Equities Analysts Offer Predictions for Teradyne Q3 Earnings

Teradyne, Inc. (NASDAQ:TER) – Investment analysts at Northland Securities boosted their Q3 2027 earnings per share (EPS) estimates for shares of Teradyne in a research note issued on Thursday, July 30th. Northland Securities analyst G. Richard now anticipates that the company will post earnings of $2.05 per share for the quarter, up from their previous estimate of $1.92. The consensus estimate for Teradyne’s current full-year earnings is $7.20 per share. Northland Securities also issued estimates for Teradyne’s Q4 2027 earnings at $1.86 EPS.

Teradyne (NASDAQ:TER) last posted its earnings results on Tuesday, July 28th. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the previous year, the company posted $0.57 earnings per share. The company’s revenue for the quarter was up 103.9% on a year-over-year basis. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS.

Other research analysts have also issued research reports about the stock. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Stifel Nicolaus increased their price objective on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a research report on Tuesday, April 28th. The Goldman Sachs Group restated a “buy” rating and set a $465.00 price objective on shares of Teradyne in a report on Tuesday. UBS Group boosted their price objective on shares of Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a research report on Monday, July 20th. Finally, Susquehanna upped their target price on shares of Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Teradyne currently has an average rating of “Moderate Buy” and a consensus target price of $396.80.

Teradyne Stock Performance

Shares of TER opened at $365.49 on Friday. The stock has a 50 day simple moving average of $382.42 and a 200 day simple moving average of $336.86. Teradyne has a 52-week low of $102.42 and a 52-week high of $487.91. The firm has a market capitalization of $57.21 billion, a PE ratio of 50.14, a P/E/G ratio of 0.92 and a beta of 1.74.

Teradyne Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.1%. The ex-dividend date was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is presently 7.13%.

Insider Buying and Selling at Teradyne

In other news, insider Shannon John Poulin sold 656 shares of Teradyne stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the sale, the insider directly owned 15,722 shares in the company, valued at $5,581,310. This trade represents a 4.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, VP Ryan Driscoll sold 680 shares of Teradyne stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares in the company, valued at $2,894,304. This trade represents a 8.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 14,941 shares of company stock worth $5,444,112. Corporate insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. Norges Bank bought a new position in Teradyne in the fourth quarter valued at $398,777,000. Wellington Management Group LLP lifted its position in Teradyne by 13,949.4% during the 3rd quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock worth $280,357,000 after buying an additional 2,022,389 shares in the last quarter. Aspex Management HK Ltd bought a new stake in Teradyne during the 4th quarter worth about $199,723,000. Corient Private Wealth LLC boosted its stake in shares of Teradyne by 2,189.2% during the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after buying an additional 1,028,916 shares during the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in shares of Teradyne by 65.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 2,166,039 shares of the company’s stock worth $194,770,000 after buying an additional 856,540 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Results significantly exceeded expectations. Teradyne reported second-quarter adjusted EPS of $2.47, compared with the $2.09 consensus estimate and $0.57 a year earlier. Revenue increased 103.9% year over year to $1.33 billion, driven by record memory-test sales and strong demand for AI-related semiconductor testing. TER Q2 Deep Dive: AI Demand Drives Growth Across Semiconductor Test and Robotics
• Positive Sentiment: Third-quarter guidance was particularly encouraging. Management projected revenue of approximately $1.2 billion to $1.3 billion, or $1.25 billion at the midpoint—reportedly about 21% above analysts’ expectations. The outlook reflects rising testing requirements for advanced AI chips used in data centers and vehicles, as well as continued wafer-fabrication investment. Teradyne projects $1.2B-$1.3B Q3 revenue
• Positive Sentiment: Analyst estimates and sentiment improved. Northland Securities raised its Q3 2027 EPS forecast to $2.05 from $1.92 and its Q4 forecast to $1.86 from $1.76. Cantor Fitzgerald maintained an Overweight rating with a $550 price target, while Morgan Stanley increased its target to $397, though it retained an Equal Weight rating. Teradyne Earns Overweight Rating from Cantor Fitzgerald
• Neutral Sentiment: Key risks remain. Management and analysts noted potential margin variability and competitive pressures. In addition, the stock’s strong rally leaves investors focused on whether AI-driven demand can sustain elevated growth and justify its premium valuation.

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.