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 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.

Teradyne said it anticipates first-quarter adjusted earnings per share to be between $1.89 and $2.26, far above LSEG estimates of $1.26.

First-quarter revenue is expected to fall between $1.15 billion and $1.25 billion, again exceeding LSEG expectations of $935 million.