Teradyne FY26 Q2: record $1.33 billion revenue, EPS $2.38, up 104%
Teradyne's FY26 Q2 was a blowout: revenue of $1.33 billion roughly doubled from a year ago, GAAP EPS of $2.38 beat the $2.111 consensus, and free cash flow reached $0.38 billion. The catch is Q3 guidance of $1.20 billion to $1.30 billion, which implies a sequential decline in both revenue and profit. Read the quarter as real and the guide as deliberately conservative.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $2.38 compares with $0.49 a year ago and $2.53 in Q1, while non-GAAP EPS of $2.47 beat the $2.111 consensus by 17.0%. Gross margin of 59.8% was better than last year's 57.2% but 1.1 points below Q1's 60.9%, and net income of $0.37 billion fell 6.1% sequentially even as revenue rose. Costs grew faster than sales: operating margin slipped to 32.9% from 36.9% in Q1.
Revenue of $1.33 billion rose 103.9% from $0.65 billion a year earlier and 3.6% from Q1's $1.28 billion, a second consecutive record. Semiconductor Test supplied $1.12 billion, or 84.4% of the total, while Product Test added $0.11 billion and Robotics $0.10 billion. The growth is real but it is coming from one business.
Q3 revenue guidance of $1.20 billion to $1.30 billion brackets a $1.25 billion midpoint, 5.9% below the quarter just reported, and the range is roughly plus or minus 4%. Non-GAAP EPS guidance of $1.85 to $2.15 has a $2.00 midpoint, 19.0% below Q2's $2.47. Management framed the outlook as a reflection of robust AI-related demand.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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