Teradyne, Inc. · NASDAQ:TER
Teradyne — Q3 2026 Earnings Presentation
21 slides from Teradyne's earnings presentation, Oct 28, 2026
Slide 1: Q3 2026 Financial Results
Q3 2026 Financial Results October 28, 2026 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,”
Slide 3: Business Update and Outlook
Business Update and Outlook Greg Smith, President and CEO 3
Slide 4: Delivered Strong Q3'26 Results
Delivered Strong Q3’26 Results Third consecutive quarter with total company sales at the high watermark of $1.3B Revenue Non-GAAP EPS AI-Driven Revenue • 70% YoY growth • 169% YoY growth $1.6B • Above high guidance • Above high guidance $1.2B $0.8B • Semi Test up 77% YoY, Product Test up 56% YoY, $0
Slide 5: The ATE TAM Is Outpacing the Overall Semiconductor Capex
The ATE TAM Is Outpacing the Overall Semiconductor Capex 8% YTD ATE portion Capex ($B) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Semiconductor Capex ($B) ATE portion (right axis) ATE portion - 2026 YTD Source: SEMI, Product Buy Rate Data 2016-Aug 2026 (Product BuyRate tab: SEMS AT
Slide 6: Dual Vendor Lifecycle
Dual Vendor Lifecycle Key factor for share gain in compute across the mid-term 1 2 3 4 5 6 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Opportunity to Working solution Correlated Production ramp Fast follower Mature vendor compete solution Gradual share Expected share Initial qualification gain t
Slide 7: Collaborations Across the AI Ecosystem
Collaborations Across the AI Ecosystem Teradyne and Technoprobe Announce NVIDIA and Semiconductor Leaders Teradyne Announces Production Strategic Agreements to Drive Advance AI Across Chip Design and System for Double-Sided Wafer Probe Semiconductor Test Interface Manufacturing for AI-Defined Fabs T
Slide 8: Product Launches
Product Launches New launches in the last 60 days across the wafer to AI data center value chain UltraFLEXplus instruments for AI and Iris 100 test system for Titan HP platform with burn-in data center computing devices MicroLED devices capabilities for advanced AI UltraPin5000-EM | UltraVS64-HP | U
Slide 9: Teradyne's Wafer to AI Data Center Strategy
Teradyne’s Wafer to AI Data Center Strategy Enabling the global deployment of AI Wafer Die Substrate Package PCB Tray Rack AI Data Center ATE Test (SoC, Memory) Semiconductor Test Group Integrated System Test (SLT, HDD) Production Board Test Optical Test Product Test Group High Speed Interconnect Te
Slide 10: Third Quarter 2026 Financial Results and Fourth Quarter 2026 Guidance
Third Quarter 2026 Financial Results and Fourth Quarter 2026 Guidance Michelle Turner, Vice President and Chief Financial Officer 10
Slide 11: Q3'26 Non-GAAP Results
Q3’26 Non-GAAP Results $ in millions, except EPS Q3’25 Actual(1) Q2’26 Actual(1) Q3’26 Actual(1) Sales 100% $769M 100% $1,329M 100% $1,306M Semiconductor Test 79% $606M 84% $1,122M 82% $1,072M Product Test 11% $88M 8% $107M 11% $138M Robotics 10% $75M 8% $100M 7% $96M Gross Margin 58.5% $450M 59.8%
Slide 12: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation $ in millions Q3’25 Actual Q2’26 Actual Q3’26 Actual Cash and Marketable Securities $427M $517M $625M Inventory $367M $403M $575M DSO(1) 69 days 63 days 62 days Capital Additions $47M $91M $86M Depreciation and Amortization (2) $46M $54M $59M Free Cash Flow(3) $2M
Slide 13: Q4'26 Non-GAAP Guidance
Q4’26 Non-GAAP Guidance $ in millions, except EPS Q3’26 Actual(1) Q4’26 Guidance(1) Sales $1,306M $1,250M - $1,350M Gross Margin 59.1% 57.5% - 58.5% OPEX 27.4% 29.5% - 28.5% Operating Profit 31.6% 28.0% - 30.0% Income Taxes (& effective tax rate) 14.7% 15.3% EPS $2.29 $1.95 - $2.25 Diluted Shares 15
Slide 14: The Big Picture: Positive Momentum Continues
The Big Picture: Positive Momentum Continues Q3’26(1) Q4’26 Outlook(1,2) FY’26 Outlook(1,2) • 70% YoY revenue growth • $1.3B revenue at mid guidance • $5.2B revenue at mid guidance; • 169% YoY Non-GAAP EPS growth • 4th consecutive revenue quarter greater than 60% year-over-year above $1.25B growth •
Slide 15: TERADYNE
TERADYNE
Slide 16: Supplemental Information
Supplemental Information 16
Slide 17: History of Capital Allocation
History of Capital Allocation Since 2015, 87M shares repurchased at an average price of ~$56 per share $ in millions 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD’26 Cumulative Buybacks(1) $300 $146 $200 $823 $500 $88 $600 $752 $401 $199 $709 $174 $4,891 Dividends $51 $49 $55 $67 $61 $6
Slide 18: Teradyne Non-GAAP Target Earnings Model
Teradyne Non-GAAP Target Earnings Model Target Earnings Model(1) Segment Revenue 2025 Target Model ATE TAM ~$9.0B $12-14B ~15-25% CAGR off FY25 ~$6.0B TER Revenue $3.2B ~$6.0B Gross Margin % 58.3% ~59% - 61% $3.2B OPEX % 36.0% ~29% - 27% Operating Profit 22.3% ~30% - 34% Non-GAAP EPS $3.96 ~$9.50 -
Slide 19: Product vs Service Revenue Detail
Product vs Service Revenue Detail $ in millions Q3’25 Actual Q2’26 Actual Q3’26 Actual Total Company Sales $769M $1,329M $1,306M Product Revenue $632M $1,191M $1,164M Service Revenue $137M $138M $142M SemiTest Sales $606M $1,122M $1,072M Product Revenue $505M $1,019M $967M Service Revenue $101M $103
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses in this presentation and on the earnings call non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complemen
Slide 21: TERADYNE
TERADYNE