Teradyne Stock Plunges as Firm Warns About Tariffs, Trade Restrictions | Global News Avenue

Teradyne’s stock (ter) fell 17% to lead S&P 500 Rejectors updated their guidance Tuesday as a manufacturer of test equipment for chips and electronics in response to the potential impact of the Trump administration’s trade shift.

In a speech ahead of Investors Day, the company explained that it believes short-term volatility is “mainly in the latest business”, as well as new uncertainties in tariffs and trade restrictions. It added that it does not expect cancellation, “but there are some pushes and capital reviews.”

Teradyne did not forecast any changes in its outlook for the quarter, but expected revenue in the second quarter to remain flat to 10% from the first quarter, with full-year revenue up 5% to 10% year-on-year. The company predicts fiscal year 2026 Earnings per share (EPS) Revenue “trends towards the low end of the previous 2026 earnings model.”

In addition to the update, Teradyne has announced the purchase of privately held Quantifi Photonics for an undisclosed price. Quantifi produces photonic integrated circuit testing equipment.

Teradyne shares, which entered Tuesday, have traded about a year and a half in the past year.