Teradyne, Inc. (TER) AI Stock Analysis

Teradyne, Inc. is a global leader in the design, development, manufacturing, sales, and support of automatic test equipment used across multiple industries worldwide. The company operates through four segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test. Semiconductor Test provides wafer- and package-level testing solutions, featuring platforms such as FLEX, J750, Magnum, and ETS for automotive, industrial, cloud computing, and consumer electronics applications. System Test supplies defense and aerospace test instrumentation, storage test systems, and circuit-board inspection equipment. The Industrial Automation segment delivers collaborative robotic arms, autonomous mobile robots, and advanced robotic control software to enhance manufacturing and logistics operations.

Teradyne's annual revenue declined from $3.70B in FY2021 to $3.16B in FY2022 and $2.68B in FY2023, before rebounding to $2.82B in FY2024 and $3.19B in FY2025, reflecting a 5-year revenue CAGR of 0.4% from FY2020 to FY2025. Gross margin held between 57.4% and 59.6% across these years, while net income recovered from $448.8M in FY2023 to $554.0M in FY2025. Over the trailing twelve months, revenue reached $4.46B with a profit margin of 25.8% and operating margin of 33.2%. For the latest quarter ended June 30, 2026, quarterly revenue grew 103.9% year-over-year, and quarterly earnings expanded 385.8%.

As of June 30, 2026, Teradyne held $354.8M in cash and short-term investments against total debt of $100.1M, yielding net cash of $254.7M. The current ratio stood at 2.12 and debt-to-equity was 0.03, alongside shareholders' equity of $3.44B and total assets of $4.93B. During FY2025, operating cash flow was $674.4M and free cash flow was $450.4M. Capital expenditures reached $224.0M, while capital returns included $702.1M in share buybacks and $76.3M in dividends paid, contributing to an 11.4% reduction in share count over 5 years.

At a share price of $325.00, Teradyne carries a market capitalization of $50.81B and an enterprise value of $62.08B. The stock trades at a trailing P/E of 44.6x and a forward P/E of 30.7x, compared to the median of its Nasdaq-100 Technology peers of 42.1x and 25.1x, respectively. Its enterprise value-to-EBITDA stands at 40.6x versus the peer median of 30.6x, while price-to-sales is 11.4x against the peer median of 12.4x. Over the past year, the stock returned 133.8%, outperforming the S&P 500 (SPY) return of 16.8%.

Teradyne pays a quarterly dividend with an annualized forward payout of $0.52 per share, representing a dividend yield of 0.16%. The company has paid dividends for 13 consecutive years, delivering a 5-year annualized dividend growth rate of 3.7%. For the trailing twelve months, the dividend payout ratio was 6.6%, and the last ex-dividend date was September 4, 2026.

Wall Street sentiment includes 11 Strong Buy, 1 Buy, and 5 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target of $446.47 indicates a 37.4% premium over the last close of $325.00. Teradyne has beaten EPS expectations in each of the last 4 quarters. For the current fiscal year ending December 31, 2026, analysts forecast EPS of $9.09 on revenue of $5.14B, representing EPS growth of 129.6%. The company's next earnings date is October 27, 2026.

This page is an AI-written research summary of Teradyne, Inc. (TER). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TER income statement, TER balance sheet, TER key metrics, TER analyst forecast, TER chart. See the TER stock overview for the latest quote and news.