Core Insights - Teradyne (TER) reported second-quarter 2025 non-GAAP earnings of 57 cents per share, exceeding the Zacks Consensus Estimate by 5.56% but down 33.7% year over year [1] - Revenues for the quarter were $652 million, surpassing the Zacks Consensus Estimate by 0.89% but declining 10.7% year over year [1] Revenue Breakdown - Revenue from Semiconductor Test platforms was $492 million (75.5% of total revenues), System Test business generated $75 million (11.5%), and Robotics and Product Test contributed $85 million (13%) [2] Margin and Expenses - Non-GAAP gross margin for the quarter was 57.3%, a contraction of 110 basis points year over year [2] - Selling and administrative expenses rose 2.1% year over year to $157.8 million, accounting for 24.2% of revenues, an increase of 300 basis points [3] - Engineering and development expenses increased 5.9% year over year to $118.4 million, representing 18.2% of revenues, up 280 basis points [3] Operating Income - Non-GAAP operating income fell 38.5% year over year to $98.2 million, with the operating margin contracting 680 basis points to 15.1% [4] Balance Sheet and Cash Flow - As of June 29, 2025, Teradyne's cash and cash equivalents were $367.9 million, down from $507.8 million as of March 30, 2025 [5] - Net cash provided by operating activities in the reported quarter was $182.1 million [5] - The board authorized an expansion of the share repurchase program, increasing the target to $1 billion by the end of 2026 [5] Q3 Guidance - For Q3 2025, Teradyne expects revenues between $710 million and $770 million, with the Zacks Consensus Estimate at $764.4 million, indicating 3.7% growth year over year [6] - Non-GAAP earnings are projected to be between 69 cents and 87 cents per share, with the Zacks Consensus Estimate at 91 cents per share, suggesting 1.1% growth year over year [7] Zacks Rank and Comparisons - Teradyne currently holds a Zacks Rank 3 (Hold) [8] - Comparatively, Arista Networks (ANET) has a Zacks Rank 1 (Strong Buy), while Leidos (LDOS) and Enovix Corporation (ENVX) hold Zacks Rank 2 (Buy) [8]