DailyIQ
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Sector:TechnologyAll sectors
Last updated 4 minutes ago

TER·Teradyne, Inc.

$.
-. (-.%)
After Hours
High
$365.00
Open
$353.46
Market Cap
56.49B
52W High
$487.91
Low
$344.97
P. Close
$359.92
P/E
66.14
52W Low
$88.60
Fwd P/E
36.56
DailyIQ Est.
$443.81
Technical Score (1D)
59
BUY
News Sentiment
74
BULLISH
China may relax restrictions on Nvidia AI chip imports, which could lift demand for high‑performance AI processors and, in turn, increase orders for Teradyne’s semiconductor test equipment. The potential boost in AI chip production is expected to support Teradyne’s record revenue growth driven by data‑center demand, positioning the company to capture a larger share of the expanding AI workload market. Investors should monitor China’s final approval timeline and any subsequent changes in import caps, as these will determine the pace at which demand for Teradyne’s test solutions could materialize. Teradyne’s latest earnings report highlighted a surge in AI‑driven data‑center demand and the launch of new test solutions, underscoring the company’s focus on high‑performance testing for AI workloads. The company’s competitive landscape is intensifying as rivals expand their own AI testing capabilities, which could impact Teradyne’s market share and pricing power over the next 1–10 trading days. Analysts have cautioned that while one‑year revenue grew 30.3%, five‑year growth has stalled at 3.4% and free‑cash‑flow margin has fallen 10.7 percentage points, raising concerns about long‑term profitability. The reclassification of Teradyne into growth indices signals a shift in investor perception toward its AI‑linked semiconductor testing and industrial automation business, potentially influencing valuation multiples. Traders should watch for guidance on future revenue and margin targets in the upcoming earnings release, as well as any updates on new product rollouts that could validate the optimistic outlook. Additionally, monitoring the company’s backlog extension beyond one year and wafer‑fab equipment spending projections will provide insight into the sustainability of the current growth trajectory.
Earnings Summary
Teradyne, Inc. is a global provider of automated test equipment and robotics solutions, primarily serving the semiconductor equipment and materials sector with its Semiconductor Test segment that develops testing systems for a wide array of semiconductor devices across automotive, communications, and consumer electronics. The company also offers collaborative robots and autonomous mobile robots for manufacturing and logistics, positioning it at the intersection of automation and electronics manufacturing. In the most recent quarter, Teradyne reported Q1 2026 revenue of $1.282 billion, up 87 % YoY from $685.7 million in Q1 2025, and EPS of $2.56, a 242 % increase over the $0.75 reported in the prior year; the company beat consensus estimates in all six quarters for which data are available, with Q4 2025 revenue of $1.083 billion versus an estimate of $980.8 million and Q1 2026 revenue of $1.282 billion versus $1.215 billion. The trend of accelerating revenue and earnings growth has continued, with Q3 2025 revenue rising 18 % from Q2 2025 and EPS climbing 49 % from $0.57 to $0.85, underscoring a consistent pattern of outperforming analyst expectations across both top‑line and bottom‑line metrics. Historically, Teradyne has maintained a strong YoY growth trajectory, with Q4 2025 EPS nearly doubling the prior year’s $0.95 and Q1 2026 EPS more than tripling the $0.75 of Q1 2025, while consistently beating estimates in every reporting period; this consistency reflects robust demand for its testing solutions amid a ramp‑up in chip production. Recent news highlights a 241 % jump in quarterly profit driven by revenue growth and margin expansion, the launch of an integrated AI and data‑center test solution in partnership with Tokyo Electron that could capture a growing high‑performance computing segment, and a top‑growth rating from ChartMill citing accelerating sales momentum and zero debt; these developments reinforce the narrative that Teradyne’s product pipeline and financial health are supporting its earnings momentum. Investors should watch for the next earnings guidance release to gauge whether revenue forecasts and margin outlook remain aligned with the current growth trajectory, monitor early customer adoption rates of the new AI test solution, and keep an eye on macro‑driven semiconductor demand indicators that could influence the company’s performance in the coming quarter.

EPS

EstBeatMiss
$0.24$0.90$1.55$2.21$2.86Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.05 - -
Q1'26$2.11$2.56+21.1%
Q4'25$1.37$1.80+31.5%
Q3'25$0.79$0.85+7.4%
Q2'25$0.54$0.57+4.9%
Q1'25$0.62$0.75+21.7%

Revenue

EstBeatMiss
$557M$762M$967M$1.2B$1.4BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.2B - -
Q1'26$1.2B$1.3B+5.6%
Q4'25$981M$1.1B+10.5%
Q3'25 - $769M -
Q2'25 - $652M -
Q1'25 - $686M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

TER Stock Snapshot

TER is currently trading at $359.04, giving Teradyne, Inc. a market cap of 56.49B and a P/E ratio of 66.1. Today's range spans $344.97–$365.00, with shares opening at $353.46 and moving down $0.88 (0.2%) from the prior close. DailyIQ's technical score sits at 59/100 (HOLD) with a news sentiment reading of 74/100.

Over the past year TER has traded between $88.60 and $487.91 - the current price is +305.2% off the 52-week low and -26.4% from the high. 24 analysts cover the stock with a Buy consensus and a mean 12-month target of $423.41 (range $270.00–$550.00), implying upside of +17.9%.

The setup for Teradyne, Inc. (TER) is neither bullish nor bearish - it's patient. Score: 59/100 (HOLD). Sentiment: bullish (74/100). Price: $359.04 (in the middle of its 52-week range in $88.60–$487.91). The current P/E ratio stands at 66.1. A large-cap with 56.49B in Technology market cap in a neutral technical phase is exactly where position-sizing decisions get made before the next trend emerges.

In neutral phases, large-cap Technology names like TER are often where sector rotation debates play out quietly — at 56.49B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 59/100 (HOLD) and bullish sentiment (74/100) at $359.04 (in the middle of its 52-week range) describe a stock that is being considered rather than avoided.