Teradyne, Inc. (TER)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Teradyne, Inc. (TER) trades at $369.09 with AI Score 87/100 (Grade A+). Teradyne, Inc. is a global leader in automatic test equipment, serving the semiconductor, industrial automation, and wireless test sectors. Market cap: $57.78B, Sector: Technology.
Price live · AI analysis from May 9, 2026TER stock analysis for 2026: Analysts have set a consensus price target of $392.44 for Teradyne, Inc., suggesting 6.3% upside from the current price of $369.09. The AI MoonshotScore is 87/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
TER: 4/8 perspectives are bullish. Dominant signal: Izzy Englander bullish.
How is this calculated? →Teradyne, Inc. (TER) Technology Profile & Competitive Position
Teradyne, Inc. is a leading provider of automated test solutions for the semiconductor, system test, industrial automation, and wireless test industries. With a diverse portfolio and a global presence, Teradyne enables manufacturers to deliver high-quality products efficiently, capitalizing on the growing demand for advanced technology solutions.
What Is the Investment Thesis for TER?
Teradyne's investment thesis rests on its diversified business segments and strategic positioning within the expanding semiconductor and automation industries. The company's strong gross margin of 58.8% and a profit margin of 22.6% indicate efficient operations and profitability. Growth catalysts include increased demand for advanced testing solutions in the automotive, 5G, and industrial automation sectors. Teradyne's Industrial Automation segment, in particular, presents substantial growth opportunities as companies invest in robotics and automation to improve productivity. However, a P/E ratio of 80.2 suggests a premium valuation, and investors should monitor potential risks such as cyclical downturns in the semiconductor industry and increasing competition. The company's beta of 1.79 indicates higher volatility compared to the market.
Based on FMP financials and quantitative analysis
TER Key Highlights
- Market Cap of $57.78B reflects Teradyne's significant presence and valuation in the automated test equipment market.
- P/E Ratio of 80.2 indicates investor expectations for future earnings growth, though it suggests a premium valuation.
- Profit Margin of 22.6% demonstrates strong profitability and efficient cost management.
- Gross Margin of 58.8% highlights Teradyne's ability to maintain a high level of profitability on its products and services.
- Dividend Yield of 0.14% provides a modest income stream for investors, with potential for growth.
Who Are TER's Competitors?
TER is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| SNDK SanDisk Corp. | $1745.00 | -14.13% | $258.42B | 94 |
| ASX ASE Technology Holding Co., Ltd. | $41.87 | -2.61% | $91.86B | 52 |
| KEYS Keysight Technologies, Inc. | $313.86 | -6.48% | $53.64B | 75 |
| MCHP Microchip Technology Incorporated | $84.64 | -4.57% | $45.88B | 52 |
| STM STMicroelectronics N.V. | $68.35 | -3.35% | $60.75B | 54 |
| ARM Arm Holdings plc American Depositary Shares | $315.28 | -6.58% | $335.46B | 72 |
| MRVL Marvell Technology, Inc. | $245.29 | -9.84% | $214.58B | 69 |
| SLAB Silicon Laboratories Inc. | $218.22 | -0.07% | $7.20B | 69 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are TER's Key Strengths?
- Diversified product portfolio across semiconductor, system, industrial automation, and wireless test segments.
- Strong market position in the automatic test equipment industry.
- Global presence with a wide customer base.
- Proven track record of innovation and technological leadership.
What Are TER's Weaknesses?
- Cyclical exposure to the semiconductor industry.
- High P/E ratio may indicate overvaluation.
- Dependence on key customers and suppliers.
- Exposure to currency fluctuations.
What Could Drive TER Stock Higher?
- Expansion of Industrial Automation Product Line: New collaborative robots and autonomous mobile robots are expected to be released in Q3 2026, targeting the logistics and manufacturing sectors.
- 5G Infrastructure Rollout: Continued deployment of 5G networks globally drives demand for Teradyne's wireless testing solutions.
- Automotive Semiconductor Growth: Increasing adoption of ADAS and electric vehicles fuels demand for automotive semiconductor testing.
- Strategic Partnerships: Collaborations with key industry players to develop integrated testing solutions.
What Are the Key Risks for TER?
- Rich valuation — a P/E of 80.2 runs well above the Technology sector’s ~38x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $3.1M recently.
- Semiconductor Industry Cyclicality: Downturns in the semiconductor industry could reduce demand for Teradyne's testing equipment.
- Intense Competition: Competition from established players and new entrants could erode Teradyne's market share.
- Technological Obsolescence: Rapid technological advancements could render Teradyne's products obsolete.
- Geopolitical Risks: Trade tensions and geopolitical instability could disrupt Teradyne's supply chain and sales.
What Are the Growth Opportunities for TER?
- Expansion in Industrial Automation: The industrial automation market is projected to reach $366.2 billion by 2030, growing at a CAGR of 9.7% from 2023. Teradyne's Industrial Automation segment, featuring collaborative robotic arms and autonomous mobile robots, is well-positioned to capture a significant share of this expanding market. By focusing on developing advanced robotic control software and expanding its product offerings, Teradyne can capitalize on the increasing demand for automation solutions in manufacturing and logistics, driving substantial revenue growth.
- 5G and Wireless Testing Solutions: The rollout of 5G technology and the increasing demand for wireless devices are creating significant opportunities for Teradyne's Wireless Test segment. The global 5G testing market is expected to reach $10.8 billion by 2027. Teradyne's IQxel and IQxstream products provide comprehensive testing solutions for wireless chipsets and devices, enabling manufacturers to ensure the performance and reliability of their products. By investing in research and development to stay ahead of evolving wireless standards, Teradyne can maintain its competitive edge and capture a larger share of the 5G testing market.
- Automotive Semiconductor Testing: The automotive industry's increasing reliance on semiconductors for advanced driver-assistance systems (ADAS), electric vehicles (EVs), and infotainment systems is driving demand for automotive semiconductor testing solutions. Teradyne's Semiconductor Test segment offers products and services specifically tailored to the automotive market, enabling manufacturers to ensure the quality and reliability of automotive semiconductors. As the automotive industry continues to embrace electrification and automation, Teradyne can capitalize on the growing demand for automotive semiconductor testing solutions, driving revenue growth and expanding its market share.
- Growth in System Test Segment: The system test segment, which includes defense/aerospace, storage, and circuit board testing, presents a stable growth opportunity. With increasing complexity in aerospace and defense systems, the demand for advanced testing instrumentation is expected to rise. Teradyne's expertise in providing high-precision testing solutions positions it favorably to capture this demand. By continuously innovating and expanding its system test offerings, Teradyne can strengthen its market position and drive consistent revenue growth.
- Strategic Acquisitions and Partnerships: Teradyne has a history of strategic acquisitions and partnerships to expand its product portfolio and market reach. By continuing to pursue strategic acquisitions in complementary areas, such as advanced robotics, wireless testing, and semiconductor testing, Teradyne can accelerate its growth and strengthen its competitive position. These acquisitions can provide access to new technologies, markets, and customers, enabling Teradyne to drive revenue growth and enhance its overall value proposition.
What Opportunities Does TER Have?
- Growth in the industrial automation market.
- Increasing demand for 5G and wireless testing solutions.
- Expansion in the automotive semiconductor testing market.
- Strategic acquisitions and partnerships to expand product portfolio and market reach.
What Threats Does TER Face?
- Intense competition from established players and new entrants.
- Technological obsolescence and the need for continuous innovation.
- Economic downturns and reduced capital spending by customers.
- Geopolitical risks and trade tensions.
What Are TER's Competitive Advantages?
- Technological Expertise: Deep knowledge and experience in automatic test equipment design and manufacturing.
- Diverse Product Portfolio: Broad range of testing solutions for various industries and applications.
- Global Presence: Worldwide sales and support network.
- Strong Customer Relationships: Long-standing relationships with leading semiconductor manufacturers and system integrators.
What Does TER Do?
Teradyne, Inc., founded in 1960 and headquartered in North Reading, Massachusetts, is a global designer, developer, manufacturer, and seller of automatic test equipment. The company operates through four primary segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test. The Semiconductor Test segment offers solutions for wafer-level and device package testing, catering to industries such as automotive, industrial, communications, and consumer electronics. This segment features the FLEX test platform, the J750 test system for volume semiconductor devices, the Magnum platform for memory devices, and the ETS platform for analog/mixed signal markets. The System Test segment provides defense/aerospace test instrumentation and systems, storage test systems, and circuit-board test and inspection systems. The Industrial Automation segment focuses on collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and light industrial customers. The Wireless Test segment, operating under the LitePoint brand, delivers test solutions for wireless devices, smartphones, tablets, and IoT devices, offering products like IQxel and IQxstream. Teradyne's comprehensive product range and global reach position it as a critical enabler for manufacturers aiming to enhance product quality and efficiency in a rapidly evolving technological landscape.
What Products and Services Does TER Offer?
- Designs and manufactures automatic test equipment (ATE).
- Provides testing solutions for semiconductors, including wafer-level and device package testing.
- Offers system test solutions for defense/aerospace, storage, and circuit boards.
- Develops collaborative robotic arms and autonomous mobile robots for industrial automation.
- Provides wireless test solutions for smartphones, tablets, and IoT devices.
- Supports customers with services, training, and application support.
How Does TER Make Money?
- Sells automatic test equipment to semiconductor manufacturers, system integrators, and wireless device makers.
- Generates revenue from equipment sales, service contracts, and software licenses.
- Offers customized testing solutions tailored to specific customer needs.
- Provides ongoing support and maintenance services to ensure equipment uptime and performance.
What Industry Does TER Operate In?
Teradyne operates in the semiconductor and automation industries, both characterized by rapid technological advancements and increasing demand. The semiconductor industry is experiencing growth driven by the proliferation of electronics in various sectors, including automotive, healthcare, and consumer goods. The automation industry is also expanding, fueled by the need for increased efficiency and reduced costs in manufacturing and logistics. Teradyne's competitive landscape includes companies like Keysight Technologies, Inc. and ASE Technology Holding Co., Ltd., each vying for market share in specialized segments. The company's diverse portfolio and global presence position it well to capitalize on these trends.
Who Are TER's Key Customers?
- Integrated device manufacturers (IDMs) that fabricate silicon wafers.
- Fabless companies that outsource wafer manufacturing.
- Foundries that manufacture silicon wafers for other companies.
- Semiconductor assembly and test providers.
- Manufacturers of wireless devices, smartphones, and tablets.
Teradyne, Inc. (TER) Valuation Context
Valued at $57.78B, TER is classified as a large-cap stock. Relative to its peer group, TER's quantitative score of 87/100 is above the peer average of 65/100.
TER Revenue & Earnings Trend
In Q1 2026, TER generated $1.28B in top-line revenue, marking a sequential increase of 18.4%. The company recorded net income of $398.9M, with diluted EPS of $2.53. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Technology company. Across the four most recent quarters, TER averaged $1.35 in diluted EPS.
Company Profile
Teradyne, Inc. operates in the Semiconductors industry within the Technology sector. It is headquartered in North Reading, US. The company is led by CEO Gregory Stephen Smith. TER has traded publicly since 1970.
ROE 30%Key Financial Metrics
Return on equity for Teradyne, Inc. stands at 29.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 19.3%, showing how much profit it generates from its asset base. TER trades at a trailing price-to-earnings ratio of 80.20, above the Technology sector average of ~38x. Its free cash flow yield is 1.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.15 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.5%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Teradyne, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 29.14 places it in the safe zone, indicating low near-term bankruptcy risk.
8/8 beatsEarnings Track Record
Teradyne, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 14.5% above estimates on average.
FY2026 estForward Outlook
Wall Street analysts project Teradyne, Inc. revenue of about $4.54B for fiscal 2026, with EPS near $7.46. The estimate reflects 13 contributing analysts.
Net sellingInsider Activity
Over the past six months, Teradyne, Inc. insiders filed 15 SEC Form 4 transactions — 7 sales and 8 purchases. On net that is roughly 4K shares disposed (about $3.1M), a signal worth weighing alongside the fundamentals.
TER Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Teradyne's been making strategic moves lately, acquiring companies to bolster their testing capabilities, signaling they're gearing up for future tech demands.
- The buzz in trading circles is that Teradyne is well-positioned to capitalize on the semiconductor industry's growth, with chatter focusing on their crucial role in testing advanced chips.
- Insiders seem to be holding steady, which could suggest confidence in the company's long-term prospects, a sentiment echoed in some corners of the social trading community.
- There's a growing perception that Teradyne's diversified product line gives them an edge, making them less vulnerable to downturns in specific sectors of the tech market.
Bear Case
- Some traders are worried about the cyclical nature of the semiconductor industry, fearing a potential slowdown that could hit Teradyne's revenue hard.
- A noticeable segment of the community is concerned about increasing competition in the testing equipment market, which could squeeze Teradyne's margins.
- Recent market developments suggest investors are becoming more risk-averse, and Teradyne, being a tech stock, might face increased selling pressure.
- Despite some insider confidence, there's been talk about potential supply chain disruptions affecting Teradyne's ability to meet demand, a concern that's gained traction recently.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · February 2026
From the Earnings Call
“In Robotics, we delivered our fourth consecutive quarter of sequential growth. This is particularly notable because Q4 is typically our strongest quarter and Q1 is typically down. We're seeing strong customer engagement across e-commerce, electronics manufacturing and semiconductor end markets.”
— Gregory Smith, CEO
“In Q1, AI-related demand accounted for nearly 70% of our revenue, up from about 60% in Q4 of 2025.”
— Gregory Smith, CEO
TER Q1 FY2026 earnings call transcript · 2026-04-29
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.28B | $399M | $2.53 |
| Q4 2025 | $1.08B | $257M | $1.63 |
| Q3 2025 | $769M | $120M | $0.75 |
| Q2 2025 | $652M | $78M | $0.49 |
Based on FMP financials and quantitative analysis
TER Latest News
-
KLA Corporation and Teradyne Stocks Trade Down, What You Need To Know
StockStory · Jul 3, 2026
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Meta Compute Could Trigger a 'Butterfly Effect' in AI Infrastructure — and Fuel a Mag 7 Bounce, Trader Says
benzinga · Jul 1, 2026
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Dow Hits Record, Meta Soars On AI-Cloud Bet: Stock Market Today
benzinga · Jul 1, 2026
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Shares of semiconductor and chip companies are trading lower after reports suggested that OpenAI may delay its IPO until next year. Investors may anticipate the industry to face a weakening demand after notes raised concerns about a slowdown in the AI company's infrastructure spending.
Benzinga · Jun 26, 2026
TER Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TER.
Price Targets
Consensus target: $392.44
TER MoonshotScore
What does this score mean?
The MoonshotScore rates TER's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
KLA Corporation and Teradyne Stocks Trade Down, What You Need To Know
Meta Compute Could Trigger a 'Butterfly Effect' in AI Infrastructure — and Fuel a Mag 7 Bounce, Trader Says
Dow Hits Record, Meta Soars On AI-Cloud Bet: Stock Market Today
Shares of semiconductor and chip companies are trading lower after reports suggested that OpenAI may delay its IPO until next year. Investors may anticipate the industry to face a weakening demand after notes raised concerns about a slowdown in the AI company's infrastructure spending.
Latest Teradyne, Inc. Analysis
Related Investment Themes
Leadership: Gregory Stephen Smith
CEO
Gregory Stephen Smith serves as the Chief Executive Officer of Teradyne, Inc. His career within Teradyne spans several decades, during which he has held various leadership positions. Smith's extensive experience in the semiconductor and test equipment industries has been instrumental in shaping Teradyne's strategic direction. He possesses a deep understanding of the technological landscape and customer needs, enabling him to drive innovation and growth. Smith's leadership is characterized by a focus on operational excellence, customer satisfaction, and employee engagement.
Track Record: Under Gregory Stephen Smith's leadership, Teradyne has achieved significant milestones, including expanding its presence in the industrial automation market and strengthening its position in the semiconductor test industry. He has overseen strategic acquisitions that have broadened Teradyne's product portfolio and enhanced its technological capabilities. Smith has also focused on improving operational efficiency and driving innovation, resulting in increased profitability and shareholder value. His tenure has been marked by a commitment to customer satisfaction and a focus on long-term growth.
What Investors Ask About Teradyne, Inc. (TER) — Technology
What does Teradyne, Inc. do?
Teradyne, Inc. is a global leader in the design, development, manufacture, and sale of automatic test equipment (ATE). The company's products are used to test semiconductors, wireless devices, and electronic systems. Teradyne operates through four segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test. Its solutions are critical for manufacturers to ensure the quality and reliability of their products, serving a diverse range of industries, including automotive, communications, consumer electronics, and industrial automation. Teradyne's comprehensive product portfolio and global presence position it as a key enabler for technological advancements.
What do analysts say about TER stock?
Analyst consensus on Teradyne (TER) stock reflects a generally positive outlook, driven by the company's strong market position and growth prospects in the semiconductor and automation industries. Key valuation metrics, such as the P/E ratio, suggest a premium valuation, indicating investor expectations for future earnings growth. Growth considerations include the increasing demand for testing solutions in the automotive, 5G, and industrial automation sectors. However, analysts also caution about potential risks, such as cyclical downturns in the semiconductor industry and increasing competition. The overall sentiment is cautiously optimistic, with a focus on long-term growth potential.
What are the main risks for TER?
The main risks for Teradyne (TER) include cyclical downturns in the semiconductor industry, which could reduce demand for its testing equipment. Intense competition from established players and new entrants poses a threat to its market share. Rapid technological advancements could render Teradyne's products obsolete, requiring continuous innovation and investment in research and development. Geopolitical risks, such as trade tensions and political instability, could disrupt its supply chain and sales. Additionally, dependence on key customers and suppliers could create vulnerabilities in its operations and financial performance. These risks require careful monitoring and proactive mitigation strategies.
What are the key factors to evaluate for TER?
Teradyne, Inc. (TER) holds an AI score of 87/100 (high). P/E: 80.2x vs the S&P 500's ~20-25x. Analysts target $392.44 (+6%). Not financial advice.
How frequently does TER data refresh on this page?
TER prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven TER's recent stock price performance?
Teradyne, Inc. (TER) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified product portfolio across semiconductor, system, industrial automation, and wireless test segments. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider TER overvalued or undervalued right now?
Teradyne, Inc. (TER) trades at 80.2x earnings. Analysts target $392.44 (+6%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying TER?
Before investing in Teradyne, Inc. (TER), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest available reporting period.