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]

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]