Teradyne Expands Buybacks After Q2 Beat

Teradyne's stock surged nearly 19% after reporting second-quarter 2025 results that beat analyst expectations, with adjusted EPS at $0.57 versus estimates of $0.54 and revenue of $651 million. The Semiconductor Test Group, fueled by AI-related demand, outperformed projections and contributed to the positive surprise. Management highlighted strengthening demand in compute, networking, and memory sectors as AI adoption accelerates, and forecasted Q3 revenue between $710 million and $770 million, indicating sequential growth. Despite operational challenges and a significant drop in net income, the company's upbeat outlook and analyst confidence in AI-driven growth boosted investor sentiment. Teradyne also expanded its share repurchase program to $1 billion by the end of 2026. Although the stock has underperformed the broader semiconductor industry recently, current momentum reflects optimism about the company's role in AI chip testing.