(Reuters) -Teradyne on Monday forecast second-quarter revenue above Wall Street expectations and beat estimates for quarterly profit and revenue, helped by steady demand for its semiconductor-testing equipment.
The increasing complexity of AI computing systems and the need for highly reliable performance in training and deploying AI models are driving demand for sophisticated testing tools, benefiting companies like Teradyne.
The strong revenue growth is driven by strength in the semiconductor test segment, the company’s largest, which accounted for $543 million in the first quarter.
“Visibility in the second half is limited and the impact of trade policy on end-market demand is still in flux,” said Teradyne CEO Greg Smith.
Teradyne announced that it is increasing the share repurchase program from a targeted $400 million in 2025 to up to $1 billion, to be completed by the end of 2026.
The company, which counts Qualcomm and Texas Instruments among its customers, designs and develops technology for chips and electronic equipment testing, and also sells robotic systems to customers in the manufacturing sector.
Teradyne forecast second-quarter revenue between $610 million to $680 million, the midpoint of which is above analysts’ average estimate of $643.5 million, according to data compiled by LSEG.
Revenue rose by 14% to $686 million in the first quarter ended March 30, from a year ago, beating analysts’ average estimate of $680.5 million.
On an adjusted basis, the company earned 75 cents per share, compared with estimates of 62 cents per share.
Shares of North Reading, Massachusetts-based company rose 1.22% in extended trading.
(Reporting by Priyanka.G in Bengaluru; Editing by Shailesh Kuber)
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