Teradyne posts record testing revenue; shares fall 6.8% after results
Key Facts
Teradyne reported revenue of $1.306 billion in the third quarter of 2026, compared with $769 million in the year-earlier period and $1.329 billion in the second quarter, saying AI-related demand drove memory and system-level test revenue to a record. Earnings per share were $2.17 on a GAAP basis and $2.29 on a non-GAAP basis. The chief executive said demand extended across the AI value chain, from memory and hard-drive testing to high-speed interconnects and robotics. He added that this demand pushed results above the high end of the company’s guidance. At the same time, the company said its robotics segment posted its highest third-quarter revenue and was profitable.
Teradyne shares fell 6.8% in morning trading on October 28, reaching a session low of $295, according to data cited by Investing.com, despite quarterly results the company described as above the high end of its guidance. The available material did not identify a reason for the decline, so it cannot be attributed to a specific factor. Looking ahead, the company expects fourth-quarter 2026 revenue of between $1.25 billion and $1.35 billion. It also set a non-GAAP earnings-per-share range of $1.95 to $2.25. The forecast reflects the company’s outlook for the next quarter following strong performance in semiconductor equipment testing and robotics.
In real estate, CoStar Group reported record quarterly revenue of $952 million in the third quarter, up 14% from $834 million a year earlier. The company posted net income of $74 million and diluted earnings per share of $0.18. Adjusted net income rose to $153 million, up 59% year over year. Adjusted EBITDA was $229 million, double its level in the year-earlier period. The company said that figure exceeded the high end of its previous guidance range of $190 million to $210 million.
CoStar’s chief executive said expected cost savings for 2026 amount to about $150 million compared with the company’s original guidance, while the statement attributed improved profitability to efficiency and margin expansion. CoStar raised its full-year adjusted EBITDA outlook to a range of $820 million to $840 million. At the midpoint, that estimate is $30 million higher than the July 2026 guidance. The company also expects annual revenue of between $3.75 billion and $3.77 billion. For the fourth quarter, it set a revenue range of $976 million to $996 million and adjusted EBITDA of $275 million to $295 million, equivalent to a 29% margin at the midpoint of the expected profit range.
In the broader market, the Associated Press said AI stocks led a Wall Street rally on October 27, following weeks of volatility amid concerns about the rising cost of borrowing needed to build data centers and buy more AI chips. Teradyne’s results highlight the link between spending on this infrastructure and demand for memory and system-level testing equipment, while CoStar’s results showed revenue growth and improved profitability. The available information does not include results for TE Connectivity, although it appeared in the first draft, so no details about it are included here. The evidence also does not provide documented closing prices for the three stocks on October 27. The next economic milestone is the U.S. third-quarter GDP data.
The U.S. Bureau of Economic Analysis scheduled the advance estimate of third-quarter GDP for October 29, 2026, at 8:30 a.m. Eastern Time. The second estimate is scheduled for November 25 at the same time, followed by the third estimate on December 23. The advance estimate follows company results that highlighted demand for AI-related equipment and the trajectory of CoStar’s earnings. The two later estimates will update the initial figure according to the bureau’s schedule. These dates give investors a defined sequence of GDP readings over the coming weeks.