Teradyne Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Whoever buys today bets that AI test demand stays above a billion dollars per quarter long enough for earnings to grow into a P/E near 80 — before cyclicality, customer concentration or geopolitics interferes. Whoever waits checks three lines in every quarterly report (10-Q): Semiconductor Test revenue (does it hold the billion-dollar mark?), the customer concentration (does the 19 percent customer keep growing?), and the receivables (most recently up 41 percent in a single quarter). Teradyne itself showed in 2025 how to wait with price discipline — the company bought at $112, not at $490. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Teradyne is the rare case where a quality scanner and the filings tell the same story — right up to the price tag: the Buffett criteria (return on capital, freedom from debt, margin, earnings streak) are met and SEC-documented, and the core business is the tollbooth of the AI boom with a record quarter of plus 87 percent. Against that stand a P/E near 80 and 140 times free cash flow for a cyclical whose five largest customers carry 44 percent of revenue, which earns 36 percent of its money in Taiwan, and whose most recent down quarter is just four quarterly reports old. Whoever invests here is not buying the Buffett criteria, but the continuation of the AI capex boom at full price. Not investment advice.
Balance sheet quality
Return on equity near 29 percent, debt-to-equity of 0.03, Altman-Z near 9, gross margin of 58 to 61 percent; the $200.0 million revolver drawn in the cycle trough was fully repaid in the first quarter of 2026 (10-K 2025; 10-Q as of 03/29/2026; scanner data as of 07/18/2026).
AI tailwind in the core business
Q1 2026 revenue up 87 percent to $1,282.5 million, Semiconductor Test above $1.0 billion in a quarter for the first time, a 31.1 percent net margin; per the 10-K, AI-related demand already drove the majority of revenue in the second half of 2025 — Teradyne is the tollbooth between chip fab and AI data center.
Customer concentration & geography
Five direct customers = 44 percent of 2025 revenue (2023: 32 percent), one buyer alone at 19 percent, Taiwan at 36 and China at 14 percent of revenue — with explicitly "no or limited contractual recourse" should major customers walk (10-K 2025, Item 1A).
Cyclicality
The company's own risk chapter calls the industry cyclicality "recurring"; as recently as Q2 2025, revenue shrank 10.7 percent with EPS down 57 percent — the scanner's six-quarter window cannot capture this swing.
Valuation
P/E near 80, price-to-sales near 20, price to free cash flow near 140, dividend yield near 0.1 percent (as of July 18, 2026); the owner earnings yield of roughly 0.7 percent misses the 5 percent threshold of our in-house Buffett price scanner by a wide multiple — even on 2027 analyst estimates, a P/E near 50 would remain.
Capital allocation
Counter-cyclical straight from the textbook: $702.1 million of buybacks at an average of $112.21 in the weak year 2025, a near-full stop at $229.00 in Q1 2026; plus the hidden reserve of the Technoprobe stake (market value $935.7 million against $537.1 million book value, 12/31/2025).
Worth Noting
TER made the research list as rank 4 of our in-house Buffett Criteria scanner (U.S. selection, as of July 18, 2026) — part of our series on the top 20 of that selection, following Micron (rank 1) and Western Digital (rank 2).
Scanner metrics (ROE, debt-to-equity, EBIT margin, P/E, P/S, price/FCF, Altman-Z) use trailing twelve-month figures as of July 18, 2026; the scanner's quarterly series spans six quarters (Q4 2024 through Q1 2026).
Price and market value figures (~$490, ~$77 billion) from the July 18, 2026 feed, sanity-checked against 156.4 million shares outstanding per the quarterly report 10-Q as of March 29, 2026; analyses are evergreen, daily prices are not a buy argument.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at TER since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 114.30 $ to 483.80 $ · Last price: 353.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Semiconductor Equipment & Materials
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Teradyne Inc TER | 57.6 | 59.4 | 34.3 | 59.2 | 37.6 | 13.1 | 209.5 |
| Lam Research Corp LRCX | 371.4 | 47.0 | 41.9 | 50.5 | 35.0 | 23.7 | 122.2 |
| Applied Materials Inc AMAT | 331.4 | 36.5 | 31.3 | 49.4 | 31.9 | 4.4 | 135.6 |
| KLA Corporation KLAC | 220.8 | 46.0 | 37.8 | 61.3 | 41.2 | 23.9 | 71.6 |
| Qnity Electronics, Inc Q | 24.5 | 47.5 | 20.3 | 46.2 | 22.8 | 9.7 | 20.8 |
| Entegris Inc ENTG | 22.4 | 69.9 | 25.9 | 45.6 | 18.0 | -1.4 | 41.1 |
| Onto Innovation Inc ONTO | 13.7 | 109.7 | 49.6 | 55.5 | 16.8 | 1.8 | 115.5 |
| Amkor Technology Inc AMKR | 11.9 | 23.7 | 8.5 | 15.5 | 6.0 | 6.2 | 81.4 |
| Nova Ltd NVMI | 11.1 | 43.3 | 39.3 | 57.1 | 29.9 | 31.0 | 12.3 |
| Median of companies shown | 24.5 | 47.0 | 34.3 | 50.5 | 29.9 | 9.7 | 81.4 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 1,753 | -63 | -43 | -0.21 | 446 | 1,829 | 2,762 |
| 2017 | 2,137 | 525 | 258 | 1.28 | 627 | 1,954 | 3,110 |
| 2018 | 2,101 | 474 | 452 | 2.35 | 477 | 1,522 | 2,707 |
| 2019 | 2,295 | 554 | 467 | 2.60 | 579 | 1,480 | 2,787 |
| 2020 | 3,121 | 928 | 784 | 4.28 | 869 | 2,211 | 3,652 |
| 2021 | 3,703 | 1,201 | 1,015 | 5.53 | 1,098 | 2,564 | 3,809 |
| 2022 | 3,155 | 832 | 716 | 4.22 | 578 | 2,451 | 3,501 |
| 2023 | 2,676 | 501 | 449 | 2.73 | 585 | 2,526 | 3,487 |
| 2024 | 2,820 | 594 | 542 | 3.32 | 672 | 2,819 | 3,709 |
| 2025 | 3,190 | 693 | 554 | 3.51 | 674 | 2,796 | 4,170 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.90 | 24.10 | 753 | 12.30 | 19.40 | 283 | 225 |
| 2025: Q1 | 0.61 | 54.40 | 686 | 14.30 | 14.40 | 162 | 98 |
| 2025: Q2 | 0.49 | -57.30 | 652 | -10.70 | 12.00 | 182 | 132 |
| 2025: Q3 | 0.75 | -15.30 | 769 | 4.30 | 15.50 | 49 | 2 |
| 2025: Q4 | 1.63 | 82.00 | 1,083 | 43.90 | 23.70 | 282 | 219 |
| 2026: Q1 | 2.53 | 314.50 | 1,283 | 87.00 | 31.10 | 265 | 200 |
| 2026: Q2 | 2.38 | 385.70 | 1,329 | 103.90 | 28.20 | 469 | 378 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 2 of our scanner strategies — each hit links to the scanner.
Quality & Balance Sheet
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 9.09 | 8.82 – 9.35 | 5,142 | 129.6% | 16 |
| 12/31/2027 | 11.65 | 9.00 – 16.53 | 6,264 | 28.2% | 18 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 25.3% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $799.9M |
|---|---|
| Market cap | $57.62B |
| Free cash flow in year ten | $7.61B |
| Terminal value as a share of market value | 69.6% |
For comparison: over the past five years free cash flow shrank by 8.0% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Teradyne verkauft keine KI-Produkte — die automatischen Testsysteme sind Prüf-Werkzeuge, und KI erscheint in den Berichten (10-K/10-Q) durchgängig als externer Nachfrage-Treiber des Halbleitertest-Geschäfts (KI-Nachfrage trieb laut 10-K 2025 die Mehrheit der Erlöse im zweiten Halbjahr 2025) —, aber der Geschäftsbericht (10-K) 2025 belegt den eigenen operativen KI-Einsatz: KI-Werkzeuge „durch uns“ samt eigenem Risikofaktor, ein konzernweites KI-gestütztes Threat-Detection-Programm und KI-Integration in Produkten, daher „Nutzt KI“.
View the full file — quotes, sources, reviewed filings
„Our use of AI tools may subject us to significant competitive, legal, regulatory and other risks, and there can be no assurance that our use of AI tools will enhance our products, business operations or result in a benefit to us."
Unser Einsatz von KI-Werkzeugen kann uns erheblichen Wettbewerbs-, Rechts-, Regulierungs- und sonstigen Risiken aussetzen, und es gibt keine Gewähr, dass unser Einsatz von KI-Werkzeugen unsere Produkte oder Geschäftsabläufe verbessert oder uns einen Nutzen bringt.
10-K · 2026-02-19 · View SEC filing
„We also have a corporate-wide insider AI-enabled threat detection program to proactively identify external and internal threats and mitigate those threats in a timely manner."
Wir verfügen zudem über ein konzernweites, KI-gestütztes Insider-Bedrohungserkennungs-Programm, um externe und interne Bedrohungen proaktiv zu identifizieren und zeitnah einzudämmen.
10-K · 2026-02-19 · View SEC filing
„The Semiconductor Test segment’s strategic shift toward AI-driven semiconductor testing resulted in AI related customer demand driving the majority of our revenue in the second half of 2025."
Die strategische Verlagerung des Halbleitertest-Segments hin zu KI-getriebenem Halbleitertest führte dazu, dass KI-bezogene Kundennachfrage in der zweiten Jahreshälfte 2025 die Mehrheit unserer Erlöse trieb.
10-K · 2026-02-19 · View SEC filing
„During the first quarter of 2026, our Semiconductor Test segment delivered record results, driven primarily by continued strength in Artificial Intelligence (“AI”)–related demand across compute and memory applications resulting in Semiconductor Test revenue alone exceeding $1.0 billion for the first time."
Im ersten Quartal 2026 lieferte unser Halbleitertest-Segment Rekordergebnisse, in erster Linie getragen von anhaltend starker Nachfrage im Zusammenhang mit Künstlicher Intelligenz („KI“) über Compute- und Speicheranwendungen hinweg — mit dem Ergebnis, dass allein der Halbleitertest-Umsatz erstmals 1,0 Milliarden US-Dollar überstieg.
10-Q · 2026-05-01 · View SEC filing
Filings Reviewed: 10-Q 2026-05-01 · 10-Q 2025-10-30 · 10-Q 2025-08-01 · 10-Q 2025-05-02 · 10-K 2026-02-19 · 10-K 2025-02-20
Rated on July 18, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 0.4%
- More than 10% revenue growth is expected for the coming year 21.4%
- Share count grows by less than 3% a year -2.4%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 27.3%
- Gross margin at 40% or higher and without meaningful erosion 58.6%
- Goodwill from acquisitions does not grow faster than revenue 12.5%
- Net debt below twice EBITDA 0.0 x EBITDA
- Operating cash flow covers the profits of the last three years 387 m
- Return on capital at 15% or higher, or up versus two years ago 22.6%
- Insiders hold at least 10% or are net buyers 0.3%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
7/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 6.9%
- Exp. sales growth 3Y > 5% 40.1%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 82.1%
- Net debt < 4x EBIT 0.0x
- EBIT positive, 10Y straight 9
- Max. EBIT decline < 50% 58.3%
- Return on equity > 15% 24.9%
- ROCE > 15% 22.6%
- Expected return > 10% 83.5%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 15, 2026 | Smith Gregory Stephen | President and CEO | Sell | 4,000 | 337.83 | 1,351,320 |
| Sep 15, 2026 | Matz Marilyn | Director | Sell | 800 | 337.83 | 270,264 |
| Sep 1, 2026 | Johnson Mercedes | Director | Sell | 167 | 341.30 | 56,997 |
| Aug 17, 2026 | Smith Gregory Stephen | President and CEO | Sell | 4,000 | 425.00 | 1,700,000 |
| Aug 17, 2026 | Matz Marilyn | Director | Sell | 1,200 | 425.00 | 510,000 |
| Aug 3, 2026 | Johnson Mercedes | Director | Sell | 166 | 358.15 | 59,453 |
| Jul 15, 2026 | Smith Gregory Stephen | President and CEO | Sell | 4,000 | 356.31 | 1,425,240 |
| Jul 15, 2026 | Matz Marilyn | Director | Sell | 1,200 | 356.31 | 427,572 |
The company
About the Company
Teradyne, Inc. entwickelt, fertigt und verkauft automatisierte Testsysteme und Robotikprodukte in den USA, dem asiatisch-pazifischen Raum, Europa, dem Nahen Osten und Afrika.
- CEO Insider Trades (12 Mo.)
- selling own stock
- Employees
- 6,600
- Headquarters
- North Reading, MA
- Address
- 600 Riverpark Drive, 01864 North Reading, United States
- Phone
- 978 370 2700
- Website
- teradyne.com
- IPO Date
- 03/11/1987
- ISIN
- US8807701029
- Stock Split
- 2:1 on 09/01/1999
- Stock Split
- 2:1 on 08/30/1995
Management
| Name | Title | Birth Year |
|---|---|---|
| Gregory Stephen Smith | President, CEO & Director | 1964 |
| Michelle L. Turner | VP, CFO, Treasurer & Principal Accounting Officer | 1974 |
| Ryan E. Driscoll | Vice President, General Counsel & Secretary | 1978 |
| Sanjay Mehta | Executive Advisor | 1969 |
| Shannon John Poulin | President of Semiconductor Test Division | 1971 |
| Regan Mills | President of Product Test Group | 1970 |
| Shannon Gath | VP & Chief Information Officer | – |
| Jim Mahon | VP & Chief Human Resources Officer | – |
| Jean-Pierre Hathout | President of the Teradyne Robotics | 1970 |
| James Davidson | Chief Artificial Intelligence Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/10/2026 TERADYNE, INC (TER): Entry into a Material Definitive Agreement; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Financial Statements and Exhibits SEC ↗
- 07/29/2026 TERADYNE, INC (TER): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.