Teradyne (TER) AI Stock Analysis

• Market Cap: $14.93B
• Dividend Yield: 0.51%
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.87
• Revenue Growth: 9.61%
• EPS Growth: 28.34%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 0.75
• Shares Outstanding: 160,420,290
• 10 Day Avg. Volume: 4,205,770
• 30 Day Avg. Volume: 3,131,825
• PEG Ratio: 4.31
• Price to Book (P/B): 3.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.75
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 4.77
• 1Y Price Target: $96.45
• Price Target Upside: 3.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: $102.00 ▲(9.61%Upside)

Teradyne's strong financial performance and positive technical indicators are key strengths. However, high valuation metrics and concerns from the earnings call about future visibility and declining robotics revenue temper the overall outlook. The company's strategic board appointments and share buyback plans offer some long-term confidence, but potential market uncertainties warrant caution.

Positive Factors

Market Positioning

Teradyne is well positioned to benefit from strong long-term secular AI compute and memory demand trends.

Revenue Growth

The industrial automation business is expected to be a significant revenue driver for Teradyne in the next decade.

Technological Advancements

The increased complexity of testing, driven by technological advancements like 5G, allows Teradyne to raise the average selling price of its products, boosting long-term profitability.

Negative Factors

Market Challenges

The company faces challenges from order pushouts and vulnerabilities in the automotive and industrial markets due to trade tariffs.

Market Recovery

Estimates for Teradyne are revised to reflect a slower recovery path for key end-markets like auto/industrial and mobile.

Revenue Forecasts

Teradyne's revised 2025 and 2026 guidance is considered too optimistic, with revenue forecasts significantly below company expectations.

Teradyne Business Overview & Revenue Model

Company Description

Teradyne, Inc. (TER) is a leading global supplier of automation equipment for test and industrial applications. Headquartered in North Reading, Massachusetts, Teradyne operates in sectors such as semiconductor test, system test, wireless test, and industrial automation. Its core products include automatic test equipment (ATE) for semiconductors, as well as robotics and collaborative robots used in manufacturing and industrial processes.

How the Company Makes Money

Teradyne makes money primarily through the sale of its automated test equipment and industrial automation solutions. The semiconductor test sector is a significant revenue stream, where the company provides high-performance systems to test semiconductors, ensuring they meet quality and reliability standards before reaching the market. Teradyne's industrial automation segment, which includes robotics and collaborative robots, caters to a wide range of industries seeking to automate manufacturing processes for improved efficiency and productivity. The company also generates revenue through service contracts, support, and maintenance for its equipment, which are crucial for customer satisfaction and retention. Strategic partnerships with key players in technology and manufacturing further bolster its revenue growth and market position.

Teradyne Financial Statement Overview

Summary

Teradyne demonstrates strong financial health marked by robust profitability, efficient operations, and solid cash generation. While revenue growth and margins are resilient, attention is needed for potential fluctuations in revenue and return on equity. The company's low leverage enhances its financial stability.

Income Statement

Teradyne has shown a strong revenue growth trajectory, especially in the TTM period. The company's gross and net profit margins are healthy, reflecting efficient cost management and profitability. The EBIT and EBITDA margins further underline operational efficiency. Revenue growth, however, has fluctuated in past years, indicating potential market or operational challenges.

Balance Sheet

The balance sheet exhibits a solid equity base with a low debt-to-equity ratio, highlighting financial stability. The equity ratio is strong, indicating sound capitalization. However, the return on equity has shown some variability, suggesting potential fluctuations in profitability or asset utilization efficiency.

Cash Flow

Teradyne demonstrates robust operating cash flow relative to net income, indicating strong cash generation from operations. Free cash flow growth has been positive, supporting potential for investment and shareholder returns. The free cash flow to net income ratio is healthy, though some periods have shown variability in cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.91B	2.82B	2.68B	3.16B	3.70B	3.12B
Gross Profit	1.72B	1.65B	1.54B	1.87B	2.21B	1.79B
EBITDA	715.65M	593.79M	640.50M	954.20M	1.29B	1.04B
Net Income	577.07M	542.37M	448.75M	715.50M	1.01B	784.15M
Balance Sheet
Total Assets	3.71B	3.71B	3.49B	3.50B	3.81B	3.65B
Cash, Cash Equivalents and Short-Term Investments	507.78M	599.67M	819.73M	894.38M	1.37B	1.44B
Total Debt	68.76M	76.62M	82.61M	132.88M	184.58M	472.76M
Total Liabilities	908.34M	889.42M	960.93M	1.05B	1.24B	1.45B
Stockholders Equity	3.71B	3.71B	2.53B	2.45B	2.57B	2.21B
Cash Flow
Free Cash Flow	608.44M	474.08M	425.59M	414.67M	965.89M	683.96M
Operating Cash Flow	826.53M	672.18M	585.23M	577.92M	1.10B	868.93M
Investing Cash Flow	-660.10M	-622.34M	-179.65M	43.75M	120.36M	-569.79M
Financing Cash Flow	-391.91M	-251.77M	-501.91M	-892.99M	-1.01B	-158.29M

Teradyne Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TER, the sentiment is Positive. The current price of 93.06 is above the 20-day moving average (MA) of 88.17, above the 50-day MA of 82.45, and below the 200-day MA of 104.58, indicating a neutral trend. The MACD of 2.88 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TER.

Teradyne Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TER	75 Outperform	$14.93B	26.34	21.55%	0.51%	9.61%	28.34%
SWKS	75 Outperform	$11.82B	30.76	6.70%	3.58%	-12.90%	-51.90%
ASX	74 Outperform	$21.63B	21.18	11.47%	2.54%	1.32%	4.86%
ON	72 Outperform	$23.65B	39.26	7.85%	―	-18.28%	-70.98%
ENTG	69 Neutral	$13.12B	42.40	8.65%	0.46%	-3.83%	-1.93%
ALAB	67 Neutral	$14.97B	387.04	4.47%	―	200.19%	―
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%

Teradyne Corporate Events

Teradyne Appoints New Independent Directors for Growth

On June 26, 2025, Teradyne announced the appointment of Drew Henry and Necip Sayiner as independent directors, effective July 1, 2025, as part of a board refreshment process. These appointments aim to align the board with Teradyne’s strategic priorities, leveraging Henry’s semiconductor industry experience and Sayiner’s technical expertise to enhance shareholder value and drive growth in the Semiconductor Test and Product Test businesses.

The most recent analyst rating on (TER) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Teradyne stock, see the TER Stock Forecast page.

Teradyne Amends By-Laws for Shareholder Proposals

On June 20, 2025, Teradyne, Inc.’s Board of Directors amended the company’s By-Laws, effective immediately. The changes include adjustments to director nomination and shareholder proposal notice windows, updates to procedural requirements for shareholder nominations and proposals, and clarifications on voting standards and meeting conduct. These amendments impact the process for shareholders wishing to nominate directors or make proposals at the 2026 annual meeting, requiring notices to be submitted between January 9 and February 8, 2026.

The most recent analyst rating on (TER) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Teradyne stock, see the TER Stock Forecast page.

Teradyne Shareholders Approve Updated Compensation Plan

On May 9, 2025, Teradyne, Inc. held its annual meeting of shareholders, where several key proposals were voted on. The shareholders approved an amended Equity and Cash Compensation Incentive Plan, which updates the previous 2006 Plan by incorporating compensation governance best practices and removing its term limit. Additionally, the election of directors, approval of executive compensation, and ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025 were confirmed. However, a proposal requiring the company to report on political contributions was not approved.

The most recent analyst rating on (TER) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Teradyne stock, see the TER Stock Forecast page.