Sales ($USD Millions)

Q3 2025

$610 million to $680 million "

$710 million to $770 million "

raised

Gross Margins (%)

Q3 2025

56.5% to 57.5% "

56.5% to 57.5% "

no change

Operating Expenses (OpEx)

Q3 2025

40.5% to 44.5% "

36.5% to 38.5% "

lowered

Non-GAAP Operating Profit Rate

Q3 2025

14.5% "

19.5% at the midpoint "

raised

Non-GAAP EPS ($USD)

Q3 2025

$0.41 to $0.64 "

$0.69 to $0.87 "

raised

GAAP EPS ($USD)

Q3 2025

$0.35 to $0.58 "

$0.62 to $0.80 "

raised

Tax Rate (%)

Q3 2025

no prior guidance

16.3% on both GAAP and non-GAAP basis; full-year expected to be 14.5% "

no prior guidance

Robotics Business Performance and Restructuring

In Q1, robotics revenue declined with notable operating losses and restructuring aimed at reducing the breakeven point ( " " ). In Q3 and Q4, discussions focused on consolidation efforts and strategic repositioning amid weak market conditions ( " " " " " " ).

In Q2 2025, robotics revenue reached $75 million with modest quarter‐on‐quarter growth. The restructuring executed successfully with plans for U.S. manufacturing expansion to support large customer wins, with benefits expected to materialize in 2026 ( " " " ).

Continued restructuring remains a central theme. The strategic consolidation and planned manufacturing expansion underscore a shift toward leveraging large customer wins for future growth, even as current volumes remain challenged ( " " ).

Semiconductor Testing and Advanced Test Solutions

Across Q1, Q3, and Q4, semiconductor testing showed improved revenue performance driven by AI compute demand and strategic wins in memory/HBM testing, along with initiatives in advanced test solutions and key partnerships ( " " " " " ).

In Q2 2025, the Semi Test revenue profile centers on strong contributions from SoC and memory segments with an increasing focus on AI compute. The IST segment also benefited from mobile SLT and HDD opportunities, while addressing HBM quality issues remains a priority ( " " " ).

The focus on semiconductor testing remains consistent with an enhanced emphasis on AI integration and HBM test-driven growth. Strong partnerships and advanced test initiatives continue to drive a positive outlook ( " " ).

Compute Segment Dynamics

Q1 and Q3 emphasized robust AI compute demand with record loading on UltraFLEX testers and emerging acceptance of new systems like Titan HP. Q4 reinforced growth in the compute area and expanding VIP adoption among hyperscalers ( " " " " ).

In Q2 2025, AI compute demand is a major driver, accounting for about 20% of SoC revenue. There is a clear expansion in GPU testing opportunities and continued momentum in Compute VIP adoption, reinforcing its role as a key segment ( " " " " ).

The compute segment consistently remains a bright spot across periods. The ongoing expansion in AI compute and GPU testing, along with solid VIP adoption, cements its position as a major revenue driver moving forward ( " " ).

Memory Revenue and HBM Test Market Trends

Q1 showed higher memory revenue albeit with customers digesting previous HBM test deployments. Q3 reported record-high memory revenues driven by strong HBM demand, and Q4 noted a 30% YoY growth in memory driven by AI compute, despite expectations of a softening trend as capacity is absorbed ( " " " ).

In Q2 2025, memory revenue was lower due to shipment timing. However, an important HBM4 post‐stack singulated die win was secured, signaling a key growth driver for future capacity expansions and improvements in the HBM test market ( " " " ).

Memory revenue remains volatile with timing nuances. Strong HBM demand in 2024 is giving way to a more transitional phase with new HBM4 wins expected to drive recovery, indicating an evolution toward next‐generation memory testing ( " " ).

Operating Margins and Cost Management

Q1 reported non‐GAAP margins around 20.5%, while Q3 and Q4 maintained margins in the low 20s with a strong emphasis on managing OpEx through a variable model and cost controls, including robotics restructuring to lower breakeven costs ( " " " ).

In Q2 2025, non‐GAAP operating profit margin was reported at 15.1%. Operating expenses increased slightly due to higher R&D investments, but spending remained disciplined with expectations for margin improvement in Q3 ( " ).

Cost management continues to be a priority with disciplined spending and targeted investments. While margins appear slightly under pressure in Q2 due to increased R&D, the overall strategy to improve efficiency and leverage restructuring is intact ( " " ).

Guidance and Visibility Uncertainty

Q1 highlighted significant uncertainty with limited visibility beyond Q2, citing trade policy and customer forecast challenges. Q3 and Q4 provided more precise guidance for the next quarter while still acknowledging market unpredictability ( " " " " ).

In Q2 2025, improved confidence in near-term guidance emerged due to strong AI demand, though uncertainty remains in the timing of shipments between quarters ( " " " ).

There is a gradual shift from high uncertainty in Q1 to slightly improved outlooks in Q2 powered by AI momentum. However, market unpredictability persists, though with a more optimistic near-term tone ( " " ).

Market Headwinds in Key End Markets

Q1 discussions underscored substantial headwinds in mobile, automotive, and robotics, aggravated by trade policy uncertainties. Q3 and Q4 continued to note weak mobile and industrial conditions, with cautious expectations for recovery in automotive and compute segments ( " " " " ).

In Q2 2025, headwinds in traditional segments like mobile and automotive persist, although opportunities in compute driven by AI and the ongoing robotics restructuring provide areas of optimism ( " " " ).

Persistent challenges in key end markets continue, but the growing strength in AI compute and strategic robotics adjustments signal potential for a gradual recovery despite ongoing headwinds ( " " ).

US Manufacturing Expansion and Supply Chain Resilience

Q1 briefly mentioned that onshoring would not significantly alter overall demand, while Q3 and Q4 did not address this topic ( " ; N/A).

Q2 2025 introduced a focused strategy on U.S. manufacturing expansion aimed at enhancing supply chain resilience, particularly to support large customer opportunities in AI compute and silicon photonics test segments ( " " " ).

This is a new emphasis in Q2 2025. The emerging focus on domestic manufacturing and supply chain resilience represents a strategic shift to mitigate global uncertainties and improve customer intimacy ( " " ).