Teradyne stock pops 12% on earnings beat driven by AI demand

Teradyne inventory popped on Tuesday after the corporate beat fourth-quarter estimates due to sturdy artificial intelligence demand.

The robotics firm reported adjusted earnings of $1.80 per share, exceeding the $1.37 per share anticipated by analysts surveyed by LSEG. Income totaled $1.08 billion, topping a forecast of $973 million.

Teradyne’s fourth-quarter income was up 44% in comparison with a 12 months in the past.

On the earnings name with analysts, CEO Greg Smith mentioned that AI drove greater than 60% of Teradyne’s income within the fourth quarter. He mentioned the corporate expects that to be upward of 70% subsequent quarter.

The corporate attributed its This autumn progress to “sturdy AI-related demand in compute and reminiscence” and issued sturdy steerage.

“In 2026, we anticipate year-over-year progress throughout all of our companies, with sturdy momentum in compute pushed by AI,” the corporate mentioned in a press launch on Monday.

Teradyne mentioned it anticipates first-quarter adjusted earnings per share to be between $1.89 and $2.25, far above LSEG estimates of $1.26.

First-quarter income is anticipated to fall between $1.15 billion and $1.25 billion, once more exceeding LSEG expectations of $935 million.

Web revenue for the fourth quarter was $257.2 million, or $1.63 per diluted share. Web revenue a 12 months in the past was $146.3 million, or 90 cents per share.

The corporate mentioned earnings changes had been made for “acquired intangible asset amortization, restructuring and different expenses and pension mark-to-market adjustment.”

The AI blitz has hit each tech sector, and the most recent earnings experiences present the cascading results of chip demand.

Smith mentioned on the earnings name that knowledge facilities had been “the prime mover of the market.”

In 2025, knowledge heart offers hit a report $61 billion, in line with S&P World.

Shares of reminiscence maker Sandisk soared after its second-quarter earnings final week, reporting 64% progress in its data center enterprise particularly.

Apple CEO Tim Cook mentioned final week that the corporate would see successful from rising memory prices, however the iPhone maker was presently coping with a restricted provide of superior node chips.

“At the moment, we’re seeing much less flexibility in provide chain than regular, partly due to our elevated demand,” Prepare dinner mentioned.

Correction: This story has been revised to replicate that Teradyne anticipates first-quarter adjusted earnings per share to be between $1.89 and $2.25. A earlier model misstated the excessive finish of the vary of anticipated EPS.