Teradyne, Inc.
- Open
- 334.37
- Day high
- 346.86
- Day low
- 330.13
- Prev close
- 335.46
- Volume
- 1.8M
- Mkt cap
- $53.4B
- P/E (TTM)
- 46.6
- EPS (TTM)
- $7.33
- P/B
- 15.5
- P/S
- 12.0
- Yield
- 0.08%
- Per share
- $0.26
- ▼Insiders net selling -$6.5M over the last 3 months (0 open-market buys, 9 sales)
- 🏛Institutions accumulating (13F)
Teradyne, Inc. (TER) is a Technology company listed on NASDAQ. The stock is up 186% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 9 sales (SEC Form 4). Drillr has 2 published research articles covering TER.
Teradyne, Inc. (TER) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TER earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $2.09 | $2.47 | +18.2% | $1.3B | +9.0% |
| Apr 29, 2026 | $2.11 | $2.56 | +21.3% | $1.3B | +6.9% |
| Feb 2, 2026 | $1.38 | $1.80 | +30.4% | $1.1B | +10.9% |
| Jul 29, 2025 | $0.54 | $0.57 | +5.2% | $652M | +0.2% |
| Jan 29, 2025 | $0.91 | $0.95 | +4.4% | $753M | +1.6% |
| Oct 23, 2024 | $0.79 | $0.90 | +13.9% | $737M | +2.9% |
| Jul 24, 2024 | $0.77 | $0.86 | +11.7% | $730M | +4.1% |
| Jan 30, 2024 | $0.71 | $0.79 | +11.3% | $671M | -0.6% |
| Oct 25, 2023 | $0.73 | $0.80 | +9.6% | $700M | +2.2% |
| Jul 26, 2023 | $0.66 | $0.79 | +19.7% | $684M | +3.9% |
| Jan 25, 2023 | $0.75 | $0.92 | +22.7% | $732M | +2.8% |
| Jul 26, 2022 | $1.14 | $1.21 | +6.1% | $841M | +1.4% |
TER insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Sep 2, 2026 | JOHNSON MERCEDESdirector | Sell | 167 | $341.30 |
| Aug 18, 2026 | MATZ MARILYNdirector | Sell | 1,200 | $425.00 |
| Aug 18, 2026 | Smith Gregory Stephendirector, officer: President and CEO | Sell | 4,000 | $425.00 |
| Aug 4, 2026 | JOHNSON MERCEDESdirector | Sell | 166 | $358.15 |
| Jul 16, 2026 | MATZ MARILYNdirector | Sell | 1,200 | $356.31 |
| Jul 16, 2026 | Smith Gregory Stephendirector, officer: President and CEO | Sell | 4,000 | $356.31 |
| Jul 2, 2026 | JOHNSON MERCEDESdirector | Sell | 167 | $460.00 |
| Jun 29, 2026 | TUFANO PAUL Jdirector | Grant | 116 | — |
| Jun 29, 2026 | Herweck Peterdirector | Grant | 63 | — |
| Jun 29, 2026 | Henry Andrew Chisholmdirector | Grant | 52 | — |
| Jun 16, 2026 | Smith Gregory Stephendirector, officer: President and CEO | Sell | 4,000 | $423.03 |
| Jun 16, 2026 | MATZ MARILYNdirector | Sell | 1,200 | $423.03 |
| May 26, 2026 | Poulin Shannon Johnofficer: President, Semiconductor Test | Option | 2,843 | $82.61 |
| May 26, 2026 | Poulin Shannon Johnofficer: President, Semiconductor Test | Sell | 656 | $355.00 |
| May 26, 2026 | Poulin Shannon Johnofficer: President, Semiconductor Test | Tax | 1,531 | $345.98 |
Source: TER SEC Form 4 filings, latest Sep 2, 2026. For informational purposes only — not investment advice.
See the full TER insider & 13F page →TER research & analysis
[TER] Teradyne Thesis 2026: AI Test Demand Becomes Majority of Business, Revenue Target Set
Teradyne FY25 (Dec 31, 2025) at $3.19B revenue (+13%). NI $554M; EPS $3.48 (+5%). Q4 sequential +41% revenue + 100% non-GAAP earnings; AI >60% of Q4 revenue, expected >70% in Q1 FY26. SoC test +23% on networking + VIP compute; HBM share gains. Q1 FY26 sales $1.15-$1.25B / EPS $1.89-$2.25. New target model: $6B revenue, GM 59-61%, OpEx 27-29% (ATE TAM $12-14B).
AMAT, LRCX, KLAC, ASML: AI Chip Tool Demand Surges
ASM International's Q3 beat and raised FY24 guidance spotlight the AI chip production surge, boosting demand for advanced tools from US-listed leaders like AMAT, LRCX, and ASML. These six equipment firms show strong positioning via record backlogs and AI-tied growth, with ASML and AMAT topping conviction rankings. Investors should track foundry capex updates amid potential geopolitical risks.
AMATLRCXKLAC
Teradyne, Inc. company profile
Overview
Teradyne, Inc. (NASDAQ:TER) is a leading provider of automatic test equipment and industrial automation solutions founded in 1960 and headquartered in North Reading, Massachusetts. The company went public in 1970 and has evolved from a semiconductor test equipment manufacturer into a diversified technology company serving multiple high-tech industries. Teradyne operates through four main business segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test, providing critical testing and automation solutions that enable the production of semiconductors, electronic systems, and advanced manufacturing processes worldwide.
Business
Teradyne operates in the automatic test equipment (ATE) industry, which provides specialized machines and systems that verify the functionality, performance, and quality of electronic components and systems before they reach end customers. The company's core business revolves around testing semiconductors - the tiny computer chips that power everything from smartphones to data centers. The company's business is organized into four distinct segments: 1. Semiconductor Test (approximately 75% of revenue): This is Teradyne's largest segment, providing test equipment for semiconductor wafers and packaged chips. The segment includes three main product lines: SoC (System-on-Chip) testing equipment like the FLEX and J750 platforms that test complex processors and application-specific chips; Memory testing systems including the Magnum platform for flash memory and DRAM chips; and Integrated System Test (IST) solutions using the ETS platform for analog and mixed-signal semiconductors. These machines essentially put chips through rigorous electrical tests to ensure they meet specifications before being shipped to device manufacturers. 2. System Test (approximately 10% of revenue): This segment provides testing solutions for complete electronic systems rather than individual chips. It includes defense and aerospace test instrumentation, storage device testing systems, and circuit board test and inspection equipment. These systems verify that complex electronic assemblies function properly as integrated units. 3. Industrial Automation (approximately 13% of revenue): Operating under the Universal Robots and Mobile Industrial Robots (MiR) brands, this segment manufactures collaborative robotic arms (cobots) and autonomous mobile robots for manufacturing, logistics, and light industrial applications. Universal Robots' cobots work alongside humans in manufacturing environments, while MiR's autonomous robots handle material transport and logistics tasks. 4. Wireless Test (approximately 4% of revenue): Under the LitePoint brand, this segment provides test solutions for wireless devices including smartphones, tablets, IoT devices, and wireless modules. Products like IQxel test Wi-Fi performance, while IQxstream tests cellular technologies including 5G, ensuring wireless devices meet communication standards and performance requirements.
Revenue model
Teradyne generates revenue primarily through product sales of its test equipment and robotic systems, with customers paying upfront for these capital-intensive machines. The semiconductor test equipment typically costs hundreds of thousands to millions of dollars per system, while industrial robots range from tens of thousands to hundreds of thousands of dollars depending on complexity and capabilities. The company's customers include integrated device manufacturers (IDMs) like Intel and Samsung that design and manufacture their own chips, fabless semiconductor companies that design chips but outsource manufacturing, foundries like TSMC that manufacture chips for other companies, and assembly and test subcontractors that provide outsourced testing services. In the industrial automation segment, customers span automotive manufacturers, electronics producers, logistics companies, and other manufacturers seeking to automate production processes. Several factors significantly impact Teradyne's margins and profitability. Positive margin drivers include the increasing complexity of semiconductors requiring more sophisticated and expensive test equipment, the growth of AI and high-performance computing driving demand for advanced chips, the transition to new process nodes (like 3-nanometer technology) requiring updated test capabilities, and the expansion of automotive electronics and electric vehicles creating new test requirements. The company also benefits from its market-leading positions in key segments, allowing for premium pricing. Negative margin pressures come from cyclical semiconductor industry downturns that reduce customer capital spending, intense competition particularly from lower-cost Asian competitors in the robotics segment, customer concentration risks where major customers can negotiate lower prices or shift to competitors, and the need for continuous R&D investment to stay ahead of rapidly evolving technology requirements. Additionally, trade tensions and tariffs can disrupt supply chains and customer demand patterns, while economic uncertainty can cause customers to delay capital equipment purchases.
Competitive moat
Teradyne's competitive moat is moderately strong but varies significantly across its business segments. In semiconductor testing, the company benefits from substantial switching costs and technical expertise barriers. Once customers integrate Teradyne's test equipment into their production lines, switching to competitors involves significant reengineering, retraining, and validation costs. The company's deep relationships with leading semiconductor manufacturers, built over decades, create additional stickiness. Teradyne's extensive intellectual property portfolio and specialized engineering expertise in high-speed, high-precision testing also provide competitive advantages. However, the moat faces several challenges. The semiconductor test equipment market is highly competitive with established players like Advantest offering comparable solutions. Customer concentration creates vulnerability - losing a major customer can significantly impact revenue. The cyclical nature of the semiconductor industry means even strong market positions don't protect against industry-wide downturns. In the industrial automation segment, Teradyne's moat is weaker. While Universal Robots pioneered the collaborative robotics market and maintains a leading market share, the segment faces intense competition from both established industrial automation companies and emerging low-cost competitors, particularly from China. The robotics market is less sticky than semiconductor testing, with customers more willing to switch suppliers based on price and features. This segment has struggled with profitability and growth consistency, indicating limited pricing power. The primary competitive threats come from technological disruption as new testing methodologies or automation technologies could potentially obsolete existing solutions, geographic competition particularly from Asian companies offering lower-cost alternatives, and customer vertical integration where large semiconductor companies develop in-house testing capabilities. Additionally, economic cycles can quickly erode the company's market position as customers delay capital investments during downturns.
Risks & safety
Teradyne demonstrates a strong margin of safety from a financial stability perspective, though valuation metrics suggest limited upside at current levels. • Liquidity and Solvency: Excellent financial position with $476 million in cash and short-term investments, minimal debt (debt-to-equity ratio of 0.019), and strong current ratio of 2.7. Free cash flow generation of $98 million in Q1 2025 provides adequate cushion for operations and investments. • Valuation Metrics: Currently expensive with P/E ratio of 34x, EV/EBITDA of 27x, and price-to-book of 3.6x. These metrics suggest limited margin of safety for value-oriented investors, particularly given the cyclical nature of the business. • Other Considerations: Strong return on equity of 15% (full year 2024), consistent profitability across cycles, and robust gross margins around 60% indicate operational efficiency. However, revenue concentration in cyclical semiconductor industry and exposure to trade policy uncertainties create some risk factors.
Recent development
Over the past few years, Teradyne has undergone significant strategic evolution driven by the artificial intelligence boom and changing semiconductor landscape. The company has successfully pivoted from being heavily dependent on mobile device testing to becoming a major beneficiary of AI and cloud computing growth. AI and compute testing has emerged as a key growth driver, with compute revenue expected to be four times 2023 levels, driven by demand from cloud AI applications and vertically integrated producers (VIPs) like major tech companies building their own chips. The company has made substantial investments in advanced semiconductor testing capabilities, particularly for high-bandwidth memory (HBM) used in AI accelerators, securing wins with major DRAM manufacturers for next-generation HBM4 performance testing. Teradyne has also expanded its presence in the automotive semiconductor market, capitalizing on the electrification and ADAS trends that require extensive testing of power semiconductors and automotive chips. In industrial automation, Teradyne has restructured its robotics business by consolidating Universal Robots and MiR's sales and marketing functions to improve efficiency. The company is focusing on AI-enabled robotics solutions and expanding through OEM partnerships, with the OEM channel growing over 70% year-over-year. New product launches include heavy payload robots and AI-powered autonomous mobile robots like the MiR1200 Pallet Jack. Strategic partnerships have also been key, including collaborations with Infineon in power semiconductor testing and Technoprobe in semiconductor interfaces. The company is preparing for the acquisition of Quantifi Photonics to expand its photonics testing capabilities, reflecting the growing importance of optical components in high-speed computing and communications.
TER company profile · for informational purposes only — not investment advice.
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