Teradyne, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

In the fiscal year to Dec 2025, Product was 83% and Service was 17% of revenue; Product rose from 78% in the fiscal year to Dec 2023.

In the fiscal year to Dec 2025, Taiwan was 36% and South Korea was 14% of revenue; Taiwan rose from 14% in the fiscal year to Dec 2023.

Quarters: Teradyne, Inc.'s SEC filings, named by the month they end. Fiscal years: Teradyne, Inc.'s annual reports to the SEC.

How it makes money

Of every $100 in revenue, $17.4 ends up as net income. Net margin fell from 22.7% to 17.4% over the past 3 years.

Each margin is that line of the income statement divided by revenue. Fiscal year: Teradyne, Inc.'s annual reports to the SEC; quarters: SEC filings.

Where it is in the chip cycle

Gross margin 59.8%, down 1.1 points on the quarter but up 2.6 points from a year earlier; inventory at 104 days, up from 93 a year earlier; capital spending 5.9% of revenue over the last 4 quarters.

Gross margin by fiscal quarter, from SEC filings. Inventory days: year-end inventory over that year's cost of revenue, times 365.

Customers and suppliers

In its latest annual report Teradyne buys from Flex, Plexus, SAM Meerkat; sells to Infineon Technologies; three customers it does not name account for 12% and 10% and 19% of its revenue.

Suppliers

Flex FLEX

Plexus PLXS

S

SAM Meerkat

 

TERTeradyne

Customers

Unnamed customer 19%

Unnamed customer 12%

Unnamed customer 10%

ASE Technology ASX

Infineon Technologies IFNNY

Their customers

Ambarella AMBAfrom ASE Technology

AMD AMDfrom ASE Technology

Astera Labs ALABfrom ASE Technology

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Changes since the previous annual report (10-K filed Feb 20, 2025)

Infineon Technologies IFNNYNamed for the first time, as a customer

MMultiLaneNamed for the first time, as a partner

SamsungNo longer named (was a customer)

Qualcomm QCOMNo longer named (was a customer)Texas Instruments TXNNo longer named (was a customer)SK hynix SKHYNo longer named (was a customer)TSMC TSMNo longer named (was a customer)

Only the companies Teradyne names in its 10-K filed Feb 19, 2026 (SEC). The supply chain joins the latest annual reports of the companies on it and the 8-Ks they filed since: a link shows when either side's report names the other, so it grows as more reports are read. Hover a name for the filing's own words. Customers it does not name are listed as the filing describes them.

Is it expensive?

P/E of 30.3x, below the peer median of 39.4x, with earnings still growing.

Priced 23% below the peer median of 39.4x.

At 30.3× trailing earnings TER is inside the middle of its five-year range; the five-year median is 31.5×.

Closing price over diluted earnings per share of the last four reported quarters, as known on each day (a quarter counts 35 days after it ends). From SEC filings; earnings per share adjusted for splits.

What analysts expect

The average analyst price target is $425, 61% above the current price; 76% of 17 analysts rate it a buy; earnings beat estimates in all of the last 4 quarters.

Buy or Strong Buy: 13 analysts (76%). Sell or Strong Sell: 0.

Over the past year the average of the analysts' latest price targets went from $169.89 to $469.62 (+176%), while TER went from $169.59 to $263.75 (+56%). In the past three months targets were cut once and never raised. 3 upgrades and 1 downgrade over the year; the latest: Baird moved it to Neutral from Outperform on Aug 21, 2026.

The day after each of these reports the stock moved +7.8% (Dec 2025, beat); −9.6% (Mar 2026, beat); +14.0% (Jun 2026, beat); −8.5% (Sep 2026, beat).

For the quarter ending Dec 2026 (Teradyne reports on Jan 27, 2027), analysts expect adjusted earnings of $2.12 a share, 18% more than the $1.80 of a year earlier, and revenue of $1.3B, up 21% on a year earlier. For the fiscal year ending Dec 2027, they expect adjusted earnings of $11.99 a share, 27% more than the year before's estimate of $9.44, and revenue of $6.5B, up 25% on the year before's estimate.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Generated $1.0B in free cash flow over the year, of which $430M went back to shareholders (dividends plus buybacks), leaving $590M in the company.

Teradyne had 158M diluted shares in the quarter ended Sep 2026, 1.0% fewer than a year earlier, and 2.1% fewer each year on average since Mar 2020. It spent $357M on buybacks over the last four quarters. Over the last four quarters its earnings per share rose 216.7% and its net income rose 209.9%: fewer shares added about 7 points.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings, for the last 4 quarters and by quarter. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 1.7, no pressure to repay short-term debt; debt-to-equity 0.1, debt is very low and the balance sheet is solid.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 10 funds whose copy leaves TER out (on the exchange, not in the app yet): Tensor Edge Capital, Mirae Asset Global Investments, Bridgewater Associates, Norges Bank, Swiss National Bank, Temasek Holdings (Private) and 4 more.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 16 held TER at the end of their latest quarter (for most, Q2 2026). Over that quarter 8 added shares, 6 cut, 2 bought new and 1 sold all. The largest of them is Norges Bank, 2.22M shares worth $1.1B at Jun 30, 2026, 7.9% more than at Dec 31, 2025.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of TER at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end. Norges Bank filed its 13F for Q1 2026 confidentially, with no holdings made public, so its row compares Q2 2026 with Q4 2025.

Are insiders buying or selling?

Officers and directors sold $15.7M of TER on the open market in the 12 months to Nov 12, 2026; none bought. 100% of the sales were made under 10b5-1 plans, set up in advance. The largest was Gregory Stephen Smith (President and CEO; director), who sold $10.7M in 7 sales.

From the Form 4s filed with the SEC about Teradyne, Inc. (75 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 56 other transactions (grants, option exercises, shares withheld for tax, shares sold to pay tax and other transfers).