TER Gears Up to Report Q3 Earnings: What's in Store for the Stock?

Core Insights - Teradyne (TER) is expected to report its third-quarter 2025 results on October 28, 2025, with projected revenues between $710 million and $770 million and non-GAAP earnings per share (EPS) between $0.69 and $0.87 [1][8] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Teradyne's earnings is currently at $0.78 per share, reflecting a 13.3% decline from the same quarter last year. The revenue consensus is set at $744.5 million, indicating a slight increase of 0.98% year-over-year [2] Performance Drivers - The anticipated strong performance in the AI compute end-market is expected to significantly contribute to Teradyne's Q3 results, driven by high demand for custom ASICs from hyperscalers. The acquisition of Quantifi Photonics is also expected to enhance Teradyne's market share in the AI compute sector [4][8] - Strong orders for UltraFLEXplus systems, attributed to increasing utilization rates, are likely to support revenue growth. Memory revenues are projected to have rebounded, while mobile revenue growth is expected to be modest. However, the robotics and automotive markets are anticipated to remain soft, negatively impacting overall growth [5][8] Earnings Surprise Potential - According to the Zacks model, Teradyne has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), which suggests a lower likelihood of an earnings beat compared to other stocks with a positive Earnings ESP [6]