Teradyne Surges After Beating Q3 Estimates and Raising Q4 Outlook

Teradyne (NASDAQ: TER) shares rallied sharply following the release of better-than-expected third-quarter results and a bullish outlook for the fourth quarter, signaling renewed strength in the semiconductor testing market.

Q3 Performance Highlights

The company reported Q3 results that exceeded analyst expectations, driven by solid demand across its test and automation businesses.
The strong quarter reflects improving trends in semiconductor and industrial automation spending.

Q4 Guidance Exceeds Expectations

Teradyne provided an optimistic Q4 forecast, well ahead of Wall Street estimates:

Revenue: $920 million – $1.0 billion (vs. $817 million expected)
Non-GAAP EPS: $1.20 – $1.46 (vs. $1.02 expected)

The upbeat guidance suggests continued recovery momentum heading into year-end, supported by improving chip-sector demand and operational efficiency gains.

Leadership Transition

Teradyne also announced a CFO transition:

Michelle Turner will assume the role of Chief Financial Officer effective November 3, 2025.
Current CFO Sanjay Mehta will transition to an executive advisor role until his planned retirement in 2026.

The leadership change is expected to support a smooth handover as the company enters its next phase of growth.

Market Reaction

Investors responded positively to the strong results and guidance, sending Teradyne shares up 22%, one of the stock’s biggest single-day gains in recent quarters.