Teradyne (TER) official guidance

We have talked about the TAM in 2026, probably somewhere in the neighborhood of $100 million for the test equipment portion, and that could grow to $300 million to $700 million by 2028.

We have talked about the TAM in 2026, probably somewhere in the neighborhood of $100 million for the test equipment portion, and that could grow to $300 million to $700 million by 2028.

Now looking ahead to our fourth quarter guidance. For the quarter, we expect revenue in the range of $1.25 billion to $1.35 billion and non-GAAP EPS of $1.95 to $2.25.

Gross margins are expected to be in the range of 57.5%-58.5%, reflective of product mix and new product launches.

In 2026, we will invest close to $1 billion across R&D and CapEx, with R&D investments representing a double-digit percentage of our sales.

Operating expenses are expected to run at 28.5%-29.5% of fourth quarter sales, driven by continued investments in R&D and go-to-market.

The non-GAAP operating profit rate is expected to be between 28% and 30%.

Our Q4 guidance midpoint of $1.3 billion represents growth of approximately 20% over last year's fourth quarter, which would bring full year revenue to approximately $5.2 billion, up over 60%.

Now looking ahead to our fourth quarter guidance. For the quarter, we expect revenue in the range of $1.25 billion to $1.35 billion and non-GAAP EPS of $1.95 to $2.25.

Going into 2027, given all of the fab expansion that is coming online in 2027, we are expecting significant growth for the memory business year-on-year.

As we said last quarter, we expect 2027 to be another year of healthy growth.

I would say we would expect Q1, from where we sit today, to be some level of growth, but we expect the year to progressively grow throughout quarter-on-quarter versus what we saw this year, which was more of a 50/50 split.

Guidance for the fourth quarter of 2026 is revenue of $1,250 million to $1,350 million, with GAAP net income attributable to Teradyne of $1.88 to $2.18 per diluted share and non-GAAP net income attributable to Teradyne of $1.95 to $2.25 per diluted share.

Next year, I think we're probably aiming towards more of the low side of that $300 million. If you draw a line from the $100 million to the $300 million, next year, the low end would be in the $200 million range.

For the quarter, we expect revenue in the range of $1.2 billion-$1.3 billion and non-GAAP EPS of $1.85-$2.15.

We're not anticipating any fundamental changes in gross margin.

Gross margins are expected to be in the range of 58%-59%, reflective of product mix and new product launches.

The 2026 memory TAM is likely to be more than 40% larger than 2025, with notable growth from the first half of 2026 to the second half.

Operating expenses are expected to run at approximately 29%-30% of third quarter sales, driven by continued investments in R&D and go-to-market.

The non-GAAP operating profit rate is expected to be between 28% and 30%.