TER Gears Up to Report Q3 Earnings: What's in Store for the Stock?

Teradyne TER is set to report its third-quarter 2025 results on Oct. 28, 2025.

For the third quarter of 2025, TER expects revenues between $710 million and $770 million. The company anticipates non-GAAP earnings between 69 cents and 87 cents per share.

The Zacks Consensus Estimate for earnings is currently pegged at 78 cents per share, which has been steady over the past 30 days and indicates a 13.3% decline from the figure reported in the year-ago quarter. The consensus mark for revenues is pegged at $744.5 million, suggesting an increase of 0.98% from the year-ago quarter’s reported numbers.

Teradyne’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.36%. 
 

Teradyne, Inc. Price and Consensus

Teradyne, Inc. Price and Consensus

Teradyne, Inc. price-consensus-chart | Teradyne, Inc. Quote

 

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note Ahead of TER’s Q3 Results

TER’s third-quarter 2025 performance is likely to have benefited from strong performance in the AI compute end-market. Strong demand for custom ASICs from hyperscalers is expected to have driven growth in the to-be-reported quarter. The acquisition of Quantifi Photonics is expected to help TER gain shares in the AI compute market. AI and verticalizing are expected to have been the primary growth drivers for Teradyne’s third-quarter 2025.

Strong system orders for UltraFLEXplus, driven by growing utilization rates, are expected to have driven top-line growth. Memory revenues are expected to have recovered in the to-be-reported quarter. Mobile revenues growth is expected to have been modest while the company offered a cautious outlook for the automotive and industrial end-markets. 

However, the robotics end-market is expected to have remained sluggish, negatively impacting top-line growth.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Teradyne has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Corning GLW has an Earnings ESP of +1.90% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Corning is slated to report third-quarter 2025 results on Oct. 28. 

InterDigital IDCC has an Earnings ESP of +17.32% and a Zacks Rank #1 at present. InterDigital is scheduled to report third-quarter 2025 results on Oct. 30.

AMETEK AME has an Earnings ESP of +1.21% and a Zacks Rank #2 at present. AMETEK is set to report third-quarter 2025 results on Oct. 30. 

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Corning Incorporated (GLW) : Free Stock Analysis Report

AMETEK, Inc. (AME) : Free Stock Analysis Report

InterDigital, Inc. (IDCC) : Free Stock Analysis Report

Teradyne, Inc. (TER) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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