Teradyne (TER)
Information Technology · $62.2B market cap · SEC CIK 0000097210
$398.69
▲+4.49% on the day
close of Sep 22, 2026
51
Mixed
fundamentals score out of 100
fundamentals score out of 100
Next reports on Oct 26, 2026, after the close, with analysts expecting $2.06 in earnings per share.
The case for TER
- Revenue up 57.9% on the year.
- Earns 38% back on shareholder equity.
- 26% of revenue drops through to net profit.
- Earnings per share up 152.8%.
- Carries essentially no debt.
- Gross margin of 59% absorbs cost shocks.
The case against
- Pricey at 54.1× earnings, against a long-run market average nearer 20×.
- Priced at 13.9× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 1.70).
- Priced at 21× book value. Very little hard asset backing here.
- Free cash flow is only 0.7% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 23 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 49 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 76 |
| Momentumhow the price has behaved lately | 64 |
| Stabilityhow violently it moves, what it owes and what it pays you | 38 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 54.1× |
|---|---|
| Price / book | 21.10× |
| Price / sales | 13.9× |
| Revenue growth (YoY) | +57.9% |
| EPS growth (YoY) | +152.8% |
| Gross margin | 59% |
| Operating margin | 30% |
| Net margin | 26% |
| Return on equity | 38% |
| Debt / equity | 0.00× |
| Current ratio | 2.12 |
| Dividend yield | 0.48% |
| Beta | 1.70 |
| 52-week range | $117.54 – $487.91 |
| Position in that range | 76% of the way up |
| 3-month return | -12.9% |
| 1-year return | +218.3% |
Five years of financials, as filed
Pulled from Teradyne's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $3.2B | $2.8B | $2.7B | $3.2B | $3.7B |
| Gross profit | $1.9B | $1.6B | $1.5B | $1.9B | $2.2B |
| Operating income | $650M | $594M | $501M | $832M | $1.2B |
| Net income | $554M | $542M | $449M | $716M | $1.0B |
| Operating cash flow | $674M | $672M | $585M | $578M | $1.1B |
| Capital expenditure | $224M | $198M | $160M | $163M | $132M |
| Total assets | $4.2B | $3.7B | $3.5B | $3.5B | $3.8B |
| Total liabilities | $1.4B | $889M | $961M | $1.0B | $1.2B |
| Shareholder equity | $2.8B | $2.8B | $2.5B | $2.5B | $2.6B |
| Cash | $294M | $553M | $758M | $855M | $1.1B |
| Free cash flow | $450M | $474M | $426M | $415M | $966M |
| Gross margin | 58.2% | 58.5% | 57.4% | 59.2% | 59.6% |
| Operating margin | 20.4% | 21.1% | 18.7% | 26.4% | 32.4% |
| Net margin | 17.4% | 19.2% | 16.8% | 22.7% | 27.4% |
| Diluted shares | 160M | 163M | 164M | 170M | 184M |
Share count is down 13.0% over 4 years. Buybacks have been shrinking the pie.
Risk factors TER lists in its 10-K
- Risks Associated with Teradyne’s Markets
- Our business is impacted by global and industry-specific economic cycles, which are difficult to predict, and actions we have taken or may take to offset these cycles may not be sufficient
- We are subject to intense competition
- The market for our products is concentrated, and our business depends, in part, on obtaining orders from a few significant customers
- Customer consolidation could affect our operating results
- If we fail to develop new technologies to adapt to our customers’ needs or if our customers fail to accept our new products, our revenues will be adversely affected
- Risks Associated with Operating a Global Business
- We are subject to risks of operating internationally
- We are subject to risks associated with doing business in China
- Risks Related to Teradyne’s Finances
- We may not fully realize the benefits of our acquisitions or strategic alliances
- We may incur higher tax rates than we expect and may have exposure to additional international tax liabilities and costs
- We have significant guarantees, indemnification, and customer confidentiality obligations
- We may discontinue or reduce our quarterly cash dividend or share repurchase program