Teradyne issued positive third-quarter 2026 guidance, projecting revenues of $1.20-$1.30 billion and non-GAAP earnings of $1.85-$2.15 per share, as the company's memory test business reached a record $212 million in the second quarter of 2026, the third consecutive quarter above $200 million. The Zacks Consensus Estimate for third-quarter 2026 revenues sits at $1.27 billion, implying a 65.20% year-over-year increase, while the consensus earnings mark of $2.04 per share, unchanged over the past 30 days, indicates 140% year-over-year growth. Management expects the 2026 memory test TAM to be more than 40% higher than 2025, supported by high-bandwidth memory, DRAM and NAND growth, and expects memory revenues to grow in the second half compared to the first half. Teradyne recently launched Magnum E2, a next-generation high-speed memory test system built on its Near-DUT Test architecture that supports advanced DRAM and flash interfaces including LPDDR6, DDR6, GDDR7 and NAND flash. Teradyne shares have surged 129.6% year to date, outpacing the Zacks Computer & Technology sector's 24.1% and the Zacks Electronics - Miscellaneous Products industry's 50.3% gains, though the stock trades at a forward 12-month Price/Sales of 11.93X versus the sector's 6.18X and carries a Zacks Rank #3 (Hold).
Teradyne IncTeradyne issued positive Q3 2026 guidance with revenue of $1.20-$1.30B and EPS of $1.85-$2.15 on record memory test demand.
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