Teradyne (NASDAQ:TER) Issues Quarterly Earnings Results, Beats Estimates By $0.38 EPS

Teradyne (NASDAQ:TER) released its quarterly earnings data on Tuesday. The company reported $2.47 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38, Zacks reports. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. Teradyne updated its Q3 2026 guidance to 1.850-2.150 EPS.

Teradyne Price Performance

Shares of NASDAQ TER traded down $13.70 during midday trading on Tuesday, hitting $321.07. 5,725,249 shares of the company’s stock were exchanged, compared to its average volume of 3,827,925. Teradyne has a twelve month low of $89.18 and a twelve month high of $487.91. The firm has a market cap of $50.26 billion, a P/E ratio of 59.46, a PEG ratio of 1.01 and a beta of 1.74. The stock’s 50 day moving average price is $382.69 and its 200-day moving average price is $334.39.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This is a boost from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Thursday, May 21st. Teradyne’s payout ratio is presently 9.63%.

Insider Activity at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction on Monday, June 15th. The stock was sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the sale, the chief executive officer owned 120,470 shares of the company’s stock, valued at $50,962,424.10. The trade was a 3.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the business’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total value of $232,880.00. Following the transaction, the insider owned 15,722 shares of the company’s stock, valued at $5,581,310. This trade represents a 4.01% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 14,941 shares of company stock worth $5,444,112 in the last three months. 0.19% of the stock is owned by company insiders.

Institutional Trading of Teradyne

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd bought a new stake in Teradyne during the fourth quarter worth approximately $28,000. CYBER HORNET ETFs LLC bought a new position in shares of Teradyne in the second quarter valued at $35,000. DV Equities LLC bought a new position in shares of Teradyne in the fourth quarter valued at $42,000. MUFG Securities EMEA plc acquired a new stake in shares of Teradyne during the 2nd quarter valued at $43,000. Finally, Intesa Sanpaolo Wealth Management acquired a new stake in shares of Teradyne during the 4th quarter valued at $48,000. 99.77% of the stock is owned by institutional investors and hedge funds.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong earnings and AI-driven demand: Teradyne reported second-quarter revenue of $1.329 billion, up from $652 million a year earlier. Non-GAAP EPS was $2.47, exceeding the $2.09 consensus estimate, while semiconductor testing revenue reached $1.122 billion. Management attributed growth largely to demand related to artificial-intelligence semiconductors. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Above-consensus third-quarter outlook: Teradyne guided for third-quarter EPS of $1.85–$2.15 and revenue of $1.2–$1.3 billion, both substantially above analyst expectations of $1.43 EPS and approximately $1.0 billion in revenue. The guidance supports continued strength in semiconductor testing. Teradyne Reports Second Quarter 2026 Results
• Neutral Sentiment: AI and Tokyo Electron partnership remain key catalysts: Investors are assessing whether Teradyne’s AI-related testing products and partnership with Tokyo Electron can sustain growth in semiconductor testing and improve expectations for its robotics business. How Teradyne’s AI Test Push and Tokyo Electron Partnership Could Reshape Investor Expectations
• Negative Sentiment: High valuation and elevated expectations may be limiting the reaction: Teradyne’s shares had already gained significantly over the past year, while analysts cautioned before earnings that the stock appeared fairly valued rather than obviously inexpensive. A strong report may therefore have been insufficient to overcome profit-taking and concerns that much of the AI-driven upside was already reflected in the valuation. Teradyne Stock May Trade Near Fair Value On Earnings Tomorrow

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Weiss Ratings lowered shares of Teradyne from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, July 20th. Evercore set a $370.00 target price on shares of Teradyne in a report on Thursday, April 30th. The Goldman Sachs Group raised their target price on shares of Teradyne from $350.00 to $465.00 and gave the stock a “buy” rating in a report on Monday, July 6th. Finally, Morgan Stanley set a $387.00 target price on Teradyne in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $394.53.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.