Key Takeaways
- Teradyne updated its guidance because of the possible effects of new tariffs and trade restrictions.
- The manufacturer of testing equipment for semiconductors and electronics sees fiscal 2026 profit and sales at the low end of its previous estimate.
- Teradyne also announced the purchase of photonic integrated circuit testing device maker Quantifi Phononics for an undisclosed price.
Shares of Teradyne (TER) slumped 17% to lead S&P 500 decliners Tuesday, as the maker of testing equipment for chips and electronics updated its guidance in response to the potential impact of Trump administration trade moves.
In a presentation ahead of its Investor Day, the company explained that it sees short-term volatility “mainly in SemiTest business,” as well as new uncertainty around tariffs and trade restrictions. It added it doesn’t expect cancellations, “but some push outs and capital reviews.”
Teradyne didn’t forecast any changes to its outlook for the current quarter but anticipates second-quarter revenue to be flat to down 10% from the first quarter and full-year revenue up 5% to 10% year-over-year. For fiscal 2026, the company predicts earnings per share (EPS) and revenue “trending toward the low end of the previous 2026 earnings model.”
In addition to the update, Teradyne also announced it bought privately held Quantifi Photonics for an undisclosed price. Quantifi manufactures photonic integrated circuit testing devices.
Teradyne shares, which entered Tuesday little changed over the past year, traded at levels not seen in about a year and a half.
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