Teradyne Q3 Earnings Beat Estimates, Revenues Increase Y/Y, Shares Up

Teradyne TER reported third-quarter 2025 non-GAAP earnings of 85 cents per share, which beat the Zacks Consensus Estimate by 8.97% and plunged 5.6% year over year.Revenues of $769 million beat the Zacks Consensus Estimate by 3.32% and increased 4.3% year over year.Teradyne stock rallied 22.32% in pre-market trading.TER’s Q3 Top-line DetailsRevenues from Semiconductor Test platforms, Robotics and Product Test were $606 million (78.8% of total revenues), $75 million (9.8%), and $88 million (11.4%), respectively.Teradyne, Inc. Price, Consensus and EPS Surprise Teradyne, Inc. price-consensus-eps-surprise-chart | Teradyne, Inc. QuoteIn the third quarter, Teradyne reported a non-GAAP gross margin of 58.5%, which contracted 120 basis points (bps) year over year.In the reported quarter, selling and administrative expenses increased 7.3% year over year to $169.1 million. As a percentage of revenues, selling and marketing expenses were 22%, up 60 bps year over year.Engineering and development expenses increased 6.2% year over year to $124.8 million. As a percentage of revenues, engineering and development expenses were 16.2%, up 30 bps year over year.Non-GAAP Operating income declined 4.9% year over year to $156.9 million. As a percentage of revenues, the operating margin contracted 200 bps on a year-over-year basis to 20.4%.TER’s Balance Sheet & Cash FlowAs of Sept. 28, 2025, Teradyne’s cash and cash equivalents (including marketable securities) were $297.7 million, lower than $367.9 million as of June 29, 2025.In the reported quarter, net cash provided by operating activities was $49 million.TER’s Q4 GuidanceFor the fourth quarter of 2025, Teradyne expects revenues between $920 million and $1 billion.  Non-GAAP earnings are expected to be between $1.20 and $1.46 per share.TER’s Zacks Rank & Other Stocks to ConsiderTeradyne currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Alkami Technology ALKT, AMETEK AME, and Advanced Energy AEIS. While Alkami Technology sports a Zacks Rank #1 (Strong Buy), AMETEK and Advanced Energy carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Alkami Technology is set to report third-quarter 2025 results on Oct. 30. Alkami Technology shares have lost 36.2% year to date.AMETEK is slated to report third-quarter 2025 results on Oct. 30. AMETEK shares have gained 2.7% year to date.Advanced Energy is set to report third-quarter 2025 results on Nov. 4. Advanced Energy shares have surged 77% year to date.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report Teradyne, Inc. (TER): Free Stock Analysis Report Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report Alkami Technology, Inc. (ALKT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks