Teradyne stock falls on revised guidance and trade uncertainties

Published 11/03/2025, 14:02
© Reuters.

Investing.com -- Shares of Teradyne (NASDAQ: NASDAQ:TER) tumbled 9% following the company’s update on its future financial outlook, which included a forecast of short-term volatility and new uncertainties in trade and tariffs. The decline came as Teradyne provided updated guidance ahead of its analyst day, which painted a mixed picture of the company’s expected performance.

Teradyne, a leading provider of automated test equipment, indicated that its SemiTest business is facing short-term volatility. Additionally, the company highlighted new uncertainties arising from tariffs and trade restrictions, although it noted that there have been no cancellations, only some delays and capital expenditure reviews. Importantly, Teradyne assured that these factors are not expected to impact the first quarter’s guidance.

Looking ahead to the second quarter of 2025, Teradyne anticipates revenue to be flat or potentially down by up to 10% compared to the first quarter. For the full year of 2025, the company expects to see growth of 5% to 10% relative to 2024. However, for 2026, Teradyne clarified that revenue and earnings per share (EPS) are trending toward the low end of the previously provided earnings model.

The update reflects caution in the face of external economic factors that could affect the company’s performance. Investors reacted to the news by selling off shares, leading to the stock’s decline in today’s trading session. The company’s revised outlook underscores the challenges faced by firms in the tech sector, particularly those involved in semiconductor testing, as they navigate a complex global trade environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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