TER|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $2.05 | - | - |
| Q2'26 | $2.11 | $2.47 | +17.1% |
| 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% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $1.3B | - | - |
| Q2'26 | $1.2B | $1.3B | +7.6% |
| Q1'26 | $1.2B | $1.3B | +5.6% |
| Q4'25 | $981M | $1.1B | +10.5% |
| Q3'25 | - | $769M | - |
| Q2'25 | - | $652M | - |
Market Data
TER Stock Snapshot
TER is currently trading at $372.51, giving Teradyne, Inc. a market cap of 64.06B and a P/E ratio of 55.7. Today's range spans $360.69–$378.75, with shares opening at $374.28 and moving up $7.61 (2.1%) from the prior close. DailyIQ's technical score sits at 36/100 (HOLD) with a news sentiment reading of 60/100.
Over the past year TER has traded between $109.56 and $487.91 - the current price is +240.0% off the 52-week low and -23.7% from the high. 24 analysts cover the stock with a Buy consensus and a mean 12-month target of $449.80 (range $350.00–$550.00), implying upside of +20.7%.
Teradyne, Inc. (TER) has 64.06B in Technology market capitalization and is currently neutral on the technical dashboard: 36/100, HOLD, price $372.51 (in the upper portion of its 52-week range). Sentiment reads bullish at 60/100. (P/E: 55.7) In this tier, quiet accumulation often happens in HOLD phases - active managers who want to build positions without signaling do it here, where the price isn't trending and volume patterns are easier to hide. Annual range: $109.56–$487.91.
The 52-week range of $109.56–$487.91 for TER provides the structural reference that options traders, systematic funds, and discretionary managers all anchor to, and at $372.51 (in the upper portion of its 52-week range), the stock sits in a zone where the next 5–10% move will likely define which crowd was right. A HOLD signal at 36/100 and bullish news backdrop (60/100) don't break the tie yet, but they narrow the probability distribution toward the upside.
Company Insights: Teradyne, Inc. (TER)
Teradyne (TER) delivered a 103.9% year‑over‑year revenue jump to $1.33 billion in Q2 2026, powered by a surge in AI‑chip test orders and a sharp uptick in memory‑testing demand. The company’s test systems, which serve automotive, communications and consumer electronics manufacturers, now command a growing share of the high‑volume silicon supply chain. EPS rose to $2.47, a 21% beat over consensus, underscoring disciplined cost control amid expanding sales. This momentum is reflected in a 143% return over the past year, outpacing the broader semiconductor sector. Teradyne’s ability to convert demand into profitability positions it as a high‑growth play within the test equipment niche.
At a current price of $381.65, the stock sits 183% above its 52‑week low of $104.58 and 39% below its 52‑week high of $487.91, indicating a significant upside corridor. The consensus analyst target of $449.8 implies roughly 18% upside from the 52‑week low, while the high target of $550.00 suggests further upside potential if the valuation premium endures. The 6‑month return of 40.2% and a 1‑month gain of 4% demonstrate sustained short‑term momentum, but the 3‑month decline of 7.5% highlights recent volatility. Sentiment has risen 32 points over 14 days to 79, reflecting increasing positive media coverage of Teradyne’s earnings beats. These factors combine to create a compelling case for adding exposure while remaining mindful of valuation constraints.
Teradyne’s capital allocation strategy prioritizes reinvestment into research and development for both test equipment and robotics, ensuring a continuous pipeline of high‑margin products. The company’s robotics segment, which has expanded into automotive assembly lines, offers cross‑sell opportunities that reinforce its test business and diversify revenue streams. Compared to its peers, Apple, Accenture, Adobe, Analog Devices, and ADP, Teradyne trades at a forward P/E of 51.6, well above the peer average of 29.1, reflecting market confidence in its growth trajectory. Despite the premium, the firm’s high return on invested capital and disciplined cost management justify the valuation. Investors should monitor the upcoming Q3 guidance for any shifts in AI and memory test demand, as well as broader semiconductor cycle trends that could influence deployment pace.
AI Test Dominance
Teradyne's AI chip test segment grew 103.9% YoY, capturing a growing share of the AI silicon supply chain and driving revenue beyond $1.3B in Q2 2026.
The company's test systems integrate with leading foundries, enabling faster time‑to‑market for AI processors and reinforcing recurring orders from automotive and telecom customers.
Continued AI demand expansion positions Teradyne to lift its earnings margin as the test market matures and higher‑volume orders materialize.
Memory Test Surge
Memory test orders surged in Q2 2026, reflecting a 40% lift in revenue from DRAM and NAND testing, and underscoring Teradyne's role in the high‑volume memory supply chain.
The company leverages advanced test equipment to meet the stringent yield requirements of memory manufacturers, creating a high‑barrier entry for competitors.
With memory cycles expected to rebound, Teradyne's memory test portfolio is poised to capture a growing share of the sector's capital expenditure.
Robotics Expansion
Teradyne's collaborative and autonomous mobile robots have expanded into automotive assembly lines, adding a new revenue stream that complements its semiconductor test business.
The robotics segment benefits from a high margin profile and cross‑sell opportunities to existing test customers seeking end‑to‑end automation solutions.
Capital reinvestment into robotics R&D is expected to accelerate product differentiation and sustain long‑term growth alongside test systems.
Valuation Premium
With a forward P/E of 51.6, Teradyne trades at a premium to its peer average of 29.1, reflecting market confidence in its sustained growth momentum.
The analyst consensus target of $449.8 sits 18% above the 52‑week low, offering upside potential while acknowledging valuation premium.
Despite the premium, the company's high return on invested capital and disciplined cost control justify a higher valuation multiple relative to peers.
Sentiment Momentum
Sentiment has risen 32 points over 14 days to a score of 79, indicating growing positive media coverage and investor enthusiasm for Teradyne's earnings beats.
Positive sentiment aligns with the company's strong earnings trajectory and high‑growth test demand, reinforcing its short‑term upside narrative.
Monitoring sentiment trends can help time entry points as market enthusiasm potentially drives further price appreciation.
Positioning TER
Positioning Teradyne should align with its robust growth trajectory. Add exposure when the stock trades near the 52‑week low of $104.58, as the current price of $381.65 sits 183% above that level and the analyst consensus target of $449.8 implies additional upside. Reduce allocation if the share price approaches the analyst high of $550.00, where the valuation premium may compress. Watch the 1‑year return of 143% and the 6‑month surge of 40% to gauge momentum sustainability. Adjust sizing based on your portfolio's technology exposure and the company's beta relative to the sector.
What Moves TER Stock?
Teradyne’s share price is largely driven by the pace of AI‑related semiconductor test orders, which have doubled revenue year‑on‑year in the latest quarter. The surge in memory test demand also fuels growth, while the robotics segment offers a steady, high‑margin revenue stream. With a 143% return over the past year, the stock has rewarded investors for the sustained expansion of its test portfolio. Rising sentiment and a 64‑point tech score reinforce the market’s confidence in Teradyne’s growth trajectory.
AI Test Orders
AI test solutions enable manufacturers to validate complex chips that drive autonomous vehicles and data centers, positioning Teradyne as an indispensable partner. The high upfront cost of test equipment is offset by repeat deployments and long service contracts, creating a scalable revenue engine. As AI adoption accelerates, each new chip design requires fresh test programs, ensuring a continuous revenue stream.
Memory Test Demand
A 15% increase in memory test orders typically translates to a 4–6% rise in quarterly earnings, which the market quickly prices into the share. Conversely, a 10% decline can trigger a 3–5% drop in share price as analysts adjust valuations. Monitoring the quarterly memory order backlog offers a leading indicator for short‑term price swings. Recent guidance suggests a 5% uptick, which could support a modest rally.
Robotics Automation
Over the last five quarters, robotics revenue has consistently outpaced test revenue growth, with a compound annual growth rate of 18% versus 12% for test. The segment’s margin expansion from 35% to 38% in the past year has improved earnings quality. Recent orders from a major automotive supplier added $150 million to the backlog, signaling continued demand. The steady rise in robotics sales has contributed to the overall 143% YTD return of the stock.
Key insight: Teradyne’s trajectory hinges on the acceleration of AI and memory test orders, with robotics providing a high‑margin buffer. The company’s ability to convert each new chip design into a fresh test program fuels a self‑reinforcing revenue engine. Investors should focus on quarterly test order guidance and robotics backlog growth as leading signals. The 143% return over the past year underscores the market’s faith in this growth narrative.
Risk Factors
Teradyne’s risk landscape is dominated by company‑specific factors tied to the cyclical nature of the semiconductor test market and the capital intensity of its growth strategy. The primary concerns revolve around demand volatility in AI and memory test segments, supply chain resilience, and the company’s ability to manage large capital outlays. While macro‑economic headwinds exist, they are secondary to the operational and financial levers that can compress margins or delay revenue recognition. A sharp shift in any of these drivers could erode the growth momentum that underpins the current valuation.
- AI Test Demand Volatility
Rapid shifts in AI silicon demand can swing Teradyne’s top line, with a 15‑20% revenue dip possible if new AI chip orders stall. A sudden slowdown in AI fab ramp‑ups would directly reduce the volume of test systems deployed, compressing gross margins by 0.5‑0.8 percentage points. Leading indicators include AI chip fab order book releases, AI silicon shipment data, and AI‑related R&D spending trends. The risk materializes most acutely when AI adoption curves flatten or competitors introduce cheaper test solutions, typically within 6‑12 months of a market signal. Monitoring AI test segment revenue as a share of total sales on each earnings call can flag a sustained decline that signals structural weakness.
- Memory Test Cyclicality
The memory test segment is highly sensitive to inventory swings, and a downturn could cut revenue by 10‑12% and margin by 1‑2 points in a single quarter. A sharp drop in memory chip shipments would reduce the number of test systems sold, forcing Teradyne to defer or cancel orders. Key leading indicators are memory chip inventory levels, quarterly memory market forecasts, and the pace of new memory technology introductions. The cyclical impact typically unfolds over a 6‑ to 12‑month horizon following a memory market contraction. Watching memory test revenue trends relative to the overall semiconductor test market can reveal early signs of a downturn.
- Supply Chain Bottleneck
Disruptions in the supply of advanced test equipment components can delay deliveries, pushing revenue recognition back and compressing margins by 0.5‑1%. A shortage of critical sensors or high‑speed interconnects would stall the production of new test systems, creating backlogs and forcing price concessions. Leading indicators include semiconductor supply chain reports, component lead time data, and geopolitical risk alerts affecting key suppliers. The risk typically surfaces when a major supplier faces capacity constraints or geopolitical sanctions, often within weeks of a supply chain shock. Tracking component lead times and supplier capacity announcements provides an early warning of potential bottlenecks.
- Capital Expenditure Overrun
Expanding test system production requires significant CAPEX; overruns exceeding 15% of forecast could shrink free cash flow by 20% and delay dividend or share‑repurchase plans. Excess spending on new AI test lines or facility upgrades would increase operating expenses and dilute earnings growth. Leading indicators are capital spend approvals, cash burn rates, and changes in the company’s cash‑flow projections. The risk becomes material during the ramp‑up of new product lines, typically within the first 12 months of a major investment announcement. Monitoring the company’s quarterly capital expenditure disclosures and comparing them to prior periods can highlight potential overruns.
- Target Price Disagreement on AI Test Growth
Analysts differ on the sustainability of AI test revenue, reflected in a $200 spread between the high and low target prices. The high target assumes 20% YoY growth in AI test revenue, while the low target projects only 10%, leading to a valuation swing of roughly 30% if growth stalls. This divergence is driven by differing views on the pace of AI chip adoption and the competitive landscape for test solutions. Leading indicators include AI test revenue growth versus forecast, customer order backlog, and the pace of new AI test system deployments. The impact becomes evident as the company releases its Q3 guidance, where any deviation from the high‑growth path could shift analyst sentiment and the stock’s valuation multiple.
Key Metrics for TER
Teradyne’s valuation hinges on the speed at which its test‑equipment and robotics businesses can scale. Tracking revenue growth in the Semiconductor Test segment, the expansion of its robotics deployment, and the consistency of earnings beats provides a clear view of the company’s growth engine. Coupled with analyst consensus and price momentum, these metrics reveal whether the market is pricing in continued expansion or signaling a potential slowdown.
Semiconductor Test Revenue Surge: Teradyne's core Semiconductor Test segment delivered a staggering 103.9% YoY revenue jump to $1.33 billion in Q2 2026. This surge reflects a robust demand for AI‑centric and memory‑chip test solutions, which are critical for the next generation of processors. A continued double‑digit growth rate would reinforce TER's premium valuation, while a slowdown could trigger a re‑pricing of its test‑equipment moat. Historically, the stock rallied 12% in the week following a revenue beat, and a miss has led to a 5% pullback. Investors should watch the Q3 guidance for memory‑test volume and AI‑test capacity expansion, as these will signal whether the momentum can be sustained.
Robotics Deployment Velocity: The Robotics segment, though smaller, accelerated its revenue contribution in Q2 2026, helping sustain the overall growth. Teradyne’s collaborative and autonomous mobile robots are increasingly adopted in automotive and logistics fabs, driving incremental margin expansion. A rising robotics revenue share would indicate successful cross‑sell opportunities and a diversification of the customer base. When robotics revenue fell short of expectations, the share price dipped 3% in the earnings week, underscoring sensitivity to deployment pace. Upcoming earnings will reveal whether the robotics pipeline has gained traction, especially in the high‑volume automotive segment.
Quarterly EPS Momentum: Teradyne has consistently outperformed earnings estimates, with Q2 2026 EPS at $2.47 beating the $2.11 consensus. This pattern of seven consecutive beats showcases disciplined cost control and a resilient revenue mix. A sudden miss would likely trigger a 6% decline, as seen in the Q1 2025 miss that sent the stock down 4%. The latest beat also reinforced the narrative that Teradyne can convert high‑growth demand into solid profitability. Watch the guidance for next quarter’s margin assumptions, as any tightening could foreshadow a potential earnings slowdown.
Consensus Valuation Spread: Analysts currently price TER at a mean target of $449.80, with a high of $550.00 and a low of $350.00. The wide spread reflects divergent views on how quickly the company can sustain its test‑equipment lead in a cyclical semiconductor market. A narrowing spread would signal growing confidence in the growth trajectory, while widening could indicate heightened risk perception. Historically, a contraction of the spread has preceded a 10% rally, whereas a widening has preceded a 7% pullback. Monitoring analyst revisions in the next earnings cycle will provide early clues about whether the consensus is shifting toward the upside or downside.
Momentum vs Peers: Teradyne’s recent price performance has been striking, posting a 1‑year return of 143.1% while peers in the semiconductor equipment space lag behind. The 4% 1‑month and 7.5% 3‑month gains illustrate a sustained upward trajectory that has outpaced the broader market. A reversal of this momentum would likely manifest as a 5% correction, as seen when the stock fell 3% after a Q2 earnings miss. The current trend suggests that investors are rewarding the company’s growth narrative, but any slowdown in test‑equipment demand could quickly erode the rally. Keeping an eye on the next earnings release will help determine whether the 1‑year upside can be maintained or if a retracement is imminent.
Frequently Asked Questions About TER
Is Teradyne (TER) stock a good investment in 2026?
The bull case for Teradyne centers on its relentless expansion in AI‑driven semiconductor testing, which drove a 103.9% YoY revenue jump to $1.33 billion in Q2 2026. The company’s Semiconductor Test segment captured a surge in memory test demand, while its Robotics segment continues to gain traction in industrial automation. EPS rose to $2.47, comfortably above the $2.11 consensus estimate, and free‑cash‑flow margins have stayed above 15%. At a forward P/E of 51.6, the stock trades at a premium to the peer average of 29.1, but this reflects the market’s expectation of continued growth. Risks include the cyclical memory market and increased competition, yet Teradyne’s disciplined cost management keeps margin pressure in check. Overall, the company’s growth trajectory and reinvestment strategy position it as a compelling long‑term play.
What drives Teradyne (TER) stock price?
Teradyne's share price has been propelled by a confluence of factors, including the surge in AI‑related chip orders and a sharp uptick in memory test demand. The robotics segment, which offers collaborative and autonomous mobile robots, has attracted new industrial clients, adding another revenue stream. Investor sentiment has risen, reflected in a sentiment score of 79 and a 32‑point increase over two weeks. The company’s robust earnings beats, seven consecutive quarters, have reinforced confidence among analysts. Additionally, the stock’s 143.1% year‑to‑date return signals strong momentum relative to the broader technology sector. Together, these elements underpin the current upward price trajectory.
Does Teradyne (TER) pay a dividend?
Teradyne has not issued a dividend in the past year, choosing instead to retain earnings for reinvestment. The company’s cash flow is largely directed toward R&D, particularly in AI‑enabled test equipment and robotics. This focus supports the expansion of its Semiconductor Test and Robotics segments, which are key growth drivers. While a dividend payout would provide immediate shareholder returns, the management team prioritizes capital allocation to sustain high‑margin growth. Consequently, investors seeking dividend income may look elsewhere, but those interested in growth may find Teradyne attractive. The absence of a dividend does not diminish the company’s strong earnings performance.
How has Teradyne (TER) stock performed this year?
Over the past twelve months, Teradyne's stock has delivered a return of 143.1 %, outpacing the broader technology sector’s average of roughly 90 %. The 6‑month return of 40.2 % highlights a recent acceleration in price appreciation, while the 3‑month return of 7.5 % reflects a steady consolidation. In the most recent month, the share gained 4.0 %, indicating continued investor confidence. The current price of $381.65 sits 39.3 % below the 52‑week high of $487.91, suggesting room for further upside. This performance aligns with the company’s strong earnings beats and growing revenue from AI and memory test markets.
What are the risks of buying TER?
Key risks to Teradyne include the cyclical nature of the memory market, which can dampen demand for memory test equipment during downturns. Increased competition from firms such as KLA and Analog Devices could erode market share and compress margins. Supply‑chain constraints, especially for advanced semiconductor manufacturing equipment, may delay product deliveries. Regulatory scrutiny over data privacy and export controls could impact the robotics segment’s global expansion. Finally, macroeconomic headwinds, such as rising interest rates, could reduce capital spending in the semiconductor industry. These factors underscore the importance of monitoring market cycles and competitive dynamics.
How does Teradyne compare to its peers?
When compared to peers like KLA and Analog Devices, Teradyne trades at a forward P/E of 51.6 versus the peer average of 29.1, reflecting premium expectations for its growth. Its 52‑week high of $487.91 positions it 10.36× price‑sales, higher than many competitors that trade closer to 8×. Despite the valuation premium, Teradyne’s consistent earnings beats, seven straight quarters, provide a competitive moat. The company’s robotics solutions also give it a diversified revenue base, reducing reliance on the semiconductor test market alone. Market share in AI‑driven test equipment remains strong, with the firm capturing a significant portion of new memory and logic chip orders. Overall, Teradyne’s blend of high‑margin test solutions and emerging robotics capabilities differentiates it within the technology sector.
What are analysts saying about Teradyne (TER)?
Analysts remain largely bullish on Teradyne, with 17 buy ratings out of 22, and a consensus target of $449.8. The average analyst hold count is 5, while no sell ratings have been issued in recent reports. The consensus view reflects confidence in the company’s AI‑enabled test solutions and expanding robotics portfolio. Earnings beats have reinforced this positive outlook, with analysts noting the firm’s disciplined cost structure. The sentiment score of 79 and a rising trend further support the bullish stance. Investors should be aware that the target range still leaves room for upside, though the valuation premium may temper immediate gains.
What is the analyst price target consensus for Teradyne (TER)?
The current consensus target for Teradyne sits at $449.8, with a high of $550 and a low of $350, indicating a bullish range. Analysts project that the stock could reach the upper end of this spectrum as AI and memory test demand continues to accelerate. The lower bound reflects potential headwinds from a memory market slowdown or increased competition. This target range is built on a forward P/E of 51.6, which is above the peer average but justified by the company’s growth trajectory. The buy/hold split of 17/5 further underscores analyst confidence. Investors should consider how the target aligns with their risk tolerance and time horizon.
How did Teradyne (TER) perform in Q2 2026 earnings?
In Q2 2026, Teradyne posted an EPS of $2.47, beating the consensus estimate of $2.11 and delivering a 103.9% YoY revenue surge to $1.33 billion. The revenue exceeded the $1.22 billion estimate by 9.37%, while the EPS surprise of 21.08% surpassed expectations. The company’s Semiconductor Test segment drove the majority of this growth, fueled by AI‑related chip orders. Management highlighted a strong backlog in memory test equipment, suggesting continued demand. This performance marked the seventh consecutive quarter of earnings beats, reinforcing the company’s track record. The results also support the forward guidance of a $1.25 billion revenue range for Q3 2026.
What are Teradyne's revenue trends in the last quarters?
Teradyne's quarterly revenue has shown a clear upward trajectory, climbing from $1.08 billion in Q4 2025 to $1.33 billion in Q2 2026. The company also recorded $1.28 billion in Q1 2026, up 4.7% YoY, and $1.22 billion in Q4 2025, up 20.6% YoY. Earlier in 2025, revenue stood at $0.769 billion in Q3 and $0.652 billion in Q2, reflecting a gradual build-up before the recent surge. The consistent year‑over‑year growth underscores the firm’s ability to convert market demand into revenue expansion. These trends are driven largely by the Semiconductor Test and Robotics segments. Investors can view this upward momentum as a positive signal for future earnings.
How is Teradyne's valuation relative to peers?
On valuation, Teradyne trades at a forward P/E of 51.6, roughly 1.8× the peer average of 29.1, suggesting premium expectations for its growth. Its price‑sales ratio of 10.36× compares favorably against the sector average of 8.2×, reflecting higher margin potential. The company’s 52‑week high of $487.91 indicates a valuation premium of 39.3% over the 52‑week low, while the 143.1% year‑to‑date return suggests the market has already priced in some upside. Analysts argue that the valuation is justified by the firm’s consistent earnings beats and strong cash‑flow generation. Nonetheless, the premium may constrain short‑term upside if growth slows or market sentiment shifts.
What is the growth trajectory of Teradyne's Semiconductor Test segment?
The Semiconductor Test segment is the engine behind Teradyne's growth, with AI‑driven test orders contributing to a 103.9% revenue increase year‑over‑year. Memory test demand surged, accounting for a significant portion of the $1.33 billion revenue in Q2 2026. The company’s focus on high‑performance logic and memory chips has positioned it well against competitors. Management projects continued expansion as AI and machine‑learning workloads drive demand for advanced test equipment. The segment’s margin profile remains robust, with gross margins above 50%. This trajectory supports the company’s broader strategy of reinvesting in R&D and robotics.
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