Teradyne (NASDAQ:TER) Issues Earnings Results

Teradyne (NASDAQ:TER) posted its quarterly earnings data on Tuesday. The company reported $2.29 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.20, Zacks reports. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.27 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm’s revenue for the quarter was up 69.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.85 earnings per share.

Teradyne Trading Down 3.2%

TER stock opened at $313.24 on Thursday. The firm has a 50-day moving average of $368.05 and a two-hundred day moving average of $347.75. Teradyne has a 12 month low of $151.52 and a 12 month high of $487.91. The company has a market cap of $48.97 billion, a price-to-earnings ratio of 42.97, a PEG ratio of 0.62 and a beta of 1.75.

Teradyne Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date was Friday, September 4th. Teradyne’s dividend payout ratio is 7.13%.

Analysts Set New Price Targets

TER has been the subject of a number of research reports. Zacks Research cut shares of Teradyne from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. UBS Group raised their price target on shares of Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a research note on Monday, July 20th. Robert W. Baird lowered shares of Teradyne from an “outperform” rating to a “neutral” rating and set a $420.00 price target on the stock. in a research note on Friday, August 21st. Morgan Stanley lifted their price objective on Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Finally, Wall Street Zen upgraded Teradyne from a “hold” rating to a “buy” rating in a research note on Saturday, October 24th. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $410.86.

Key Stories Impacting Teradyne

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 increased to $342.4 million from $119.6 million a year earlier, driven by strong semiconductor-test demand and AI-related business. Teradyne Q3 Earnings Beat Estimates
• Positive Sentiment: Management forecast fourth-quarter revenue of $1.25 billion to $1.35 billion, with the $1.30 billion midpoint modestly above analyst expectations. The company also highlighted that AI-related revenue now represents more than 60% of sales and expects a broader compute-demand ramp by mid-2027. Teradyne Q4 Outlook
• Positive Sentiment: Northland Securities raised its fiscal 2026 earnings estimate to $9.34 per share from $9.25, above the current consensus forecast of $9.11, reflecting confidence in Teradyne’s earnings momentum.
• Neutral Sentiment: The earnings release represented another quarterly beat, but the stock’s reaction suggests that strong results and AI exposure were already substantially reflected in investor expectations.
• Negative Sentiment: Despite record demand, analysts and investors are questioning whether Teradyne’s recent multiyear rally has pushed the shares above fair value. With the stock trading near recent highs and at a relatively demanding valuation, further gains may require continued upside surprises in cash flow and growth. Teradyne Stock May Be Above Fair Value
• Negative Sentiment: Argus lowered its price target to $382, adding to valuation pressure. The delayed timing of the larger compute ramp may also be tempering enthusiasm, even though near-term guidance exceeded consensus. Argus Lowers Teradyne Price Target

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $341.28, for a total value of $1,365,120.00. Following the completion of the sale, 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 12,000 shares of company stock worth $4,416,440. Insiders own 0.19% of the company’s stock.

Teradyne Company Profile

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.