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TERSemiconductor test equipment and robotics

Teradyne

Not investment advice. Kevin may own this stock. How we value stocks

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Updated

Price
$265.78
Analysts view
Bullish
Discount category
Below intrinsic value
Pick status
Top pick
Next earnings
Earnings Jan 27 · · estimated
History
Market cap
$41B
Shares of Oct 26, 2026
Yield at current rate
0.2%
Current annual rate, at the price of Nov 13, 2026
Dividend yield
0.2%
Last 12 months, at the price of Nov 13, 2026
P/E (trailing)
30.5
Price of Nov 13, 2026
EPS (trailing)
$8.70
12 months to Sep 27, 2026
52-week range
$151.52 – $487.91
To Nov 12, 2026
Beta
1.73
Vs S&P 500, 5 years monthly, to Oct 30, 2026
Average volume
3.2M
3 months, to Nov 12, 2026

Check the numbers:ExchangeGoogle FinanceYahoo FinanceSEC filings

In short

Thesis
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.
Gap
Can close. 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.

Company guidance: Q4 2026 revenue $1,250 million to $1,350 million; non-GAAP EPS $1.95 to $2.25 (GAAP $1.88 to $2.18) (, Q3 2026 results release (8-K))

Price history

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

  1. Nov 9, 2026Passed
    FormFactor investment closesThe $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.
  2. Jan 27, 2027 · est.Pending
    Q4 2026 results and the view of 2027Revenue 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.
  3. Apr 2027 · est.Pending
    Q1 2027 results: memory and RoboticsMemory revenue stays above $200 million and Robotics stays profitable, and this passes; a loss in Robotics fails.

Every passed and failed checkpoint across all picks

Recent events

  • November 9, 2026Teradyne 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.
  • November 9, 2026Teradyne declared a quarterly cash dividend of $0.13 per share, payable on December 16, 2026, to shareholders of record on November 23, 2026.
  • October 27, 2026Teradyne 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.
Show 4 older events
  • October 27, 2026Teradyne 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.
  • October 6, 2026Teradyne 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.
  • August 7, 2026Teradyne 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.
  • April 8, 2026Teradyne 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
October 28, 2026 (8-K on sec.gov)
Next earnings
Expected about January 27, 2027. The company has not confirmed the date.

Every filing on SEC EDGAR (CIK 97210)

Risks

  • 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.
  • 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.
  • 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.
  • 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.
  • Robotics only reached profit in Q3 2026, after losses in earlier years and a restructuring in 2025.
  • 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.

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.

Dividends

Yield at the current rate
0.2% (current annual rate, at today’s price)
Dividend yield
0.2% (last 12 months, at today’s price of $265.78)
Paid per share
$0.51 in the last 12 months (4 payments)
Current annual rate
$0.52 ($0.13 × 4 a year)
Payout ratio
14% of the last fiscal year’s earnings (the year that ended December 31, 2025)
Latest ex-dividend date
September 4, 2026, $0.13 per share

Dividends per share by year

Teradyne 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

From 2020 to 2025, the dividend grew by about 3.7% a year. From 2015 to 2025, the dividend grew by about 7.2% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.

Questions about Teradyne

What does Teradyne do?

Teradyne, Inc. (Teradyne) is based in North Reading, Massachusetts. It designs and makes automated test equipment and robots. Its market cap is $41B at the current price of $265.78.

When does Teradyne report earnings next?

This is an estimate: Teradyne may report on January 27, 2027. It last reported results on October 27, 2026.

Is Teradyne stock below its intrinsic value?

Teradyne stock is below intrinsic value. This is general information, not advice.

What changed recently at Teradyne?

The latest update is from November 9, 2026. Teradyne completed its $300.0 million investment in FormFactor.

What are the main risks for Teradyne?

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 few customers buy most of its test equipment, and sales are concentrated in a few countries. Export rules and tariffs can limit sales.

How much debt and cash does Teradyne have?

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. This is as of September 27, 2026.

Does Teradyne pay a dividend?

Yes. The current annual dividend of Teradyne is $0.52 per share. That is a dividend yield of 0.2% at the current price of $265.78. In the last 12 months, it paid $0.51 per share (0.2%). The latest ex-dividend date was September 4, 2026.

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