Teradyne (NASDAQ:TER – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $2.29 EPS for the quarter, beating analysts’ consensus estimates of $2.09 by $0.20, Zacks reports. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter last year, the firm earned $0.85 EPS. The firm’s revenue for the quarter was up 69.8% compared to the same quarter last year.
Teradyne Stock Down 3.4%
Shares of Teradyne stock traded down $10.58 during trading on Thursday, reaching $302.66. The company’s stock had a trading volume of 1,434,200 shares, compared to its average volume of 3,529,236. The company has a 50-day simple moving average of $368.05 and a two-hundred day simple moving average of $347.75. Teradyne has a 1-year low of $151.52 and a 1-year high of $487.91. The company has a market cap of $47.32 billion, a price-to-earnings ratio of 41.66, a P/E/G ratio of 0.62 and a beta of 1.75.
Teradyne Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. Teradyne’s dividend payout ratio is presently 7.13%.
More Teradyne News
Here are the key news stories impacting Teradyne this week:
- Positive Sentiment: Teradyne reported third-quarter revenue of $1.306 billion, up 69.8% year over year, while adjusted earnings reached $2.29 per share versus the $2.09 consensus estimate. Net income rose to $342.4 million from $119.6 million, helped by strong semiconductor-test demand and AI-related business. Teradyne Q3 Earnings Beat Estimates, Revenues Increase Year over Year
- Positive Sentiment: Management forecast fourth-quarter revenue of $1.25 billion to $1.35 billion, or approximately $1.30 billion at the midpoint, modestly above analyst expectations. AI-driven revenue accounted for more than 60% of sales, reinforcing the company’s exposure to ongoing data-center and advanced-chip investment. Teradyne Q4 Guidance and Compute Ramp
- Positive Sentiment: Northland Securities raised its FY2026 earnings estimate to $9.34 per share from $9.25, above the $9.11 consensus forecast, indicating continued confidence in Teradyne’s earnings momentum.
- Neutral Sentiment: The company said the next major compute-related ramp may not occur until mid-2027. That outlook supports long-term growth but suggests investors may need to wait for the next significant acceleration in demand. Teradyne Q3 2026 Earnings Call Highlights
- Negative Sentiment: Teradyne’s strong results may already be reflected in its valuation following a roughly 268.6% three-year gain. Investors are questioning whether projected cash flows can justify the stock’s price, increasing the risk of profit-taking when results merely meet elevated expectations. Teradyne Stock May Be Above Fair Value
- Negative Sentiment: Argus lowered its price target to $382, adding to valuation concerns even as other analysts increased earnings forecasts.
Insiders Place Their Bets
In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the firm’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the transaction, the chief executive officer owned 104,495 shares of the company’s stock, valued at approximately $35,662,053.60. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 12,000 shares of company stock worth $4,416,440. 0.19% of the stock is currently owned by insiders.
Wall Street Analysts Forecast Growth
TER has been the subject of several research reports. Evercore reissued an “outperform” rating and issued a $420.00 price objective on shares of Teradyne in a research report on Thursday, July 30th. Robert W. Baird lowered shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 target price on the stock. in a research report on Friday, August 21st. The Goldman Sachs Group set a $440.00 price target on shares of Teradyne in a research note on Wednesday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Finally, UBS Group increased their price objective on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Eleven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Teradyne presently has an average rating of “Moderate Buy” and a consensus target price of $410.86.
About Teradyne
Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.
The company’s product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.
Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.
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