# Teradyne (TER)

Sector: Semiconductor test equipment and robotics

| Field | Value |
|---|---|
| Price | $265.78 |
| Market cap | $41B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-13 |
| Next earnings | 2027-01-27 (estimate) |

Analysts: Bullish

Picks: Top pick

Discount category: Below intrinsic value

## In short

The market doubts that the surge in AI chip testing orders lasts through 2027, and steady memory and compute orders with a profitable Robotics business can lift its value.

## Themes and gap

- Themes: AI supplier (ai-supplier), China and geopolitics (china-geopolitics)
- Gap type: Can close (closable)
- Why: The Q4 2026 report in early February 2027 and its view of 2027 show whether orders from AI chip makers stay near the current level.

## About

Teradyne, Inc. (Teradyne) is based in North Reading, Massachusetts. It designs and makes automated test equipment and robots. It has three segments. Semiconductor Test sells systems and instruments that test chips for compute, memory, storage, mobile and other uses. Product Test sells systems for circuit boards, optical and high-speed interconnect parts, wireless products, and defense and aerospace systems. Robotics sells collaborative robot arms and autonomous mobile robots. In Q3 2026, revenue was $1,306 million: $1,072 million from Semiconductor Test, $138 million from Product Test and $96 million from Robotics. By country, Korea was 32%, China 21% and Taiwan 14% of Q3 revenue. A few customers buy a large part of its test equipment. It holds 10% of Technoprobe, a maker of probe cards, as an equity method investment. Greg Smith is Chief Executive Officer. The shares trade on Nasdaq in US dollars.

## Thesis

The price of Teradyne depends on how long its demand from AI chips lasts. Revenue rose 70% to $1,306 million in Q3 2026, and the Semiconductor Test segment rose 77%. Non-GAAP operating profit was 31.6% of revenue, against 20.4% a year earlier. The company says that demand now reaches compute, memory and storage chips, and also high-speed interconnect and robots. Memory revenue was a record $301 million. Sales of test equipment depend on a few large customers and on how much they spend on new chips. For Q4 2026, the company guides revenue of $1,250 million to $1,350 million, which is level with Q3. For the price to hold or rise, three things must be true. Orders from AI chip makers must stay near the current level through 2027. Robotics, which reached profit in Q3 2026, must grow without new losses. The $300 million investment in FormFactor, which closed in November 2026, and the MultiLane joint venture must add to test revenue. The next tests are the Q4 2026 report, expected in late January 2027, and its view of 2027.

## Checkpoints

- Nov 9, 2026: FormFactor investment closes. Status: Passed. Watch: The $300.0 million investment closes in Q4 2026 and the joint solutions start, and this passes; a block by a regulator fails. Outcome: The investment closed on November 9, 2026, and Teradyne now holds 2,234,887 FormFactor shares, about 2.8% of the company.
- Jan 27, 2027 (estimate): Q4 2026 results and the view of 2027. Status: Pending. Watch: Revenue lands in the $1,250 million to $1,350 million range and management describes 2027 demand at or above 2026, and this passes; a guide below $1,250 million for Q1 2027 fails.
- Apr 2027 (estimate): Q1 2027 results: memory and Robotics. Status: Pending. Watch: Memory revenue stays above $200 million and Robotics stays profitable, and this passes; a loss in Robotics fails.

## Balance sheet

At September 27, 2026, Teradyne had cash and cash equivalents of $460.7 million and marketable securities of $164.1 million, of which $158.3 million is long term. It had no borrowings: it repaid the $200.0 million that it owed on its credit facility at December 31, 2025. The new $1.0 billion revolving credit facility was undrawn. Operating lease liabilities were $137.1 million and retirement plan liabilities were $152.9 million. Cash from operations was $1,047.9 million for nine months, and capital spending was $241.8 million. In the same period, Teradyne paid $173.5 million for share buybacks and $61.0 million for dividends, and $165.6 million for acquisitions, mostly MultiLane. It holds 10% of Technoprobe at a book value of $518.6 million. After the balance sheet date, on November 9, 2026, Teradyne paid about $300.0 million in cash for about 2.8% of FormFactor.

As of 2026-09-27.

Sources:

- https://www.sec.gov/Archives/edgar/data/97210/000119312526441091/ter-20260927.htm
- https://www.sec.gov/Archives/edgar/data/97210/000119312526434981/ter-ex99_1.htm

## Dividends

- Dividend yield: 0.2% (last 12 months, at the current price)
- Paid per share, last 12 months: $0.51 (4 payments)
- Current annual rate: $0.52 ($0.13 x 4 a year)
- Payout ratio: 14% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-09-04, $0.13 per share
- Growth from 2020 to 2025: 3.7% a year
- Growth from 2015 to 2025: 7.2% a year

Dividends per share by year: 2016: $0.24, 2017: $0.28, 2018: $0.36, 2019: $0.36, 2020: $0.40, 2021: $0.40, 2022: $0.44, 2023: $0.44, 2024: $0.48, 2025: $0.48.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-11-09: Teradyne completed its $300.0 million investment in FormFactor. It bought 2,234,887 new FormFactor shares in a private placement, about 2.8% of FormFactor's shares. FormFactor registered the shares for resale, but the purchase agreement limits when and how Teradyne can sell them.
- 2026-11-09: Teradyne declared a quarterly cash dividend of $0.13 per share, payable on December 16, 2026, to shareholders of record on November 23, 2026.
- 2026-10-27: Teradyne reported Q3 2026 results. Revenue was $1,306 million, up 70%, and above the top of its guidance. GAAP EPS was $2.17 and non-GAAP EPS was $2.29, against $0.85 a year earlier. Semiconductor Test revenue was $1,072 million, and memory revenue was a record $301 million. Robotics reached profit on revenue of $96 million.
- 2026-10-27: Teradyne guided Q4 2026 revenue to $1,250 million to $1,350 million and non-GAAP EPS to $1.95 to $2.25. GAAP EPS is guided to $1.88 to $2.18.
- 2026-10-06: Teradyne agreed to make a $300.0 million minority equity investment in FormFactor, a maker of probe and test interface products, and to work with it on joint test solutions for photonics, high-performance compute, advanced packaging and high-bandwidth memory. It expects the deal to close in Q4 2026, after regulatory approvals.
- 2026-08-07: Teradyne signed a new five-year, $1.0 billion senior secured revolving credit facility that ends in August 2031. It replaced the earlier $750.0 million facility. At September 27, 2026, nothing was drawn.
- 2026-04-08: Teradyne and MultiLane formed a joint venture, MLTP, for test and measurement of high-speed data connections in AI data centers. Teradyne owns 75% of it, for a total purchase price of $157.8 million, and reports it in Product Test.

## Latest news and filings

- Last earnings: 2026-10-28 (8-K: https://www.sec.gov/Archives/edgar/data/97210/000119312526434981/)
- Next earnings: 2027-01-27 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-10-30 | 10-Q | Quarterly report for the period ended Sep 27, 2026 | 2026-09-27 | ter-20260927 | https://www.sec.gov/Archives/edgar/data/97210/000119312526441091/ter-20260927.htm |
| 2026-10-28 | 8-K | Earnings release |  | ter-20261027 | https://www.sec.gov/Archives/edgar/data/97210/000119312526434981/ |
| 2026-08-10 | 8-K | New material agreement and New debt or financial obligation |  | ter-20260807 | https://www.sec.gov/Archives/edgar/data/97210/000119312526342367/ter-20260807.htm |
| 2026-07-31 | 10-Q | Quarterly report for the period ended Jun 28, 2026 | 2026-06-28 | ter-20260628 | https://www.sec.gov/Archives/edgar/data/97210/000119312526327715/ter-20260628.htm |
| 2026-07-29 | 8-K | Earnings release |  | ter-20260728 | https://www.sec.gov/Archives/edgar/data/97210/000119312526321933/ |
| 2026-05-11 | 8-K | Shareholder vote results |  | ter-20260508 | https://www.sec.gov/Archives/edgar/data/97210/000119312526215848/ter-20260508.htm |
| 2026-05-01 | 10-Q | Quarterly report for the period ended Mar 29, 2026 | 2026-03-29 | ter-20260329 | https://www.sec.gov/Archives/edgar/data/97210/000119312526201058/ter-20260329.htm |
| 2026-04-29 | 8-K | Earnings release |  | ter-20260428 | https://www.sec.gov/Archives/edgar/data/97210/000119312526188706/ |
| 2026-02-19 | 10-K | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | ter-20251231 | https://www.sec.gov/Archives/edgar/data/97210/000119312526059002/ter-20251231.htm |
| 2026-02-03 | 8-K | Earnings release |  | ter-20260202 | https://www.sec.gov/Archives/edgar/data/97210/000119312526034348/ |

Every filing on SEC EDGAR (CIK 97210): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000097210&type=&dateb=&owner=include&count=40

## Risks

- High: Demand follows chip makers' spending on new AI chips, and revenue has changed fast: it was $769 million in Q3 2025 and $1,306 million in Q3 2026. A pause in spending by a few large customers would cut revenue and profit quickly.
- High: A few customers buy most of its test equipment, and sales are concentrated in a few countries. Korea was 32%, China 21% and Taiwan 14% of Q3 2026 revenue.
- Medium: Export rules and tariffs can limit sales. The company says that US export controls on chips and equipment for China, and US and China trade actions, can limit its sales to some customers.
- Medium: Teradyne competes for test orders, and it relies on a market where a few customers choose suppliers. Product changes at a large customer can move orders to a competitor.
- Low: Robotics only reached profit in Q3 2026, after losses in earlier years and a restructuring in 2025.
- Low: The $300.0 million FormFactor investment and the MultiLane venture used cash and carry deal risk. The value of the FormFactor shares moves with FormFactor's share price.

## Links

- Page: https://picks.utilarium.app/company/TER/
- History of changes: https://picks.utilarium.app/company/TER/history/
- JSON with full history: https://picks.utilarium.app/data/company/TER.json

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