01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Teradyne, Inc. reported third quarter and nine-month results for the period ending September 28, 2025.
Total revenues increased by 4.3% to $769.2 milliona for the third quarter and by 2.0% to $2.1 billion for the nine months compared to the prior year periods. This growth was primarily driven by the Semiconductor Test segment, which saw a 6.6% revenue increase in the third quarter and a 4.9% increase for the nine months, fueled by demand for AI applications and data centers. The company experienced a decline in its Robotics segment, with revenues decreasing by 15.3% in the third quarter and 17.9% for the nine months, attributed to lower sales of collaborative robotic arms amid ongoing business environment challenges.
The Product Test segment showed moderate growth, increasing 10.2% in the third quarter and 4.3% for the nine months. Net income for the third quarter was $119.6 millionb ($0.75 per diluted share), down from $145.6 million ($0.89 per diluted share) in the prior year quarter. For the nine months, net income was $296.8 million ($1.85 per diluted share), compared to $396.1 million ($2.42 per diluted share) in the prior year.
The company made strategic acquisitions, including Quantifi Photonics and AET, to bolster its product offerings. Teradyne maintained a strong balance sheet with total assets of $3.96 billionc and total shareholders' equity of $2.72 billion. The company continued its capital allocation strategy, returning $576.3 million to shareholders through share repurchases and dividends in the first nine months of 2025.
The company also drew $200 milliond on its revolving credit facility to support its capital allocation strategy. Management expects continued acceleration in Semiconductor Test driven by AI and data center demand, while focusing on operational efficiency in Robotics.
02—Key points
Key Highlights
- Teradyne reported a total revenue of $769.2 million for the third quarter of 2025, a 4.3% increase year-over-year, driven by strong performance in Semiconductor Test.
- Semiconductor Test revenue increased by 6.6% in Q3 2025 to $605.9 million, significantly boosted by demand related to Artificial Intelligence (AI) applications and data centers.
- The Robotics segment saw a notable revenue decline of 15.3% in Q3 2025, totaling $75.1 million, due to ongoing business environment challenges and lower sales of collaborative robotic arms.
- Net income for the third quarter of 2025 was $119.6 million, or $0.75 per diluted share, a decrease from $145.6 million, or $0.89 per diluted share, in the prior year period.
- The company made strategic acquisitions during the period: Quantifi Photonics for approximately $127.2 million and AET technology from Infineon for $18.3 million, enhancing its Product Test and Semiconductor Test segments, respectively.
- Teradyne returned $576.3 million to shareholders through share repurchases ($518.7 million) and dividends ($57.6 million) in the first nine months of 2025.
- As of September 28, 2025, the company had $272.7 million in cash and cash equivalents and borrowed $200 million under its revolving credit facility to support its capital allocation strategy.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Teradyne, Inc kept $0.16.
- Revenue$769.2M100.0%
- Cost of revenue−$319.9M41.6%
- Gross profit$449.3M58.4%
- Operating costs−$304.0M39.5%
- Operating income$145.3M18.9%
- Interest, other & tax−$25.7M3.3%
- Net income$119.6M15.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $769.21M$737.30M | +4.3% |
| Cost of Revenue | $319.90M$300.78M | +6.4% |
| Gross Profit | $449.31M$436.51M | +2.9% |
| SG&A Expenses | $169.14M$157.65M | +7.3% |
| Operating Expenses | $304.00M$284.45M | +6.9% |
| Operating Income | $145.30M$152.06M | −4.4% |
| Interest Expense | $1.31M$808K | +62.0% |
| Net Income | $119.56M$145.65M | −17.9% |
| EPS (Basic) | $0.75$0.89 | −15.7% |
| EPS (Diluted) | $0.75$0.89 | −15.7% |
| Shares Outstanding (Basic) | 158.59M163.00M | −2.7% |
| Shares Outstanding (Diluted) | 159.10M164.25M | −3.1% |
05—Questions
Frequently Asked Questions
What is the main driver of Teradyne's revenue growth in the current period?
The primary driver of Teradyne's revenue growth is the Semiconductor Test segment, which is experiencing increased demand from AI applications and data centers. This segment saw a 6.6% revenue increase in the third quarter of 2025 compared to the prior year.
What challenges is the Robotics segment facing?
The Robotics segment is facing challenges due to ongoing business environment uncertainties, leading to a 15.3% decrease in revenue for the third quarter of 2025. This decline is primarily attributed to lower sales of collaborative robotic arms. Teradyne is focusing on expense management and its channel transformation strategy within this segment.
How has Teradyne's profitability changed compared to the previous year?
Net income for the third quarter of 2025 was $119.6 million ($0.75 per diluted share), down from $145.6 million ($0.89 per diluted share) in the third quarter of 2024. This decrease is influenced by factors such as product mix shifts, increased operating expenses for strategic investments, and the decline in the Robotics segment, partially offset by growth in Semiconductor Test.
What is Teradyne's strategy for returning capital to shareholders?
Teradyne continues to execute a balanced capital allocation strategy. In the first nine months of 2025, the company returned $576.3 million to shareholders through $518.7 million in share repurchases and $57.6 million in dividend payments. The company has a repurchase program of up to $1.0 billion in common stock planned for 2025 and 2026.
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