Teradyne (TER)
Information Technology · $38.2B market cap · SEC CIK 0000097210
ahead of 28% of the S&P 500 · #53 of 73 in Information Technology
Next reports on Feb 1, 2027, after the close, with analysts expecting $2.14 in earnings per share.
52-week range $151.52 to $487.91. 50% below its 52-week high and 62% above its low.
The case for TER
- Revenue up 74.9% on the year.
- Earns 42% back on shareholder equity.
- 27% of revenue drops through to net profit.
- Earnings per share up 217.1%.
- Carries essentially no debt.
- Gross margin of 59% absorbs cost shocks.
The case against
- Swings harder than the market (beta 1.76).
- Free cash flow is only 1.2% of its market value, a thin cash return for the price.
- Growth is weak (36/100): revenue +74.9%, EPS +217.1%, +0.4% a year over five years.
- The price trend is weak (39/100): +35.0% over a year, −32.6% over three months, 50% below its 52-week high.
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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 31 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 36 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 78 |
| Momentumhow the price has behaved lately | 39 |
| Stabilityhow violently it moves, what it owes and what it pays you | 52 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +74.9% |
|---|---|
| Over 5 years | +0.4% a year |
| FY2025 revenue | $3.2B (+13%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $450M |
|---|---|
| Of revenue | 14% |
| Of profit | 81% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 59% |
|---|---|
| Operating margin | 32% |
| Net margin, FY24 → FY25 → now | 19.2% → 17.4% → 27.5% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $294M |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 27.8× |
|---|---|
| Fair P/E for its growth | 27× |
| P/FCF | 84.8× |
| Forward P/E | 23.0× |
| EV / EBITDA | 23.3× |
At 27.8× earnings it trades close to the 27× that 12% a year of growth would justify. At 84.8× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Teradyne's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $3.2B | $2.8B | $2.7B | $3.2B | $3.7B |
| Change on the year | +13% | +5% | −15% | −15% | — |
| Free cash flow | |||||
| Free cash flow | $450M | $474M | $426M | $415M | $966M |
| Of revenue | 14% | 17% | 16% | 13% | 26% |
| Profit margins | |||||
| 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% |
| Debt vs. cash | |||||
| Cash | $294M | $553M | $758M | $855M | $1.1B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.