Teradyne (TER) Q4 Revenue Rises 44% to $1.083B as AI Demand Drives Semiconductor Growth

Teradyne Inc. (NASDAQ:TER) is one of the best NASDAQ stocks to buy according to hedge funds. On February 2, Teradyne reported Q4 2025 revenue of $1.083 billion, which marked a 44% increase over the same period in 2024 and exceeded the high end of its guidance. This growth was driven by the Semiconductor Test division, which generated $883 million, fueled by intense AI-related demand in compute, networking, and memory. For the full year, the company achieved total revenue of $3.19 billion, representing a 13% increase from 2024.

Financial performance for the quarter showed GAAP net income of $257.2 million, or $1.63 per diluted share, while non-GAAP earnings reached $1.80 per diluted share. The CEO noted that all business groups (Semiconductor Test, Product Test, and Robotics) experienced sequential growth during the period. The Robotics segment specifically contributed $89 million to the quarterly total, while Product Test brought in $110 million.

Looking ahead to 2026, management expects continued year-over-year growth across all business units, with AI-driven compute demand remaining a major tailwind. Teradyne Inc. (NASDAQ:TER) issued guidance for Q1 2026, projecting revenue between $1.15 billion and $1.25 billion. Non-GAAP net income for the upcoming quarter is expected to range from $1.89 to $2.25 per diluted share.

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Teradyne Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products in the US, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments.