Teradyne (NASDAQ:TER) Announces Quarterly Earnings Results

Teradyne (NASDAQ:TER) released its quarterly earnings results on Tuesday. The company reported $2.47 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.38, Zacks reports. Teradyne had a return on equity of 31.79% and a net margin of 22.55%. Teradyne updated its Q3 2026 guidance to 1.850-2.150 EPS.

Teradyne Stock Down 4.1%

Shares of TER stock traded down $13.70 during mid-day trading on Tuesday, hitting $321.07. 5,727,119 shares of the company’s stock were exchanged, compared to its average volume of 3,827,925. Teradyne has a fifty-two week low of $89.18 and a fifty-two week high of $487.91. The stock has a 50-day simple moving average of $382.69 and a two-hundred day simple moving average of $334.39. The stock has a market cap of $50.26 billion, a price-to-earnings ratio of 59.46, a PEG ratio of 1.01 and a beta of 1.74.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Thursday, May 21st were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. Teradyne’s payout ratio is 9.63%.

Insider Activity

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of the firm’s stock in a transaction dated 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 directly owned 120,470 shares of the company’s stock, valued at approximately $50,962,424.10. This trade represents a 3.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 dated Friday, May 22nd. The stock was sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the sale, the insider directly owned 15,722 shares in the company, valued at approximately $5,581,310. The trade was a 4.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 valued at $5,444,112 over the last quarter. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Integrated Wealth Concepts LLC lifted its holdings in shares of Teradyne by 12.8% during the 1st quarter. Integrated Wealth Concepts LLC now owns 4,136 shares of the company’s stock worth $342,000 after acquiring an additional 468 shares during the period. Caxton Associates LLP acquired a new stake in shares of Teradyne in the first quarter worth approximately $297,000. Cresset Asset Management LLC grew its holdings in Teradyne by 11.6% in the second quarter. Cresset Asset Management LLC now owns 6,759 shares of the company’s stock valued at $608,000 after purchasing an additional 702 shares during the period. NewEdge Advisors LLC grew its holdings in Teradyne by 467.1% in the second quarter. NewEdge Advisors LLC now owns 3,408 shares of the company’s stock valued at $306,000 after purchasing an additional 2,807 shares during the period. Finally, Treasurer of the State of North Carolina increased its position in Teradyne by 5.1% during the second quarter. Treasurer of the State of North Carolina now owns 75,125 shares of the company’s stock worth $6,755,000 after purchasing an additional 3,651 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company’s stock.

Analysts Set New Price Targets

TER has been the topic of a number of analyst reports. Morgan Stanley set a $387.00 price objective on Teradyne in a research note on Thursday, April 30th. Citigroup boosted their target price on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Bank of America upped their target price on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Robert W. Baird raised their price target on shares of Teradyne from $350.00 to $446.00 and gave the stock an “outperform” rating in a research note on Tuesday, June 23rd. Finally, Evercore set a $370.00 price target on shares of Teradyne in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $394.53.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong earnings and AI-driven demand: Teradyne reported second-quarter revenue of $1.329 billion, up from $652 million a year earlier. Non-GAAP EPS was $2.47, exceeding the $2.09 consensus estimate, while semiconductor testing revenue reached $1.122 billion. Management attributed growth largely to demand related to artificial-intelligence semiconductors. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Above-consensus third-quarter outlook: Teradyne guided for third-quarter EPS of $1.85–$2.15 and revenue of $1.2–$1.3 billion, both substantially above analyst expectations of $1.43 EPS and approximately $1.0 billion in revenue. The guidance supports continued strength in semiconductor testing. Teradyne Reports Second Quarter 2026 Results
• Neutral Sentiment: AI and Tokyo Electron partnership remain key catalysts: Investors are assessing whether Teradyne’s AI-related testing products and partnership with Tokyo Electron can sustain growth in semiconductor testing and improve expectations for its robotics business. How Teradyne’s AI Test Push and Tokyo Electron Partnership Could Reshape Investor Expectations
• Negative Sentiment: High valuation and elevated expectations may be limiting the reaction: Teradyne’s shares had already gained significantly over the past year, while analysts cautioned before earnings that the stock appeared fairly valued rather than obviously inexpensive. A strong report may therefore have been insufficient to overcome profit-taking and concerns that much of the AI-driven upside was already reflected in the valuation. Teradyne Stock May Trade Near Fair Value On Earnings Tomorrow

Teradyne Company Profile

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.