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Teradyne
(NASDAQ:TER)
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Rating:78Outperform
Price Target:
$421.00
▲(10.68% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by strong underlying financial quality (healthy margins, renewed growth, low leverage) and robust technical uptrend/momentum. Earnings-call commentary reinforces strong AI-driven execution and solid guidance, while the biggest offset is valuation risk from a high P/E alongside visibility and demand-lumpiness concerns.
Positive Factors
Record revenue and margins
Sustained, high-margin revenue driven by AI-related demand and scale in semiconductor test demonstrates durable product-market fit. Consistently elevated gross and operating margins provide cash generation and investment capacity, supporting R&D and capacity expansion that bolster long-term competitiveness.
Negative Factors
Customer concentration & lumpy demand
Dependence on a few very large customers raises structural revenue volatility and bargaining risk. Capital-equipment buyers can pause or delay large orders, producing multi-quarter swings in shipments and utilization that impair planning, underutilize fixed costs, and make multi-period revenue visibility weak.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue and margins
Sustained, high-margin revenue driven by AI-related demand and scale in semiconductor test demonstrates durable product-market fit. Consistently elevated gross and operating margins provide cash generation and investment capacity, supporting R&D and capacity expansion that bolster long-term competitiveness.
Read all positive factors
Teradyne Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business units, shedding light on which segments drive growth and profitability, and where the company might face challenges.
Highlights income from different business units, shedding light on which segments drive growth and profitability, and where the company might face challenges.
Data provided by:
The Fly
The FlyTeradyne (TER) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.78B
Dividend Yield0.24%
Average Volume (3M)4.30M
Price to Earnings (P/E)68.0
Beta (1Y)1.64
Revenue Growth30.33%
EPS Growth51.65%
CountryUS
Employees6,500
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)5.43
Shares Outstanding156,542,160
10 Day Avg. Volume5,477,605
30 Day Avg. Volume4,299,836
Financial Highlights & Ratios
PEG Ratio23.64
Price to Book (P/B)10.83
Price to Sales (P/S)9.49
P/FCF Ratio67.22
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue16.85
Enterprise Value/Gross Profit28.66
Enterprise Value/Ebitda57.72
Forecast
1Y Price Target
$439.00Price Target Upside15.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)7.46
Revenue Forecast (FY)$4.54B
Teradyne Business Overview & Revenue Model
Company Description
Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, is a global leader specializing in the creation, production, sale, and maintenance of automated testing solutions. The company's operations are categorized into...
How the Company Makes Money
Teradyne makes money primarily by selling capital equipment and related offerings used in electronics manufacturing and automation. Its key revenue streams include: (1) Semiconductor test systems: revenue from the sale of automatic test equipment ...
Teradyne Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call reported multiple record operating and financial metrics driven by robust AI demand: record revenue (~$1.28B–$1.3B), record margins (60.9%) and operating income ($480M), strong YoY and sequential growth across Semi Test, memory and robotics, and strategic product and M&A momentum (Photon 100, Omnyx, MultiLane JV, TestInsight). The primary negatives are limited visibility into the back half, concentration risk with a small number of large customers, inherent lumpy demand timing, and some normalization of margins into Q2. On balance, the positives — sizable revenue and margin beats, product wins, and tangible progress on AI-related TAM capture — materially outweigh the risks and uncertainties called out by management.Positive Updates
Record Revenue and Earnings
Q1 revenue of $1.282 billion (Greg referenced ~ $1.3B) and non-GAAP EPS of $2.56, both above the high end of guidance. Total company sales were up 87% year-over-year and 18% sequentially; non-GAAP EPS was up 241% year-over-year and 42% sequentially.
Negative Updates
Concentration and Lumpy Demand Risk
Business is increasingly concentrated among a smaller number of very large vertically-integrated customers, raising the risk of bottlenecks and short-term 'peaks and valleys' (management describes growth as 'lumpy').
Read all updates
Q1-2026 Updates
Positive
Negative
Record Revenue and Earnings
Q1 revenue of $1.282 billion (Greg referenced ~ $1.3B) and non-GAAP EPS of $2.56, both above the high end of guidance. Total company sales were up 87% year-over-year and 18% sequentially; non-GAAP EPS was up 241% year-over-year and 42% sequentially.
Read all positive updates
Company Guidance
Teradyne guided Q2 revenue of $1.15–$1.25 billion and non‑GAAP EPS of $1.86–$2.15, with normalized gross margins of 58%–59%, operating expenses about 27%–28% of sales and a non‑GAAP operating profit rate of 30%–32%; management expects roughly 55%–60% of annual revenue to be first‑half weighted, has line‑of‑sight to about $50 million of merchant‑GPU revenue for the year, and reiterated a full‑year target model of about $6.0 billion in revenue and $9.50–$11.00 in non‑GAAP EPS. They noted Q1 as a record quarter (Q1 revenue $1.282B, non‑GAAP EPS $2.56, gross margin 60.9%, non‑GAAP operating income $480M/37.5%), ended the quarter with ≈$400M cash & investments, used roughly $165M for recent acquisitions funded via the credit revolver, paid $20M in dividends, expect Q2 capex to increase, and cautioned that order lumpiness and visibility limits could affect timing.Teradyne Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.79B | 3.19B | 2.82B | 2.68B | 3.16B | 3.70B |
| Gross Profit | 2.23B | 1.87B | 1.65B | 1.54B | 1.87B | 2.21B |
| EBITDA | 1.11B | 768.08M | 732.41M | 640.26M | 954.78M | 1.30B |
| Net Income | 854.06M | 554.05M | 542.37M | 448.75M | 715.50M | 1.01B |
Balance Sheet | ||||||
| Total Assets | 4.43B | 4.17B | 3.71B | 3.49B | 3.50B | 3.81B |
| Cash, Cash Equivalents and Short-Term Investments | 245.60M | 322.00M | 599.67M | 819.73M | 894.38M | 1.37B |
| Total Debt | 82.40M | 347.14M | 134.54M | 147.71M | 197.06M | 240.76M |
| Total Liabilities | 1.29B | 1.37B | 889.42M | 960.93M | 1.05B | 1.25B |
| Stockholders Equity | 3.14B | 2.80B | 2.82B | 2.53B | 2.45B | 2.56B |
Cash Flow | ||||||
| Free Cash Flow | 553.18M | 450.41M | 474.08M | 425.59M | 414.67M | 965.89M |
| Operating Cash Flow | 777.90M | 674.41M | 672.18M | 585.23M | 577.92M | 1.10B |
| Investing Cash Flow | -374.14M | -368.62M | -622.34M | -179.65M | 43.75M | 120.36M |
| Financing Cash Flow | -635.65M | -562.25M | -251.77M | -501.91M | -892.99M | -1.01B |
Teradyne Technical Analysis
Negative
380.38
Price Trends
384.62
Negative
352.31
Positive
267.77
Positive
Market Momentum
15.59
Positive
44.13
Neutral
41.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TER, the sentiment is Negative. The current price of 380.38 is below the 20-day moving average (MA) of 414.29, below the 50-day MA of 384.62, and above the 200-day MA of 267.77, indicating a neutral trend. The MACD of 15.59 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TER.
Teradyne Risk Analysis
Teradyne disclosed 34 risk factors in its most recent earnings report. Teradyne reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teradyne Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $57.78B | 67.97 | 29.72% | 0.24% | 30.33% | 51.65% | |
70 Outperform | $17.26B | 39.57 | 9.96% | 0.81% | 12.71% | 37.49% | |
67 Neutral | $22.37B | 84.29 | 6.74% | 0.47% | -0.25% | -15.17% | |
63 Neutral | $35.50B | 64.70 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $93.70B | 67.00 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $64.09B | 415.80 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TER
Teradyne
369.09
278.73
308.48%
ASX
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AMKR
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ENTG
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146.66
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ON
ON Semiconductor
91.22
36.61
67.04%
STM
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68.35
37.07
118.52%
Teradyne Corporate Events
Executive/Board ChangesShareholder Meetings
Teradyne Shareholders Approve Directors, Pay and Auditor
Positive
May 11, 2026
On May 8, 2026, Teradyne, Inc. held its 2026 annual meeting of shareholders, where investors elected a slate of directors, including Drew Henry, Peter Herweck, Mercedes Johnson and others, to serve until the next annual meeting. The voting results...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.