Teradyne (NASDAQ:TER) Shares Gap Up on Strong Earnings

Teradyne, Inc. (NASDAQ:TER) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $320.65, but opened at $367.90. Teradyne shares last traded at $341.0050, with a volume of 1,510,496 shares trading hands.

The company reported $2.47 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a net margin of 22.55% and a return on equity of 31.79%. The firm’s quarterly revenue was up 103.9% on a year-over-year basis. During the same period last year, the business posted $0.57 earnings per share.

Teradyne Increases Dividend

The firm also recently declared 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 0.2%. The ex-dividend date was Thursday, May 21st. This is an increase from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is presently 9.63%.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong second-quarter results: Teradyne reported $1.33 billion in revenue, up 103.9% year over year and ahead of the $1.22 billion consensus. Non-GAAP EPS of $2.47 also exceeded expectations of approximately $2.04–$2.09, supported by strong semiconductor-test demand. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Optimistic third-quarter outlook: Management forecast revenue of $1.2 billion to $1.3 billion and EPS of $1.85 to $2.15, both comfortably above Wall Street expectations. The guidance reflects continued investment in wafer-fabrication equipment and demand for sophisticated testing systems used with AI and automotive chips. Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump
• Positive Sentiment: Analyst support remains strong: Cantor Fitzgerald reaffirmed its “overweight” rating and raised or maintained a $550 price target, implying substantial potential upside from recent trading levels. Cantor Fitzgerald rating update
• Neutral Sentiment: Teradyne’s semiconductor-test business generated $1.12 billion of second-quarter revenue, far exceeding product-test and robotics revenue. This highlights the company’s exposure to AI-related chip spending but also leaves results sensitive to semiconductor capital-expenditure cycles.
• Negative Sentiment: Sector-wide selling and valuation concerns: Teradyne was among several semiconductor-related stocks falling in regular trading after the earnings-driven surge. Investors may be locking in gains after a substantial prior rally, while the shares’ elevated valuation and high expectations create room for near-term volatility. Seagate, Western Digital, FormFactor, Teradyne, and Entegris Shares Are Falling

Analyst Ratings Changes

Several research firms have recently commented on TER. UBS Group increased their price objective on Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a report on Monday, July 20th. Robert W. Baird raised their target price on shares of Teradyne from $350.00 to $446.00 and gave the company an “outperform” rating in a research note on Tuesday, June 23rd. Zacks Research upgraded Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. The Goldman Sachs Group reissued a “buy” rating and set a $465.00 target price on shares of Teradyne in a report on Tuesday. Finally, Susquehanna raised their price target on Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. One equities research 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 company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $394.53.

Insider Activity at Teradyne

In other news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the transaction, the vice president owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. The trade was a 8.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the transaction, the insider directly owned 15,066 shares of the company’s stock, valued at approximately $5,203,344.42. The trade was a 6.27% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 14,941 shares of company stock worth $5,444,112. Corporate insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

A number of hedge funds and other institutional investors have recently modified their holdings of TER. Carolina Wealth Advisors LLC lifted its stake in shares of Teradyne by 42.5% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 114 shares of the company’s stock valued at $55,000 after acquiring an additional 34 shares during the last quarter. Vestor Capital LLC boosted its holdings in shares of Teradyne by 15.4% during the 1st quarter. Vestor Capital LLC now owns 285 shares of the company’s stock valued at $85,000 after acquiring an additional 38 shares in the last quarter. UMB Bank n.a. grew its position in Teradyne by 1.8% during the 4th quarter. UMB Bank n.a. now owns 2,293 shares of the company’s stock worth $444,000 after acquiring an additional 40 shares during the last quarter. Stephens Inc. AR grew its position in Teradyne by 1.2% during the 4th quarter. Stephens Inc. AR now owns 3,332 shares of the company’s stock worth $645,000 after acquiring an additional 41 shares during the last quarter. Finally, Sapient Capital LLC increased its holdings in Teradyne by 1.5% in the 4th quarter. Sapient Capital LLC now owns 2,849 shares of the company’s stock worth $560,000 after purchasing an additional 43 shares in the last quarter. Institutional investors own 99.77% of the company’s stock.

Teradyne Stock Performance

The firm has a market cap of $53.03 billion, a price-to-earnings ratio of 62.85, a PEG ratio of 0.97 and a beta of 1.74. The business has a fifty day simple moving average of $382.68 and a 200-day simple moving average of $335.09.

Teradyne Company Profile

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.