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1. Company Snapshot

1.a. Company Description

Teradyne, Inc.designs, develops, manufactures, sells, and supports automatic test equipment worldwide.The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments.


The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, smartphones, cloud computer and electronic game, and other applications.This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets.It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers.


The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems.The Industrial Automation segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and light industrial customers.The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices and modules, smartphones, tablets, notebooks, laptops, peripherals, and Internet-of-Things devices under the LitePoint brand name.


This segment also offers IQxel products for Wi-Fi and other standards; IQxstream solution for testing GSM, EDGE, CDMA2000, TD-SCDMA, WCDMA, HSPA+, LTE, and 5G technologies; IQcell, a multi-device cellular signaling test solution; IQgig test solution; and turnkey test software for wireless chipsets.Teradyne, Inc.was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

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1.b. Last Insights on TER

Breaking News: Teradyne Inc reported Q4 2025 earnings on January 27 2026. The company beat earnings expectations. AGF Management Ltd increased its holdings in Teradyne by 327.8% in Q3 2025. The firm now owns 9839 shares. No recent buy sell or hold recommendations from analysts. RBC Capital Markets analyst Tom Bishop maintained a hold rating on Teradyne. Craig-Hallum analyst Richard Noll maintained a buy rating. Needham analyst Quinn Bolton maintained a buy rating.

1.c. Company Highlights

2. Teradyne's Q4 2025 Earnings: A Strong Upside Surprise

Teradyne reported a robust fourth-quarter 2025, with revenue reaching $1.083 billion and non-GAAP EPS of $1.80, both exceeding guidance. The revenue growth was driven by AI compute and memory demand, resulting in a 41% sequential increase. Semiconductor Test revenue was $883 million, with SoC revenue up 47% and memory revenue up 61% quarter-over-quarter. Non-GAAP gross margins were 57.2%, and non-GAAP operating profit dollars roughly doubled to $314 million. For the full year 2025, revenue was $3.2 billion, up 13% from the prior year, with a gross margin of 58.3% and non-GAAP EPS of $3.96.

Publication Date: Feb -06

📋 Highlights
  • Q4 2025 Revenue & EPS Beat Guidance: Revenue of $1.083B and non-GAAP EPS of $1.80 exceeded guidance, with 41% sequential revenue growth driven by AI compute/memory.
  • Semiconductor Test Revenue Surge: Semi Test revenue hit $883M, with SoC up 47% and memory up 61% QoQ, representing ~80% of enterprise sales.
  • Full-Year 2025 Financials: Annual revenue reached $3.2B (+13% YoY), with 58.3% gross margin and non-GAAP EPS of $3.96.
  • 2026 Guidance & TAM Expansion: Q1 2026 revenue guidance of $1.15B–$1.25B, with ATE TAM projected to grow to $12B–$14B by mid-term.
  • Long-Term Financial Targets: Aims for $6B revenue (2x 2025) and $9.50–$11 non-GAAP EPS by targeting 59–61% gross margins and 30–34% operating profit.

Segment Performance

The company's segment performance was strong, with the Semiconductor Test Group being the major contributor, representing close to 80% of enterprise sales. The Product Test Group revenue was $110 million, up double digits sequentially and year-over-year, while Robotics revenue was $89 million, up 19% from Q3. The company's guidance for Q1 2026 is between $1.15 billion and $1.25 billion, driven by AI demand, with non-GAAP EPS expected to be $1.89 to $2.25.

Long-term Growth Prospects

Teradyne expects the ATE TAM to be $12 billion to $14 billion, up from about $9 billion in 2025, and aims to deliver nearly 2x 2025's revenue and 2.5x the earnings per share in the long term. The company announced a joint venture with MultiLane to serve the growing AI data center demand, expected to close in Q2 '26 and be accretive in 2026. The company's target model assumes a share gain in compute and maintenance of share in mobile and auto/industrial, with a revenue target of roughly $6 billion.

Valuation

With a 'P/E Ratio' of 76.54 and 'P/S Ratio' of 13.52, the market seems to have priced in significant growth expectations. The company's 'ROIC' is 17.58%, indicating efficient capital allocation, and 'ROE' is 19.88%, reflecting strong profitability. Analysts estimate next year's revenue growth at 19.4%, which is in line with the company's long-term growth prospects.

Key Drivers

The key drivers for Teradyne's growth include the increasing demand for AI compute, the growing memory TAM, and the company's expanding customer base. The company has a GPU win, which is expected to contribute materially to revenue in the second half of 2026, and is positioned for share gain in 2026. With a healthy backlog and better insights into the first half, Teradyne is poised for continued growth.

3. NewsRoom

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AGF Management Ltd. Purchases 7,539 Shares of Teradyne, Inc. $TER

Feb -06

Source: defenseworld.net

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Teradyne (TER) Upgraded to Strong Buy: Here's What You Should Know

Feb -05

Source: zacks.com

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3 Intriguing Stocks to Watch After Q4 Earnings: AMD, SPG, TER

Feb -05

Source: zacks.com

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Top 2 Tech Stocks That May Collapse In Q1

Feb -04

Source: benzinga.com

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First Look: Lilly jumps; Novo warns; Walmart tops $1T

Feb -04

Source: gurufocus.com

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Teradyne, Inc. (TER) Q4 2025 Earnings Call Transcript

Feb -03

Source: seekingalpha.com

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Teradyne Inc (TER) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and AI-Driven Success

Feb -03

Source: gurufocus.com

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Teradyne shares surge on AI-driven earnings beat

Feb -03

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.18%)

6. Segments

Semiconductor Test

Expected Growth: 10%

Teradyne's Semiconductor Test segment growth is driven by increasing demand for 5G and IoT devices, rising complexity in chip design, and growing need for autonomous test and inspection. Additionally, the company's strategic acquisitions and investments in emerging technologies such as artificial intelligence and machine learning are contributing to its 10% growth.

Robotics

Expected Growth: 11%

Teradyne's Robotics segment growth is driven by increasing demand for industrial automation, e-commerce fulfillment, and warehouse logistics. The company's collaborative robots (cobots) and autonomous mobile robots (AMRs) are well-positioned to capitalize on these trends, with growth also fueled by strategic acquisitions and expanding into new markets.

Systems Test

Expected Growth: 9%

Teradyne's Systems Test segment growth is driven by increasing demand for 5G and Wi-Fi 6 test solutions, expansion in the industrial automation market, and growing adoption of collaborative robots. Additionally, the company's strategic acquisitions and investments in emerging technologies such as artificial intelligence and IoT are contributing to its growth.

Wireless Test

Expected Growth: 13%

Teradyne's Wireless Test segment growth is driven by increasing demand for 5G network deployment, rising adoption of IoT devices, and growing need for wireless device testing and validation. Additionally, the segment benefits from the company's strong relationships with leading wireless communication companies and its ability to provide comprehensive testing solutions.

7. Detailed Products

Industrial Automation

Teradyne's Industrial Automation segment designs and manufactures collaborative robots, autonomous mobile robots, and sensing and power solutions for industrial automation.

Test & Industrial Automation

Teradyne's Test & Industrial Automation segment provides automated test and industrial automation solutions for the electronics industry.

System Test

Teradyne's System Test segment provides test and automation solutions for the defense and aerospace industries.

Collaborative Robots (Cobots)

Teradyne's Collaborative Robots segment designs and manufactures collaborative robots that work alongside humans in industrial settings.

Autonomous Mobile Robots (AMRs)

Teradyne's Autonomous Mobile Robots segment designs and manufactures autonomous mobile robots for warehouse and logistics automation.

Sensing and Power Solutions

Teradyne's Sensing and Power Solutions segment provides sensing and power solutions for industrial automation and robotics.

8. Teradyne, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Teradyne's products are specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few large customers increases the threat of substitutes.

Bargaining Power Of Customers

Teradyne's customers are large and have significant bargaining power, which can lead to price pressure and demands for customized products.

Bargaining Power Of Suppliers

Teradyne has a diverse supplier base, and the company's scale and reputation give it bargaining power over its suppliers.

Threat Of New Entrants

The industrial automation industry has high barriers to entry, including significant capital requirements and the need for specialized expertise, making it difficult for new entrants to compete with Teradyne.

Intensity Of Rivalry

The industrial automation industry is competitive, but Teradyne's strong brand and product offerings help the company maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.17%
Debt Cost 5.40%
Equity Weight 96.83%
Equity Cost 11.41%
WACC 11.22%
Leverage 3.27%

11. Quality Control: Teradyne, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Axcelis Technologies

A-Score: 5.2/10

Value: 4.5

Growth: 8.6

Quality: 7.9

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Rambus

A-Score: 5.0/10

Value: 1.0

Growth: 7.9

Quality: 9.0

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Teradyne

A-Score: 4.1/10

Value: 0.0

Growth: 4.4

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Entegris

A-Score: 3.7/10

Value: 2.9

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
FormFactor

A-Score: 3.6/10

Value: 0.8

Growth: 5.2

Quality: 5.4

Yield: 0.0

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Lattice Semi

A-Score: 3.5/10

Value: 0.0

Growth: 4.0

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

300.11$

Current Price

300.11$

Potential

-0.00%

Expected Cash-Flows