Gregory Smith on Total Addressable Market
From Teradyne Inc ($TER) Q1 2026 Earnings Call · · Castify Earnings Call
“I would say that, you know, like we are not talking about a TAM publicly because we feel really uncertain about which of those timelines we're living in. I don't think the numbers that Advantest gave are absurd, but I don't feel confident enough in our forecasts to share them.”
On , Gregory Smith, President, Chief Executive Officer & Director at Teradyne Inc, spoke about Total Addressable Market during Teradyne Inc ($TER) Q1 2026 Earnings Call on Castify Earnings Call.
About Gregory Smith
Gregory Smith, President and CEO of Teradyne, stated during the company's Q1 2026 earnings call that the company achieved record quarterly revenue of approximately $1.3 billion and non-GAAP EPS of $2.56, surpassing its previous high from Q2 2021. Smith noted that AI-related demand accounted for nearly 70% of revenue in Q1, up from about 60% in Q4 2025. He described the company's AI opportunity as "three superimposed waves," with the first focused on data center buildout and future waves involving edge and physical AI. Smith also reported that Teradyne received its first multi-system production test orders for merchant GPU in Q1, with shipments expected in Q2, and introduced the Photon 100 tester for silicon photonics, which he said could expand the total addressable market by $300 to $700 million per year over the mid-term. Smith characterized the business as experiencing "lumpy growth" due to increasing concentration among a small number of large customers and programs. He stated that the company is "calling 2026 the year of execution" and plans to constrain G&A and sales growth while increasing R&D investment. In earlier calls, Smith noted that AI was the dominant driver of Teradyne's business and that the company's view of second-half 2025 compute revenue had grown more than 50% compared to expectations three months prior. He also mentioned securing a plan of record decision from a large customer for robotics, expected to be a significant growth driver in 2026.