A maker of automated test equipment and collaborative robots, Teradyne builds the machines that check whether semiconductors, circuit boards, and other electronics work before they ship. Its testers—like the FLEX Test Platform and UltraFLEXplus—are used by chipmakers worldwide, while its robotics arm makes collaborative and autonomous robots for warehouses and factories. It runs three segments: Semiconductor Test, Robotics, and Product Test, formed in 2025 by combining its board test, defense/aerospace, and wireless test businesses.
Semiconductor Test revenue more than doubled to $1.12B, driving total revenue up 104% to $1.33B.
Semiconductor Test crossed $1 billion for the second straight quarter. rose 104% to $1.33 billion and expanded 2.6 points to 59.8%, driven by AI-related compute and memory tester demand. The Robotics narrowed its to near breakeven, but customer concentration and trade policy remain the central risks to the trajectory.
Key takeaways
Total rose 104% to $1,329.0 million, with Semiconductor Test up 128% to $1,121.8 million on AI-driven compute and memory demand.
expanded 2.6 points to 59.8%, which management attributed to higher sales volume and favorable product mix in Semiconductor Test.
Robotics grew 33% to $99.9 million, the fifth consecutive quarter of sequential growth, and the 's narrowed to near breakeven as the 2025 go-to-market restructuring took effect.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue surged 104% to $1.33B, driven by record Semiconductor Test demand from AI compute and memory.
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Total Q2 rose 104% to $1,329.0 million, with Semiconductor Test up 128% to $1,121.8 million on AI-driven compute and memory demand.
expanded 2.6 points to 59.8%, primarily due to higher sales volume and favorable product mix in Semiconductor Test.
rose 382.5% to $437.8 million, but contracted 3.9 points sequentially to 32.9% as selling and administrative expenses rose $34.7 million and engineering and development rose $37.9 million on strategic investments and higher variable compensation.
was $469.1 million for the quarter, up 157.6% , and reached $378.4 million; the company returned $114.9 million to shareholders through buybacks and dividends in the first half of 2026.
The rose to 15.1% from 12.7% a year ago, mainly due to lower tax credit benefits.
What changed
The Q1 2026 watch item — whether Semiconductor Test could sustain above $1 billion — was answered: reached $1,121.8 million in Q2, up 3.6% sequentially from Q1's $1.11 billion, confirming the demand level was not a one-quarter concentration of deliveries.
The Robotics 's narrowed to near breakeven in Q1 2026, and Q2's 33% growth to $99.9 million with a fifth consecutive sequential increase suggests the go-to-market restructuring is stabilizing the business, a shift from the 15.5% annual decline in FY 2025.
Share repurchases remained subdued at $114.9 million in the first half of 2026, well below the $702.1 million full-year FY 2025 pace, and the company did not draw on its , instead repaying $200 million in Q1 — a clear shift in capital allocation toward preserving liquidity.
The MultiLane Test Products joint venture and TestInsight acquisition closed in April 2026 for a combined $186.8 million, and the filing notes $165.6 million in acquisition spending in the first half, but no material contribution or integration cost impact was disclosed for Q2.
What to watch
Whether Semiconductor Test sustains above $1 billion in Q3 2026, or if the AI-driven compute and memory demand that drove the Q1 and Q2 records begins to moderate.
Whether the Robotics reaches reported profitability in Q3 2026 after narrowing its to near breakeven, and whether the 33% growth rate continues as the shift toward large direct customers matures.
The pace of share repurchases in Q3 2026 — $114.9 million in H1 is well below the FY 2025 run rate — and whether the company resumes drawing on its or continues to prioritize cash preservation.
The and margin contribution from the MultiLane Test Products joint venture and TestInsight acquisition, and whether integration costs begin to affect operating margins in coming quarters.
Robotics grew 33% to $99.9 million, marking the fifth consecutive quarter of sequential growth, led by electronics manufacturing and semiconductor customers.
Operating expenses increased, with selling and administrative up $34.7 million and engineering and development up $37.9 million, driven by strategic investments in Semiconductor Test and higher .
for the first six months was $734.3 million; the company returned $114.9 million to shareholders via buybacks and dividends and spent $165.6 million on acquisitions, primarily the MLTP .
The rose to 15.1% from 12.7% a year ago, mainly due to lower tax credit benefits.
Quantitative and Qualitative Disclosures About Market Risk
For quantitative and qualitative disclosures about market risk affecting Teradyne, see Part 2 Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” in our Annual Report on Form 10-K filed with the SEC on February 19, 2026. There were no material changes in our e…
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For quantitative and qualitative disclosures about market risk affecting Teradyne, see Part 2 Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” in our Annual Report on Form 10-K filed with the SEC on February 19, 2026. There were no material changes in our exposure to market risk from those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
We are subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and in…
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We are subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations.
In addition to other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 19, 2026, which could mater…
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In addition to other information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 19, 2026, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, remain applicable to our business.
The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
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