Teradyne Beats Q3; Margins Weaken, CFO Exits

Teradyne reported Q3 FY2025 non‑GAAP EPS of $0.85 and revenue of $769.2 million, beating consensus as strength in its Semiconductor Test group — particularly SOC solutions for AI and memory testing — drove results. Management raised Q4 guidance to $920 million–$1.0 billion in revenue and $1.20–$1.46 in adjusted EPS. The results and outlook sent the stock sharply higher (roughly 20–22% in extended/pre‑market trading, with intraday/all‑time highs reported). Management also announced a CFO transition: Sanjay Mehta will step down Nov. 3 and Michelle Turner will become CFO while Mehta remains an executive advisor through 2026 to support capacity expansion. Despite the beat, margins and cash flow showed strain — gross margin contracted ~120 bps, operating margins and net profit margin fell (to ~15.5% from 18.7%), and cash/FCF weakened — and the company disclosed strategic actions including the Quantifi Photonics acquisition and up to $1 billion in buybacks through 2026, prompting mixed analyst reactions and leaving valuation (P/E ~62x) a key investor consideration.