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Teradyne Gears Up to Report Q2 Earnings: What's in the Offing?

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Key Takeaways

  • TER expects Q2 revenue of $610M-$680M and EPS of $0.41-$0.64, both down year over year.
  • Weak Memory and Mobile demand are likely to weigh on TER's Q2 revenue and gross margin.
  • Cost of sales and operating expenses are set to rise, while gross margin is projected to decline.

Teradyne (TER - Free Report) is scheduled to report its second-quarter 2025 earnings results on July 29.

For the second quarter of 2025, TER expects revenues between $610 million and $680 million. The company anticipates non-GAAP earnings between 41 cents and 64 cents per share. 

The Zacks Consensus Estimate for revenues is pegged at $646.1 million, indicating a decrease of 11.5% from the year-ago quarter’s reported value.

The consensus mark for second-quarter earnings is pegged at 54 cents per share, unchanged over the past 30 days. This projection indicates a significant year-over-year decrease of 37.21% from the prior-year figure.

Teradyne, Inc. Price and EPS Surprise

Teradyne, Inc. Price and EPS Surprise

Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote

Teradyne earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 14.26%.

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

Factors to Note Ahead of TER’s Q2 Results

TER’s second-quarter 2025 performance is likely to have been affected by continued macroeconomic uncertainty, including tariff risks, evolving trade policies and fluctuations in end-customer demand. This headwind is anticipated to have hurt the company in the quarter under review.

Teradyne expects a decline in Memory test system revenues in the second quarter of 2025, as customers continue to utilize previously installed high-bandwidth memory test capacity rather than investing in new systems.

In Mobile, TER anticipates lower revenues in the second quarter of 2025. While the company has not observed major pushouts in this segment, uncertainty remains around the potential impact on end-market demand.

Teradyne expects a small increase in cost of sales and operating expenses in the second quarter of 2025, while gross margin is now expected to decrease sequentially, driven by product mix and lower volume.

What Our Model Says

According to 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 is not the case here.

Teradyne currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are 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 in their upcoming releases:

Enovix Corporation (ENVX - Free Report) currently has an Earnings ESP of +10.45% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enovix shares have appreciated 33.9% year to date. Enovix is scheduled to release its second-quarter 2025 results on July 31. 

Lumentum (LITE - Free Report) currently has an Earnings ESP of +8.73% and a Zacks Rank #1.

Lumentum shares have appreciated 22.6% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12. 

Bumble (BMBL - Free Report) has an Earnings ESP of +11.15% and a Zacks Rank #1.

Bumble shares have appreciated 4% year to date. Bumble is set to report its second-quarter 2025 results on Aug. 6. 

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