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Teradyne, Inc.
S&P 500
🏹 Trader: | BRS 71 Forming View all →
$58.9B
Market Cap
55.8
P/E
1.58
PEG
23.7%
ROCE
19.7%
ROE
0.10
D/E
21.4%
OPM
-31.9%
% from 52W High
94
α RS
🔍 TER is showing a high-conviction setup because it matches 16 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 94 (top decile vs market). Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 16/39 · Technology in Leading quadrant · RS Rating 94
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Currency-adjusted total returns for TER including FX impact
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📈 Price History
Ratio Health
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By Category
📊 Sector Averages
About

Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. The company has a strategic collaboration with Tokyo Electron Limited for the development of a test cell solution for device screening in AI and data center applications. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding TER
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 2.28M $677.3M 0.87% Mar 2026
Cathie Wood ARK Investment Management 1.25M $369.1M 2.87% Mar 2026
Jim Simons Renaissance Technologies LLC 164.9K $48.9M 0.08% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.33B
+104% YoY
Operating Income (non-GAAP)
$448M
Not disclosed
Operating Margin
33.7%
Not disclosed
Net Income (GAAP)
$374.5M
Not disclosed
What Went Right
  • Second consecutive record quarter with revenue of $1.33B, up 104% YoY.
  • Memory revenue hit a record $212M, third straight quarter above $200M, with book-to-bill above 2.
  • Compute revenue within SoC grew nearly 600% YoY and correlation with a second hyperscaler was completed.
What to Watch
  • Q3 guidance of $1.2B-$1.3B implies a sequential decline from Q2's $1.33B due to compute order timing.
  • Gross margin guided down to 58%-59% in Q3 from 59.8% on product mix and new product launches.
  • Compute revenue is expected to be soft in H2 after a strong H1; mobile remains muted.
Management Guidance
  • Q3 revenue expected in range of $1.2B-$1.3B.
  • Q3 non-GAAP EPS expected in range of $1.85-$2.15.
  • Q3 gross margin guided to 58%-59%, OPEX at 29%-30% of sales, non-GAAP operating margin 28%-30%.
  • FY26 revenue now expected to be 50%-52% weighted to H1; H2 growth expected in memory, auto/industrial, IST, Product Test and Robotics, offset by softness in mobile and compute timing.
  • 2027 growth expected driven by ATE TAM expansion and market share gains.
Investor Lens
The long-term thesis is stronger after this call. AI demand is driving record revenue across all segments, management sees an ATE TAM path to $20B+ by decade-end, and compute share gains are progressing through dual-vendor qualifications. The Q3 guide dip reflects order timing, not demand destruction, and 2027 growth is explicitly guided. Watch whether compute share gains and memory margins develop as expected.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record quarter: revenue $1.33B, up 104% YoY
Revenue
Q2 revenue was $1.329B, up 104% YoY and 4% sequentially. SemiTest contributed $1.122B, Product Test $107M (+26% YoY), and Robotics $100M (+33% YoY).
Profitability
GAAP net income was $374.5M, or $2.38 per share. Non-GAAP EPS was $2.47, up over 300% YoY.
Margins
Non-GAAP operating income was $448M, a 33.7% operating margin. Gross margin was 59.8%, up 250bps YoY but down 110bps QoQ due to product mix and one-time Q1 benefits.
Balance Sheet
Cash and investments ended at $517M, up over 30% QoQ. Q2 free cash flow was $378M; H1 free cash flow was $579M, up 150% YoY. The company paid $20M in dividends and repurchased $69M of shares.
Key Risks
Q3 guidance is below Q2 actuals due to compute order timing and mobile softness. Gross margin is guided lower on mix and new product launches. Management noted memory margins will remain a strain into 2027.
Outlook
Q3 revenue is guided to $1.2B-$1.3B with non-GAAP EPS of $1.85-$2.15. Management expects 2027 to be another healthy growth year driven by ATE TAM expansion and share gains.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Record Q2 2026 results featured over 100% revenue growth and 300% EPS growth year-over-year, fueled by AI demand across all segments. Management projects continued multi-year expansion, with strong outlooks for memory, robotics, and product test, and expects further growth in 2027.
Q1 2026 Q1 2026 2026-04-29
Record Q1 2026 results with 87% revenue growth and 241% EPS growth year-over-year, driven by strong AI demand and new product launches. Guidance for Q2 remains robust, with continued focus on AI, memory, and data center markets, despite some visibility and customer concentration risks.
Q4 2025 Q4 2025 2026-02-03
Q4 2025 saw 41% sequential revenue growth and over 100% non-GAAP earnings growth, with AI driving over 60% of revenue. Full-year revenue rose 13% to $3.2B, and 2026 guidance points to continued AI-led growth, a first-half sales weighting, and a $6B midterm target at 59–61% gross margin.
Q3 2025 Q3 2025 2025-10-29
Q3 saw 18% sequential revenue growth and 49% higher non-GAAP EPS, fueled by strong AI-driven demand in semiconductor test, especially compute and memory. Q4 guidance projects continued robust AI demand, with sales up to $1 billion and a focus on capitalizing on AI and data center trends.
Q2 2025 Q2 2025 2025-07-30
Q2 2025 results exceeded guidance, led by strong AI compute demand in SoC and memory, while auto and industrial markets remained weak. Robotics grew sequentially after reorganization, and the Quantify Photonics acquisition bolstered AI test capabilities. AI compute is expected to drive most revenue in H2 2025.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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