Teradyne stock popped on Tuesday after the company beat fourth-quarter estimates thanks to strong artificial intelligence demand.
The robotics company reported adjusted earnings of $1.80 per share, exceeding the $1.37 per share expected by analysts surveyed by LSEG. Revenue totaled $1.08 billion, topping a forecast of $973 million.
Teradyne's fourth-quarter revenue was up 44% compared to a year ago.
On the earnings call with analysts, CEO Greg Smith said that AI drove more than 60% of Teradyne's revenue in the fourth quarter. He said the company expects that to be upwards of 70% next quarter.
The company attributed its Q4 growth to "strong AI-related demand in compute and memory" and issued strong guidance.
"In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI," the company said in a press release on Monday.