A Business at a Glance
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TERADYNE, INC
TER
$55.9B
Mkt Cap
$349.92
-6.38%
TERADYNE, INC (TER) has a current P/E ratio of 100.8, compared to its historical median P/E of 29.2. The stock is currently considered Expensive based on its historical valuation range.
TERADYNE, INC (TER) has a 5-year average return on invested capital (ROIC) of 38.8%. This indicates strong capital allocation and a potential competitive advantage.
TERADYNE, INC (TER) has a market capitalization of $54.8B. It is classified as a large-cap stock.
Yes, TERADYNE, INC (TER) pays a dividend with a trailing twelve-month yield of 0.14%. The company also returns capital through share buybacks, with a buyback yield of 1.28%.
Based on historical P/E analysis, TERADYNE, INC (TER) appears expensive. The current P/E of 100.8 is 245% above its historical median of 29.2. The estimated fair value CAGR (P/E method) is 4.4%.
TERADYNE, INC (TER) operates in the Instruments For Meas & Testing Of Electricity & Elec Signals industry, within the Technology sector.
TERADYNE, INC (TER) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Teradyne is a leading global provider of automated test equipment (ATE) and robotics solutions founded in 1960. The company operates three primary segments: Semiconductor Test, which designs and manufactures test systems for semiconductors, hard disk drives, and solid-state disks used across consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace/defense markets; Product Test, which includes circuit-board test and inspection systems, wireless test systems, photonic integrated circuit test solutions, and defense/aerospace test instrumentation; and Robotics, comprising collaborative robotic arms under the Universal Robots brand and autonomous mobile robots under the Mobile Industrial Robots brand. Teradyne's business model is concentrated, with a limited number of significant customers driving substantial demand through both direct sales and supply-chain channels, and the company earns revenue through the sale of capital equipment and related services. The company has made strategic acquisitions including Quantifi Photonics for silicon photonics test capabilities and a joint venture with MultiLane to serve AI data center test markets, while maintaining a balanced capital allocation approach between organic and inorganic growth and shareholder returns. Teradyne's geographic footprint spans global markets, though the majority of test business revenue is denominated in U.S. dollars while Robotics revenue is predominantly in foreign currencies.
【AI-driven growth acceleration】 Management expects AI-related customer demand to continue representing the bulk of revenues in 2026, with compute TAM expected to grow significantly from an already strong 2025 base and robust double-digit year-over-year growth anticipated. The company is well-positioned to capture further share in AI applications through its focused investments and design wins, with healthy customer engagement and a robust pipeline of new opportunities. Beyond AI, management expects moderate recovery in auto and industrial markets and anticipates growth across all Product Test Group business lines in 2026, though visibility into the second half remains limited and revenue is expected to be lumpy. The company is targeting a new earnings model anchored to an ATE TAM of $12–$14 billion achievable within the midterm, reflecting conviction in long-term growth potential driven by AI, verticalization, and electrification themes.
| Metric | Target | Period |
|---|---|---|
| Revenue | $6 billion | Target model (midterm at ATE TAM of $12–$14 billion) |
| Non-GAAP EPS | $9.50–$11.00 | Target model (midterm at ATE TAM of $12–$14 billion) |
| Gross margin | 59%–61% | Target model (midterm at ATE TAM of $12–$14 billion) |
| Operating expenses | 27%–29% of revenue | Target model (midterm at ATE TAM of $12–$14 billion) |
| IST TAM opportunity | $300 million–$700 million per year | Midterm |
Revenue (Target model (midterm at ATE TAM of $12–$14 billion)): “So at an ATE TAM of $12-$14 billion, our target model assumes roughly $6 billion of revenue.”
Non-GAAP EPS (Target model (midterm at ATE TAM of $12–$14 billion)): “This results in an operating profit of 30%-34% and non-GAAP EPS of $9.50-$11.”
Gross margin (Target model (midterm at ATE TAM of $12–$14 billion)): “At this scale, we expect gross margins between 59%-61%, a point higher at the high end versus our prior model.”
Operating expenses (Target model (midterm at ATE TAM of $12–$14 billion)): “We anticipate OpEx of 27%-29% of revenue, reflecting operating leverage and the benefits of scale.”
IST TAM opportunity (Midterm): “That being said, we expect that this is a meaningful TAM expansion opportunity, which could reach $300 million-$700 million per year over the midterm.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 3.2B | 2.8B | 2.7B | 3.2B | 3.7B |
| Net Income | 0 | 554M | 542M | 449M | 716M | 1.0B |
| EPS | $0.00 | $3.47 | $3.32 | $2.73 | $4.22 | $5.53 |
| Free Cash Flow | 0 | 450M | 474M | 426M | 415M | 966M |
| ROIC | - | 22.7% | 25.1% | 23.4% | 43.9% | 78.7% |
| Gross Margin | - | 58.2% | 58.5% | 57.4% | 59.2% | 59.6% |
| Debt/Equity | 0.00 | 0.10 | 0.10 | 0.11 | 0.14 | 0.15 |
| Dividends/Share | $0.00 | $0.48 | $0.48 | $0.44 | $0.44 | $0.40 |
| Operating Income | 0 | 650M | 594M | 501M | 832M | 1.2B |
| Operating Margin | 0.0% | 20.4% | 21.1% | 18.7% | 26.4% | 32.4% |
| ROE | 0.0% | 19.7% | 20.3% | 18.0% | 28.5% | 42.5% |
| Shares Outstanding | 157M | 160M | 163M | 164M | 170M | 183M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.6B | 1.6B | 1.8B | 2.1B | 2.1B | 2.3B | 3.1B | 3.7B | 3.2B | 2.7B | 2.8B | 3.2B | 0 |
| Gross Margin | 53.3% | 55.8% | 54.7% | 57.2% | 58.1% | 58.4% | 57.2% | 59.6% | 59.2% | 57.4% | 58.5% | 58.2% | N/A |
| R&D | 292M | 292M | 292M | 307M | 302M | 323M | 375M | 428M | 441M | 418M | 461M | 505M | 505M |
| SG&A | 320M | 306M | 317M | 349M | 391M | 437M | 465M | 548M | 558M | 577M | 617M | 649M | 649M |
| EBIT | 96M | 243M | -63M | 525M | 474M | 554M | 928M | 1.2B | 832M | 501M | 594M | 650M | 0 |
| Op. Margin | 5.9% | 14.8% | -3.6% | 24.6% | 22.6% | 24.1% | 29.7% | 32.4% | 26.4% | 18.7% | 21.1% | 20.4% | 0.0% |
| Net Income | 81M | 206M | -43M | 258M | 452M | 467M | 784M | 1.0B | 716M | 449M | 542M | 554M | 0 |
| Net Margin | 4.9% | 12.6% | -2.5% | 12.1% | 21.5% | 20.4% | 25.1% | 27.4% | 22.7% | 16.8% | 19.2% | 17.4% | 0.0% |
| Non-Recurring | 100M | 260M | 278M | 10M | 23M | 35M | 31M | 25M | 52M | 21M | 73M | 43M | 43M |
| Returns on Capital | |||||||||||||
| ROIC | 6.1% | 16.0% | -2.1% | 40.8% | 68.9% | 54.3% | 73.2% | 78.7% | 43.9% | 23.4% | 25.1% | 22.7% | N/A |
| ROE | 4.0% | 10.2% | -2.3% | 13.6% | 26.0% | 31.1% | 42.5% | 42.5% | 28.5% | 18.0% | 20.3% | 19.7% | 0.0% |
| ROA | 3.1% | 8.1% | -1.6% | 8.8% | 15.5% | 17.0% | 24.4% | 27.2% | 19.6% | 12.8% | 15.1% | 14.0% | 0.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 492M | 423M | 455M | 626M | 477M | 579M | 869M | 1.1B | 578M | 585M | 672M | 674M | 0 |
| Free Cash Flow | 323M | 333M | 370M | 521M | 363M | 444M | 684M | 966M | 415M | 426M | 474M | 450M | 0 |
| Owner Earnings | 299M | 252M | 304M | 484M | 330M | 420M | 697M | 927M | 419M | 417M | 492M | 482M | -192M |
| CapEx | 169M | 90M | 85M | 105M | 114M | 135M | 185M | 132M | 163M | 160M | 198M | 224M | 0 |
| Maint. CapEx | 153M | 141M | 120M | 108M | 113M | 121M | 127M | 125M | 111M | 111M | 120M | 128M | 128M |
| Growth CapEx | 16M | 0 | 0 | 0 | 1.2M | 14M | 58M | 7.0M | 53M | 49M | 78M | 96M | 0 |
| D&A | 153M | 141M | 120M | 108M | 113M | 121M | 127M | 125M | 111M | 111M | 120M | 128M | 128M |
| CapEx/OCF | 34.3% | 21.8% | 18.7% | 16.8% | 24.0% | 23.3% | 21.3% | 12.1% | 28.2% | 27.3% | 29.5% | 33.2% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 37M | 51M | 49M | 55M | 67M | 61M | 66M | 66M | 70M | 68M | 76M | 76M | 0 |
| Dividend Yield | 1.0% | 1.3% | 1.2% | 0.8% | 0.9% | 0.7% | 518.4% | 0.3% | 0.4% | 0.4% | 0.4% | 0.4% | N/A |
| Share Buybacks | 31M | 300M | 146M | 200M | 823M | 500M | 88M | 600M | 752M | 397M | 199M | 702M | 702M |
| Buyback Yield | N/A | 7.0% | 2.9% | 2.4% | 14.2% | 4.1% | 0.4% | 2.0% | 5.3% | 2.2% | 1.0% | 2.2% | 1.3% |
| Stock-Based Comp | 40M | 30M | 31M | 34M | 34M | 38M | 45M | 46M | 48M | 58M | 60M | 64M | 64M |
| Debt Repayment | 191M | 2.3M | 0 | 0 | 0 | 0 | 0 | 343M | 67M | 50M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -828M | N/A | -826M | -1.4B | -737M | -451M | -964M | -1.1B | -635M | -607M | -393M | -108M | 0 |
| Cash & Equiv. | 294M | 265M | 308M | 430M | 927M | 774M | 914M | 1.1B | 855M | 758M | 553M | 294M | N/A |
| Long-Term Debt | 0 | N/A | 353M | 366M | 380M | 395M | 377M | 89M | 0 | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.00 | 0.30 | 0.19 | 0.19 | 0.25 | 0.31 | 0.21 | 0.15 | 0.14 | 0.11 | 0.10 | 0.10 | 0.00 |
| Interest Coverage | 13.9 | 129.5 | -17.3 | 24.3 | 21.8 | 24.9 | 38.4 | 67.4 | 223.7 | 131.7 | 165.5 | 95.0 | 95.0 |
| Equity | 2.1B | 2.0B | 1.8B | 2.0B | 1.5B | 1.5B | 2.2B | 2.6B | 2.5B | 2.5B | 2.8B | 2.8B | 0 |
| Total Assets | 2.5B | 2.5B | 2.8B | 3.1B | 2.7B | 2.8B | 3.7B | 3.8B | 3.5B | 3.5B | 3.7B | 4.2B | 0 |
| Total Liabilities | 460M | 583M | 934M | 1.2B | 1.2B | 1.3B | 1.4B | 1.2B | 1.0B | 961M | 889M | 1.4B | 1.4B |
| Intangibles | 191M | 240M | 100M | 79M | 125M | 125M | 101M | 76M | 53M | 35M | 16M | 51M | 51M |
| Retained Earnings | 610M | 468M | 230M | 272M | -158M | -242M | 387M | 737M | 726M | 707M | 971M | 744M | 744M |
| Working Capital | 952M | 887M | 1.3B | 1.8B | 1.3B | 1.1B | 1.7B | 1.8B | 1.5B | 1.5B | 1.2B | 834M | 834M |
| Current Assets | 1.2B | 1.3B | 1.6B | 2.3B | 1.7B | 1.7B | 2.4B | 2.6B | 2.3B | 2.2B | 1.8B | 1.9B | 1.9B |
| Current Liabilities | 292M | 373M | 373M | 454M | 476M | 539M | 701M | 805M | 746M | 660M | 625M | 1.1B | 1.1B |
| Per Share Data | |||||||||||||
| EPS | 0.37 | 0.97 | -0.21 | 1.28 | 2.35 | 2.60 | 4,720.28 | 5.53 | 4.22 | 2.73 | 3.32 | 3.47 | 0.00 |
| Owner EPS | 1.36 | 1.18 | 1.47 | 2.41 | 1.72 | 2.34 | 4,197.41 | 5.05 | 2.47 | 2.53 | 3.01 | 3.02 | -1.23 |
| Book Value | 9.46 | 9.23 | 8.84 | 9.70 | 7.92 | 8.23 | 13,285.45 | 13.97 | 14.46 | 15.37 | 17.26 | 17.51 | 0.00 |
| Cash Flow/Share | 2.24 | 1.99 | 2.20 | 3.11 | 2.48 | 3.22 | 5,230.67 | 5.99 | 3.41 | 3.56 | 4.11 | 4.22 | 0.82 |
| Dividends/Share | 0.18 | 0.24 | 0.24 | 0.28 | 0.36 | 0.36 | 400.20 | 0.40 | 0.44 | 0.44 | 0.48 | 0.48 | 0.00 |
| Shares Out. | 219.7M | 212.9M | 206.8M | 201.3M | 192.2M | 179.8M | 0.2M | 183.5M | 169.6M | 164.4M | 163.4M | 159.7M | 156.5M |
| Valuation | |||||||||||||
| P/E Ratio | 50.9 | 20.7 | N/A | 31.9 | 12.8 | 25.9 | 26.9 | 29.2 | 19.7 | 40.1 | 38.5 | 57.3 | N/A |
| P/FCF | 12.8 | 12.8 | 13.6 | 15.8 | 16.0 | 27.3 | 0.0 | 30.7 | 34.0 | 42.3 | 44.1 | 70.5 | N/A |
| EV/EBIT | 36.3 | N/A | N/A | 13.0 | 10.7 | 20.9 | 21.3 | 22.9 | 15.0 | N/A | N/A | 48.2 | N/A |
| Price/Book | 2.0 | 2.2 | 2.8 | 4.2 | 3.8 | 8.2 | 9.6 | 11.6 | 5.8 | 7.1 | 7.4 | 11.4 | N/A |
| Price/Sales | 2.3 | 2.3 | 2.3 | 3.1 | 3.5 | 3.8 | 4.5 | 6.2 | 5.4 | 6.1 | 7.0 | 5.9 | N/A |
| FCF Yield | 7.8% | 7.8% | 7.3% | 6.3% | 6.2% | 3.7% | 3.2% | 3.3% | 2.9% | 2.4% | 2.3% | 1.4% | N/A |
| Market Cap | 4.1B | 4.3B | 5.0B | 8.2B | 5.8B | 12.1B | 21.1B | 29.7B | 14.1B | 18.0B | 20.9B | 31.7B | 54.8B |
| Avg. Price | 17.62 | 18.07 | 19.75 | 32.86 | 38.23 | 48.25 | 77.20 | 125.97 | 101.23 | 99.39 | 120.35 | 117.42 | 349.92 |
| Year-End Price | 18.83 | 20.04 | 24.37 | 40.82 | 30.17 | 67.38 | 115.33 | 161.73 | 83.13 | 109.47 | 127.93 | 198.82 | 349.92 |
TERADYNE, INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
TERADYNE, INC trades at 100.8x trailing earnings, compared to its 15-year median P/E of 29.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 121.6x vs a median of 29.0x. The company's 5-year average ROIC is 38.8% with a gross margin of 58.6%. Total shareholder yield (dividends + buybacks) is 1.4%. At current prices, the estimated annualized return to fair value is +4.5%.
TERADYNE, INC (TER) has a net profit margin of 17.4%. This is a healthy margin.
TERADYNE, INC (TER) generated $450 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TERADYNE, INC (TER) has a debt-to-equity ratio of 0.10. This indicates a conservatively financed balance sheet.
TERADYNE, INC (TER) reported earnings per share (EPS) of $3.47 in its most recent fiscal year.
TERADYNE, INC (TER) has a return on equity (ROE) of 19.7%. This indicates the company generates strong returns for shareholders.
TERADYNE, INC (TER) has a 5-year average gross margin of 58.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for TERADYNE, INC (TER), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TERADYNE, INC (TER) has a book value per share of $17.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects AI-related customer demand to continue representing the bulk of revenues in 2026, with compute TAM expected to grow significantly from an already strong 2025 base and robust double-digit year-over-year growth anticipated. The company is well-positioned to capture further share in AI applications through its focused investments and design wins, with healthy customer engagement and a robust pipeline of new opportunities. Beyond AI, management expects moderate recovery in auto and industrial markets and anticipates growth across all Product Test Group business lines in 2026, though visibility into the second half remains limited and revenue is expected to be lumpy. The company is targeting a new earnings model anchored to an ATE TAM of $12–$14 billion achievable within the midterm, reflecting conviction in long-term growth potential driven by AI, verticalization, and electrification themes.
Based on recent SEC filings and earnings calls, TERADYNE, INC (TER) has provided the following forward guidance: Revenue: $6 billion (Target model (midterm at ATE TAM of $12–$14 billion)); Non-GAAP EPS: $9.50–$11.00 (Target model (midterm at ATE TAM of $12–$14 billion)); Gross margin: 59%–61% (Target model (midterm at ATE TAM of $12–$14 billion)); Operating expenses: 27%–29% of revenue (Target model (midterm at ATE TAM of $12–$14 billion)); IST TAM opportunity: $300 million–$700 million per year (Midterm).