capture a slice of the fastest-growing ATE segment.
… to ride each of these waves as they arrive. Back in our January call, we shared that we expected robust double-digit year-over-year growth. We still expect that the compute TAM and revenue will grow significantly from an already strong 2025 base. We're seeing healthy engagement with both networking and VIP compute customers, and our pipeline of new design wins remains robust. Aligned with this momentum, I am pleased to share that we have received our first multi-system production test orders for Merchant GPU in Q1. We expect these systems to ship, be installed, and be in production in Q2. Customer engagement remains strong, and we are well positioned to capture further share as we bring up more devices on our platform. In automotive and industrial, we're seeing moderate but steady recovery in both TAM and revenue. There are signs of strength in automotive, primarily ADAS, and we're seeing increased demand for power going into AI data centers. As of now, mobile appears a bit weaker with memory pricing and availability affecting end market demand, especially outside the iOS ecosystem. Memory test demand appears to be even stronger than our view in January, with AI compute demand …
Memory test demand is stronger than January view, with both HBM and DRAM accelerating; beginning to see flash test demand from SSDs. — Signals higher memory test TAM in 2026 than consensus expected; benefits Micron and Samsung's equipment spending.
… capture further share as we bring up more devices on our platform. In automotive and industrial, we're seeing moderate but steady recovery in both TAM and revenue. There are signs of strength in automotive, primarily ADAS, and we're seeing increased demand for power going into AI data centers. As of now, mobile appears a bit weaker with memory pricing and availability affecting end market demand, especially outside the iOS ecosystem. Memory test demand appears to be even stronger than our view in January, with AI compute demand for both HBM and DRAM continuing to act as an accelerator. We're also beginning to see increasing flash test demand driven by SSD The overall memory market is on track for solid TAM growth for the year, and we expect to gain low single-digit share. In 2025, our IST group expanded its HDD customer base and entered the SLT compute market. Now, in 2026, IST is on track to deliver against this expanded opportunity. we're seeing strength in HDD driven by greater than 20% annual exabyte growth fueled by AI. This translates into longer test times per drive and a larger HDD TAM and revenue for Teradyne. In robotics, we delivered our fourth consecutive quarter of …
Teradyne sees a silicon photonics test opportunity of $300–$700M per year within the midterm, but test solutions will become 10x more efficient, so equipment revenue may be lower than implied by today's economics.