TERNASDAQ— Teradyne Inc Price & Analysis

Teradyne Inc

TECHNOLOGY — SEMICONDUCTOR EQUIPMENT & MATERIALS

$402.74

+$23.18+6.11%

Market Cap: $59.34B; Large Cap
P/E Ratio: 52.21; Fwd: 39.06
EPS (TTM): $7.27
Div. Yield: 0.14%

Technical Summary

RSI (14)57.22Neutral

SMA (50)$382.90Bullish

SMA (200)$299.02Bullish

MACD3.7861Bullish

Bollinger$308.25 – $414.15Mid

Stochastic74.93Neutral

Theo Outlook

Teradyne (TER) offers a bullish investment thesis with a $59.34B market cap, trailing P/E of 52.21, EPS of $7.27, and quarterly revenue growth of 103.9% YoY, reflecting strong positioning in semiconductor test equipment amid AI-driven demand. The company's robust profitability metrics, including a 25.8% profit margin and 36.5% ROE, support premium valuation despite elevated multiples. Forward P/E of 39.06 suggests earnings expansion could justify current pricing.

Key catalysts include continued momentum in system-on-chip and wireless test platforms, with analyst target price at $449.80 and 13 strong buy ratings signaling earnings upside. Recent quarterly earnings growth of 385.8% YoY and revenue expansion highlight Teradyne's ability to capitalize on 5G and advanced packaging trends. Market expansion into automotive and industrial test segments further bolsters growth trajectory.

Risks encompass semiconductor industry cyclicality, intense competition from Advantest, and potential macro capex slowdowns that could pressure orders. These are mitigated by Teradyne's diversified portfolio, 97.8% institutional ownership providing stability, and a low 0.14% dividend yield supporting reinvestment. Regulatory or trade tensions in tech supply chains remain watchpoints but are offset by global manufacturing footprint. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Aug 12, 2026.

Company Overview

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

Fundamental Snapshot

Revenue: $4.46B
EBITDA: $1.50B
Gross Profit: $2.64B
Operating Margin: 33.2%
Profit Margin: 25.8%
ROE: 36.5%
Book Value: $20.08
Beta: 1.79
52-Wk High: $487.91
52-Wk Low: $106.03
Avg Volume: 2.45M
PEG Ratio: 0.93

Frequently Asked Questions

What is Teradyne's business model?

Teradyne designs and manufactures automatic test equipment (ATE) primarily for the semiconductor industry, enabling high-volume testing of chips, system-on-chip devices, and wireless components. Revenue is generated through sales of test systems, services, and software, with a focus on innovation in AI and 5G applications.

What are Teradyne's main revenue sources?

The majority of Teradyne's $4.464B TTM revenue comes from semiconductor test systems, followed by wireless test and industrial automation segments. Key contributors include sales to leading chipmakers, with gross profit of $2.645B reflecting high-margin equipment and recurring service revenue.

What are Teradyne's competitive advantages?

Teradyne holds leadership in advanced SoC and memory testing with proprietary technology, supported by a 52.21 trailing P/E reflecting market premium. Strong R&D, global customer relationships, and 0.269% insider ownership align management with shareholders, differentiating it from competitors.

What are the key risks for TER stock?

Primary risks include cyclical semiconductor demand, competition, and macro headwinds, with beta of 1.793 indicating volatility. A 0.14% dividend yield and exposure to capex cycles could pressure results, though mitigated by $59.34B market cap scale and 97.8% institutional backing.

What is the growth outlook for Teradyne?

Growth outlook remains positive with 103.9% quarterly revenue growth, 385.8% EPS growth YoY, and analyst target of $449.80. Expansion in AI testing and forward P/E of 39.06 point to continued momentum, though dependent on semiconductor capex recovery.