Good morning. David Solomon, chair and CEO of Goldman Sachs, leads one of the world’s most prominent investment banks and sees AI as a key growth driver, though he cautions the path ahead won’t be straightforward.Speaking at the Economic Club of Washington, D.C., on Thursday in a conversation with Carlyle Group co-founder David Rubenstein, Solomon discussed the state of the U.S. economy, the impact of rising public debt, and the AI investment boom in front of a packed audience.An outlook on growthGoldman Sa ...

Core Viewpoint - Teradyne's strong third-quarter performance and positive guidance for the fourth quarter, driven by AI demand, have led to a significant rise in its stock price, with analysts revising their price targets upward [2][5][8]. Financial Performance - Teradyne reported third-quarter 2025 revenue of $769 million and adjusted earnings per share (EPS) of $0.85, exceeding analysts' expectations of $744 million in sales and $0.79 in EPS [5][7]. - The company anticipates fourth-quarter 2025 revenue between $920 million and $1 billion, compared to $753 million in Q4 2024 [7]. Stock Performance - Teradyne's stock has increased by 22.6% from the end of trading last Friday to the close of Thursday's market session [3]. - The current stock price is $176.88, with a market capitalization of $28 billion [6]. Analyst Sentiment - Following the strong performance, several analysts have raised their price targets for Teradyne: UBS to $200 from $165, Susquehanna to $215 from $200, and JPMorgan to $190 from $122 [9]. Industry Context - The growth in AI demand has been a significant factor in Teradyne's performance, with CEO Greg Smith highlighting that investments in Cloud AI have driven production ramp-ups across various AI-related devices [7].

CANADA - 2025/03/10: In this photo illustration, the Teradyne logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesTeradyne (TER)’s stock increased by 51%, driven more by a remarkable increase in investor confidence than by revenue increases and margin declines. Stimulated by demand for AI, consistent earnings surpasses, and an optimistic analyst forecast, the surge suggests confidence that extend ...

Core Insights - Teradyne Inc. reported better-than-expected third-quarter results, with earnings of 85 cents per share, surpassing the analyst consensus estimate of 79 cents per share, and quarterly sales of $769.210 million, exceeding the estimate of $743.776 million [1][2]. Financial Performance - The company anticipates fourth-quarter adjusted EPS between $1.20 and $1.46, compared to market estimates of $1.02. Sales expectations range from $920 million to $1 billion, against market estimates of $814.262 million [2]. - The Semiconductor Test Group's performance was a key driver, with sales exceeding expectations, primarily due to System-on-a-Chip (SOC) solutions for AI applications and strong memory performance. Q4'25 sales are projected to increase by 25% sequentially and 27% year-over-year [3]. Analyst Ratings and Price Targets - Following the earnings announcement, analysts adjusted their price targets for Teradyne. Goldman Sachs analyst James Schneider maintained a Sell rating but raised the price target from $130 to $148. Evercore ISI Group analyst Mark Lipacis maintained an Outperform rating and increased the price target from $175 to $200 [4][6].

Core Insights - Teradyne, Inc. (NASDAQ:TER) achieved a new all-time high stock price of $177.24, closing at $173.94, reflecting a 20.47% increase in one day due to strong revenue performance and an optimistic growth outlook that surpassed Wall Street estimates [1][2]. Financial Performance - For Q3, Teradyne reported a revenue increase of 4.3%, reaching $769 million compared to $737 million in the same quarter last year. The revenue breakdown included $606 million from semiconductor tests, $88 million from product tests, and $75 million from robotics [3]. - Despite the revenue growth, net income fell by 18% to $119 million from $145.6 million year-on-year [4]. Future Outlook - The company anticipates a revenue growth outlook for the full-year 2025 between $920 million and $1 billion, exceeding analyst projections of $816.3 million [2]. - CEO Greg Smith indicated that demand for AI-related testing remains strong across various segments, with Q4'25 sales expected to increase by 25% sequentially and 27% year-over-year [5].

Core Viewpoint - Teradyne's stock has shown significant growth, with a 23.3% increase over the past month and a 38.1% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Miscellaneous Products industry [1] Financial Performance - Teradyne has consistently exceeded earnings expectations, reporting an EPS of $0.85 against a consensus estimate of $0.78 in its latest earnings report [2] - For the current fiscal year, Teradyne is projected to achieve earnings of $3.14 per share on revenues of $2.9 billion, reflecting a -2.48% change in EPS and a 2.76% change in revenues [3] - The next fiscal year forecasts earnings of $4.54 per share on revenues of $3.44 billion, indicating a year-over-year growth of 44.52% in EPS and 18.61% in revenues [3] Valuation Metrics - Teradyne's stock trades at a high valuation, with a current fiscal year P/E ratio of 55.3X, significantly above the peer industry average of 24.4X [7] - The trailing cash flow basis shows a P/CF of 43.9X compared to the peer group's average of 16.2X, and a PEG ratio of 3.64, suggesting it is not positioned among the top value stocks [7] Zacks Rank - Teradyne holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further gains [8] Industry Comparison - The Electronics - Miscellaneous Products industry is performing well, ranking in the top 18% of all industries, providing favorable conditions for both Teradyne and its peer MKS Inc. [11] - MKS Inc. also shows strong performance with a Zacks Rank of 2 (Buy) and is expected to post earnings of $7.02 per share on revenues of $3.82 billion for the current fiscal year [10]

Core Viewpoint - Teradyne's Q3 2025 performance exceeded market expectations, driven by strong demand for AI-related testing solutions, particularly in semiconductor testing [2][3] Financial Performance - Q3 revenue reached $769.2 million, a 4% year-over-year increase, surpassing analyst expectations of $743.8 million by 3.4% [2] - Non-GAAP EPS was $0.85, exceeding market expectations of $0.79 by 7.9% [2] Business Drivers and Highlights - AI demand is the core engine of growth, with strong performance in SOC testing solutions and memory testing [3] - Semiconductor testing remains the primary revenue driver, contributing over 75% of total revenue, while product testing and robotics generated $88 million and $75 million, respectively [3] - Market confidence surged post-earnings report, with Teradyne's stock price rising over 16% in after-hours trading, reaching an all-time high [3] Q4 Guidance - Q4 revenue guidance is set between $920 million and $1 billion, indicating a 25% quarter-over-quarter and 27% year-over-year growth, significantly above analyst consensus of $815.7 million [4] - Q4 non-GAAP EPS guidance ranges from $1.20 to $1.46, also exceeding market expectations of $1.03 [4] Overall Summary - Teradyne's performance not only exceeded expectations but also highlighted the company's benefits from the AI industry trend, with strong Q4 guidance suggesting continued growth momentum in the coming quarters [5]

Market Overview - Major U.S. equities indexes ended mixed after the Federal Reserve announced a quarter-point cut to its benchmark interest rate, with Fed Chair Jerome Powell cautioning against assumptions of further cuts in December [3][8] - The S&P 500 finished flat, the Dow Jones Industrial Average fell 0.2%, while the tech-heavy Nasdaq advanced 0.6% [4] Company Performance - Teradyne (TER) shares surged 20.5% after exceeding third-quarter sales and profit estimates, driven by strong AI demand for semiconductor testing equipment [5] - Seagate Technology Holdings (STX) reported better-than-expected third-quarter results, with a 19.1% stock increase, attributed to AI-driven demand for its heat-assisted magnetic recording drives [6] - Centene (CE) shares rose 12.5% following a surprise profit in the third quarter and an increase in full-year guidance, supported by higher demand for Medicare and Medicaid services [7] Underperforming Companies - Fiserv (FI) shares plummeted 44% after missing quarterly revenue and earnings estimates, leading to a cut in full-year forecasts [10] - Verisk Analytics (VRSK) topped adjusted profit forecasts but fell short on revenue, resulting in a 10.4% drop in shares due to low severe weather claims [11] - CoStar Group (CSGP) exceeded sales and profit forecasts but revised its full-year earnings forecast downward, leading to a 9.9% decline in shares [11]

Key Points Teradyne's semiconductor test equipment is driving its acceleration in sales growth. We may still be in the early innings of investment in AI applications and related technologies. 10 stocks we like better than Teradyne › Another day, another big move in an artificial intelligence (AI)-related stock. Today it was the turn of the automated test systems company Teradyne (NASDAQ: TER), whose stock was up by almost 20% as of 2 p.m. ET today. Why Teradyne stock popped higher today The move ...

Core Insights - Teradyne reported third-quarter 2025 non-GAAP earnings of 85 cents per share, exceeding the Zacks Consensus Estimate by 8.97% but down 5.6% year over year [1][9] - Revenues reached $769 million, surpassing the Zacks Consensus Estimate by 3.32% and increasing 4.3% year over year [1][9] - The stock price of Teradyne surged 22.32% in pre-market trading following the earnings report [1] Revenue Breakdown - Revenue from Semiconductor Test platforms was $606 million, accounting for 78.8% of total revenues; Robotics generated $75 million (9.8%); and Product Test contributed $88 million (11.4%) [2] - Non-GAAP gross margin for the quarter was 58.5%, a contraction of 120 basis points year over year [2] Expense Analysis - Selling and administrative expenses rose 7.3% year over year to $169.1 million, representing 22% of revenues, an increase of 60 basis points [3] - Engineering and development expenses increased 6.2% year over year to $124.8 million, making up 16.2% of revenues, up 30 basis points [3] Operating Performance - Non-GAAP operating income declined 4.9% year over year to $156.9 million, with an operating margin of 20.4%, down 200 basis points year over year [4] Financial Position - As of September 28, 2025, Teradyne's cash and cash equivalents totaled $297.7 million, down from $367.9 million as of June 29, 2025 [5] - Net cash provided by operating activities for the quarter was $49 million [5] Future Guidance - For the fourth quarter of 2025, Teradyne anticipates revenues between $920 million and $1 billion, with non-GAAP earnings expected to range from $1.20 to $1.46 per share [6][9] Market Position - Teradyne holds a Zacks Rank 2 (Buy) [7] - Other notable stocks in the Zacks Computer and Technology sector include Alkami Technology (Rank 1), AMETEK, and Advanced Energy (both Rank 2) [7]