Key Takeaways Teradyne's Semiconductor Test sales jumped 128% year over year to $1.12B in Q2 2026. New UltraFLEXplus tools target AI and data-center digital, PCIe Gen6 and high-power test needs. Teradyne expects Q3 revenues of $1.20-$1.30B as AI demand supports UltraFLEXplus adoption. Teradyne (TER - Free Report) is benefiting from accelerating artificial intelligence (AI)-driven semiconductor test demand, particularly across high-performance compute, networking, and advanced memory applications, positioning the company as a formidable player against KLA (KLAC - Free Report) and Cohu (COHU - Free Report) . The company’s growing demand for its UltraFLEXplus system, which is designed to address the complex testing requirements of high-performance processors and networking devices, has been noteworthy. UltraFLEXplus enables customers to reduce test development time, driving higher-efficiency volume production.
Building on this momentum, Teradyne recently launched three new instruments for its UltraFLEXplus semiconductor test platform to address growing AI and data-center computing requirements. The UltraPin5000-EM offers expanded vector memory and faster pattern loading for complex AI devices, while UltraPort-PCIe6 supports PCIe Gen6 testing at 64 Gbps across 32 lanes. The UltraVS64-HP delivers up to 1,280 amps per instrument to test increasingly power-intensive compute devices. Together, the products expand UltraFLEXplus capabilities across advanced digital, high-speed interface and power testing, supporting semiconductor manufacturers from wafer probe through final device validation.
The UltraFLEXplus system has proven to be a key driver in boosting the Semiconductor Test business. In the second quarter of 2026, Teradyne delivered a remarkable 128% year-over-year growth in its Semiconductor Test business, contributing $1.12 billion out of the company’s total $1.3 billion in sales. This segment alone accounted for 84% of total sales.
The growing demand for AI-driven applications, particularly in data centers, is expected to continue driving the adoption of UltraFLEXplus. The strong demand for UltraFLEXplus is likely to support top-line growth, strengthening Teradyne’s competitive position against KLA and Cohu in the semiconductor test market. For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion.
How Competitors Fare Against TERTeradyne is facing stiff competition from companies such as KLA and Cohu. Both companies are expanding their footprint in the AI space.
KLA is benefiting from the growing demand for AI through its leadership in process control and its ability to address growth markets in wafer fab equipment, including high-bandwidth memory and advanced packaging.
In May 2026, Cohu received approximately $5 million in multiple orders for its Diamond X platform from a leading semiconductor manufacturer. The systems will support testing of next-generation GaN power devices for AI data centers, strengthening Cohu’s position in AI infrastructure and high-efficiency power semiconductor testing.
TER’s Share Price Performance, Valuation and EstimatesTeradyne shares have surged 84.4% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 18.2% and the Zacks Electronics - Miscellaneous Products increase of 37.5%.
TER Stock Performance
Image Source: Zacks Investment Research
TER stock is trading at a premium with a forward 12-month Price/Sales of 9.75X compared with the Computer & Technology sector’s 6.11X. TER has a Value Score of F.
TER's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.10 per share, which has been unchanged over the past 30 days. This suggests 129.80% year-over-year growth.
Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
California State Teachers Retirement System raised its position in shares of Teradyne, Inc. (NASDAQ:TER – Free Report) by 46,425.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 115,598,569 shares of the company’s stock after acquiring an additional 115,350,107 shares during the period. California State Teachers Retirement System owned approximately 73.94% of Teradyne worth $55,931,212,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Carolina Wealth Advisors LLC grew its stake in shares of Teradyne by 42.5% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 114 shares of the company’s stock worth $55,000 after buying an additional 34 shares in the last quarter. Vestor Capital LLC lifted its holdings in shares of Teradyne by 15.4% in the 1st quarter. Vestor Capital LLC now owns 285 shares of the company’s stock valued at $85,000 after acquiring an additional 38 shares during the last quarter. Ashton Thomas Private Wealth LLC lifted its holdings in shares of Teradyne by 5.8% in the 2nd quarter. Ashton Thomas Private Wealth LLC now owns 727 shares of the company’s stock valued at $352,000 after acquiring an additional 40 shares during the last quarter. UMB Bank n.a. lifted its holdings in shares of Teradyne by 1.8% in the 4th quarter. UMB Bank n.a. now owns 2,293 shares of the company’s stock valued at $444,000 after acquiring an additional 40 shares during the last quarter. Finally, Stephens Inc. AR grew its position in Teradyne by 1.2% in the fourth quarter. Stephens Inc. AR now owns 3,332 shares of the company’s stock worth $645,000 after acquiring an additional 41 shares in the last quarter. 99.77% of the stock is currently owned by institutional investors.
Insider Buying and Selling at Teradyne In related news, CEO Gregory Smith sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $425.00, for a total value of $1,700,000.00. Following the completion of the sale, the chief executive officer owned 112,495 shares in the company, valued at approximately $47,810,375. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company’s stock.
Wall Street Analysts Forecast Growth TER has been the topic of several analyst reports. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. UBS Group lifted their target price on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Evercore reissued an “outperform” rating and set a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. Bank of America increased their price target on Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Finally, Robert W. Baird restated a “neutral” rating and issued a $420.00 price target on shares of Teradyne in a research report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Teradyne presently has an average rating of “Moderate Buy” and a consensus price target of $396.80. Get Our Latest Stock Analysis on TER
Teradyne Stock Performance NASDAQ TER opened at $357.03 on Monday. The company’s 50-day moving average price is $370.59 and its 200-day moving average price is $358.35. The stock has a market cap of $55.82 billion, a PE ratio of 48.98, a PEG ratio of 0.72 and a beta of 1.78. Teradyne, Inc. has a 12 month low of $109.56 and a 12 month high of $487.91.
Teradyne (NASDAQ:TER – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping the consensus estimate of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the firm posted $0.57 EPS. The firm’s revenue was up 103.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current year.
Teradyne Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. Teradyne’s dividend payout ratio (DPR) is 7.13%.
Teradyne Company Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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AlphaGrep UK Ltd purchased a new position in shares of Teradyne, Inc. (NASDAQ:TER – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 1,706 shares of the company’s stock, valued at approximately $825,000.
A number of other hedge funds have also recently modified their holdings of TER. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Teradyne in the 4th quarter valued at about $28,000. Community Financial Services Group LLC acquired a new stake in Teradyne during the 2nd quarter worth approximately $29,000. McIlrath & Eck LLC acquired a new stake in Teradyne in the first quarter valued at approximately $30,000. Elevation Wealth Partners LLC raised its position in shares of Teradyne by 1,320.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after purchasing an additional 66 shares in the last quarter. Finally, CYBER HORNET ETFs LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at approximately $35,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.
Teradyne Stock Performance Teradyne stock opened at $357.03 on Friday. The stock has a market capitalization of $55.82 billion, a P/E ratio of 48.98, a PEG ratio of 0.68 and a beta of 1.78. Teradyne, Inc. has a 52 week low of $109.56 and a 52 week high of $487.91. The stock has a 50-day simple moving average of $370.59 and a 200 day simple moving average of $358.04.
Teradyne (NASDAQ:TER – Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the business posted $0.57 EPS. The business’s revenue was up 103.9% compared to the same quarter last year. Research analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current year. Teradyne Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Friday, September 4th. Teradyne’s dividend payout ratio (DPR) is currently 7.13%.
Insider Transactions at Teradyne In other Teradyne news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $425.00, for a total value of $1,700,000.00. Following the completion of the sale, the chief executive officer owned 112,495 shares in the company, valued at approximately $47,810,375. This trade represents a 3.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.19% of the company’s stock.
Analyst Upgrades and Downgrades Several equities research analysts have commented on the stock. Wall Street Zen lowered shares of Teradyne from a “buy” rating to a “hold” rating in a research note on Saturday, August 29th. Morgan Stanley upped their price target on shares of Teradyne from $387.00 to $397.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Weiss Ratings raised shares of Teradyne from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, August 20th. Finally, Susquehanna raised their price objective on shares of Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $396.80.
Check Out Our Latest Research Report on Teradyne
Teradyne Company Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Key Takeaways Teradyne stock lost 15.4% in a month amid customer concentration, timing, mobile and margin pressures. AI demand fueled more than 60% of Teradyne's Q2 revenues, strengthening data-center prospects. Teradyne expects Q3 revenues of $1.20-$1.30B and non-GAAP EPS of $1.85-$2.15. Teradyne (TER - Free Report) shares have plummeted 15.4% over the past month, underperforming the Zacks Computer & Technology sector and the Zacks Electronics - Miscellaneous Products industry’s 2.4% and 12.9% decreases, respectively.
TER shares have also underperformed its peers, which include Vertiv (VRT - Free Report) , Cohu (COHU - Free Report) and KLA Corporation (KLAC - Free Report) . The companies are also expanding their footprint in the AI infrastructure space. Vertiv, Cohu and KLA shares have lost 4.9%, 13.4% and 11.9%, respectively, over the past month.
The underperformance can be attributed to customer concentration, program timing, muted mobile demand, memory-driven margin dilution, higher operating spending and currency exposure.
TER Stock Performance
Image Source: Zacks Investment Research
Despite these headwinds, Teradyne is benefiting from strong AI-related demand, which is driving significant investments in cloud AI build-out as customers accelerate production of a wide range of AI accelerators, networking, memory and power devices. These factors are helping Teradyne fend off competitors such as Vertiv, Cohu and KLA.
Teradyne Rides on Strong Datacenter GrowthTeradyne is benefiting from accelerating AI-driven data-center investments, which are expanding demand across semiconductor test, networking, storage, product test and robotics. This momentum is strengthening Teradyne’s prospects in the broader data-center infrastructure ecosystem. More than 60% of Teradyne’s second-quarter 2026 revenues were AI-driven, underscoring the success of its wafer-to-AI-data-center strategy.
A key driver of Teradyne’s momentum is the acceleration in semiconductor capital expenditures, especially in wafer fabrication equipment (WFE). As WFE CapEx is forecasted to approach $250 billion by the end of the decade, this is expected to drive 5% to 10% annual growth in wafer production and 15% to 20% compound annual growth in total transistor production. The increase in wafer and transistor production directly boosts demand for automated test equipment.
Teradyne’s leadership in both SOC and memory test solutions, especially for high-bandwidth memory (HBM) and DRAM, ensures it is well-placed to capitalize on this growth. The company’s memory business also saw revenues exceed $200 million for the third consecutive quarter in the second quarter of 2026, driven by strong demand for HBM and DRAM and a revival in NAND testing.
Growth is being reinforced by Quantifi Photonics and the Multilane Test Products JV, which expand Teradyne’s exposure to optical and high-speed interconnect testing. The company expects the Co-Packaged Optics testing market alone to reach $300-$700 million by 2028. Robotics is also benefiting as AI data-center construction boosts automation demand in electronics manufacturing and semiconductor production.
Teradyne Rides on Strong UltraFLEXplus DemandTeradyne is benefiting from the growing demand for its UltraFLEXplus system, which has been specifically designed to address the complex testing requirements of high-performance processors and networking devices. UltraFLEXplus enables customers to reduce test development times, driving up high-efficiency volume production.
Teradyne’s expanding portfolio has been noteworthy. The company recently launched three new instruments for its UltraFLEXplus semiconductor test platform to address growing AI and data-center computing requirements. The UltraPin5000-EM offers expanded vector memory and faster pattern loading for complex AI devices, while UltraPort-PCIe6 supports PCIe Gen6 testing at 64 Gbps across 32 lanes.
The UltraVS64-HP delivers up to 1,280 amps per instrument to test increasingly power-intensive compute devices. Together, the products expand UltraFLEXplus capabilities across advanced digital, high-speed interface and power testing, supporting semiconductor manufacturers from wafer probe through final device validation.
TER Initiates Positive Q3 GuidanceTeradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth.
For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.27 billion, suggesting a 64.67% year-over-year increase.
For the third quarter, the company’s non-GAAP earnings are expected to be between $1.85 and $2.15 per share. The consensus mark for earnings is pegged at $2.03 per share, which has been unchanged over the past 30 days. This indicates growth of 138.82% on a year-over-year basis.
TER Trades at a PremiumTeradyne shares are currently overvalued, as suggested by its Value Score of D.
Teradyne stock is trading at a premium with a forward 12-month Price/Sales of 9.35X compared with the Computer & Technology sector’s 6.03X.
TER's Valuation
Image Source: Zacks Investment Research
What Should Investors Do With TER Stock?Teradyne’s robust, diversified portfolio, which meets the rising demand for AI-driven technologies, is consistently contributing to its growth prospects. These factors have justified its premium valuation.
TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the latest trading session, Teradyne (TER - Free Report) closed at $341.62, marking a +1.84% move from the previous day. This move outpaced the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.45%.
Coming into today, shares of the maker of wireless products, data storage and equipment to test semiconductors had lost 16.88% in the past month. In that same time, the Computer and Technology sector gained 4.69%, while the S&P 500 gained 2%.
The investment community will be closely monitoring the performance of Teradyne in its forthcoming earnings report. In that report, analysts expect Teradyne to post earnings of $2.03 per share. This would mark year-over-year growth of 138.82%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.27 billion, indicating a 64.67% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $9.1 per share and a revenue of $5.05 billion, demonstrating changes of +129.8% and +58.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Teradyne. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Teradyne possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Teradyne is at present trading with a Forward P/E ratio of 36.86. This valuation marks a premium compared to its industry average Forward P/E of 19.67.
We can also see that TER currently has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Electronics - Miscellaneous Products industry currently had an average PEG ratio of 1.37 as of yesterday's close.
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NASDAQ:TER) today announced that Greg Smith, Chief Executive Officer, is scheduled to participate in a fireside chat at the Goldman Sachs Communacopia + Technology Conference on Wednesday, September 9, 2026, at 4:45 PM ET. A webcast of the fireside chat will be accessible from the Investor Relations page of the company's website at https://investors.teradyne.com/ beginning at the time indicated above, and an archive of the presentation will.
Suite of instruments delivers speed, power, and precision to meet emerging AI and data center device test challenges.
NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NASDAQ: TER), a leading provider of automated test equipment and advanced robotics, announced the launch of three new instruments for its UltraFLEXplus platform, designed to meet the increasingly complex demands of AI and data center semiconductor testing. The UltraPin5000-EM, UltraPort-PCIe6, and UltraVS64-HP instruments are designed to deliver unmatched scalability, flexibility, and performance, empowering semiconductor manufacturers to test advanced devices with maximum efficiency and accuracy. Together, these instruments aim to advance Teradyne's position across the full AI device supply chain, from first wafer probe to final rack validation, ensuring components in an AI data center meet the quality standards the industry demands.
Teradyne announced the launch of three new instruments for its UltraFLEXplus platform, designed to meet the increasingly complex demands of AI and data center semiconductor testing.
Share“As the AI and data center market drives unprecedented growth in semiconductor complexity, Teradyne remains committed to delivering innovative solutions that enable our customers to stay ahead in this rapidly evolving market,” said Greg Smith, CEO of Teradyne. “This new suite of instruments expands the capabilities of our UltraFLEXplus platform, offering the industry’s most advanced, future-proof solutions for testing cutting-edge devices.”
UltraPin5000-EM
The UltraPin5000-EM is Teradyne's next-generation digital instrument, purpose-built to address the demands of pattern-intensive AI and compute devices. With up to 80 times more vector memory than other market offerings, it enables testing of today’s most complex AI devices while future-proofing for tomorrow’s innovations. Pattern loads are up to 10 times faster, and a new Persistence Mode delivers near-instant reloads, enabling engineering teams to accelerate debug and characterization while production floors benefit from improved equipment efficiency.
The UltraPin5000-EM delivers excellent signal integrity at 5 Gbps data rates for robust high-bandwidth pattern throughput, while its flexible timing architecture supports independent clock frequencies per pin for seamless adaptation to heterogeneous device requirements. Scan network acceleration compiles per-core results in real time, enabling immediate adaptive test decisions and reducing structural test time without sacrificing coverage. Compatible with the UltraPin2200, the UltraPin5000-EM protects customer's existing investments while scaling to meet new device requirements.
UltraPort-PCIe6
The UltraPort-PCIe6 is the industry's first high-speed I/O protocol ATE solution for PCIe Gen6 interfaces, delivering 64 Gbps (PAM-4) across 32 lanes per instrument. Excellent signal integrity performance, combined with unique per-pin PMU and integrated loopback capability, provides enhanced test coverage, broader diagnostics, and the cleanest signal path to the device, for test solution setups that can be brought up quickly and stay stable in production. A dedicated server-class compute backend scales to 2TB of high-performance memory, executing the largest test data sets at the fastest test times.
The instrument supports both mission-mode testing and high-speed I/O scan, enabling test coverage to shift to earlier insertions to improve Known Good Die confidence, and reduce waste of high-value HBM and advanced packaging assemblies.
UltraVS64-HP
The UltraVS64-HP is Teradyne's most advanced power supply, delivering 1280 amps per instrument, 5120 amps per ganged supply, and total test cell capacity exceeding 15,000 amps. A unique 16V range makes the UltraVS64-HP ready for emerging integrated voltage regulator (IVR) architectures, spanning low-voltage, high-current devices through higher-voltage inputs. This current and voltage headroom lets customers follow advanced packaging roadmaps toward larger, higher-power compute devices - all from a single instrument.
New integrated multi-point sense joins superior dynamic load response to preserve device yields, holding conditions stable as high-current activity shifts across reticle-size die and multi-die packages. Advanced power profiling provides push-button access to deep insights into device behavior during test, critical for characterizing next-generation architectures and for optimizing test programs to measured results. A new, dedicated Intelligent power interface brings elements of system-level power management into the test cell and adds fast hardware-level fault response that guards against thermal runaway, and the costly probe card and socket damage it can cause.
Visit Teradyne at SEMICON Taiwan, meeting room #534, September 2-4, 2026, in Taipei, Taiwan to explore these innovative products and more. For more information about these instruments, visit teradyne.com/ultraflexplus.
About Teradyne
Teradyne (NASDAQ: TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its semiconductor and electronics test solutions span the full AI device supply chain, from wafer to data center, enabling customers to meet the quality and reliability standards the AI era demands. Its advanced robotics business deploys intelligent automation across manufacturing, logistics, and data center operations for customers worldwide. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.
Benjamin Edwards Inc. lowered its position in shares of Teradyne, Inc. (NASDAQ:TER – Free Report) by 53.6% in the second quarter, according to its most recent 13F filing with the SEC. The firm owned 4,274 shares of the company’s stock after selling 4,929 shares during the quarter. Benjamin Edwards Inc.’s holdings in Teradyne were worth $2,068,000 as of its most recent filing with the SEC.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Teradyne during the second quarter valued at approximately $9,404,408,000. Andar Capital Management HK Ltd purchased a new position in shares of Teradyne in the 2nd quarter valued at $37,800,000. State Street Corp lifted its holdings in shares of Teradyne by 0.9% during the 4th quarter. State Street Corp now owns 7,078,635 shares of the company’s stock valued at $1,370,141,000 after acquiring an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Teradyne by 3.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company’s stock valued at $442,413,000 after acquiring an additional 143,058 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its position in Teradyne by 18.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after purchasing an additional 659,273 shares during the period. Institutional investors and hedge funds own 99.77% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have commented on the company. Wall Street Zen lowered Teradyne from a “buy” rating to a “hold” rating in a research report on Saturday. UBS Group raised their target price on Teradyne from $440.00 to $500.00 and gave the company a “buy” rating in a report on Monday, July 20th. Cantor Fitzgerald restated an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a report on Wednesday, July 29th. Bank of America increased their price objective on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Finally, Evercore reissued an “outperform” rating and set a $420.00 target price on shares of Teradyne in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $396.80.
Get Our Latest Report on Teradyne Teradyne Stock Performance Shares of TER opened at $349.83 on Tuesday. The company has a market capitalization of $54.69 billion, a P/E ratio of 47.99, a P/E/G ratio of 0.72 and a beta of 1.78. Teradyne, Inc. has a one year low of $109.56 and a one year high of $487.91. The stock has a 50-day moving average price of $378.22 and a 200 day moving average price of $357.57.
Teradyne (NASDAQ:TER – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the business earned $0.57 EPS. Teradyne’s revenue for the quarter was up 103.9% compared to the same quarter last year. As a group, equities research analysts forecast that Teradyne, Inc. will post 9.1 earnings per share for the current fiscal year.
Teradyne Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.1%. Teradyne’s dividend payout ratio (DPR) is presently 7.13%.
Insider Activity In related news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction on Monday, August 17th. The shares were sold at an average price of $425.00, for a total value of $1,700,000.00. Following the completion of the sale, the chief executive officer owned 112,495 shares in the company, valued at approximately $47,810,375. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.19% of the company’s stock.
Teradyne Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Gregory Stephen Smith, President and CEO of Teradyne, Inc. (TER -4.59%), sold 4,000 shares of common stock on Aug. 17, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.7 millionShares sold (directly held)4,000Post-transaction shares (directly held)112,495Post-transaction value$49.85 millionTransaction value based on SEC Form 4 weighted average sale price ($425.00); post-transaction value based on Aug. 17, 2026 market close ($443.14).
Key questionsUnder what conditions was this sale executed?
The transaction was carried out pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on Feb. 12, 2026, providing a structured schedule for the disposal of shares.What is the scale of the remaining equity position?
Following the sale of 4,000 shares, the executive maintains a direct position of 112,495.4075 shares, representing approximately 0.0720% of the company.How has the stock performed leading up to this transaction?
As of the Aug. 17, 2026 market close, the stock had achieved a 306% total return over the preceding 12 months.What is the current market value of the executive's total beneficial holdings?
The remaining shares are valued at $49.85 million based on the market close of $443.14 as of Aug. 17, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$443.14Market Capitalization$69.3 billionRevenue (TTM)$4.5 billionNet Income (TTM)$1.2 billionCompany SnapshotTeradyne designs, manufactures, sells, and services automated testing equipment and solutions for semiconductor manufacturers, with primary revenue derived from semiconductor test systems that validate microchips at both the wafer and finished-device stages across automotive, industrial, telecom, and consumer electronics applications.The company operates a diversified business model generating revenue through the sale of test equipment, software platforms, and support services, with recurring revenue streams from maintenance contracts and customer support services that provide stable cash flow and enhance customer retention.Teradyne serves semiconductor manufacturers, integrated device manufacturers, and fabless design companies globally, with particular strength in serving leading-edge chip producers in automotive, 5G telecommunications, and industrial computing markets.
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Teradyne is a global leader in automated semiconductor testing solutions with a market capitalization of $69.3 billion and TTM revenues of $4.5 billion, demonstrating substantial scale and profitability with TTM net income of $1.2 billion.
The company has experienced significant momentum, with a one-year share price appreciation of 306%, reflecting strong demand for semiconductor test equipment driven by industrywide capacity expansion and advanced node development.
Teradyne's competitive advantage is anchored in its comprehensive portfolio of test platforms, deep customer relationships with major semiconductor manufacturers, and integrated software and services that create switching costs and generate recurring revenue.
What this transaction means for investorsThis sale shouldn't concern investors. It represented a small percentage of the CEO's total stake and was a pre-planned transaction under a Rule 10b5-1 plan. This is commonly used to allow insiders to make planned sales while avoiding conflicts of interest or the appearance of acting on material non-public information.
Importantly, Teradyne is performing well, with TTM revenue soaring over the past year. This has also fueled a higher margin and earnings.
The stock is not cheap, trading at a high price-to-earnings multiple, yet analysts are also projecting strong earnings growth to continue. The current consensus estimate calls for earnings to grow at an annualized rate of 28% in the coming years.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teradyne. The Motley Fool has a disclosure policy.
Barron's reporter Jacob Sonenshine discusses some names he's keeping a close eye on in the coming weeks and months. He lists Southern Companies (SO) as a utility firm "putting CapEx money to work" as the AI buildout accelerates.
Key Takeaways Teradyne benefits as AI data-center investments lift demand across semiconductor test and robotics. Memory revenues topped $200M for a third straight quarter on strong HBM, DRAM and revived NAND demand. Teradyne expects Q3 revenues of $1.20B-$1.30B as AI data-center build-outs sustain demand. Teradyne (TER - Free Report) is benefiting from accelerating AI-driven data-center investments, which are expanding demand across semiconductor test, networking, storage, product test and robotics. This momentum is strengthening Teradyne’s prospects in the broader data-center infrastructure ecosystem alongside Cisco Systems (CSCO - Free Report) and Vertiv Holdings (VRT - Free Report) . More than 60% of Teradyne’s second-quarter 2026 revenues were AI-driven, underscoring the success of its wafer-to-AI-data-center strategy.
A key driver of Teradyne’s momentum is the acceleration in semiconductor capital expenditures, especially in wafer fabrication equipment (WFE). As WFE CapEx is forecasted to approach $250 billion by the end of the decade, this is expected to drive 5% to 10% annual growth in wafer production and 15% to 20% compound annual growth in total transistor production. The increase in wafer and transistor production directly boosts demand for automated test equipment.
Teradyne’s leadership in both SOC and memory test solutions, especially for high-bandwidth memory (HBM) and DRAM, ensures it is well-placed to capitalize on this growth. The company’s memory business also saw revenues exceed $200 million for the third consecutive quarter in the second quarter of 2026, driven by strong demand for HBM and DRAM and a revival in NAND testing.
Growth is being reinforced by Quantifi Photonics and the Multilane Test Products JV, which expand Teradyne’s exposure to optical and high-speed interconnect testing. The company expects the Co-Packaged Optics testing market alone to reach $300-$700 million by 2028. Robotics is also benefiting as AI data-center construction boosts automation demand in electronics manufacturing and semiconductor production.
Teradyne expects sustained AI data-center build-outs to drive greater demand for compute, networking, memory, product-test and automation solutions, strengthening its position across the broader infrastructure ecosystem that includes Cisco Systems and Vertiv. The company expects third-quarter 2026 revenues between $1.20 billion and $1.30 billion.
How Competitors Fare Against TERTeradyne is facing stiff competition from companies such as Cisco Systems and Vertiv. Both companies are also expanding their footprints in the AI and data center markets.
Cisco Systems is benefiting from strong data center growth by capturing surging demand for AI infrastructure and networking solutions, with data center networking orders growing more than 35% year over year in the fourth quarter of fiscal 2026. The company’s comprehensive portfolio, which includes Silicon One-powered systems, optics and integrated security, positions it as a key provider for hyperscalers and enterprises modernizing their data centers to support advanced AI workloads.
Vertiv is benefiting from the robust demand for AI-driven infrastructure, which is driving significant growth in the data center market. The company’s robust demand across its core markets, particularly in the Americas and APAC regions, remains noteworthy. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.
TER’s Share Price Performance, Valuation, and EstimatesTeradyne shares have surged 89.3% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 14.4% and the Zacks Electronics - Miscellaneous Products increase of 37.2%.
TER Stock Performance
Image Source: Zacks Investment Research
TER stock is trading at a premium with a forward 12-month Price/Sales of 10.07X compared with the Computer & Technology sector’s 6.26X. TER has a Value Score of D.
TER's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $9.10 per share, which has increased 26.38% over the past 30 days. This suggests 129.80% year-over-year growth.
Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arini Capital Management Ltd acquired a new position in Teradyne, Inc. (NASDAQ:TER – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 10,000 shares of the company’s stock, valued at approximately $4,838,000. Teradyne comprises approximately 0.5% of Arini Capital Management Ltd’s holdings, making the stock its 21st biggest holding.
A number of other hedge funds and other institutional investors also recently made changes to their positions in TER. BlackRock Inc. bought a new stake in shares of Teradyne during the 2nd quarter valued at about $9,404,408,000. Andar Capital Management HK Ltd bought a new position in Teradyne in the second quarter worth about $37,800,000. State Street Corp raised its stake in Teradyne by 0.9% in the fourth quarter. State Street Corp now owns 7,078,635 shares of the company’s stock worth $1,370,141,000 after buying an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in Teradyne by 3.0% in the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company’s stock worth $442,413,000 after buying an additional 143,058 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its holdings in Teradyne by 18.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after buying an additional 659,273 shares during the period. Institutional investors own 99.77% of the company’s stock.
Key Teradyne News Here are the key news stories impacting Teradyne this week:
Positive Sentiment: Teradyne’s AI-driven datacenter exposure, strong memory demand and strategic initiatives are viewed as supporting further growth, potentially strengthening its position relative to Cisco and Vertiv. Strong Datacenter Growth Boosts TER’s Prospects Against CSCO & VRT Positive Sentiment: Industry analysts continue to identify Teradyne as a beneficiary of semiconductor infrastructure investment, expanded production capacity and resilient electronics demand, despite macroeconomic risks. Zacks Industry Outlook KLA, Teradyne and Garmin Positive Sentiment: A new quarterly dividend of $0.13 per share, payable September 25 to shareholders of record September 4, reinforces Teradyne’s shareholder-return strategy. Some analysis also suggests the stock could be undervalued following its recent decline. Teradyne Could Be 18% Undervalued Neutral Sentiment: Teradyne was featured in commentary as a potential “hidden AI play,” increasing visibility among investors seeking companies positioned to benefit from datacenter expansion. Jacob Sonenshine Sees MU Buy Opportunity, TER & SO as Hidden AI Plays Neutral Sentiment: Reported August short-interest data showed zero shares sold short and a zero-day days-to-cover ratio, providing no meaningful evidence of short-selling pressure; the figures may reflect incomplete or anomalous data. Negative Sentiment: CEO Gregory Smith sold 4,000 shares for approximately $1.7 million. The transaction followed a pre-planned Rule 10b5-1 schedule, reducing its signaling impact but potentially adding modest near-term caution. Teradyne CEO Gregory Smith Sells 4,000 Shares Negative Sentiment: The dividend announcement comes after a sharp recent pullback, while Teradyne’s valuation remains demanding at roughly 50 times earnings. Investors may be taking profits after the stock’s substantial year-to-date advance, despite strong earnings momentum. Analyst Ratings Changes A number of research analysts have weighed in on TER shares. Cantor Fitzgerald reiterated an “overweight” rating and set a $550.00 target price on shares of Teradyne in a report on Wednesday, July 29th. Weiss Ratings upgraded Teradyne from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, August 20th. Zacks Research upgraded Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Citigroup upped their price target on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. raised Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price objective for the company in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $396.80. Get Our Latest Analysis on Teradyne
Insider Transactions at Teradyne In other news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $425.00, for a total transaction of $1,700,000.00. Following the sale, the chief executive officer owned 112,495 shares of the company’s stock, valued at $47,810,375. This trade represents a 3.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.19% of the company’s stock.
Teradyne Trading Down 0.9% Shares of NASDAQ:TER opened at $363.10 on Thursday. The stock has a fifty day simple moving average of $383.34 and a two-hundred day simple moving average of $356.43. The stock has a market capitalization of $56.77 billion, a price-to-earnings ratio of 49.81, a PEG ratio of 0.74 and a beta of 1.78. Teradyne, Inc. has a 12-month low of $109.56 and a 12-month high of $487.91.
Teradyne (NASDAQ:TER – Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $2.47 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the prior year, the firm posted $0.57 earnings per share. The company’s quarterly revenue was up 103.9% on a year-over-year basis. As a group, equities research analysts predict that Teradyne, Inc. will post 9.1 EPS for the current year.
Teradyne Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a $0.13 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a yield of 0.1%. Teradyne’s payout ratio is 7.13%.
Teradyne Company Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Teradyne is well-positioned to benefit from rising AI-driven test complexity across compute, memory, and photonics, supporting a BUY rating. TER's diversified test platforms and early qualification in AI, HBM, and optical testing provide durable growth opportunities beyond a single accelerator cycle. Recent results show strong operating leverage, with AI-related revenue exceeding 60% and management guiding for robust growth into 2026 and 2027.
Teradyne (TER - Free Report) closed the last trading session at $363.1, gaining 13.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $454.07 indicates a 25.1% upside potential.
The average comprises 14 short-term price targets ranging from a low of $390.00 to a high of $550.00, with a standard deviation of $55.9. While the lowest estimate indicates an increase of 7.4% from the current price level, the most optimistic estimate points to a 51.5% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for TER, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why TER Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, eight estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 26.3%.
Moreover, TER currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much TER could gain, the direction of price movement it implies does appear to be a good guide.
It has been about a month since the last earnings report for Teradyne (TER - Free Report) . Shares have added about 13.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Teradyne due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Teradyne, Inc. before we dive into how investors and analysts have reacted as of late.
Teradyne Q2 Earnings Beat Estimates, Revenues Increase Year over YearTeradyne delivered second-quarter 2026 non-GAAP earnings of $2.47 per share, up 333.3% year over year and beating the Zacks Consensus Estimate by 21.08%.
Revenues surged 103.9% to $1.329 billion and topped the consensus mark by 9.37%. Results reflected record Memory revenues, supported by continued DRAM strength and a resurgence in NAND final test. The company also registered its second consecutive quarter of record revenues.
Teradyne's Semiconductor Test Unit Leads the MixSemiconductor Test generated revenues of $1.122 billion, representing 84.4% of total quarterly sales. The segment remained Teradyne’s primary growth engine as demand for advanced compute and memory testing stayed strong.
Product Test contributed $107 million, or 8.1% of total revenues. Robotics generated $100 million, which accounted for the remaining 7.5%. The distribution shows that Semiconductor Test continued to dominate Teradyne’s revenue mix, although each business group participated in the year-over-year expansion.
Teradyne Benefits From Memory Test StrengthRecord Memory revenues were driven by continued strength in DRAM and renewed demand for NAND final-test systems. These trends supported another strong quarter for Teradyne’s semiconductor-testing portfolio.
Management linked the performance to its strategy of capturing test and robotics opportunities from the wafer stage through the AI data center. The company also noted robust near-term AI-related demand across its served markets.
TER Operating DetailsNon-GAAP gross profit was $794.6 million, with the gross margin reaching 59.8%. This compared with $373.3 million and 57.3%, respectively, in the year-ago quarter, marking a 250-basis-point expansion.
Selling and administrative expenses rose 22% year over year to $192.5 million. However, these costs represented 14.5% of revenues, down from 24.2% in the prior-year period as sales growth outpaced the increase in spending.
Engineering and development expenses climbed 32% year over year to $156.3 million. As a share of revenues, the expense fell to 11.8% from 18.2%, indicating that higher development spending was absorbed by the larger revenue base.
Non-GAAP income from operations increased 356.5% year over year to $448.3 million. The non-GAAP operating margin expanded to 33.7% from 15.1%, reflecting substantial operating leverage from the sharp revenue increase.
TER’s Balance Sheet & Cash FlowAs of June 28, 2026, Teradyne’s cash and cash equivalents (including marketable securities) were $354.8 million, up from $245.5 million as of March 29, 2026.
Net cash provided by operating activities was $469.1 million in the second quarter.
TER Issues Strong Third-Quarter OutlookFor the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. GAAP net income attributable to the company is projected to be in the range of $1.79-$2.09 per share.
Non-GAAP earnings are expected to be between $1.85 and $2.15 per diluted share. Management said that the outlook reflects robust AI-related demand, while rising wafer fabrication equipment investment is expected to support continued growth in 2027 and beyond.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 45.03% due to these changes.
VGM ScoresAt this time, Teradyne has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Teradyne has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Teradyne, Inc. (NASDAQ: TER) today announced a quarterly cash dividend of $0.13 per share, payable on September 25, 2026, to shareholders of record as of the clo
Investors seek guideposts while screening for companies with healthy stock charts and sturdy profits. When analysts raise their earnings estimates for some of these stocks, they provide that pointer, and their vote of confidence is hard to ignore. Four stocks in Investor's Business Daily stock screener for rising profit estimates are in bases on Monday.
Among them, Figs (FIGS) is in a cup-with-handle base with an entry at 16.38. This is a first-stage base that can net higher gains than later-stage ones.
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Figs sells clothes and shoes for the medical industry. Shares surged 27% on earnings on Aug. 7 to form the handle buy point. The company reported its fifth quarter of triple-digit profit growth.
For 2026, analysts see profit rising 94% to 37 cents per share. In 2027, Wall Street estimates a nearly 6% increase to 39 cents.
Lumentum (LITE) has joined the list of companies with rising profit estimates as shares hover in a consolidation with a buy point of 1,085.68, IBD MarketSurge shows. The telecom fiber optic name has become a key player in the artificial intelligence trade amid surging data center demand.
Fourth-quarter results beat Wall Street's targets. Earnings of $3.23 topped views of $2.97 while sales rose to $1 billion, which was $2 million above estimates. It was the fifth quarter of at least triple-digit earnings growth.
Rising profit estimates show the growth story remains intact. Analysts are calling for 2026 profit of $21.42, which would mark a 147% increase year over year. In 2027, they expect 55% growth to $33.26.
Stock Market: Teradyne In Base
Also a central name amid the AI data center boom, Teradyne (TER) has formed a consolidation base with an entry at 487.91. The buy point is the stock's all-time high. This is a first-stage base.
Find Stocks To Watch: From Top IPOs To Large And Small Caps
Teradyne makes test equipment for chips and robotics components. It has reported triple-digit earnings for two consecutive quarters. Analysts expect to see earnings jump 132% to $9.21 in 2026, and by 28% to $11.75 in 2027.
ASE Technology Holdings (ASX) is in a consolidation with a 45.52 pivot. After four quarters of accelerating profit, analysts have raised their targets and expect a 102% pop to $1.13 in 2026.
In 2027, Wall Street expects ASE's earnings to climb 51% to $1.71 per share. ASE sells packaging and system integration technologies for the semiconductor industry.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NASDAQ:TER) today announced a quarterly cash dividend of $0.13 per share, payable on September 25, 2026, to shareholders of record as of the close of business on September 4, 2026. About Teradyne Teradyne (NASDAQ: TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its semiconductor and electronics test solutions span the full AI device supply chain, from wafer to data center, enabling customers.
B. Metzler seel. Sohn & Co. AG bought a new position in shares of Teradyne, Inc. (NASDAQ:TER – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 9,974 shares of the company’s stock, valued at approximately $4,826,000.
A number of other large investors have also recently bought and sold shares of the company. Community Financial Services Group LLC acquired a new stake in Teradyne during the second quarter worth about $29,000. Elevation Wealth Partners LLC raised its position in Teradyne by 1,320.0% during the second quarter. Elevation Wealth Partners LLC now owns 71 shares of the company’s stock valued at $34,000 after acquiring an additional 66 shares in the last quarter. Mcdonald Partners LLC acquired a new position in Teradyne in the second quarter valued at approximately $36,000. Hilltop National Bank acquired a new position in Teradyne in the second quarter valued at approximately $41,000. Finally, McIlrath & Eck LLC purchased a new stake in Teradyne in the 1st quarter worth approximately $30,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.
Insider Buying and Selling In related news, CEO Gregory Stephen Smith sold 4,000 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $425.00, for a total value of $1,700,000.00. Following the completion of the sale, the chief executive officer directly owned 112,495 shares of the company’s stock, valued at $47,810,375. The trade was a 3.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.19% of the stock is owned by corporate insiders.
Teradyne Stock Down 1.9% Teradyne stock opened at $375.74 on Friday. The company’s 50 day moving average is $386.46 and its two-hundred day moving average is $353.78. Teradyne, Inc. has a 52-week low of $109.56 and a 52-week high of $487.91. The firm has a market cap of $58.74 billion, a PE ratio of 51.54, a price-to-earnings-growth ratio of 0.77 and a beta of 1.78. Teradyne (NASDAQ:TER – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.Teradyne’s revenue for the quarter was up 103.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.57 EPS. On average, equities research analysts anticipate that Teradyne, Inc. will post 9.1 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price for the company in a report on Thursday, April 30th. Citigroup upped their price objective on shares of Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Weiss Ratings raised Teradyne from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, August 6th. Evercore reiterated an “outperform” rating and set a $420.00 price target on shares of Teradyne in a research report on Thursday, July 30th. Finally, Stifel Nicolaus raised their price objective on Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a report on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $396.80.
View Our Latest Stock Analysis on Teradyne
Teradyne Company Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Allworth Financial LP bought a new stake in Teradyne, Inc. (NASDAQ: TER) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 4,225 shares of the company's stock, valued at approximately $2,044,000. Other large investors also recently added to or reduced their stakes
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Baird analyst Quinn Fredrickson downgraded Teradyne Inc (NASDAQ:TER) from Outperform to Neutral and maintained the price target of $420. Teradyne closed at $383.15 on Thursday. See how other analysts view this stock. HSBC analyst Jonathan Brandt downgraded Ternium SA (NYSE:TX) from Buy to Hold and raised the price target from $53 to $55. Ternium shares closed at $54.21 on Thursday. See how other analysts view this stock. Canaccord Genuity analyst Richard Close downgraded Health Catalyst Inc (NASDAQ:HCAT) from Buy to Hold and cut the price target from $3 to $1.8. Health Catalyst closed at $1.63 on Thursday. See how other analysts view this stock. JP Morgan analyst Samik Chatterjee downgraded DoubleVerify Holdings Inc (NYSE:DV) from Overweight to Neutral and announced a $13.6 price target. DoubleVerify shares closed at $13.31 on Thursday. See how other analysts view this stock. JP Morgan analyst Tomohiko Sano downgraded Limbach Holdings, Inc. (NASDAQ:LMB) from Neutral to Underweight and cut the price target from $60 to $50. Limbach closed at $42.75 on Thursday. See how other analysts view this stock. Considering buying TER stock? Here’s what analysts think:
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Higher chip testing cadence is natural, given the insatiable compute/memory demand, growing data center footprint, and expanding chip volume/complexity. These have contributed to the higher WFE/ATE ratio and TER's robust, multi-year AI-driven growth tailwinds, as observed in the promising medium-term targets. The premium P/E of 48.74x has been justified by the rich adj. EPS growth prospects, while unlocking an excellent upside potential to my LTPT of $529.
Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) shares are down 4% to $494.82 in midday trading Wednesday, extending a second straight session of heavy selling across chip equipment names. The company’s stock is still up 101% year to date through Tuesday’s close year to date (YTD), so today’s decline sits inside an enormous run rather than reversing it.
The pullback is concentrated in the picks-and-shovels group that led the AI infrastructure trade this year. The chipmakers get the headlines, but the buildout also runs through power, cooling, and networking suppliers we profiled in a free report here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
What makes today unusual is the backdrop. Long-end Treasury yields fell hard on Treasury Department plans to at least double buybacks of 10-year to 30-year debt, and that relief normally lifts high-multiple growth names. Equipment stocks selling into that tailwind points to AI capex repricing rather than a rates problem.
AI Capex Durability Comes Under Scrutiny The trigger is a sharper debate over how much AI infrastructure spending is actually locked in. The Wall Street Journal reported that nine top tech companies carry roughly $3 trillion of off-balance-sheet commitments mostly tied to AI, growing faster than traditional capital expenditures that totaled about $600 billion over the past year. Those obligations were about triple what those companies owe under outstanding leases and long-term borrowings.
Model economics added to the anxiety. Anthropic told investors its annualized revenue run rate reached $65 billion at the end of July, and OpenAI’s run rate recently reached $40 billion. Both figures landed below expectations circulating among investors.
Reuters reported that Anthropic is projecting 2028 revenue of $190 billion to $200 billion, a figure that also sits below some investor projections. Applied Materials and its peers sit at the front line of that repricing because their order books are the most direct expression of AI capex, so any doubt reaches equipment names before it reaches chip designers.
Peer Equipment Names Extend the Slide Lam Research (NASDAQ:LRCX) shares are down 5% to $309.94, the deepest single-day drop in the group. The company’s stock was up 92% year to date through Tuesday’s close, and CEO Tim Archer told investors last month that “AI is driving unprecedented demand, greater technical requirements, and accelerated architectural scaling at both the device and packaging level.”
Meanwhile, KLA Corporation (NASDAQ:KLAC) shares are down 4% to $187.92, with the process-control leader tracking the group lower. The company’s stock is up 61% year to date through Tuesday’s close, the smallest YTD gain in the cohort and consistent with a name that already carried China export-control overhang.
Furthermore, Teradyne (NASDAQ:TER) shares are down 5% to $384.26, and Teradyne stock is up 109% year to date through Tuesday’s close, the largest YTD run in the group. That leadership on the way up is working against the stock today as recent positioning unwinds.
The iShares Semiconductor ETF Softens the Sector Read For a broader context, the iShares Semiconductor ETF (NASDAQ:SOXX) trades at $522.49 and is up 77% year to date through Tuesday’s close. The fund is a broad semiconductor benchmark rather than a pure chip-equipment vehicle.
Its holdings blend chip designers, manufacturers, and equipment suppliers, which dilutes equipment-specific moves and helps explain why the iShares Semiconductor ETF sits between the 61% YTD gain of KLA Corporation and the 109% YTD gain of Teradyne. Traders reading the fund as a proxy for equipment stress should keep that concentration profile in mind.
What to Watch Now The split between index-level gains and equipment weakness tells the story cleanly. The Dow Jones Industrial Average gained 0.23% and the S&P 500 gained 0.32%, while the NASDAQ 100 edged just above the flat line on chip weakness. The 10-year Treasury yield fell 5 basis points to 4.65% and the 30-year yield declined 8 basis points to 5.2%.
Traders can watch for incremental commentary from hyperscalers on 2027 capital plans, since that is the most direct offset to the AI capex durability concerns hitting Applied Materials, Lam Research, KLA Corporation, and Teradyne today. Position sizing matters more than direction here given how much year-to-date gain is still embedded in these names.
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[url="]LitePoint[/url], a leading provider of communication test solutions, today announced the successful validation of physical layer (PHY) performance for ST
Dnes se indexy napříč sektory sesouvají do červených čísel. Nejvíce „krvácí“ technologický sektor, potažmo čipový sektor. Hlavním katalyzátorem je opět se stupňující napětí ohledně Hormuzského průlivu. Ten tlačí ceny ropy nahoru a WTI nyní roste o +0,48 %. Obchodní loď průlivu opět zasáhl projektil a komentáře americké a íránské strany nepřidávají na optimismu. Zároveň vypršelo šedesátidenní období pro dosažení dohody, přičemž nedošlo k žádnému výsledku. Trump zároveň odmítl jeho prodloužení v dohledné době. Riziko růstu ceny ropy přiživuje obavu z inflace, tak jak tomu bylo na začátku konfliktu. Toto dění dnes tlačí také na výnosy třicetiletých státních dluhopisů, které jsou na svých 19letých maximech, což jen podtrhává tlak na akciové tituly.
Proti proudu jdou z technologického sektoru akcie společnosti Apple, které momentálně rostou +1,67 % Společnost dnes oznámila změny, které řeší neshody ohledně obchodních podmínek, týkajících se alternativních aplikací pro distribuci aplikací. Snaží se tak vyhovět výtkám evropských regulačních orgánů. Změny se dotknou též účtovaných provizí.
Daří se též akciím streamovací platformy Netflix, která přidává +3,55 %. Zjevně se jedná o korekci včerejšího výrazného poklesu. Opačný příběh je pak u výrobce SanDisk, které klesají -9,6 %.
Společnost Home Depot překonala čtvrtletní odhady. Výsledky byly taženy převážně maloobchodem. Prodeje zboží byly vyšší napříč skladovacími a elektronickými produkty. Akcie přidávají +0,54 %.
Index Dow Jones -0,14 % na 53382,58 b.
S&P 500 -0,54 % na 7702,92 b.
Nasdaq Composite -1,15 % na 26337,62 b.
Index S&P 500 -0,54 % na 7702,92 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zdravotní péče +1,6 % Informační technologie -2 % Energie +1,4 % Průmysl -1,2 % Nezbytná spotřeba +1,4 % Základní materiály -0,5 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Targa Resources Corp (TRGP) +7,5 % Coherent Corp (COHR) -12 % Ulta Beauty (ULTA) +5,7 % Ciena Corp (CIEN) -11 % Intuit (INTU) +5,6 % Teradyne (TER) -10 % GoDaddy (GDDY) +5,3 % Lumentum Holdings (LITE) -9,9 % Adobe (ADBE) +5,0 % Sandisk Corp (SNDK) -9,6 %
Jan Pazourek, Fio banka, a.s.
Index Dow Jones -0,09 % na 53411,87 b. S&P 500 -0,53 % na 7704,15 b. Nasdaq Composite -1,24 % na 26315,63 b.
Nejsledovanější americké indexy v úvodu úterního obchodování ztrácejí. V popředí poklesu jsou akcie spojené s výrobou čipů pro AI.
Společnost Meta Platforms (-3,7 %) dnes míří k soudu do ostře sledovanému střetu s koalicí státních generálních prokurátorů kvůli tvrzením, že firma záměrně navrhla Facebook a Instagram tak, aby u mladých uživatelů podporovaly kompulzivní chování a vznik závislosti.
Společnost Targa Resources (+6,2 %) oznámila, že uzavřela nové dvacetileté infrastrukturní smlouvy na bázi poplatků, které podpoří rozvoj těžebních lokalit společnosti ExxonMobil (+1,6 %) v Permské pánvi. V návaznosti na tyto dohody Targa zvýšila svůj odhad růstových kapitálových výdajů pro rok 2026 na přibližně 5,0 mld. USD.
Největší americký obchodník s domácím vybavením Home Depot (+0,1 %) zveřejnil hospodářské výsledky za druhý kvartál. Celkové tržby meziročně vzrostly o 5,7 % na 47,86 mld. USD a porovnatelné tržby se zvýšily o 1,7 %, čímž překonaly očekávání trhu.
Švédská finančně-technologická společnost Klarna (-19,6 %) zveřejnila výsledky hospodaření za 2Q 2026. Výnosy i zisk na akcii překonaly odhady trhu. Firma nicméně snížila celoroční výhled objemu transakcí i výnosů, a to kvůli kurzovým vlivům a obezřetnějšímu pohledu na německý trh, který je pro Klarnu objemově největší. Společnost zároveň oznámila odchod finančního ředitele.
Čínská technologická společnost Baidu (-8,9 %), která provozuje mimo jiné největší čínský vyhledávač či autonomní vozidla Apollo, dnes oznámila výsledky za 2Q. Výnosy klesly již pátý kvartál v řadě, přičemž byly taženy dolů online marketingovými výnosy, které meziročně poklesly o 19 %. Byznys poháněný umělou inteligencí naopak rostl meziročně o 25 % a na výnosech hlavního byznysu se podílel polovinou.
Index S&P 500 -0,53 % na 7704,15 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Zdravotní péče +1,8 % Informační technologie -1,9 % Energie +1,1 % Průmysl -0,9 % Nezbytná spotřeba +1,1 % Komunikační služby -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Targa Resources Corp (TRGP) +6,2 % Coherent Corp (COHR) -9,8 % Ulta Beauty (ULTA) +5,1 % Teradyne (TER) -8,0 % GoDaddy (GDDY) +5,0 % Marvell Technology (MRVL) -6,8 % Intuit (INTU) +4,8 % Flex (FLEX) -6,4 % Tapestry (TPR) +4,4 % Ciena Corp (CIEN) -6,3 % Zdroj: Bloomberg
Po rekordech z minulého týdne začíná ten nový v opatrnostním módu. I nadále investoři ostře sledují napjatou situaci na Blízkém Východě, rostoucí ceny ropy a tento týden je to především zápis z červencového zasedání FED. Očekávaný růst sazeb se postupně zaceňuje do cen dluhopisů. Pokračuje výsledková sezóna tento týden zaměřená na maloobchodní giganty.
Index Dow Jones -0,51 % na 53459,78 b.
S&P 500 -0,52 % na 7745,06 b.
Nasdaq Composite -0,32 % na 26644,91 b.
Index S&P 500 -0,52 % na 7745,06 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +0,9 % Komunikační služby -1,5 % Informační technologie -0,2 % Nezbytná spotřeba -1,5 % Průmysl -0,2 % Finanční sektor -1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +8,9 % Carvana (CVNA) -7,3 % Coherent Corp (COHR) +7,8 % Charter Communications (CHTR) -6,6 % Comfort Systems USA (FIX) +6,0 % Constellation Brands (STZ) -6,2 % Teradyne (TER) +5,8 % Align Technology (ALGN) -5,6 % Applied Materials (AMAT) +5,6 % Trade Desk (TTD) -5,2 %
Martin Varecha
Fio banka, a.s.
Prohlášení
Key Takeaways Vertiv's Q2 sales rose 24%, driven by broad demand for AI infrastructure and data centers. Teradyne's AI-driven revenues topped 60% of total revenues in Q2, supporting growth across key divisions. Teradyne's 2026 earnings estimate rose 26.38% in 30 days compared with 3.58% for Vertiv. Vertiv (VRT - Free Report) and Teradyne (TER - Free Report) are major players in the AI and data center infrastructure markets. While Vertiv provides critical digital infrastructure like cooling and power for data centers, Teradyne supplies semiconductor testing equipment essential for AI hardware growth.
So, Vertiv or Teradyne — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT StockVertiv is benefiting from the robust demand for artificial intelligence (AI)-driven infrastructure, which is driving significant growth in the data center market. The company’s robust demand across its core markets, particularly in the Americas and APAC regions, remains noteworthy. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.
This broad-based demand is driven by accelerating digital transformation and the expansion of data centers, both of which require Vertiv’s advanced power and thermal management solutions. The company’s strong pipeline and accelerating sales cycles, especially among hyperscalers, enterprise and colocation customers, have underpinned this growth.
Vertiv’s differentiated technology portfolio is another pillar of its growth. The company is at the forefront of power architecture evolution, supporting both AC and emerging 800V DC solutions. Collaborations with industry leaders like NVIDIA and Foxconn’s VisionBay AI have resulted in landmark projects, such as Taiwan’s first AI data center featuring NVIDIA GB300 and the world’s first AI data center adopting 800V DC architectures.
Vertiv’s advanced cooling and fluid management technologies, including closed-loop systems and PurgeRite NearZero, further set it apart by enabling nearly zero water consumption, a critical advantage for sustainable, high-density AI data centers.
Vertiv is demonstrating strong momentum and confidence in its trajectory as a leader in AI and digital infrastructure. For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion.
The Case for TER StockTeradyne is benefiting from the surging demand for AI infrastructure, which has become a major growth driver for the company. In the second quarter of 2026, AI-driven revenues accounted for more than 60% of total revenues, underscoring the effectiveness of TER’s wafer-to-AI data center strategy. TER’s focus on AI is driving robust growth across its semiconductor test and robotics divisions.
The ongoing build-out of data centers is fueling demand for advanced semiconductor testing, memory and networking solutions. TER’s leadership in HBM and DRAM testing, as well as its expansion into merchant GPU and hyperscaler markets, positions it for further share gains. The company’s acquisition of Quantifi Photonics and development of new test platforms like Omnyx demonstrate its commitment to innovation and capturing value across the AI supply chain.
Advanced packaging and increased wafer fab equipment investments are expected to drive sustained growth in the Automated Test Equipment (ATE) market, with forecasts for the ATE TAM to reach or exceed $20 billion by the end of the decade.
The company is also investing heavily in R&D and expanding its Robotics and Product Test offerings to address automation needs in electronics manufacturing and data centers. With strong demand signals and a healthy pipeline, TER anticipates continued growth into 2027 and beyond.
Teradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth. For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion.
Price Performance and Valuation of VRT and TERIn the year-to-date period, Vertiv’s shares have gained 81.3%, and Teradyne’s shares have skyrocketed 116.3%. The outperformance in Teradyne can be attributed to strong AI-related demand, which is driving significant investments in cloud AI build-out as customers accelerate production of a wide range of AI accelerators, networking, memory and power devices.
Despite VRT’s expanding portfolio and clientele, tariffs, project timing, supply chain congestion, acquisition integration and competition remain important risks.
VRT Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Vertiv and Teradyne shares are currently overvalued as suggested by a Value Score of F and D, respectively.
In terms of trailing 12-month Price/Sales, Vertiv shares are trading at 10.05X, lower than Teradyne’s 14.79X.
VRT Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for VRT & TER?The Zacks Consensus Estimate for Vertiv’s 2026 earnings is currently pegged at $6.64 per share, which has increased 3.58% over the past 30 days. This implies a 58.10% year-over-year rise.
The Zacks Consensus Estimate for Teradyne’s 2026 earnings is currently pegged at $9.10 per share, which has increased 26.38% over the past 30 days. This indicates a 129.8% year-over-year rise.
Teradyne’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 20.93%. Vertiv’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 12.61%. The average surprise of Teradyne is higher than that of Vertiv.
ConclusionWhile both Vertiv and Teradyne stand to benefit from the booming AI Infrastructure boom, Teradyne appears better positioned, with stronger earnings growth, a higher earnings surprise track record, and robust AI-driven demand.
While VRT continues to benefit from robust AI infrastructure demand, the company faces risks from tariffs, project timing, supply-chain constraints, and intensifying competition.
Currently, Teradyne sports a Zacks Rank #1 (Strong Buy), making the stock a stronger pick than Vertiv, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology (MU +2.30%) benefits directly from booming demand for AI memory, while Teradyne (TER +2.02%) profits as advanced chips become harder to test. One may offer greater upside, but the other could own the more durable moat behind AI's hidden quality crisis.
Stock prices used were the market prices of Aug. 14, 2026. The video was published on Aug. 14, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Teradyne. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in Teradyne, Inc. (NASDAQ:TER – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 2,035 shares of the company’s stock, valued at approximately $985,000.
Several other large investors have also bought and sold shares of the company. Norges Bank bought a new position in shares of Teradyne during the 4th quarter valued at about $398,777,000. Wellington Management Group LLP lifted its stake in Teradyne by 13,949.4% during the third quarter. Wellington Management Group LLP now owns 2,036,887 shares of the company’s stock valued at $280,357,000 after purchasing an additional 2,022,389 shares during the last quarter. Aspex Management HK Ltd bought a new stake in Teradyne during the fourth quarter worth approximately $199,723,000. Corient Private Wealth LLC boosted its holdings in Teradyne by 2,189.2% during the fourth quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after buying an additional 1,028,916 shares in the last quarter. Finally, Rafferty Asset Management LLC grew its position in Teradyne by 65.4% in the second quarter. Rafferty Asset Management LLC now owns 2,166,039 shares of the company’s stock worth $194,770,000 after buying an additional 856,540 shares during the last quarter. Institutional investors own 99.77% of the company’s stock.
Teradyne Price Performance Shares of TER opened at $410.52 on Friday. Teradyne, Inc. has a one year low of $106.30 and a one year high of $487.91. The company’s fifty day moving average price is $383.05 and its 200 day moving average price is $347.89. The company has a market capitalization of $64.18 billion, a PE ratio of 56.31, a price-to-earnings-growth ratio of 0.81 and a beta of 1.78.
Teradyne (NASDAQ:TER – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 39.93% and a net margin of 25.77%.The firm’s revenue was up 103.9% compared to the same quarter last year. During the same period last year, the business posted $0.57 earnings per share. Analysts anticipate that Teradyne, Inc. will post 9.1 earnings per share for the current year.
Wall Street Analysts Forecast Growth Several brokerages have recently commented on TER. Bank of America upped their target price on Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Morgan Stanley boosted their price target on shares of Teradyne from $387.00 to $397.00 and gave the company an “equal weight” rating in a report on Thursday, July 30th. Stifel Nicolaus upped their price target on shares of Teradyne from $325.00 to $390.00 and gave the stock a “buy” rating in a research note on Tuesday, April 28th. Finally, Susquehanna upped their target price on Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $396.80.
Get Our Latest Stock Report on Teradyne
Insider Activity at Teradyne In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $423.03, for a total value of $1,692,120.00. Following the sale, the chief executive officer owned 120,470 shares of the company’s stock, valued at $50,962,424.10. This trade represents a 3.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 656 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $355.00, for a total transaction of $232,880.00. Following the completion of the sale, the insider owned 15,722 shares in the company, valued at approximately $5,581,310. The trade was a 4.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 5,664 shares of company stock valued at $2,273,133. 0.19% of the stock is owned by corporate insiders.
Teradyne Company Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Banco Santander S.A. purchased a new position in shares of Teradyne, Inc. (NASDAQ: TER) during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 7,671 shares of the company's stock, valued at approximately $3,712,000. A number of other institutional investors and hedge funds have
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Teradyne (TER - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Teradyne currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 16 recommendations that derive the current ABR, 12 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 6.3% of all recommendations.
Brokerage Recommendation Trends for TER
Check price target & stock forecast for Teradyne here>>>
The ABR suggests buying Teradyne, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TER Worth Investing In?Looking at the earnings estimate revisions for Teradyne, the Zacks Consensus Estimate for the current year has increased 26.3% over the past month to $9.1.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Teradyne. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Teradyne may serve as a useful guide for investors.
Key Takeaways Teradyne's Robotics revenues rose 33% year over year to $100 million in Q2 2026.
Electronics and semiconductor robotics revenues surged 50% sequentially, led by AI data center demand.
Teradyne combines semiconductor testing and robotics, while investing in optical and networking products.
Teradyne (TER - Free Report) is benefiting from a surge in AI-driven demand, which is fueling robust growth across its robotics and semiconductor testing businesses. In the second quarter of 2026, Robotics revenues reached $100 million, marking a 33% year-over-year increase and a 9% rise sequentially. More than 60% of Teradyne’s revenues are now AI-driven, underscoring the effectiveness of its 'wafer to AI data center' strategy.
The fastest-growing segment within robotics is electronics manufacturing and semiconductors, which includes AI data centers. Electronics manufacturing and semiconductor revenues within Robotics surged 50% from the first quarter, making it the largest end market segment in this group. This growth is closely tied to the ongoing build-out of AI data centers and the broader trend toward automation in manufacturing and assembly processes. U.S. sales rose to 32% of Robotics revenues, and a U.S. manufacturing center remains on schedule to open later in 2026.
Compared to competitors like KLA Corporation (KLAC - Free Report) and Cohu (COHU - Free Report) , Teradyne’s integrated strategy stands out. While KLAC excels in process control and inspection, and COHU is strong in test handlers and automation, Teradyne’s ability to address both semiconductor testing and robotics for assembly and test automation gives it a unique edge. The company is also investing in next-generation products and strategic acquisitions, such as Quantifi Photonics and the Multilane Test Products JV, to address emerging needs in optical, networking and board test for AI applications.
Management expects Robotics to grow in the second half as data center construction drives more rack shipments and automation demand at contract manufacturers and original design manufacturers. Over time, robot-assisted test, assembly, and data center operations can widen the addressable market beyond traditional factory automation.
How Competitors Fare Against TERTeradyne is facing stiff competition from companies such as KLA and Cohu. Both KLA and Cohu are expanding their footprint in the AI space.
KLA is benefiting from the growing demand for AI through its leadership in process control and its ability to address growth markets in wafer fab equipment, including high-bandwidth memory and advanced packaging.
In May 2026, Cohu received approximately $5 million in multiple orders for its Diamond X platform from a leading semiconductor manufacturer. The systems will support testing of next-generation GaN power devices for AI data centers, strengthening Cohu’s position in AI infrastructure and high-efficiency power semiconductor testing.
TER’s Share Price Performance, Valuation and EstimatesTeradyne shares have surged 108% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 16.8% and the Zacks Electronics - Miscellaneous Products increase of 50.2%.
TER Stock Performance
Image Source: Zacks Investment Research
TER stock is trading at a premium with a forward 12-month Price/Sales of 11.13X compared with the Computer & Technology sector’s 6.48X. TER has a Value Score of F.
TER Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $9.10 per share, which has increased 26.38% over the past 30 days. This suggests 129.80% year-over-year growth.
Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Listen to the audio version of this article (generated by AI).
With regular weekday Digest writer Jeff Remsburg on vacation, we’ve asked some of InvestorPlace’s top analysts to share the ideas they’re most excited about right now.
Today, we’re passing the baton to Thomas Yeung, Eric Fry’s research analyst and fellow Digest writer. After watching the spectacular rise – and equally spectacular collapse – of a high-profile AI hedge fund, Tom is eager to explain what individual investors can learn from it.
More importantly, he shows why Eric believes the next phase of the AI boom may reward a very different group of companies than the last one. If Tom’s essay leaves you wanting the bigger picture, go ahead and watch Eric’s free Market Shock presentation, where he explains his “Golden Rivets” framework and shares the companies he’s watching most closely.
We’ll let Tom take it from here…
Hello, Reader.
There is usually a “tuition cost” that comes with learning how to invest.
That first stomach-churning loss… That first painful tax bill… That first accidental “buy” order instead of a “sell”… Everyone remembers their early mistakes. It’s what makes you a better trader.
That’s because learning to invest by paper trading is like figuring out how to swim by reading a book. There is no substitute for diving in and trying not to drown.
Now, most of us pay that tuition a little at a time. Preferably very early on.
But one AI hedge fund appears to have paid a very expensive tuition bill in recent weeks.
I’m talking about Situational Awareness, an AI fund run by one of Wall Street’s brightest new stars, Leopold Aschenbrenner. The 24-year-old former OpenAI researcher first gained notice in 2024 after publishing a lengthy essay called “Situational Awareness: The Decade Ahead” that predicted the rise of artificial general intelligence (AGI).
Then Aschenbrenner put money behind that idea. He launched a hedge fund with the same name and built enormous positions around the AI boom.
For a while, the results looked almost supernatural. The fund gained 2,000% in 2025, and another 439% in the first half of 2026. Situational Awareness was worth $45 billion at its peak.
But then AI stocks hit a speed bump this summer.
Soon, the hedge fund began losing money. Then much more. So much, in fact, that it was forced to dump whatever it could. It ultimately sold its public-stock portfolio to a different hedge fund, Ken Griffin’s Citadel, notching an 80% loss.
In other words, Aschenbrenner had seen the AI future before almost everyone else…
But he had not built a portfolio that could survive the trip.
Fortunately, you don’t need a billion-dollar hedge fund – or a mountain of leverage – to profit from the AI Revolution.
Today, I’ll explain why simply being right about AI isn’t enough… lay out the two qualities I believe separate long-term winners from eventual blowups… and introduce you to one company I think fits that description.
Then, I’ll show you where you can find three more stocks Eric Fry is watching…
The Right Thesis, The Wrong Trade In fairness, I believe Aschenbrenner remains directionally correct about AI.
AI systems are becoming more capable. Businesses are spending hundreds of billions of dollars to build data centers and build better AI models. The AI Revolution will have many years of growth ahead.
However, a correct prediction is not automatically a good investment.
Imagine someone knowing in 1997 that the internet would transform the global economy. They would have been absolutely right. And if they had put their life savings into Amazon.com Inc. (AMZN), they would have made millions… if not billions of dollars. The stock is up more than 300,000% since its listing in 1997.
But what if that same investor had bought Pets.com instead? After all, Pets.com was also an early e-commerce player. Besides, it had a sock-puppet mascot that showed up in a Super Bowl ad and on Good Morning America. Jeff Bezos never thought of doing that!
Instead, Pets.com turned out to be a total disaster. The pet food delivery company could not figure out how to become profitable, and the stock went from an IPO price of $11 down to $0.19 before it was totally liquidated in 2001. Hundreds of employees lost their jobs, and investors were wiped out.
The same will be true of the AI Revolution. Not every AI firm will succeed, and some will fail spectacularly.
But that’s not really what doomed Situational Awareness. The fund’s biggest problem wasn’t that it believed in AI. It was that it used enormous leverage to amplify those bets. When AI stocks stumbled, even temporarily, those leveraged positions quickly became impossible to maintain.
That’s an important lesson for individual investors. You can be absolutely right about the future… and still lose money if you own the wrong companies, pay too much for them, or take on too much risk.
The Right Way to Play the AI Revolution You’re probably now wondering how to separate the “Amazon.com successes” from the “Pets.com flops” of the AI Revolution.
Here, I have some good news for you. In my experience, great businesses usually share a few common characteristics, even in industries moving as quickly as AI:
1. A wide business moat. Some AI companies own valuable technology and enjoy real pricing power. These are called “moats” because they protect those companies from competition. And they’re a key reason for a company’s long-term success.
2. The right price. The best investments are bought cheaply before everyone has discovered their worth. If a stock today is worth $1,000 per share, an investor would have made far greater profits if they had bought for $10… or $1… or better yet $0.10.
Those are two of the qualities my colleague Eric Fry looks for when researching AI investments.
Eric isn’t simply searching for “the next Nvidia” or “the next Amazon.” Even though there are some fantastic mega-cap AI companies out there, these stocks have already been discovered by just about every person on Earth with a working brokerage account.
In fact, if Amazon rose another 300,000% because of its AI business, it would be worth almost $9 quadrillion. If you spent $1 billion per day, it would take roughly 25,000 years to burn through that amount!
Nor is Eric trying to replicate the highly leveraged approach that helped Situational Awareness generate spectacular gains – and equally spectacular losses. Extraordinary returns are wonderful if you can keep them. But if your portfolio loses 80% every time the market hits a rough patch, you’re probably not going to stay in the game very long.
Instead, Eric focuses his search on a core group of companies that are building AI’s “Golden Rivets.” These are the specific, irreplaceable pieces needed to construct and power the AI buildout.
These Golden Rivet producers are not necessarily the companies receiving the loudest television coverage. Nor are they being bought up by the hottest AI hedge funds in town. In many cases, they are old-economy businesses that Wall Street overlooked while everyone chased chips and chatbots.
That is precisely what makes them interesting.
One example is Teradyne Inc. (TER). Rather than competing to build the next AI model, Teradyne supplies the sophisticated automated testing equipment and software that semiconductor manufacturers rely on to ensure increasingly complex AI chips actually work before they leave the factory.
Whether Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD), or another chipmaker wins the AI race, those chips still need to be tested. That’s exactly the kind of “Golden Rivets” business Eric likes to own.
These are the firms that will be fueling the big AI names. They will be building the chips… powering the data centers… and perhaps even running AI servers in space.
Teradyne is one of four semiconductor-related companies Eric discusses in his free Market Shock presentation. There, he explains why he believes AI’s next phase could reward these overlooked “Golden Rivets” businesses far more than today’s crowded AI trades—and reveals the other three stocks currently on his radar.
Every investor pays tuition eventually. The trick is paying a few hundred dollars… instead of a few billion. Hopefully, today’s lesson saves you from the latter.
If you’d like to see the rest of Eric’s “Golden Rivets” framework, I think you’ll get a great deal out of his free Market Shock presentation.
Regards,
Thomas Yeung, CFA
Market Analyst, InvestorPlace
P.S. Eric believes the AI boom is entering a new phase. Instead of chasing the same crowded winners, he is studying the less-obvious businesses supplying the irreplaceable pieces the entire industry needs. In his free Market Shock presentation, he explains this “Golden Rivets” framework and shares more than a dozen stock tickers he is watching. See it here.
Bad news was once again good news for Wall Street.
A surprisingly weak U.S. jobs report sent investors rushing back into speculative technology stocks Friday, as slowing labor-market momentum fueled hopes the Federal Reserve will keep interest rates on hold rather than resume tightening next month.
The U.S. economy unexpectedly lost 23,000 jobs in July, according to the Bureau of Labor Statistics, missing expectations for an 86,000 increase and marking a sharp deterioration from June’s downwardly revised gain of just 20,000.
• What’s ahead for SOXL stock?
Why Did The US Economy Trim Jobs Last Month?The details were less alarming than the headline suggested.
Government payrolls accounted for most of the weakness, falling by 53,000 — the largest monthly decline since the October 2025 federal government shutdown. Private-sector hiring remained broadly resilient.
Meanwhile, the unemployment rate unexpectedly edged lower to 4.1% from 4.2%, while average hourly earnings rose just 0.1% in July, reinforcing signs that wage pressures continue to cool.
For investors, that combination, a softer labor market with cooling wages, was the reason to push Treasury yields lower and reduce expectations for another Fed rate hike.
According to CME FedWatch, traders now assign a 45% probability to a quarter-point increase at the Sept. 16 FOMC meeting, down from 55% just one day earlier.
Lower rate expectations tend to benefit long-duration growth stocks because future earnings become more valuable as discount rates fall.
That dynamic fueled a broad rally across AI-related semiconductors and other high-beta technology names in premarket trading.
According to Benzinga Pro, these were among the biggest premarket gainers in the 30 minutes following the employment report.
Tech Bets Surge As Rate-Cut Hopes ReturnThe biggest winners following Friday’s jobs report were the market’s highest-beta growth names, exactly the companies that tend to benefit the most when Treasury yields fall.
Leveraged semiconductor ETF Direxion Daily Semiconductor Bull 3X Shares (NYSE:SOXL) jumped more than 5%, reflecting renewed appetite for AI-related chip stocks after the two-year Treasury yield sank nearly seven basis points.
Among individual semiconductor names, Microchip Technology Inc. (NASDAQ:MCHP) gained 4.5%, Monolithic Power Systems Inc. (NASDAQ:MPWR) advanced nearly 3%, while AI infrastructure plays Astera Labs Inc. (NASDAQ:ALAB), Teradyne Inc. (NASDAQ:TER), KLA Corp. (NASDAQ:KLAC) and Rambus Inc. (NASDAQ:RMBS) all traded firmly higher.
The rally wasn’t limited to semiconductors.
Rate-sensitive stocks also outperformed, with Rocket Companies Inc. (NYSE:RKT) climbing more than 7% as lower Treasury yields improve the outlook for mortgage demand.
Gold miners joined the advance after the weaker dollar and lower real yields pushed bullion sharply higher. Gold Fields Ltd. (NYSE:GFI), AngloGold Ashanti PLC (NYSE:AU), Harmony Gold Mining Co. Ltd. (NYSE:HMY), Coeur Mining Inc. (NYSE:CDE), Equinox Gold Corp. (NYSE:EQX) and Hudbay Minerals Inc. (NYSE:HBM) all posted gains.
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Investors might want to bet on Teradyne (TER - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this maker of wireless products, data storage and equipment to test semiconductors, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Teradyne, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $2.03 per share, which is a change of +138.8% from the year-ago reported number.
The Zacks Consensus Estimate for Teradyne has increased 45.03% over the last 30 days, as five estimates have gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $9.10 per share, representing a year-over-year change of +129.8%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Teradyne. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 26.34%.
Favorable Zacks RankThanks to promising estimate revisions, Teradyne currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineTeradyne shares have added 17.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Key Takeaways Teradyne's Semiconductor Test revenues jumped 128% year over year in Q2, led by AI demand. TER expects Q3 revenues of $1.20-$1.30 billion, implying 64.67% year-over-year growth. Teradyne's Robotics revenues rose 33% year over year as AI data center automation demand expanded. Teradyne (TER - Free Report) shares are currently overvalued, as suggested by its Value Score of F. Teradyne stock is trading at a premium with a forward 12-month Price/Sales of 10.36X compared with the Computer & Technology sector’s 6.28X.
TER Valuation
Image Source: Zacks Investment Research
However, Teradyne shares have surged 89% year to date, outperforming the Zacks Computer & Technology sector’s 11.7% decline and the Zacks Electronics - Miscellaneous Products sector's 41.1% increase.
TER shares have also outperformed their peers, which include Advantest Corporation (ATEYY - Free Report) , ABB (ABBNY - Free Report) and KLA Corporation (KLAC - Free Report) . The companies are also expanding their footprint in the AI infrastructure space. Advantest, ABB and KLA shares have gained 59.1%, 34% and 50.4%, respectively, in the year-to-date period.
The outperformance can be attributed to strong AI-related demand, which is driving significant investments in cloud AI build-out as customers accelerate production of a wide range of AI accelerators, networking, memory and power devices. These factors are helping Teradyne fend off competitors such as Advantest, ABB and KLA.
TER Stock Performance
Image Source: Zacks Investment Research
Teradyne Rides on Strong Semiconductor Test SegmentTeradyne is benefiting from a powerful surge in its semiconductor test segment, fueled by the global build-out of AI data centers and the resulting demand for advanced compute and memory technologies. In the second quarter of 2026, Teradyne delivered a remarkable 128% year-over-year growth in its Semiconductor Test business, contributing $1.12 billion out of the company’s total $1.3 billion in sales. This segment alone accounted for 84% of total sales.
The Semi Test group, which includes System-on-Chip (SOC), memory and storage test, was a standout performer, clearing the $1 billion mark for the second consecutive quarter. SOC revenues alone reached $843 million, with compute products heavily tied to AI making up 70% of that and growing nearly 600% year over year. This growth is directly linked to the proliferation of AI applications, which are driving increased investment in wafer fabrication and advanced packaging technologies.
Teradyne’s leadership in both SOC and memory test solutions positions it to capture a significant share of this expanding market. The company’s Magnum testers are well-suited for high-bandwidth memory (HBM) and DRAM, which are seeing robust demand due to AI and data center expansion.
In the second quarter of 2026, compute revenues within SOC grew nearly 600% year over year, and memory test revenues hit a record $212 million, driven by HBM, DRAM, and renewed demand for NAND. The company is also making strategic moves in networking and optical test, acquiring Quantifi Photonics and developing new solutions for emerging technologies like co-packaged optics, which is expected to be a $300-$700 million market by 2028.
Teradyne Benefits From Strong Robotics DemandTeradyne is benefiting from a robust performance in its Robotics segment, which has become an increasingly important driver of growth for the company. In the second quarter of 2026, Robotics revenues reached $100 million, marking a 33% year-over-year increase and a 9% rise sequentially.
Electronics manufacturing and semiconductor revenues within Robotics surged 50% from the first quarter, making it the largest end market segment in this group. This growth is closely tied to the ongoing build-out of AI data centers and the broader trend toward automation in manufacturing and assembly processes. U.S. sales rose to 32% of Robotics revenues and a U.S. manufacturing center remains on schedule to open later in 2026.
Management expects Robotics to grow in the second half as data center construction drives more rack shipments and automation demand at contract manufacturers and original design manufacturers. Over time, robot-assisted test, assembly and data center operations can widen the addressable market beyond traditional factory automation.
TER Initiates Positive Q3 GuidanceTeradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth.
For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.27 billion, suggesting a 64.67% year-over-year increase.
For the third quarter, the company’s non-GAAP earnings are expected to be between $1.85 and $2.15 per share. The consensus mark for earnings is pegged at $1.91 per share, which has increased 36.42% over the past 30 days. This indicates growth of 124.71% on a year-over-year basis.
What Should Investors Do With TER Stock?Teradyne’s robust, diversified portfolio, which meets the rising demand for AI-driven technologies, is consistently contributing to its growth prospects. These factors have justified its premium valuation.
TER stock currently carries a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Teradyne posted record Q2 results as AI-related revenues surpassed 60% of sales across all three groups.Management sees the automated test equipment market reaching or topping $20 billion by decade-end.TER expects compute share gains from 2027 after a second hyperscaler correlation and first merchant GPU order. Teradyne, Inc. (TER - Free Report) used its second-quarter 2026 earnings call to position record results as part of a multiyear AI-driven expansion. Management linked demand across its businesses to the data center build-out.
Non-GAAP EPS of $2.47 topped the Zacks Consensus Estimate of $2.04, while revenues of $1.33 billion exceeded the $1.22 billion estimate. Management expressed stronger conviction in 2027 growth, share gains and a larger automated test equipment market.
TER Frames AI as a Multiyear CyclePresident and CEO Gregory Smith said that AI-related revenues exceeded 60% of sales. Demand extended from accelerators and memory to networking, storage, power, board test and robotics.
Smith said that all three business groups grew year over year and sequentially. That breadth supported the wafer-to-AI-data-center strategy, which targets opportunities from semiconductor production through rack assembly.
Longer data center investment plans are giving chipmakers confidence to add wafer capacity, Smith said. He expects another year of healthy growth in 2027.
Teradyne Sees ATE TAM ExpansionSmith said that rising wafer-fab-equipment spending and advanced packaging are reshaping automated test equipment growth. More wafers, denser nodes and complex multichip packages increase transistors, bits and required test intensity.
Management sees WFE spending approaching $250 billion by decade end and the ATE TAM reaching or exceeding $20 billion. Test spending rose from about 4% of semiconductor capital outlays in 2023 to 8% in the first five months of 2026.
A UBS analyst asked how durable that ratio is. Smith said that it may settle between 7% and 9%, noting that WFE and ATE revenue often differ because test demand follows fab investment with a lag.
TER Expects Share Gains to BuildSmith said that TER completed correlation with a second AI hyperscaler and shipped its first merchant GPU order. He expects these milestones to support compute share gains beginning in 2027.
He also stated that progress will be gradual. One compute customer is at the mature dual-vendor stage, one is a fast follower, and one remains in qualification. Fast-follower share may rise toward 30%.
A Bank of America analyst asked about server CPU exposure. Smith said that greater ARM adoption would improve TER’s share opportunity, while the company continues pursuing x86 business.
Teradyne Broadens Its Data Center ReachCFO Michelle Turner said that Semi Test revenues were $1.12 billion, including $843 million in system-on-chip test, $212 million in memory and $67 million in industrial systems test. Memory set a record on HBM, DRAM and NAND demand.
Turner highlighted Product Test revenues of $107 million and Robotics revenues of $100 million. The Omnyx board-test platform, the Multilane Test Products joint venture and electronics-manufacturing demand extended AI exposure beyond chip test.
Smith said networking growth spans copper, pluggable optics and co-packaged optics. He put the 2028 CPO test market at $300-$700 million and a 2027 low-end scenario around $200 million.
TER Guides to a Firmer Second HalfTurner guided third-quarter revenues to $1.2-$1.3 billion and non-GAAP EPS to $1.85-$2.15. Gross margin is expected at 58-59%, with operating expenses at 29-30% of sales.
Management expects first-half revenues to represent 50% to 52% of full-year sales, reflecting better second-half visibility. Growth is expected in memory, auto and industrial, industrial systems test, Product Test and Robotics, offset by mobile weakness and compute timing.
Turner said that product mix, memory and launches should put full-year gross margin near 59%. Fourth-quarter operating expenses should be comparable to the third quarter as Teradyne invests for 2027.
Teradyne Keeps Investing for 2027Turner said that second-quarter free cash flow was $378 million and cash and investments totaled $517 million. Priorities remain R&D, operational scaling and M&A flexibility, alongside $20 million of dividends and $69 million of buybacks.
Smith’s overarching message was that current spending on products and customer teams reflects confidence in sustained AI demand. Management plans to update its target earnings model on the fourth-quarter earnings call.
Zacks Signals Favor Rank Over ValueTER sports a Zacks Rank #1 (Strong Buy) at present, tied to favorable earnings estimate revision trends and potential outperformance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its Growth Score of B and Momentum Score of B offer favorable signals, while the Value Score of F and VGM Score of C indicate weak value characteristics and middling combined style support. The Zacks Rank can change as analysts revise estimates after the reported results, so the current signal is not fixed.
For the quarter ended June 2026, Teradyne (TER - Free Report) reported revenue of $1.33 billion, up 103.9% over the same period last year. EPS came in at $2.47, compared to $0.57 in the year-ago quarter.
The reported revenue represents a surprise of +9.37% over the Zacks Consensus Estimate of $1.22 billion. With the consensus EPS estimate being $2.04, the EPS surprise was +21.08%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Teradyne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Semiconductor Test- System on-a-Chip: $842.97 million compared to the $826.1 million average estimate based on two analysts. The reported number represents a change of +112.6% year over year.Revenue- Semiconductor Test- Memory: $212.33 million versus the two-analyst average estimate of $179.3 million. The reported number represents a year-over-year change of +248.4%.Revenue- Industrial Automation (Robotics): $100 million versus $89.06 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +33.3% change.Revenue- Semiconductor Test- IST: $66.52 million compared to the $43 million average estimate based on two analysts. The reported number represents a change of +93.7% year over year.Revenue- Semiconductor Test: $1.12 billion versus the two-analyst average estimate of $1.05 billion. The reported number represents a year-over-year change of +128.1%.Revenue- Product Test: $107 million versus the two-analyst average estimate of $92.75 million.View all Key Company Metrics for Teradyne here>>>
Shares of Teradyne have returned -1% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways TER topped $1.3 billion in Q2 2026 revenues as Semi Test exceeded $1 billion for the second straight quarter. TER's SOC compute revenues rose nearly 600% year over year, fueled by AI-driven demand for advanced chips. Teradyne posted record memory test revenues of $212 million and expects Q3 revenues of $1.20-$1.30 billion. Teradyne (TER - Free Report) is benefiting from a powerful surge in its semiconductor test segment, fueled by the global build-out of AI data centers and the resulting demand for advanced compute and memory technologies. In the second quarter of 2026, Teradyne reported record revenues exceeding $1.3 billion, more than doubling year over year.
The Semi Test group, which includes System-on-Chip (SOC), memory, and storage test, was a standout performer, clearing the $1 billion mark for the second consecutive quarter. SOC revenues alone reached $843 million, with compute products heavily tied to AI making up 70% of that and growing nearly 600% year over year. This growth is directly linked to the proliferation of AI applications, which are driving increased investment in wafer fabrication and advanced packaging technologies.
Teradyne’s leadership in both SOC and memory test solutions positions it to capture a significant share of this expanding market. The company’s Magnum testers are well-suited for high-bandwidth memory (HBM) and DRAM, which are seeing robust demand due to AI and data center expansion.
In the second quarter of 2026, compute revenues within SOC grew nearly 600% year over year, and memory test revenues hit a record $212 million, driven by HBM, DRAM and renewed demand for NAND. The company is also making strategic moves in networking and optical test, acquiring Quantifi Photonics and developing new solutions for emerging technologies like co-packaged optics, which is expected to be a $300-$700 million market by 2028.
Teradyne’s strong performance in the semiconductor test segment is underpinned by secular growth drivers in AI, data centers and advanced packaging. For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion.
Teradyne Suffers From Stiff CompetitionTeradyne is facing stiff competition from companies such as Advantest Corporation (ATEYY - Free Report) and Cohu (COHU - Free Report) . Both Advantest and Cohu are expanding their footprint in the semiconductor test market.
In July 2026, Advantest expanded its SiConic ecosystem with a new Design-for-Test (DFT) Engineering environment, enabling engineers to develop, debug, validate and optimize production-ready test content before deployment to manufacturing. The solution aligns bench workflows with the V93000 platform, accelerating DFT development, improving collaboration and reducing reliance on production automated test equipment.
Cohu received approximately $5 million in multiple orders for its Diamond X platform from a leading semiconductor manufacturer. The systems will support testing of next-generation GaN power devices for AI data centers, strengthening Cohu’s position in AI infrastructure and high-efficiency power semiconductor testing.
TER’s Share Price Performance, Valuation and EstimatesTeradyne shares have surged 65% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 8.9% and the Zacks Electronics - Miscellaneous Products increase of 39.2%.
TER Stock Performance
Image Source: Zacks Investment Research
TER stock is trading at a premium with a forward 12-month Price/Sales of 9.9X compared with the Electronics - Miscellaneous Products industry’s 8.31X. TER has a Value Score of D.
TER Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $7.20 per share, which has been unchanged over the past 30 days. This suggests 81.82% year-over-year growth.
Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anson Funds Management LP purchased a new position in shares of Teradyne, Inc. (NASDAQ:TER – Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 3,000 shares of the company’s stock, valued at approximately $889,000.
Several other institutional investors and hedge funds also recently made changes to their positions in TER. Cornerstone Planning Group LLC increased its position in shares of Teradyne by 149.1% in the 1st quarter. Cornerstone Planning Group LLC now owns 142 shares of the company’s stock valued at $42,000 after buying an additional 85 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Teradyne during the fourth quarter worth about $28,000. Sunbelt Securities Inc. lifted its holdings in Teradyne by 66.3% during the first quarter. Sunbelt Securities Inc. now owns 153 shares of the company’s stock worth $45,000 after acquiring an additional 61 shares in the last quarter. SJS Investment Consulting Inc. grew its stake in Teradyne by 192.9% in the first quarter. SJS Investment Consulting Inc. now owns 164 shares of the company’s stock valued at $49,000 after acquiring an additional 108 shares during the period. Finally, Ascentis Independent Advisors acquired a new position in Teradyne in the first quarter valued at about $56,000. Institutional investors and hedge funds own 99.77% of the company’s stock.
Analyst Ratings Changes TER has been the topic of a number of research analyst reports. Citigroup raised their price target on Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Morgan Stanley set a $387.00 price objective on Teradyne in a research report on Thursday, April 30th. Cantor Fitzgerald reissued an “overweight” rating and set a $550.00 target price on shares of Teradyne in a research note on Wednesday. UBS Group increased their target price on Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Finally, JPMorgan Chase & Co. upgraded shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Teradyne currently has an average rating of “Moderate Buy” and an average target price of $394.53.
View Our Latest Research Report on Teradyne
Teradyne Stock Performance Shares of Teradyne stock opened at $319.41 on Thursday. The business’s 50 day simple moving average is $382.18 and its 200 day simple moving average is $335.81. Teradyne, Inc. has a 52-week low of $102.42 and a 52-week high of $487.91. The firm has a market cap of $50.00 billion, a PE ratio of 43.81, a P/E/G ratio of 0.93 and a beta of 1.74.
Teradyne (NASDAQ:TER – Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 41.96%. The business’s quarterly revenue was up 103.9% on a year-over-year basis. During the same period last year, the business earned $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. As a group, equities research analysts predict that Teradyne, Inc. will post 7.2 EPS for the current year.
Teradyne Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were issued a dividend of $0.13 per share. The ex-dividend date was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 annualized dividend and a yield of 0.2%. Teradyne’s dividend payout ratio is currently 9.63%.
Insider Buying and Selling In other Teradyne news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $377.60, for a total transaction of $256,768.00. Following the sale, the vice president directly owned 7,665 shares of the company’s stock, valued at $2,894,304. The trade was a 8.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Stephen Smith sold 8,597 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $338.98, for a total transaction of $2,914,211.06. Following the sale, the chief executive officer directly owned 124,470 shares in the company, valued at $42,192,840.60. This trade represents a 6.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 14,941 shares of company stock worth $5,444,112. 0.19% of the stock is owned by insiders.
More Teradyne News Here are the key news stories impacting Teradyne this week:
Positive Sentiment: Quarterly results exceeded expectations: Q2 revenue rose 103.9% year over year to $1.33 billion, surpassing the $1.22 billion consensus estimate. Non-GAAP earnings reached $2.47 per share, versus expectations of approximately $2.09 and $0.57 a year earlier. Semiconductor Test revenue accounted for $1.12 billion of sales. Teradyne Reports Second Quarter 2026 Results Positive Sentiment: Strong outlook for Q3: Teradyne forecast revenue of $1.2 billion to $1.3 billion, with a midpoint well above Wall Street expectations near $1.0 billion. Adjusted EPS guidance of $1.85 to $2.15 also exceeded the consensus estimate of $1.43. The outlook suggests sustained demand for advanced chip-testing equipment used in AI data centers and other complex semiconductor applications. Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald reaffirmed its “overweight” rating and set a $550 price target, reflecting confidence in Teradyne’s AI-related growth and semiconductor testing demand. Cantor Fitzgerald rating update Neutral Sentiment: Management indicated it will continue investing to support AI-driven growth. That may strengthen Teradyne’s competitive position, but could contribute to margin variability as spending and product mix change. Teradyne Q2 2026 Earnings Call Transcript Negative Sentiment: After a substantial prior rally, Teradyne’s elevated valuation and recent volatility leave the stock vulnerable to profit-taking, particularly if AI-related demand slows or semiconductor equipment spending becomes less robust. Broader weakness across some chip-equipment stocks also weighed on sentiment. Teradyne Profile (Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Teradyne, Inc. (NASDAQ:TER – Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $320.65, but opened at $367.90. Teradyne shares last traded at $341.0050, with a volume of 1,510,496 shares.
The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a return on equity of 41.96% and a net margin of 25.77%.The company’s revenue for the quarter was up 103.9% on a year-over-year basis. During the same quarter last year, the business posted $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS.
Teradyne Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.2%. The ex-dividend date was Thursday, May 21st. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is presently 9.63%.
Key Headlines Impacting Teradyne Here are the key news stories impacting Teradyne this week:
Positive Sentiment: Quarterly results exceeded expectations: Q2 revenue rose 103.9% year over year to $1.33 billion, surpassing the $1.22 billion consensus estimate. Non-GAAP earnings reached $2.47 per share, versus expectations of approximately $2.09 and $0.57 a year earlier. Semiconductor Test revenue accounted for $1.12 billion of sales. Teradyne Reports Second Quarter 2026 Results Positive Sentiment: Strong outlook for Q3: Teradyne forecast revenue of $1.2 billion to $1.3 billion, with a midpoint well above Wall Street expectations near $1.0 billion. Adjusted EPS guidance of $1.85 to $2.15 also exceeded the consensus estimate of $1.43. The outlook suggests sustained demand for advanced chip-testing equipment used in AI data centers and other complex semiconductor applications. Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald reaffirmed its “overweight” rating and set a $550 price target, reflecting confidence in Teradyne’s AI-related growth and semiconductor testing demand. Cantor Fitzgerald rating update Neutral Sentiment: Management indicated it will continue investing to support AI-driven growth. That may strengthen Teradyne’s competitive position, but could contribute to margin variability as spending and product mix change. Teradyne Q2 2026 Earnings Call Transcript Negative Sentiment: After a substantial prior rally, Teradyne’s elevated valuation and recent volatility leave the stock vulnerable to profit-taking, particularly if AI-related demand slows or semiconductor equipment spending becomes less robust. Broader weakness across some chip-equipment stocks also weighed on sentiment. Wall Street Analyst Weigh In Several brokerages have recently weighed in on TER. The Goldman Sachs Group reaffirmed a “buy” rating and set a $465.00 price target on shares of Teradyne in a research note on Tuesday. Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price objective on shares of Teradyne in a research report on Wednesday. UBS Group increased their target price on shares of Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Robert W. Baird raised their target price on shares of Teradyne from $350.00 to $446.00 and gave the company an “outperform” rating in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. upgraded shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price target on the stock in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Teradyne presently has an average rating of “Moderate Buy” and a consensus target price of $394.53.
Get Our Latest Stock Analysis on Teradyne
Insider Buying and Selling at Teradyne In other news, VP Ryan Driscoll sold 680 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. This represents a 8.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the completion of the transaction, the insider directly owned 15,066 shares of the company’s stock, valued at $5,203,344.42. This represents a 6.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 14,941 shares of company stock worth $5,444,112 over the last ninety days. 0.19% of the stock is currently owned by corporate insiders.
Institutional Trading of Teradyne Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Beese Fulmer Investment Management Inc. lifted its stake in Teradyne by 9.3% in the second quarter. Beese Fulmer Investment Management Inc. now owns 1,983 shares of the company’s stock valued at $959,000 after acquiring an additional 169 shares during the last quarter. Ethic Inc. grew its position in shares of Teradyne by 16.0% in the 2nd quarter. Ethic Inc. now owns 14,156 shares of the company’s stock valued at $6,849,000 after acquiring an additional 1,957 shares during the period. Jacobsen Capital Management acquired a new position in shares of Teradyne during the 2nd quarter worth about $213,000. Ashton Thomas Private Wealth LLC increased its stake in shares of Teradyne by 5.8% during the 2nd quarter. Ashton Thomas Private Wealth LLC now owns 727 shares of the company’s stock worth $352,000 after purchasing an additional 40 shares during the last quarter. Finally, Gilliland Jeter Wealth Management LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at about $297,000. 99.77% of the stock is owned by institutional investors.
Teradyne Stock Performance The company has a market capitalization of $50.00 billion, a P/E ratio of 43.81, a PEG ratio of 0.93 and a beta of 1.74. The stock’s fifty day moving average price is $382.18 and its 200-day moving average price is $335.81.
About Teradyne (Get Free Report)
Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
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Prepare for the Next Wave of Factory Automation With These 3 Standout NamesTeradyne NASDAQ: TER reported record second-quarter revenue of more than $1.3 billion as AI-related demand lifted results across its Semiconductor Test, Product Test and Robotics businesses. Non-GAAP earnings per share reached $2.47, up more than 300% from a year earlier, according to Chief Executive Officer Greg Smith.
“For the second quarter in a row, we delivered record revenue, and once again, AI was the driver,” Smith said. He said AI-driven revenue represented more than 60% of the company’s sales during the quarter.
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5 Stocks Racing Ahead as AI Supercharges RoboticsRevenue rose 4% sequentially from the prior quarter’s previous record. For the first half of 2026, Teradyne generated $2.6 billion in revenue and non-GAAP EPS of $5.02, increases of nearly 100% and 275%, respectively, from the prior-year period.
Semiconductor Test Leads Growth Teradyne’s Semiconductor Test business exceeded $1 billion in quarterly revenue for the second consecutive quarter. Revenue in the segment increased $11 million from the first quarter and rose 128% year over year.
System-on-chip revenue was $843 million. Memory revenue was $212 million, marking a record quarter and the third consecutive quarter above $200 million. Integrated Systems Test revenue was $67 million, up 94% year over year and more than 150% sequentially. Teradyne Inc: Sky’s the Limit for This Market, Until It Isn'tCompute accounted for 70% of SoC product revenue, with compute revenue rising nearly 600% from the prior-year quarter, Chief Financial Officer Michelle Turner said. Teradyne completed correlation with a second AI hyperscaler customer during the quarter and shipped a previously announced merchant GPU order.
Memory demand was supported by HBM and DRAM test solutions, as well as a resurgence in NAND final test. Turner said memory manufacturers’ longer-term capacity-expansion plans drove the company’s quarterly memory book-to-bill ratio above two.
Smith said Teradyne expects the 2026 memory total addressable market to be more than 40% larger than in 2025, with growth accelerating in the second half. He also said the company does not currently expect particular lumpiness in memory demand in 2027 because capacity additions and testing plans are extending into next year.
Data Center Build-Out Broadens Opportunity Smith said the continued data center build-out is contributing demand beyond core compute chips, including flash memory, hard disk drives, power devices, board test, high-speed interconnect and robotics. He described Teradyne’s strategy as following the value chain “from wafer to data center.”
The company said global wafer-fab-equipment capital expenditures are forecast to approach $250 billion by the end of the decade. Teradyne expects that rising wafer production, denser semiconductor process technologies and more advanced packaging will support higher automated test equipment demand.
Smith said Teradyne sees a path for the overall ATE market to reach or exceed $20 billion as WFE capital spending approaches that level. He cautioned, however, that the relationship between WFE spending and test-equipment demand is more meaningful over three- to five-year periods than on a quarterly or annual basis, given production and purchasing lead times.
The company also highlighted emerging dual-vendor strategies among large compute customers. Smith said Teradyne has one compute customer in a mature dual-vendor phase, one in a fast-follower phase and one in qualification before production ramp. He expects market-share gains from new qualifications to emerge gradually in 2027.
In networking, Teradyne said it is pursuing opportunities across copper, pluggable optics and co-packaged optics. The company expects the CPO test market alone to be worth $300 million to $700 million by 2028, though Smith said the range reflects uncertainty about the timing and scale of production ramps. For 2027, he indicated the market could be closer to the low end of a trajectory toward $300 million.
Product Test and Robotics Expand Product Test Group revenue rose 26% year over year and 33% sequentially to $107 million. Turner cited broad-based growth in production board test, optical test, defense and aerospace, and scale-up networking. The company said its Omnics production board-test platform began shipping during the second quarter, with further growth expected in the second half.
Robotics revenue totaled $100 million, up 33% year over year and 9% sequentially. Revenue from electronics manufacturing and semiconductors increased 50% from the first quarter and became the group’s largest end market, according to Turner. U.S. sales represented 32% of Robotics revenue, while Teradyne’s U.S.-based manufacturing center remains on track to open later this year.
Smith said Teradyne expects Robotics to grow broadly in line with the rest of the company over the medium term, driven in part by automation needs tied to data-center construction and efforts to reshore assembly and test processes.
Margins, Cash Flow and Outlook Second-quarter gross margin was 59.8%, up 250 basis points from a year earlier but down 110 basis points sequentially, partly due to one-time benefits in the first quarter. Non-GAAP operating income was $448 million, representing a 33.7% operating margin.
Teradyne ended the quarter with $517 million in cash and investments, up more than 30% sequentially. Free cash flow was $378 million for the quarter and $579 million for the first half. The company paid $20 million in dividends and repurchased $69 million of shares during the quarter.
For the third quarter, Teradyne forecast revenue of $1.2 billion to $1.3 billion and non-GAAP EPS of $1.85 to $2.15. It expects gross margin of 58% to 59% and a non-GAAP operating profit rate of 28% to 30%.
Turner said the company expects second-half growth versus the first half in memory, automotive and industrial, IST, Product Test and Robotics. That growth is expected to be partly offset by mobile softness and compute order timing. Teradyne anticipates renewed growth in 2027, supported by ATE market expansion and projected market-share gains.
About Teradyne (NASDAQ:TER)Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.
The company's product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Teradyne beat Q2 estimates as revenues jumped 103.9% year over year to a record $1.329 billion. TER posted record Memory revenues, supported by DRAM strength and renewed NAND final-test demand. Teradyne expects Q3 revenues of $1.20B-$1.30B, citing robust AI-related demand and growth prospects. Teradyne (TER - Free Report) delivered second-quarter 2026 non-GAAP earnings of $2.47 per share, up 333.3% year over year and beating the Zacks Consensus Estimate by 21.08%.
Revenues surged 103.9% to $1.329 billion and topped the consensus mark by 9.37%. Results reflected record Memory revenues, supported by continued DRAM strength and a resurgence in NAND final test. The company also registered its second consecutive quarter of record revenues.
Teradyne's Semiconductor Test Unit Leads the MixSemiconductor Test generated revenues of $1.122 billion, representing 84.4% of total quarterly sales. The segment remained Teradyne’s primary growth engine as demand for advanced compute and memory testing stayed strong.
Product Test contributed $107 million, or 8.1% of total revenues. Robotics generated $100 million, which accounted for the remaining 7.5%. The distribution shows that Semiconductor Test continued to dominate Teradyne’s revenue mix, although each business group participated in the year-over-year expansion.
Teradyne Benefits From Memory Test StrengthRecord Memory revenues were driven by continued strength in DRAM and renewed demand for NAND final-test systems. These trends supported another strong quarter for Teradyne’s semiconductor-testing portfolio.
Management linked the performance to its strategy of capturing test and robotics opportunities from the wafer stage through the AI data center. The company also noted robust near-term AI-related demand across its served markets.
TER Operating DetailsNon-GAAP gross profit was $794.6 million, with the gross margin reaching 59.8%. This compared with $373.3 million and 57.3%, respectively, in the year-ago quarter, marking a 250-basis-point expansion.
Selling and administrative expenses rose 22% year over year to $192.5 million. However, these costs represented 14.5% of revenues, down from 24.2% in the prior-year period as sales growth outpaced the increase in spending.
Engineering and development expenses climbed 32% year over year to $156.3 million. As a share of revenues, the expense fell to 11.8% from 18.2%, indicating that higher development spending was absorbed by the larger revenue base.
Non-GAAP income from operations increased 356.5% year over year to $448.3 million. The non-GAAP operating margin expanded to 33.7% from 15.1%, reflecting substantial operating leverage from the sharp revenue increase.
TER’s Balance Sheet & Cash FlowAs of June 28, 2026, Teradyne’s cash and cash equivalents (including marketable securities) were $354.8 million, down from $245.5 million as of March 29, 2026.
Net cash provided by operating activities was $469.1 million in the second quarter.
TER Issues Strong Third-Quarter OutlookFor the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. GAAP net income attributable to the company is projected to be in the range of $1.79-$2.09 per share.
Non-GAAP earnings are expected to be between $1.85 and $2.15 per diluted share. Management said that the outlook reflects robust AI-related demand, while rising wafer fabrication equipment investment is expected to support continued growth in 2027 and beyond.
TER’s Zacks Rank & Other Stocks to ConsiderTeradyne currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks (ANET - Free Report) , ASE Technology (ASX - Free Report) and Belden (BDC - Free Report) . While ASE currently sports a Zacks Rank #1 (Strong Buy), ANET and BDC carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 26.1% in the year-to-date period. Arista Networks is set to report second-quarter 2026 results on Aug. 4.
Shares of ASE Technology have gained 41.3% in the year-to-date period. ASE Technology is set to report the second-quarter 2026 results on July 30.
Shares of Belden have surged 76.3% in the year-to-date period. Belden is slated to report second-quarter 2026 results on July 30.
Teradyne (TER +5.71%) stock is in the green today despite sell-offs for the broader market. The company's share price was up 3.3% as of 1 p.m. ET despite a 0.9% decline for both the S&P 500 and the Nasdaq Composite.
Teradyne published its second-quarter results after the market closed yesterday, postings sales and earnings that beat the market's expectations and issuing encouraging forward guidance. The stock had been up as much as 16.1% earlier in the day's trading, but it's given up most of its post-earnings gains as investors moved to take profits and bearish momentum for the broader market intensified.
Image source: Getty Images.
Teradyne delivered a blowout Q2 report In the second quarter, Teradyne recorded non-GAAP (adjusted) earnings per share of $2.47 on revenue of $1.33 billion. The company's adjusted earnings per share beat the average analyst estimate by $0.42, and its sales for the period surpassed the average analyst forecast by roughly $110 million. Revenue rose roughly 104% year over year in the quarter thanks in large part to strong demand for memory chip solutions, and adjusted earnings per share soared compared to the per-share profit of $0.57 in last year's quarter.
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Teradyne's forward guidance also crushed expectations As good as the company's Q2 beats were, the company's guidance for Q3 was even stronger compared to expectations. The company is targeting revenue between $1.2 billion and $1.3 billion in the current quarter, which significantly exceeded the average Wall Street analyst estimate's target for sales of roughly $1.03 billion. Meanwhile, guidance for adjusted earnings per share between $1.85 and $2.15 crushed the average forecast for adjusted per-share earnings of $1.44. The stock has given up some ground following its surge in today's session, but its Q2 results and forward guidance look very encouraging.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Teradyne. The Motley Fool has a disclosure policy.
On July 28, 2026, Teradyne Inc (TER) released its 8-K filing, announcing a remarkable second quarter performance driven by increased demand in their testing and
July 29, 2026 Tuesday's MarketsS&P 500
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$63,891 (-1.52%) 1. SpaceX Must Define Itself on First Earnings Call The Hidden Gems investing philosophy involves looking for well-run businesses and staying with them through hard stretches, as long as our conviction holds.
More than seven weeks into SpaceX's (SPCX +2.56%) journey as a public company, and I still don't know what exactly SpaceX is and what it is trying to accomplish.
The S1 registration statement was intentionally vague, reaching a total addressable market almost equal to U.S. Gross Domestic Product. Spoiler alert: That's not really a good description of the business that SpaceX is actually pursuing.
There's a lot of short-term noise surrounding an IPO. We were focused on the index inclusion and are now focused on the shares that will be free to trade after earnings. If Elon Musk uses the earnings report to state, clearly without platitudes, (1.) this is who we are, (2.) this is what we want to do, and (3.) this is how we are going to do it, I think that will do more to influence the stock movement in the coming months than any lockup or index talk.
Source: Image created by Jester AI.
2. Can AI Make Visa Even More Dominant? Visa (V +1.12%) reported a 14.4% year-over-year (YoY) rise in Q3 revenue after yesterday's close, as its number of processed transactions reached 71.7 billion on the back of an international surge in digital activity. The stock was largely unchanged in pre-market trading.
$6.2 billion returned to shareholders: Visa showed what it means to be the world's largest payment network provider, when it revealed the repurchase of $4.9 billion of its own shares in the period – on top of a dividend of $0.67 per share, a nice bonus for investors holding Visa with the aim of beating the market over the long term. "We are excited to be partnering with OpenAI to enable secure Visa payments within agentic commerce": CEO Ryan McInerney pointed to AI as a driver of workforce reshaping, while the company is cutting around 2,600 jobs. Layoffs can lift a stock over time by cutting costs and boosting margins, but only when they reflect real efficiency gains rather than disguised weakness or the erosion of future capability. 3. The Pick of Tuesday's After-Hours Earnings From Team Rule Breakers Recs Waste Management (WM +0.64%) reported a 4% revenue rise to $6.68 billion, as the waste hauler saw 35% growth in non-GAAP free cash flow over the same quarter last year. It shows the focus on pricing over volumes is paying off, as management aims for a full-year EBITDA margin of 31% and free cash flow between $3.75 billion and $3.85 billion. The stock dipped a little over 1% pre-market, as investors responded to lower volumes. Teradyne (TER -4.22%) beat revenue expectations with a 104% rise YoY, reaching $1.33 billion compared to the $1.22 billion consensus. Record demand for memory and semiconductor testing equipment lay behind the surge, though investors need to watch the recent AI pull-back. CEO Greg Smith is looking for rapid increase in wafer fab equipment investment to drive future growth. The stock popped 8% in early trading. NXP Semiconductors (NXPI -3.19%) dipped around 1.5% this morning, despite a 19% YoY rise in revenue to $3.50 billion, as investors are getting nervous over the sustainability of AI and data center growth. CEO Rafael Sotomayor pointed to physical AI and software-defined vehicles as new growth drivers.
4. Pre-Market Results From Companies Recommended by Both Team HG & RB
Fiverr (FVRR +4.79%) slumped over 15% before market open, after the freelance marketplace missed Wall Street expectations with Q2 revenue down 10% YoY, and cut its full-year guidance. CEO Micha Kaufman spoke of a "market that is changing faster than expected, driven by rapid AI adoption," as AI is increasingly replacing freelancers for less complex tasks. Lemonade (LMND +0.19%) posted a 79% rise in Q2 revenue over the previous year, ahead of the 77% guided at Q1 time. In force premium grew 32.4% to $1.43 billion, marking the 11th consecutive quarter of acceleration, and management expects to reach positive adjusted EBITDA by Q4. The stock slumped over 10% in response, on profitability fears and news that CFO Tim Bixby is to be replaced by Senior Vice President of Finance Nick Stead. Garmin (GRMN +4.61%) jumped close to 10% after reporting record revenue of $2.02 billion in Q2, up 11% YoY, as operating income climbed 30% to $616 million for another record. Management lifted full-year revenue guidance to approximately $8.05 billion, after returning $245 million via dividends and share repurchases. 5. Today's Take: When the Going Gets Tough, Part 2
Bear markets are interesting. While they're difficult to go through at the time, they can be extremely rewarding if you have a Foolish mindset. I remember going through the Great Financial Crisis several years back. I was much younger and still learning what kind of investor I was. But thankfully I was a member of The Motley Fool which helped keep my head on straight. Many good businesses were getting killed because everything was getting killed. But understanding the context of what was going on as well as the history of bear markets helped me stay confident in not only staying invested, but also not stopping. Like Shelby Davis said, "You make most of your money in a bear market; you just don't realize it at the time."-- Jason Moser Team Rule Breakers
6. Your Take Today we're asking whether you'd rather start a long-term position in Meta (META -0.08%) or Microsoft (MSFT +1.09%) – both reporting after the closing bell – and why?
Debate with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International, Garmin, Lemonade, Meta Platforms, Microsoft, NXP Semiconductors, Teradyne, and Visa. The Motley Fool recommends WM. The Motley Fool has a disclosure policy.
Teradyne (TER - Free Report) came out with quarterly earnings of $2.47 per share, beating the Zacks Consensus Estimate of $2.04 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +21.08%. A quarter ago, it was expected that this maker of wireless products, data storage and equipment to test semiconductors would post earnings of $2.11 per share when it actually produced earnings of $2.56, delivering a surprise of +21.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Teradyne, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $1.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.37%. This compares to year-ago revenues of $651.8 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Teradyne shares have added about 73% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Teradyne?While Teradyne has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Teradyne was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.40 on $1.07 billion in revenues for the coming quarter and $7.20 on $4.53 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, ESS Tech, Inc. (GWH - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +51.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ESS Tech, Inc.'s revenues are expected to be $0.1 million, down 95.8% from the year-ago quarter.
