Teradyne guides Q3 revenue above estimates on chip test demand; shares jump

Chip-testing equipment maker Teradyne forecast third-quarter revenue above Wall Street estimates, sending shares up 13.5% in extended trading, Reuters reported. The company expects third-quarter revenue between $1.20 billion and $1.30 billion, ahead of analysts' average estimate of $1.04 billion compiled by LSEG. It forecast adjusted earnings of $1.85 to $2.15 per share, above an estimate of $1.53. Second-quarter revenue more than doubled to $1.33 billion, beating estimates of $1.22 billion. Adjusted profit was $2.47 per share, compared with an estimate of $2.09. Reuters said growing demand for more complex chips used in AI data centers and vehicles has driven need for sophisticated, higher-priced testing equipment. Teradyne supplies automated test equipment used to verify semiconductor quality and reliability. CEO Greg Smith said a rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond.