Q1 2026 Teradyne Inc Earnings Call Transcript
Key Points
- Teradyne Inc (TER) delivered record results in Q1 2026 with revenue of approximately $1.3 billion and non-GAAP EPS of $2.56, marking an 18% increase from its previous record.
- AI-related demand accounted for nearly 70% of Teradyne Inc (TER)'s revenue in Q1 2026, up from about 60% in Q4 2025, driven by durable AI demand drivers.
- The company received its first multi-system production test orders for merchant GPU in Q1 2026, indicating strong customer engagement and positioning for further market share capture.
- Robotics revenue was up 32% year over year, marking the fourth consecutive quarter of sequential growth, with strong customer engagement across e-commerce, electronics manufacturing, and semiconductor end markets.
- Teradyne Inc (TER) introduced two significant new products in Q1 2026: Photon 100 for silicon photonics testing and Omnyx for server board test challenges, expanding its market opportunities.
- The business is increasingly concentrated among a smaller number of very large customers, which increases the risk of demand shifts due to bottlenecks in other areas, leading to lumpy growth.
- Despite strong Q1 results, Teradyne Inc (TER) did not raise guidance for the back half of the year, citing potential order lumpiness and constraints in the AI data center build-out ecosystem.
- Gross margins are expected to decline in Q2 2026 due to normalization from nonrecurring operational benefits and product mix changes.
- Visibility into the second half of 2026 remains limited, particularly for merchant GPU and networking, which could impact revenue timing.
- Mobile revenue remains flat and muted, with memory pricing and availability affecting end market demand, especially outside the iOS ecosystem.
Ladies and gentlemen, good morning, and welcome to the Teradyne first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
I now like to turn the call over to Amy McAndrews, VP, Corporate Relations for Teradyne. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to our discussion of Teradyne's most recent financial results. I'm joined this morning by our CEO, Greg Smith; and our CFO, Michelle Turner. Following our opening remarks, we'll provide details of our performance for the first quarter of 2026 and our outlook for the second quarter.
The press release containing our first quarter results was issued last evening. We are providing slides as well as a copy of these prepared remarks on the Teradyne Investor website, that may be helpful in following the discussion. Replays of this call will be available via the same page after the call ends.
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