This is an old version of TER from yesterday (Nov 12, 2026).See the latest version
TER
- Price
- $265.78
- Discount category
- Below intrinsic value
- Next earnings
- Feb 1, 2027
- Next earnings is estimate
- Yes
- Company name
- Teradyne
- Sector
- Semiconductor test equipment and robotics
- 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 new $300 million investment in FormFactor and the MultiLane joint venture must add to test revenue. The next tests are the Q4 2026 report in early February 2027 and its view of 2027.
- 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 use cash and carry deal risk.
- 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. The $300.0 million FormFactor investment is to close in Q4 2026. As of Sep 27, 2026.
- Checkpoints
- Dec 2026 (estimate): FormFactor investment closes. Pending. Watch: The $300.0 million investment closes in Q4 2026 and the joint solutions start, and this passes; a block by a regulator fails. Feb 1, 2027 (estimate): Q4 2026 results and the view of 2027. 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. Pending. Watch: Memory revenue stays above $200 million and Robotics stays profitable, and this passes; a loss in Robotics fails.
- Recent events
- Oct 27, 2026: 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. Oct 27, 2026: 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. Oct 6, 2026: 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. Aug 7, 2026: 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. Apr 8, 2026: 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.