Teradyne (NASDAQ:TER) Issues Earnings Results

Teradyne (NASDAQ:TER) issued its quarterly earnings results on Tuesday. The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38, Zacks reports. Teradyne had a return on equity of 41.96% and a net margin of 25.77%.The company had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period last year, the firm earned $0.57 EPS. The firm’s revenue for the quarter was up 103.9% on a year-over-year basis. Teradyne updated its Q3 2026 guidance to 1.850-2.150 EPS.

Teradyne Stock Up 12.6%

NASDAQ:TER traded up $40.11 during trading hours on Thursday, reaching $359.52. The company had a trading volume of 2,809,393 shares, compared to its average volume of 3,857,848. The stock has a 50-day moving average of $382.18 and a two-hundred day moving average of $335.81. Teradyne has a one year low of $102.42 and a one year high of $487.91. The firm has a market capitalization of $56.28 billion, a PE ratio of 49.30, a PEG ratio of 0.93 and a beta of 1.74.

Teradyne Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Thursday, May 21st. This is a boost from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s payout ratio is currently 9.63%.

Insider Activity at Teradyne

In other news, CEO Gregory Stephen Smith sold 8,597 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $338.98, for a total value of $2,914,211.06. Following the transaction, the chief executive officer directly owned 124,470 shares of the company’s stock, valued at $42,192,840.60. The trade was a 6.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 value of $256,768.00. Following the completion of the transaction, the vice president directly owned 7,665 shares in the company, valued at approximately $2,894,304. This represents a 8.15% 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. Insiders sold 14,941 shares of company stock valued at $5,444,112 in the last ninety days. Insiders own 0.19% of the company’s stock.

Institutional Trading of Teradyne

Institutional investors and hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP increased its holdings in Teradyne by 13,949.4% in the third quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after purchasing an additional 2,022,389 shares during the last quarter. Corient Private Wealth LLC raised its holdings in Teradyne by 2,189.2% in the fourth quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after purchasing an additional 1,028,916 shares during the period. Rafferty Asset Management LLC grew its holdings in shares of Teradyne by 65.4% in the 2nd quarter. Rafferty Asset Management LLC now owns 2,166,039 shares of the company’s stock valued at $194,770,000 after buying an additional 856,540 shares during the period. Bank of America Corp DE raised its stake in Teradyne by 60.1% during the 2nd quarter. Bank of America Corp DE now owns 2,082,945 shares of the company’s stock worth $187,298,000 after buying an additional 781,517 shares during the period. Finally, Alliancebernstein L.P. lifted its holdings in Teradyne by 350.8% during the third quarter. Alliancebernstein L.P. now owns 875,867 shares of the company’s stock worth $120,554,000 after acquiring an additional 681,571 shares in the last quarter. Institutional investors own 99.77% of the company’s stock.

Teradyne News Roundup

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q2 results exceeded expectations: Teradyne reported $1.33 billion in revenue, up approximately 104% year over year, and non-GAAP EPS of $2.47, well above the roughly $2.09 analyst consensus. Semiconductor Test generated $1.12 billion, while Product Test contributed $107 million and Robotics $100 million. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Upbeat third-quarter guidance drove the investor reaction: Management forecast revenue of $1.2 billion to $1.3 billion, with a midpoint substantially above Wall Street expectations, and EPS of $1.85 to $2.15 versus consensus near $1.43. The outlook suggests that elevated wafer-fabrication spending and semiconductor test demand may persist. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: AI is strengthening Teradyne’s growth narrative: More complex chips for data centers and vehicles require sophisticated, higher-priced testing systems. Record memory-test sales and rising AI-related investment supported a second consecutive quarter of record revenue.
• Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald reaffirmed its overweight rating and maintained a $550 price target, indicating continued confidence in Teradyne’s semiconductor-cycle recovery and AI exposure.
• Neutral Sentiment: Columbia Threadneedle’s technology fund highlighted Teradyne as a beneficiary of semiconductor-test recovery and rising chip complexity, reinforcing the broader institutional investment case. Teradyne Rose on Semiconductor Test Recovery and Rising Chip Complexity
• Negative Sentiment: Investors still face execution risks, including margin variability, competition and the possibility that the semiconductor and AI spending cycle could moderate. Teradyne’s elevated valuation also leaves less room for future results to disappoint.

Analyst Ratings Changes

TER has been the subject of a number of analyst reports. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Cantor Fitzgerald restated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research report on Wednesday. The Goldman Sachs Group reissued a “buy” rating and set a $465.00 target price on shares of Teradyne in a research note on Tuesday. JPMorgan Chase & Co. upgraded Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a report on Thursday, April 30th. Finally, Susquehanna boosted their price target on shares of Teradyne from $415.00 to $550.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Teradyne has an average rating of “Moderate Buy” and a consensus target price of $396.13.

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.