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KLA KLAC is set to report its first-quarter fiscal 2027 results on Oct. 28. For the to-be-reported quarter, KLAC expects revenues of $4 billion, plus/minus $200 million. The Zacks Consensus Estimate for revenues is pegged at $4.05 billion, indicating an increase of 26.09% from the year-ago quarter's reported figure. For the fiscal first quarter, non-GAAP diluted earnings are projected at $1.16 per share (plus or minus 10 cents). The consensus mark for earnings is pegged at $1.18 per share, unchanged over the past 30 days, indicating year-over-year growth of 34.09%. KLA Corporation price-eps-surprise | KLA Corporation Quote Image Source: Zacks Investment Research KLAC's earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.75%. Let us see how things have shaped up for the upcoming announcement. KLA's first-quarter fiscal 2027 results are expected to have benefited from accelerating investments in artificial intelligence (AI) infrastructure, particularly advanced semiconductor manufacturing. Increasing demand for AI processors, high-performance computing chips and sophisticated semiconductor designs is driving the adoption of KLA's inspection and metrology solutions. The transition toward 2-nanometer manufacturing and gate-all-around transistor architectures is increasing process control requirements. The company's Semiconductor Process Control business is expected to have benefited from these trends in the to-be-reported quarter. Increased investments in DRAM manufacturing, particularly high-bandwidth memory (HBM) used in AI accelerators and data centers, are expected to have driven top-line growth in the fiscal first quarter. Growing HBM adoption, increasing extreme ultraviolet (EUV) lithography applications and rising memory-device complexity are creating additional demand for process control equipment. HBM's larger die sizes, stringent performance specifications and complex stacking architectures require more sophisticated inspection and metrology capabilities. These factors bode well for KLAC. Moreover, fiscal first-quarter results are expected to have benefited from robust demand for advanced packaging solutions, supported by growing adoption of heterogeneous integration, chiplets and high-performance computing architectures. Increasing packaging complexity is encouraging semiconductor manufacturers to deploy more advanced inspection and metrology tools to improve yields and manufacturing efficiency. KLA expects its advanced packaging process control systems revenues to reach approximately $1.1 billion in calendar 2026, indicating growth of more than 70% year over year. The company is also witnessing growing adoption of its front-end inspection technologies in advanced packaging manufacturing. Meanwhile, fiscal first-quarter results are also expected to reflect improving component availability and expanding manufacturing capacity. KLA expects revenues in the second half of calendar 2026 to increase approximately 20% from the first half, reflecting accelerating customer demand and improving supply chain execution. Strong equipment orders and a backlog of approximately $12.57 billion at fiscal 2026-end are providing substantial revenue visibility. Nevertheless, KLAC management has highlighted that calcium fluoride optical components can have lead times of 18-24 months or longer, potentially limiting production flexibility. Rising memory prices have also pressured gross margins, with the company indicating a negative impact exceeding 100 basis points in recent quarters. KLA shares have returned 21.6% year to date (YTD), outperforming the broader Zacks Computer and Technology sector's return of 18%. However, the company has underperformed peers, including Applied Materials AMAT, Teradyne TER and Axcelis Technologies ACLS, YTD. Shares of Applied Materials, Teradyne and Axcelis have returned 46.1%, 58.2% and 30.3%, respectively, over the same timeframe. Image Source: Zacks Investment Research The KLAC stock is not so cheap, as suggested by the Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), KLAC is trading at 25.44X, higher than the broader sector and peers like Applied Materials and Axcelis but cheaper than Teradyne. The broader sector is trading at 19.79X while Applied Materials, Axcelis and Teradyne trade at 20.69X, 20.67X and 28.37X, respectively. Image Source: Zacks Investment Research KLA's advanced packaging business represents a significant long-term growth opportunity as semiconductor manufacturers increasingly adopt chiplets, heterogeneous integration and advanced packaging architectures. The company expects KLA's share of the advanced packaging market to increase to approximately 7-8% in 2026 from only a few percentage points in 2023. The increasing application of front-end manufacturing processes in advanced packaging is driving demand for more sophisticated inspection and metrology solutions. Growing adoption of hybrid bonding and high-density interconnect technologies should further expand KLA's addressable market. The company is well-positioned to capitalize on increasing wafer fabrication equipment (WFE) spending, supported by AI infrastructure investments, semiconductor capacity expansion and technology transitions. The company raised its calendar 2026 WFE market outlook to the low-$150-billion range, representing mid-20% growth from approximately $120 billion in 2025. KLAC management indicated that industry growth in 2027 could match or exceed 2026 levels, with a scenario approaching $190 billion in WFE spending. KLA's growing installed equipment base is expected to support sustained expansion in its services business. The company has established a long-term annual services revenue growth target of 13-15%, supported by increasing equipment installations, maintenance requirements, upgrades and productivity-enhancing solutions. Approximately 80% of services revenues are contract-based, providing recurring revenue visibility. Strong equipment shipments in calendar 2026 and 2027 should expand the installed base, creating additional opportunities for service contracts and customer support. KLA's strong positioning in the semiconductor process control market, accelerating AI infrastructure investments and robust demand for advanced packaging solutions bode well for its growth prospects. Increasing process control intensity, rising HBM adoption and expanding WFE spending are expected to sustain revenue momentum. A strong backlog and growing services business further strengthen its long-term outlook. KLA currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock ahead of the fiscal first-quarter earnings results. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MaxLinear MXL reported third-quarter 2026 non-GAAP earnings of 62 cents per share, beating the Zacks Consensus Estimate by 10.71%. The company reported earnings of 14 cents per share in the year-ago quarter and 35 cents in the previous quarter. Revenues of $218.1 million surged 72% year over year and surpassed the consensus mark by 1.44%. Sequentially, revenues increased 29%. Results benefited from accelerating adoption of optical AI data center products. Infrastructure revenues surged 210% year over year, reflecting strong demand for high-speed optical interconnects and expanding hyperscaler deployments. MaxLinear, Inc price-consensus-eps-surprise-chart | MaxLinear, Inc Quote Infrastructure revenues reached $125 million in the third quarter, increasing 47% sequentially and 210% year over year. The business remained MaxLinear's largest revenue category, exceeding the combined contribution of its other businesses. Growth was driven by accelerating deployment of optical connectivity products supporting AI infrastructure. The Keystone 100-gigabit-per-lane PAM4 digital signal processor platform continued ramping into high-volume production across multiple hyperscalers. Strong adoption of 800G optical solutions supported infrastructure growth, while expanding customer engagements strengthened the company's position in next-generation data center connectivity. Broadband revenues increased to $53 million from $45 million in the previous quarter. Connectivity revenues reached $25 million compared with $24 million in the previous quarter. Industrial and multimarket revenues were $15 million. Broadband and connectivity growth reflected large-scale deployments of fiber PON and Wi-Fi 7 gateways at major Tier 1 service providers in North America and Europe. MaxLinear also launched its Puma 9 platform, designed to support AI-ready DOCSIS 4.0 and 3.1+ multi-gigabit broadband services. Rushmore, the company's 200-gigabit-per-lane PAM4 platform supporting 1.6-terabit optical connectivity, continued progressing through customer qualification. Initial revenues are expected in early 2027, with a stronger ramp anticipated in the second half of the year. MXL expects the platform to become a significant growth driver in 2028 and 2029. MaxLinear is also expanding beyond optical interconnects through its Annapurna electrical retimer, Washington transimpedance amplifier and RackCommander control-plane portfolio. These products address high-speed electrical connectivity, telemetry and power management requirements in AI data centers. The Panther storage accelerator platform continued gaining traction, with management expecting revenues to roughly double in 2026. Meanwhile, the company's qualified XGS-PON hyperscale data center design win is expected to begin deployments in 2027, supported by secured backlog. Non-GAAP gross margin expanded to 60% from 59.1% in the year-ago quarter. The improvement reflected a favorable infrastructure product mix and increasing scale, partly offset by manufacturing cost pressures. Management noted that some cost increases have been passed along to customers. Non-GAAP operating expenses increased 12% year over year to $66.5 million in the reported quarter. Despite higher expenses, non-GAAP operating margin expanded to 29.5% from 12.1%, benefiting from higher revenues and operating leverage. MaxLinear ended the third quarter of 2026 with approximately $109.9 million in cash, cash equivalents and restricted cash. Operating activities used approximately $13.6 million during the reported quarter, reflecting substantial wafer prepayments to support growing demand for data center products. Inventory increased to $113.7 million from $105.5 million sequentially. However, days of inventory declined to 111 from 123, indicating improved inventory efficiency. Days sales outstanding increased to 31 from 28. The company also amended its credit agreement, increasing its revolving credit facility by $70 million to $200 million. The expanded facility provides additional financial flexibility to support customer demand and growth opportunities. For the fourth quarter of 2026, MaxLinear expects revenues between $240 million and $260 million. Infrastructure is expected to drive sequential growth through optical data center interconnect demand, while broadband and connectivity revenues are projected to decline seasonally. The company anticipates non-GAAP gross margin of 59-62% and non-GAAP operating expenses between $65 million and $70 million. MXL raised its 2026 optical data center revenue outlook to $250-$270 million. Customer bookings extend through 2027 into 2028, supported by demand for next-generation optical solutions. However, semiconductor foundry capacity constraints remain a challenge as the company prepares for additional product ramps. MaxLinear currently has a Zacks Rank #3 (Hold). Shopify SHOP, Seagate STX and Teradyne TER are some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their earnings over the next couple of weeks. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Seagate is set to report its first-quarter fiscal 2027 results on Oct. 27, while Teradyne is scheduled to report its third-quarter 2026 results on the same date. Shopify is set to report its third-quarter 2026 results on Nov. 3. Shares of Seagate, Teradyne and Shopify have jumped 123.4%, 58.3% and 5%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MaxLinear, Inc (MXL) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Teradyne TER is set to report its third-quarter 2026 results on Oct. 27, 2026. For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. Non-GAAP earnings are expected to be between $1.85 and $2.15 per share. The Zacks Consensus Estimate for earnings is currently pegged at $2.04 per share, which has been unchanged over the past 30 days. This indicates a 140% increase from the figure reported in the year-ago quarter. The consensus mark for revenues is pegged at $1.27 billion, suggesting an increase of 65.20% from the year-ago quarter's reported numbers. Teradyne's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.93%. Teradyne, Inc. price-eps-surprise | Teradyne, Inc. Quote Let's see how things have shaped up for the upcoming announcement. Teradyne's third-quarter performance is expected to have benefited from robust demand for semiconductor testing solutions, driven by accelerating artificial intelligence (AI) infrastructure investments. Strong demand for high-bandwidth memory (HBM), DRAM and NAND testing solutions is expected to have driven growth in the company's Memory Test business. Increasing capacity investments by memory manufacturers and the growing complexity of advanced memory technologies are expected to have benefited the company's topline in the quarter to be reported. The company's Industrial & System Test business is expected to have benefited from increasing demand for hard disk drive (HDD) testing solutions, fueled by AI data center storage requirements. Growing HDD demand from major storage manufacturers and increasing exabyte shipments are expected to have supported revenues. Improving demand for automotive and industrial semiconductor testing solutions, particularly power management devices used in AI data centers, is another positive. Teradyne's Product Test business is expected to have benefited from increasing adoption of its Omnyx production board testing platform and Multilane Test Products' high-speed interconnect testing solutions. Rising demand for optical testing, networking and data center infrastructure solutions is expected to have supported growth. The Robotics business is likely to have benefited from increasing automation investments across electronics manufacturing, semiconductor production and AI data center assembly operations. However, Teradyne's third-quarter performance is expected to have suffered from softer compute testing revenues due to the timing of customer orders. Several hyperscaler and networking customers completed significant capacity expansions during the first half of 2026, with the next major investment cycle expected in early 2027. Weakness in mobile semiconductor testing demand is another concern. An unfavorable product mix, new product introductions and pricing pressure in memory testing are expected to have weighed on profitability. Higher research and development expenses and go-to-market investments could further constrain operating margins. Management expects third-quarter gross margins of 58-59%, down from 59.8% in the second quarter. Teradyne shares have surged 59.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector's growth of 18% and the Zacks Electronics - Miscellaneous Products increase of 20.6%. TER shares have also outperformed their peers, including Cisco Systems CSCO, Vertiv VRT and KLA KLAC. All three companies are expanding their footprint in the AI infrastructure space. Cisco Systems, Vertiv, and KLA shares have gained 36.1%, 20.7%, and 21.6% in the year-to-date period, respectively. Image Source: Zacks Investment Research Teradyne's stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment. In terms of the forward 12-month Price/Sales, Teradyne is trading at 8.22X, higher than the industry's 7.26X, Cisco Systems' 5.26X, and Vertiv's 4.35X. However, it is lower than KLA's 10.19X. Image Source: Zacks Investment Research Teradyne is benefiting from robust demand for semiconductor testing solutions as AI infrastructure investments accelerate. Rising demand from AI component suppliers, including GPU, CPU, HBM, and networking chip manufacturers, is driving growth across its Semiconductor Test business. Increasing chip complexity and advanced packaging requirements are creating additional testing opportunities. In the second quarter of 2026, Teradyne's Semiconductor Test revenues increased 128% year over year, supported by strong AI-related demand. Compute revenues surged nearly 600% year over year, while memory revenues reached $212 million, driven by robust demand for HBM, DRAM and NAND testing solutions. AI-driven revenues accounted for more than 60% of total sales, highlighting the company's increasing exposure to AI infrastructure investments. Teradyne's memory business is another key growth driver. Memory test revenues reached $212 million in the second quarter of 2026, supported by strong HBM and DRAM demand and recovering NAND investments. The company expects the memory testing market to expand more than 40% in 2026, creating additional revenue opportunities. Teradyne expects the automated test equipment market to reach or exceed $20 billion by the end of the decade. Sustained AI infrastructure investments and expanding testing requirements also support Teradyne's long-term growth prospects. Teradyne's robust and diversified portfolio to meet the rising demand for AI-driven technologies is contributing to its growth prospects continuously. These factors have justified its premium valuation. TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradyne, Inc. (TER) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Meta Platforms META reported third-quarter 2026 adjusted earnings of $7.4 per share, which increased 2.1% year over year, beating the Zacks Consensus Estimate by 13.50%. Revenues jumped 26% year over year to $64.6 billion, surpassing the consensus mark by 1.88%. Strong advertising demand, AI-driven engagement and improving monetization supported revenue growth. Ad impressions increased 10% year over year, while the average price per ad advanced 14%. However, higher infrastructure spending and legal expenses pressured operating profitability. Family of Apps revenues, which accounted for 99.3% of total revenues, increased 26.4% year over year to $64.16 billion. Advertising revenues rose 25.9% to $63.06 billion, supported by healthy engagement, user growth and ad-load optimization across Meta's platforms. Family of Apps other revenues surged 59% year over year to $1.1 billion, primarily driven by WhatsApp paid messaging and subscriptions. Meta Platforms, Inc. price-consensus-eps-surprise-chart | Meta Platforms, Inc. Quote Reality Labs revenues declined 5.7% to $443 million as lower Quest headset sales more than offset strong growth in AI glasses revenues. Family daily active people averaged 3.64 billion in September, up 3% year over year. Average revenue per person increased to $17.72 from $14.46 in the year-ago quarter, reflecting improving monetization across the company's ecosystem. Instagram global time spent per user reached an all-time high, growing at a double-digit rate. Facebook Reels engagement also achieved record levels, while Threads time spent per user increased more than 20%. AI-powered recommendation improvements lifted Instagram Reels viewing time by more than 4%. Meta's advertising systems continued delivering measurable performance gains. The company's expanded GEM ranking model increased offsite campaign conversions by 1.7% and app advertising conversions by 9.6%. Nearly 10 million advertisers used generative AI creative tools during the reported quarter. Meta launched its Muse personal agent and Muse Wonder frontier AI model during the reported quarter. More than 10 million users in the United States and Canada adopted Muse within approximately six weeks, with about 25% using the service on a given day. Shopping emerged as Muse's leading use case, accounting for more than a quarter of active users, with average purchases exceeding $200. Meta plans to monetize the platform through commerce fees, premium subscriptions and enterprise services. The company expects Muse's computing efficiency to improve more than tenfold over the coming year. These improvements could support broader adoption while reducing the cost of serving individual users. Total costs and expenses surged 68.1% year over year to $51.61 billion. The increase included a $9.89 billion charge related to the August 2026 agreement with U.S. state attorneys general concerning teen mental health litigation. Operating income declined 36.8% year over year to $12.99 billion, while operating margin contracted to 20% from 40% reported in the year-ago quarter. Excluding the legal charge, operating income would have increased 11% year over year. Infrastructure investments, depreciation, cloud spending and third-party AI token costs remained major expense drivers. Family of Apps operating income fell 31.4% year over year to $17.12 billion. Reality Labs operating loss narrowed to $4.13 billion from $4.43 billion, reflecting improving segment profitability despite continued investment. Meta ended September with $82.45 billion in cash, cash equivalents and marketable securities. Total debt stood at approximately $83.66 billion. Cash flow from operating activities totaled $32.79 billion, compared with $30 billion a year earlier. Capital expenditures, including finance lease principal payments, increased to $34.91 billion from $19.37 billion, resulting in negative free cash flow of $2.12 billion. The company also announced plans to establish a new non-voting Class C common stock, with shareholders receiving one new share for each existing share. The distribution is expected to effectively result in a two-for-one stock split in January 2027. For the fourth quarter of 2026, Meta expects revenues between $73 billion and $76 billion. The guidance incorporates an approximately 1% foreign currency headwind to year-over-year growth. The company raised its 2026 expense outlook to $175-$179 billion, incorporating the litigation charge. Capital expenditure guidance was narrowed to $135-$145 billion from $130-$145 billion. Meta expects Reality Labs operating losses of $18-$19 billion in 2026, a decline compared with 2025. Reality Labs losses are expected to further narrow to roughly $15 billion in 2027. The company anticipates strong revenue growth through 2027, supported by advertising improvements, AI advancements and emerging monetization opportunities. Currently, Meta Platforms carries a Zacks Rank #4 (Sell). Shopify SHOP, Seagate STX and Teradyne TER are some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their earnings results over the next couple of weeks. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Seagate is set to report its first-quarter fiscal 2027 results on Oct. 27, while Teradyne is scheduled to report its third-quarter 2026 results on the same date. Shopify is set to report its third-quarter 2026 results on Nov. 3. Shares of Seagate, Teradyne and Shopify have jumped 153.1%, 78.5% and 8.3%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meta Platforms, Inc. (META) : Free Stock Analysis Report Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Shopify Inc. (SHOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the October 2026 earnings season gathers momentum, investors should focus on companies combining strong revenue growth, improving profitability and sustainable business demand. Here, we identify five compelling candidates, Chord Energy CHRD, Halozyme Therapeutics HALO, Sezzle SEZL, SanDisk SNDK and Teradyne TER, that carry a Zacks Rank #1 (Strong Buy) and a Growth Score of A. Buying before earnings can provide exposure to potential positive surprises. The investment backdrop, however, is becoming more challenging. The Federal Reserve's Oct. 27-28 meeting is approaching amid persistent inflation and elevated interest rates. A Reuters poll published on Oct. 20 found that 94 of 100 economists surveyed expected the Fed to hold rates at 3.75-4% in October, while most anticipated another increase in December. Artificial intelligence (AI), semiconductor testing and data storage remain important growth drivers. The Federal Reserve Bank of San Francisco's Oct. 15 analysis noted that AI infrastructure investment continues to support economic growth, with information-processing equipment investment growing at an annualized rate exceeding 20% on average since early 2025. Healthcare technology and digital payments offer additional diversification, while disciplined energy producers can benefit from operating efficiency and shareholder distributions. Chord Energy: The company's preliminary third-quarter update, released Oct. 19, showed oil production of 165,400-165,600 barrels per day, above its prior guidance. Total production also exceeded expectations, while capital expenditures remained within guidance at $379-$385 million. The company repurchased $205 million of shares during the quarter and announced a $550 million divestiture of non-operated Marcellus assets. Chord Energy sports a Zacks Rank #1 and a Growth Score of A, supported by its production execution and capital discipline. Its trailing 12-month operating margin stands at 17.14%, reflecting its ability to generate operating profits amid commodity-price fluctuations. Its third-quarter 2026 earnings release is scheduled for Nov. 3, with the company expected to report earnings growth of 94.9% year over year. Halozyme: Halozyme's second-quarter 2026 revenues increased 48% year over year, while royalty revenue rose 50%. Following the strong performance, management raised its 2026 revenue outlook to $1.835-$1.910 billion and adjusted EBITDA forecast to $1.225-$1.280 billion. Halozyme sports a Zacks Rank #1 and a Growth Score of A, supported by its royalty-driven business model and expanding drug-delivery partnerships. Its trailing 12-month operating margin stands at 38.81%, showing a strong profitability trend. Its third-quarter 2026 earnings release is scheduled for Nov. 2, with investors likely to focus on royalty growth, licensing momentum and updated full-year guidance. HALO is expected to report third-quarter earnings growth of 32.6% on revenue growth of 35.7%. SanDisk: SanDisk reported fourth-quarter fiscal 2026 revenues of $8.97 billion, up 51% sequentially, while full-year revenues surged 175% to $20.25 billion. The company projected first-quarter fiscal 2027 revenues of $10.3-$10.8 billion and adjusted EPS of $44-$46, reflecting strong demand for its memory and storage products. SanDisk sports a Zacks Rank #1 and a Growth Score of A, supported by rising data-storage requirements and its exposure to AI infrastructure. Its trailing 12-month operating margin stands at 54.25%. Its fiscal first-quarter earnings release is scheduled for Oct. 29. SNDK is expected to report fiscal first-quarter earnings growth of 3689.3% on revenue growth of 358.2%. Sezzle: The company's second-quarter 2026 gross merchandise volume increased 37.9% year over year, while revenue surged 51.7%. Net income rose 47.7% and operating income advanced 52.3%. The company raised its 2026 adjusted net income guidance to $185 million and adjusted diluted EPS guidance to $5.25. Sezzle sports a Zacks Rank #1 and a Growth Score of A, reflecting its strong growth profile and expanding digital payments business. Its trailing 12-month operating margin is 29.62%, indicating healthy operating profitability. Its third-quarter 2026 earnings release is scheduled for Nov. 4, with the company expected to report earnings growth of 80.3% year over year. Teradyne: Teradyne reported second-quarter 2026 revenue growth of 104% year over year, while GAAP EPS increased to $2.38 from 49 cents a year earlier. Semiconductor testing generated $1.122 billion in revenues, benefiting from memory demand and AI-related opportunities. Management forecast third-quarter revenue of $1.2-$1.3 billion. Teradyne sports a Zacks Rank #1 and a Growth Score of A, reflecting its growth prospects in semiconductor testing and robotics. Its trailing 12-month operating margin stands at 27.13%, indicating solid operating profitability. Its third-quarter 2026 earnings release is scheduled for Oct. 27, with the company expected to report earnings growth of 140% year over year. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sandisk Corporation (SNDK) : Free Stock Analysis Report Teradyne, Inc. (TER) : Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report Chord Energy Corporation (CHRD) : Free Stock Analysis Report Sezzle Inc. (SEZL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Teradyne has turned into a striking long term winner for shareholders, so the question now is whether the current price is still grounded in what its earnings can support. With the stock recently around US$380 per share after a volatile few weeks, investors are asking how much of the business's profit power is already reflected in that tag. - Over the past 3 years, Teradyne has returned about 298.3%, which puts a lot of past optimism on the line if its earnings cannot keep up with that move. - Recent launches in AI focused test platforms and automation partnerships can feed expectations for higher future earnings, which matters directly for any valuation built on the company's profit stream. - Your read on Teradyne is one view; the desks covering it have another. See what analysts think Teradyne's shares could be worth. The issue now is whether Teradyne's current valuation can be explained by its earnings when set against the Fair Ratio benchmark. For more ideas in the same AI and automation lane as Teradyne, use a focused screener of 92 AI infrastructure stocks. The P/E ratio fits Teradyne because investors often frame semiconductor test and automation plays around earnings power through the cycle. On that yardstick, the stock trades around 51.7x, which is slightly above the wider semiconductor sector on 48.6x and just under the peer group near 53.1x. That puts Teradyne toward the richer end of the pack for every dollar of reported profit. The Fair Ratio model, which adjusts for Teradyne's growth profile, margins, size and risks, points to a lower P/E as a more grounded anchor, so the current 51.7x screens as overvalued on this framework. Because the recent UltraFLEXplus S and Titan HP launches have sharpened the AI infrastructure story, the earnings multiple already bakes in a lot of optimism around how those products translate into profit. Investors weighing this valuation need to judge whether that premium is justified by the durability of Teradyne's test and automation earnings stream. Explore the numbers behind Teradyne's P/E valuation. Teradyne's valuation puzzle becomes more concrete when you look at Simply Wall St Narratives on the Community page, because they explain what kind of future growth, margins and earnings power would need to occur for the current share price to appear too low or too high. Each narrative treats Teradyne's fair value as a hypothesis about the business that you can revisit over time as new information becomes available. Teradyne attracts two very different storylines around AI test and robotics, and they hinge on how much of that promise is already in the price. Bull case: 15% undervalued "Teradyne continues to tie more than 60% of its revenue to AI-focused data center demand, with record Q2 2026 revenue of about US$1.33b..." Discover why this Narrative puts Teradyne at 15% undervalued. Bear case: 9% overvalued "Although Teradyne is highly exposed to AI driven data center investment with more than 60% of Q2 2026 revenue tied to AI, the recent view that compute orders are front loaded into the first half..." Explore why this Narrative puts Teradyne at 9% overvalued. Price and earnings only tell part of the Teradyne story, because our broader checks also flag specific risk indicators that could change how you see the stock once you review them. Take a closer look at 2 warning signs before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TER. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Right now, investors are watching a rare mix of forces collide, from hotly anticipated US inflation data and an aggressive Q3 earnings season to fresh stimulus rolling out of China, all while AI keeps pulling more attention into a tight group of large-cap growth stocks. That combination can punish hesitation and reward selective risk taking. This article walks through 3 AI-linked US giants exposed to these catalysts and how their earnings story could be reshaped next. The stocks highlighted below are just a sample. The full screen surfaces 16 more large-cap U.S. growth companies tied to AI themes that carry equally compelling investment stories not covered here. If you want to go straight to the source and identify, analyze, and prioritize your highest-conviction ideas, head into the Large-cap U.S. growth stocks benefiting from AI-driven earnings screener. Monolithic Power Systems is one of the clearest pure plays in this screener on the AI infrastructure build out, supplying the power chips that sit behind many high performance data center and computing workloads investors are watching so closely right now. Monolithic Power Systems generates about US$3.3b from semiconductors, focused on DC to DC and AC to DC power management chips that feed cloud and AI servers, automotive electronics, communications gear, consumer devices and industrial hardware, with a market value near US$68.1b. Investor optimism appears anchored in Monolithic Power Systems' exposure to accelerating AI adoption in data centers, and the company has since reported Enterprise Data growth that management now floors at 130% year over year with data center related exposure approaching roughly 50% of revenue. This dynamic could support further revenue and earnings expansion if these workloads continue to require higher power density and more complex solutions. What happens if a single assumption about how quickly that new capacity fills changes the trajectory for margins and free cash flow? That hinge point on margins is exactly what the full narrative for Monolithic Power Systems unpacks, describing where accelerating AI demand could offset tighter assumptions on capacity and free cash flow. HubSpot brings the screener theme to life through a cloud CRM that integrates AI directly into how mid-sized businesses run marketing, sales, service, and commerce. HubSpot runs a single cloud CRM platform that spans Marketing, Sales, Service, Content, Operations, and Commerce Hubs, plus its Breeze AI layer. Almost all of its US$3.4b revenue comes from internet software and services subscriptions, and the business carries a market value around US$11.4b. AI augmentation: HubSpot's Breeze AI can boost product stickiness by improving productivity for marketers and sellers. Successful differentiated AI features would preserve ARPU and reduce commoditization risk. What happens if one assumption about how quickly customers adopt those higher value AI workflows shifts the trajectory of margins and earnings power? When that adoption curve really inflects, the full narrative for HubSpot maps how AI driven monetization, customer stickiness, and execution risk could reshuffle HubSpot's long term earnings profile. Teradyne is one of the clearest pure plays on AI-driven earnings in this screener because its automated test gear sits directly in the path of the chips that power data centers, memory, and robotics workloads tied to AI infrastructure spending. Teradyne generates about US$3.7b from Semiconductor Test, around US$386 million from Product Test, and roughly US$356 million from Robotics, with a market value near US$62.96b. Teradyne shows how the screener theme comes alive at the hardware level, where every new AI chip or memory device needs to be tested before it ever hits a server rack or robot cell. Teradyne continues to tie more than 60% of its revenue to AI-focused data center demand, with record Q2 2026 revenue of about US$1.33b and guidance for a stronger second half of 2026, which indicates ongoing AI-related test and automation orders that can support future revenue and earnings. What happens if a single assumption about how concentrated that AI-driven demand remains changes the balance between growth and margin stability? If that concentration risk catches your attention, the full narrative for Teradyne shows how Teradyne's AI test exposure could accelerate, stall, or quietly decouple from headline chip cycles. Fresh ideas often move first. By the time every investor identifies a breakout, the ideal window can be gone. Scan these under the radar lists now to review potential opportunities at an earlier stage. - Explore resilient payers with pricing power and income potential by reviewing the 8 dividend fortresses before yields change or prices move away. - Review future-oriented hardware suppliers and miners by scanning the 33 best rare earth metal stocks while these niche plays may still attract less attention. - Focus on mission critical infrastructure providers by checking the 43 power grid technology and infrastructure stocks while market interest develops and the strongest operators may still be overlooked. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investing.com -- Citi named AMD, Texas Instruments, Lam Research, Teradyne and Synopsys as its top buy-rated semiconductor picks ahead of third-quarter earnings, as the bank says it is becoming "increasingly selective" on the sector after a sharp rebound. Before you buy NVIDIA: our AI model's stock picks are beating the market by 120%+. See the list now » Analyst Atif Malik noted the SOX semiconductor index has rebounded 24% from its summer correction, in line with Citi's call ahead of its Technology, Media, and Telecommunications (TMT) conference. The industry remains in "Phase 2" of the bank's playbook, supported by robust data center demand, which now makes up about 40% of the semiconductor market, and a continuing recovery in auto and industrial markets at about 20% of demand. PC and smartphone demand remains weak. Estimate revision momentum slowed in the second quarter, and Citi expects further moderation in the third. Networking, semiconductor equipment and analog chips show the strongest momentum, followed by compute and memory. Citi expects the largest sales estimate revisions in compute, particularly networking names such as Marvell and Astera Labs and CPU-exposed names AMD, Intel and Nvidia. Analog chips from Texas Instruments and Analog Devices come next, then semiconductor equipment makers Lam Research and Teradyne. Not finding the right stocks? Our AI's list of investor-grade stock picks for October just dropped » "While 4Q is typically a seasonally weaker quarter for analog semis, we expect most companies to guide above seasonal trends," Malik said. As part of the shift, Citi downgraded three stocks. It cut NXP Semiconductors to Neutral and the price target to $260 from $370, citing weaker estimate revisions than peers and limited data center exposure. It downgraded Universal Display to Sell, with a $71 target from $85, flagging smartphone market weakness next year. It also moved Nova to Neutral, cutting the price target to $415 from $550, saying its risk-reward looks balanced. Malik said investors' key debate is a "Power Wall" in 2028, when TrendForce sees interconnection delays and transmission bottlenecks beginning to affect new data center deployments. Citi's own view is that supply remains sufficient, forecasting global data center supply rising from 140 gigawatts in 2026 to 395 gigawatts by 2031, above expected demand of 370 gigawatts. The bank sees constraints around the timing, location and deliverability of supply, not an absolute shortage. Malik said investor discussions at the SEMICON and OCP conferences next week will likely shape sentiment ahead of earnings. Original Article Citi names 5 top chip picks ahead of Q3 earnings Trump discloses $25 million Meta stake, multimillion-dollar SpaceX investment JPMorgan warns rising 30-year yields threaten SMid-cap returns

Teradyne, Inc. (TER) is a technology company that designs and manufactures automated test equipment and advanced robotics systems, with a market capitalization of approximately $69.5 billion. Based in North Reading, Massachusetts, the company's semiconductor and electronics testing solutions help customers maintain quality standards, while its collaborative and mobile robots support manufacturing and warehouse operations across businesses of various sizes. TER is set to report its Q3 earnings soon. Ahead of the release, analysts expect the company to report diluted EPS of $2.04, up a staggering 140% from 85 cents in the year-ago quarter. Moreover, TER has exceeded Wall Street's EPS estimates in each of the past four quarters, highlighting its consistent earnings performance. - Late Billionaire Charlie Munger Told Value Investors to 'Get Used To Making Less' Because They All Want 'A Diminished Bunch Of Opportunities' but Warren Buffett Disagrees - Why It's Time to Load Up on Qualcomm Stock - 100,000 Reasons to Buy Oracle Stock - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts expect TER to report EPS of $9.11, reflecting a substantial 130.1% increase from $3.96 in fiscal 2025. EPS is projected to increase another 24% year over year to $11.30 in fiscal 2027. TER stock has gained a whopping 191% over the past 52 weeks, significantly outperforming the S&P 500 Index ($SPX), which returned 16%, as well as the State Street Technology Select Sector SPDR ETF (XLK), which posted a 40.5% gain over the same period. Teradyne's strong performance has been driven by accelerating business momentum, supported by robust semiconductor and AI-related demand. More recently, TER shares jumped 6.4% on October 2 after weaker-than-expected U.S. employment data cooled Treasury yields and eased interest rate pressure on high-multiple growth stocks. Lower yields can support valuations for long-duration technology companies by reducing the discount rate applied to future earnings, providing a favorable backdrop for Teradyne. Analysts remain bullish on TER, with the stock carrying a consensus "Moderate Buy" rating. Of the 16 analysts covering the stock, 10 recommend a "Strong Buy," one rates it a "Moderate Buy," and five suggest a "Hold." Meanwhile, the average analyst price target of $447.71 implies potential upside of 4% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Teradyne has rallied hard in recent years, and with the stock last closing at US$398.38, the real question for investors is how well that price lines up with the earnings power of the business. - Over the past 3 years Teradyne has returned about 300.0%, which puts a lot of expectation into the current valuation and makes its earnings track record central to the story. - Record recent revenue performance and new offerings such as the Iris 100 platform for microLED testing, along with partnerships and an expanded presence in India, can support higher expectations for future profit and cash generation that feed directly into what investors may be willing to pay for each dollar of earnings. - Your read on Teradyne is one view; the desks covering it have another. See what analysts think Teradyne's shares could be worth. The issue now is whether Teradyne's current share price is justified by the earnings it is generating today and what those profits may reasonably support over time. If you are weighing Teradyne's earnings driven run, it can help to compare it with other companies exposed to similar themes through 84 AI infrastructure stocks. The P/E ratio fits Teradyne because earnings are the main lens most investors use for mature test equipment and robotics platforms. On this measure, the stock trades on roughly 54.1x earnings, which is above the semiconductor sector average of about 47.7x and slightly ahead of the peer group near 52.9x. That places Teradyne on the more expensive side of the sector in simple earnings terms, even before you factor in any company specific story. Record Q2 revenue and profit beats have pulled the valuation further away from what a tailored fair P/E would suggest given Teradyne's risk profile and cash generation. As a result, the current ratio screens as overvalued against that benchmark. The strong response to Iris 100 and the push into AI oriented testing and robotics help explain why investors are willing to pay up, yet the P/E still embeds a richer earnings tag than the model points to. Readers weighing Teradyne at this level are effectively paying a premium and need to decide whether those expectations around future profitability feel comfortable. Explore the numbers behind Teradyne's P/E valuation. Simply Wall St Narratives pick up where the Teradyne valuation puzzle leaves off by spelling out which paths for growth, profitability and earnings would need to hold for the stock to look meaningfully cheaper or more expensive than it does today. Each narrative links a specific fair value estimate to a clear story about Teradyne's potential catalysts and key risks, so you can track over time which version of events appears to be taking shape on the Community page. Teradyne brings out sharply different views, with some investors leaning into the AI and robotics upside while others focus on timing risk and margin pressure. Bull case: 10% undervalued "Teradyne expects significant future growth potential from AI accelerators, robotics, and semiconductor automation, which are being driven by long-term industry themes..." Discover why this Narrative puts Teradyne at 10% undervalued. Bear case: 14% overvalued "The numbers suggest that a fairly valued and bullish Teradyne share price already reflects strong multi-year growth in AI centric test, memory, compute, optical test and robotics..." Explore why this Narrative puts Teradyne at 14% overvalued. Price multiples tell part of the Teradyne story, but the recent trading activity by people inside the business could add a different layer of context that many overlook. See the recent insider selling flagged for Teradyne. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TER. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The end of the earnings season is always a good time to take a step back and see who shined (and who didn't). Let's take a look at how semiconductor manufacturing stocks fared in Q2, starting with Teradyne (NASDAQ:TER). The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. The 14 semiconductor manufacturing stocks we track reported a very strong Q2. As a group, revenues beat analysts' consensus estimates by 3.5% while next quarter's revenue guidance was 6.5% above. Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results. Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices. Teradyne reported revenues of $1.33 billion, up 104% year on year. This print exceeded analysts' expectations by 9.3%. Overall, it was a stunning quarter for the company with a beat of analysts' EPS estimates and an impressive beat of analysts' operating income estimates. "Our strategy to capture test and robotics opportunities from wafer to AI data center has driven another record quarter. This strength became evident in the year-on-year market expansion for all three of our business groups," said Teradyne CEO Greg Smith. Teradyne scored the biggest analyst estimate beat and highest guidance raise in the group. Unsurprisingly, the stock is up 20.8% since reporting and currently trades at $387.50. Is now the time to buy Teradyne? Access our full analysis of the earnings results here, it's free. Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Kulicke and Soffa reported revenues of $330.4 million, up 123% year on year, outperforming analysts' expectations by 5.7%. The business had a stunning quarter with a significant improvement in its inventory levels and a beat of analysts' EPS estimates. Kulicke and Soffa achieved the fastest revenue growth of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 3.2% since reporting. It currently trades at $90.86. Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it's free. Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips. KLA Corporation reported revenues of $3.66 billion, up 15.2% year on year, exceeding analysts' expectations by 1.3%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts' EPS estimates and a decent beat of analysts' operating income estimates. As expected, the stock is down 1.5% since the results and currently trades at $188.03. Read our full analysis of KLA Corporation's results here. With fabs representing the company's largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing. Entegris reported revenues of $883.2 million, up 11.5% year on year. This print beat analysts' expectations by 5.5%. Overall, it was an exceptional quarter as it also produced a beat of analysts' EPS estimates and an impressive beat of analysts' operating income estimates. The stock is up 19.8% since reporting and currently trades at $149.97. Read our full, actionable report on Entegris here, it's free. Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors. Amtech reported revenues of $22.38 million, up 14.5% year on year. This number topped analysts' expectations by 4.1%. It was an exceptional quarter as it also logged a beat of analysts' EPS estimates and an impressive beat of analysts' operating income estimates. The stock is down 5.2% since reporting and currently trades at $15.19. Read our full, actionable report on Amtech here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. 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