Teradyne shares fell 3.2% despite sharply higher quarterly revenue and EPS, as investors may have focused on the timing of future growth: several major customer ramps are not expected until 2027, and the outlook provided here does not include fourth-quarter guidance. The transcript also describes optical interconnect approaches as still in flux, adding uncertainty around that opportunity.
- Q3 revenue topped $1.3 billion, up 70% year over year and flat sequentially; non-GAAP EPS was $2.29, up more than 150%.
- AI-related revenue exceeded 60% of total revenue, and all three business groups—Semi Test, Product Test and Robotics—grew year over year.
- Customer adoption is at different stages: the first hyperscaler is in mature dual sourcing, while expected capacity buys for another hyperscaler are in the second half of 2027; additional ramps are also expected in 2027.
- Teradyne introduced three UltraFLEXplus instruments aimed at next-generation AI and data-centric devices, including products for deeper memory, high-power testing and PCIe Gen6.
- Management said NPO and CPO markets could grow strongly from a small base, but customer approaches and test requirements remain in flux.
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