Second consecutive quarter of record revenue, exceeding the high end of our Q2 Guidance
Revenue up 104% and earnings up over 300% from Q2’25
Record Memory revenue driven by continued strength in DRAM and a resurgence in NAND final test

Teradyne, Inc. (NASDAQ:TER):

Q2'26

Q2'25

Q1'26

Revenue (mil)

1,329

652

1,282

GAAP EPS

2.38

0.49

2.53

Non-GAAP EPS

2.47

0.57

2.56

Teradyne, Inc. (NASDAQ:TER) reported revenue of $1,329 million for the second quarter of 2026 of which $1,122 million was in Semiconductor Test, $107 million in Product Test, and $100 million in Robotics. On a GAAP-basis, net income attributable to Teradyne for the second quarter of 2026 was $374.5 million, or $2.38 per diluted share. On a non-GAAP basis, net income attributable to Teradyne for the second quarter of 2026 was $389.0 million, or $2.47 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and the related tax impact on non-GAAP adjustment.

"Our strategy to capture test and robotics opportunities from wafer to AI data center has driven another record quarter. This strength became evident in the year-on-year market expansion for all three of our business groups," said Teradyne CEO Greg Smith. "In the short term, our Q3 guidance reflects robust AI-related demand. Looking further ahead, rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond."

Guidance for the third quarter of 2026 is revenue of $1,200 million to $1,300 million, with GAAP net income attributable to Teradyne of $1.79 to $2.09 per diluted share and non-GAAP net income attributable to Teradyne of $1.85 to $2.15 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the second quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, July 29, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income attributable to Teradyne excludes acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on "Investor Relations" and then selecting "Financials" and the "GAAP to Non-GAAP Reconciliation" link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne^®is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "goal" or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current or future geopolitical conflicts; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2026
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands)

	Quarter Ended									Six Months Ended
	June 28, 2026			March 29, 2026			June 29, 2025			June 28, 2026			June 29, 2025
Net revenues	$	1,328,990		$	1,282,494		$	651,797		$	2,611,484		$	1,337,477
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)		534,372			501,545			278,785			1,035,916			549,128
Gross profit		794,618			780,949			373,012			1,575,568			788,349
Operating expenses:
Selling and administrative (2)		192,520			166,737			157,782			359,257			315,039
Engineering and development		156,284			135,561			118,382			291,845			236,570
Acquired intangible assets amortization		4,972			2,224			3,733			7,196			8,306
Restructuring and other (3)		3,032			3,425			2,372			6,457			16,887
Operating expenses		356,808			307,947			282,269			664,755			576,802
Income from operations		437,810			473,002			90,743			910,813			211,547
Interest and other (income) expense (4)		(5,809	)		7,326			(5,816	)		1,517			(4,037	)
Income before income taxes		443,619			465,676			96,559			909,296			215,584
Income tax provision		66,788			62,157			12,260			128,945			26,804
Income before equity in net earnings of affiliate	$	376,831		$	403,519		$	84,299		$	780,351		$	188,780
Equity in net earnings of affiliate		(1,946	)		(4,611	)		(5,927	)		(6,557	)		(11,511	)
Consolidated net income		374,885			398,908			78,372			773,794			177,269
Less: Net income attributable to noncontrolling interests		352			—			—			352			—
Net income attributable to Teradyne	$	374,533		$	398,908		$	78,372		$	773,442		$	177,269

Earnings per common share attributable to Teradyne
Basic	$	2.39		$	2.55		$	0.49		$	4.94		$	1.10
Diluted	$	2.38		$	2.53		$	0.49		$	4.91		$	1.10
Weighted average common shares - basic		156,470			156,410			159,967			156,440			160,734
Weighted average common shares - diluted		157,693			157,636			160,135			157,664			161,065
Cash dividend declared per common share	$	0.13		$	0.13		$	0.12		$	0.26		$	0.24

(1) Cost of revenues includes:
	Quarter Ended									Six Months Ended
	June 28, 2026			March 29, 2026			June 29, 2025			June 28, 2026			June 29, 2025
Provision for excess and obsolete inventory	$	3,599		$	4,682		$	7,402		$	8,281		$	12,347
Inventory step-up		—			118			343			118			560
Sale of previously written down inventory		(563	)		(297	)		(1,105	)		(860	)		(1,429	)
	$	3,036		$	4,503		$	6,640		$	7,539		$	11,478

(2)		For the quarters ended June 28, 2026, March 29, 2026, and June 29, 2025, selling and administrative expenses included $2.5 million, $1.7 million, and $1.1 million, respectively, of expenses directly related to an ERP system implementation. For the six months ended June 28, 2026 and June 29, 2025, selling and administrative expenses included $4.3 million and $1.8 million, respectively, of expenses directly related to an ERP system implementation.

(3)		Restructuring and other consists of:

	Quarter Ended							Six Months Ended
	June 28, 2026		March 29, 2026		June 29, 2025			June 28, 2026		June 29, 2025
Acquisition and divestiture related expenses	$	1,532	$	1,699	$	(422	)	$	3,231	$	1,550
Employee severance (a)		1,404		854		2,320			2,258		13,715
Asset impairment		—		—		72			—		1,214
Other		96		872		402			968		408
	$	3,032	$	3,425	$	2,372		$	6,457	$	16,887

(a)

For the six months ended June 29, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees.

(4) Interest and other includes:
	Quarter Ended							Six Months Ended
	June 28, 2026			March 29, 2026		June 29, 2025		June 28, 2026			June 29, 2025
Pension actuarial losses (gains)	$	(157	)	$	—	$	127	$	(157	)	$	127
Loss (gain) on foreign exchange contract		—			—		—		—			(561	)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

	June 28, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	349,538	$	293,751
Marketable securities		5,291		28,247
Accounts receivable, net		1,109,711		786,913
Inventories, net		403,297		379,552
Prepayments		468,174		427,564
Other current assets		30,011		33,273
Total current assets		2,366,022		1,949,300
Property, plant and equipment, net		634,839		562,999
Operating lease right-of-use assets, net		94,302		76,635
Marketable securities		162,274		126,256
Deferred tax assets		289,582		275,265
Retirement plans assets		12,140		12,059
Equity method investment		514,957		537,098
Other assets		85,774		71,697
Acquired intangible assets, net		101,910		51,271
Goodwill		663,817		521,019
Total assets	$	4,925,617	$	4,183,599
LIABILITIES
Current liabilities:
Accounts payable	$	383,422	$	269,185
Accrued employees’ compensation and withholdings		220,690		254,973
Deferred revenue and customer advances		193,840		153,124
Other accrued liabilities		133,399		111,845
Operating lease liabilities		17,258		19,340
Short-term debt		—		200,000
Income taxes payable		164,907		106,740
Total current liabilities		1,113,516		1,115,207
Retirement plans liabilities		151,436		144,874
Long-term deferred revenue and customer advances		62,985		50,888
Deferred tax liabilities		12,929		5,378
Long-term other accrued liabilities		28,569		7,601
Long-term operating lease liabilities		82,869		63,899
Total liabilities		1,452,304		1,387,847
EQUITY
Total Teradyne shareholders' equity		3,437,162		2,795,752
Equity attributable to noncontrolling interests		36,151		—
Total equity		3,473,313		2,795,752
Total liabilities and equity	$	4,925,617	$	4,183,599

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

	Quarter Ended						Six Months Ended
	June 28, 2026			June 29, 2025			June 28, 2026			June 29, 2025
Cash flows from operating activities:
Consolidated net income	$	374,885		$	78,372		$	773,794		$	177,269
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation		28,644			27,312			58,884			52,835
Stock-based compensation		20,063			16,827			41,964			32,031
Equity in net earnings of affiliate		1,946			5,927			6,557			11,511
Amortization		5,006			4,077			7,421			8,856
Provision for excess and obsolete inventory		3,599			7,402			8,281			12,347
Losses (gains) on investments		(8,241	)		(4,450	)		(4,923	)		(1,078	)
Deferred taxes		(10,466	)		(7,187	)		(18,230	)		(14,998	)
Retirement plan actuarial losses (gains)		(157	)		127			(157	)		127
Other		474			(317	)		2,760			3,168
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable		19,841			36,443			(302,176	)		49,496
Inventories		(28,678	)		7,342			(7,852	)		(23,707	)
Prepayments and other assets		(63,670	)		17,230			(59,621	)		30,879
Accounts payable and other liabilities		136,829			27,085			121,803			17,135
Deferred revenue and customer advances		(1,101	)		2,857			50,863			13,056
Retirement plans contributions		(1,564	)		(4,294	)		(3,098	)		(5,576	)
Income taxes		(8,272	)		(32,665	)		57,992			(19,625	)
Net cash provided by operating activities		469,138			182,088			734,262			343,726
Cash flows from investing activities:
Purchases of property, plant and equipment		(90,706	)		(50,408	)		(155,439	)		(114,429	)
Acquisitions of businesses, net of cash and cash equivalents acquired		(165,611	)		(127,378	)		(165,611	)		(144,380	)
Purchase of investments in a business		(10,030	)		(2,357	)		(10,030	)		(5,368	)
Purchases of marketable securities		(7,438	)		(6,396	)		(48,235	)		(17,150	)
Proceeds from maturities of marketable securities		159			5,223			11,069			32,603
Proceeds from sales of marketable securities		2,287			2,854			29,615			8,487
Net cash used for investing activities		(271,339	)		(178,462	)		(338,631	)		(240,237	)
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facility		300,000			—			350,000			—
Repayments of borrowings on revolving credit facility		(300,000	)		—			(550,000	)		—
Dividend payments		(20,348	)		(19,177	)		(40,710	)		(38,584	)
Repurchase of common stock		(68,720	)		(117,398	)		(74,238	)		(274,873	)
Payments related to net settlement of employee stock compensation awards		(1,676	)		(229	)		(41,113	)		(14,954	)
Issuance of common stock under stock purchase and stock option plans		—			—			15,101			14,792
Net cash used for financing activities		(90,744	)		(136,804	)		(340,960	)		(313,619	)
Effects of exchange rate changes on cash and cash equivalents		539			(3,202	)		1,116			(3,972	)
(Decrease) increase in cash and cash equivalents		107,594			(136,380	)		55,787			(214,102	)
Cash and cash equivalents at beginning of period		241,944			475,632			293,751			553,354
Cash and cash equivalents at end of period	$	349,538		$	339,252		$	349,538		$	339,252

GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts)

	Quarter Ended
	June 28, 2026			% of Net Revenues								March 29, 2026			% of Net Revenues								June 29, 2025			% of Net Revenues
Net revenues	$	1,329.0										$	1,282.5										$	651.8
Gross profit GAAP		794.6		59.8	%								780.9		60.9	%								373.0		57.2	%
Inventory step-up		—		0.0	%								0.1		0.0	%								0.3		0.0	%
Gross profit non-GAAP		794.6		59.8	%								781.0		60.9	%								373.3		57.3	%
Income from operations - GAAP		437.8		32.9	%								473.0		36.9	%								90.7		13.9	%
Acquired intangible assets amortization		5.0		0.4	%								2.2		0.2	%								3.7		0.6	%
Restructuring and other (1)		3.0		0.2	%								3.4		0.3	%								2.4		0.4	%
ERP related expenses (2)		2.5		0.2	%								1.7		0.1	%								1.1		0.2	%
Inventory step-up		—		0.0	%								0.1		0.0	%								0.3		0.0	%
Income from operations - non-GAAP	$	448.3		33.7	%							$	480.4		37.5	%							$	98.2		15.1	%

						Earnings per Common Share attributable to Teradyne											Earnings per Common Share attributable to Teradyne											Earnings per Common Share attributable to Teradyne
	June 28, 2026			% of Net Revenues		Basic			Diluted			March 29, 2026			% of Net Revenues		Basic			Diluted			June 29, 2025			% of Net Revenues		Basic			Diluted
Net income attributable to Teradyne - GAAP	$	374.5		28.2	%	$	2.39		$	2.38		$	398.9		31.1	%	$	2.55		$	2.53		$	78.4		12.0	%	$	0.49		$	0.49
Amortization of equity method investment		7.6		0.6	%		0.05			0.05			7.7		0.6	%		0.05			0.05			7.4		1.1	%		0.05			0.05
Acquired intangible assets amortization		5.0		0.4	%		0.03			0.03			2.2		0.2	%		0.01			0.01			3.7		0.6	%		0.02			0.02
Restructuring and other (1)		3.0		0.2	%		0.02			0.02			3.4		0.3	%		0.02			0.02			2.4		0.4	%		0.02			0.01
ERP related expenses (2)		2.5		0.2	%		0.02			0.02			1.7		0.1	%		0.01			0.01			1.1		0.2	%		0.01			0.01
Pension mark-to-market adjustment (3)		(0.2	)	0.0	%		(0.00	)		(0.00	)		—		—			—			—			0.1		0.0	%		0.00			0.00
Inventory step-up		—		—			—			—			0.1		0.0	%		0.00			0.00			0.3		0.0	%		0.00			0.00
Exclude discrete tax adjustments		(1.7	)	0.1	%		(0.01	)		(0.01	)		(9.3	)	0.7	%		(0.06	)		(0.06	)		0.0		0.0	%		0.00			0.00
Non-GAAP tax adjustments		(1.7	)	0.1	%		(0.01	)		(0.01	)		(1.8	)	0.1	%		(0.01	)		(0.01	)		(1.8	)	0.3	%		(0.01	)		(0.01	)
Net income attributable to Teradyne - non-GAAP	$	389.0		29.3	%	$	2.49		$	2.47		$	402.9		31.4	%	$	2.58		$	2.56		$	91.6		14.1	%	$	0.57		$	0.57

GAAP and non-GAAP weighted average common shares - basic		156.5											156.4											160.0
GAAP and non-GAAP weighted average common shares - diluted		157.7											157.6											160.1

(1) Restructuring and other consists of:

	Quarter Ended
	June 28, 2026		March 29, 2026		June 29, 2025
Acquisition and divestiture related expenses	$	1.5	$	1.7	$	(0.4	)
Employee severance		1.4		0.9		2.3
Asset impairment		—		—		0.1
Other		0.1		0.9		0.4
	$	3.0	$	3.5	$	2.4

(2)		For the quarters ended June 28, 2026, March 29, 2026, and June 29, 2025, selling and administrative expenses included costs directly related to an ERP system implementation.

(3)		For the quarters ended June 28, 2026 and June 29, 2025, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

	Six Months Ended
	June 28, 2026			% of Net Revenues								June 29, 2025			% of Net Revenues
Net Revenues	$	2,611.5										$	1,337.5
Gross profit GAAP		1,575.6		60.3	%								788.3		58.9	%
Inventory step-up		0.1		0.0	%								0.6		0.0	%
Gross profit non-GAAP		1,575.7		60.3	%								788.9		59.0	%
Income from operations - GAAP		910.8		34.9	%								211.5		15.8	%
Acquired intangible assets amortization		7.2		0.3	%								8.3		0.6	%
Restructuring and other (1)		6.5		0.2	%								16.9		1.3	%
ERP related expenses (2)		4.3		0.2	%								1.8		0.1	%
Inventory step-up		0.1		0.0	%								0.6		0.0	%
Income from operations - non-GAAP	$	928.9		35.6	%							$	239.1		17.9	%

						Earnings per Common Share attributable to Teradyne											Earnings per Common Share attributable to Teradyne
	June 28, 2026			% of Net Revenues		Basic			Diluted			June 29, 2025			% of Net Revenues		Basic			Diluted
Net income attributable to Teradyne - GAAP	$	773.4		29.6	%	$	4.94		$	4.91		$	177.3		13.3	%	$	1.10		$	1.10
Amortization of equity method investment		15.3		0.6	%		0.10			0.10			14.8		1.1	%		0.09			0.09
Acquired intangible assets amortization		7.2		0.3	%		0.05			0.05			8.3		0.6	%		0.05			0.05
Restructuring and other (1)		6.5		0.2	%		0.04			0.04			16.9		1.3	%		0.11			0.10
ERP related expenses (2)		4.3		0.2	%		0.03			0.03			1.8		0.1	%		0.01			0.01
Inventory step-up		0.1		0.0	%		0.00			0.00			0.6		0.0	%		0.00			0.00
Pension mark-to-market adjustment (3)		(0.2	)	0.0	%		(0.00	)		(0.00	)		0.1		0.0	%		0.00			0.00
Loss (gain) on foreign exchange contract		—		—			—			—			(0.6	)	0.0	%		(0.00	)		(0.00	)
Exclude discrete tax adjustments		(11.0	)	0.4	%		(0.07	)		(0.07	)		0.9		0.1	%		0.01			0.01
Non-GAAP tax adjustments		(3.7	)	0.1	%		(0.02	)		(0.02	)		(6.9	)	0.5	%		(0.04	)		(0.04	)
Net income attributable to Teradyne - non-GAAP	$	791.9		30.3	%	$	5.06		$	5.02		$	213.2		15.9	%	$	1.33		$	1.32

GAAP and non-GAAP weighted average common shares - basic		156.4											160.7
GAAP and non-GAAP weighted average common shares - diluted		157.7											161.1

(1) Restructuring and other consists of:

	Six Months Ended
	June 28, 2026		June 29, 2025
Acquisition and divestiture related expenses	$	3.2	$	1.6
Employee severance (a)		2.3		13.7
Asset impairment		—		1.2
Other		1.0		0.4
	$	6.5	$	16.9

(a)

For the six months ended June 29, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees.

(2)		For the six months ended June 28, 2026 and June 29, 2025, selling and administrative expenses included costs directly related to an ERP system implementation.
(3)		For the six months ended June 28, 2026, and June 29, 2025, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

GAAP to Non-GAAP Reconciliation of Third Quarter 2026 guidance:

GAAP and non-GAAP third quarter revenue guidance:	$1,200 million			to	$1,300 million
GAAP net income attributable to Teradyne per diluted share	$	1.79			$	2.09
Exclude acquired intangible assets amortization		0.03			$	0.03
Exclude equity method investment amortization		0.05			$	0.05
Non-GAAP tax adjustments		(0.01	)		$	(0.01	)
Non-GAAP net income attributable to Teradyne per diluted share	$	1.85			$	2.15

For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260728522201/en/

For more information:

Amy McAndrews

Investor Relations

Tel 978.370.3945

Investor.relations@teradyne.com