Teradyne (NASDAQ:TER) Updates Q3 2026 Earnings Guidance

Teradyne (NASDAQ:TER) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.850-2.150 for the period, compared to the consensus EPS estimate of 1.430. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.0 billion.

Teradyne Stock Up 12.2%

Shares of NASDAQ:TER traded up $38.82 on Thursday, reaching $358.23. The company had a trading volume of 2,597,667 shares, compared to its average volume of 3,856,206. Teradyne has a twelve month low of $102.42 and a twelve month high of $487.91. The stock has a 50-day moving average price of $382.18 and a 200 day moving average price of $335.81. The stock has a market capitalization of $56.08 billion, a P/E ratio of 48.95, a P/E/G ratio of 0.93 and a beta of 1.74.

Teradyne (NASDAQ:TER) last issued its quarterly earnings data on Tuesday, July 28th. The company reported $2.47 EPS for the quarter, beating analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 41.96% and a net margin of 25.77%.The business 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 firm posted $0.57 EPS. The firm’s revenue for the quarter was up 103.9% on a year-over-year basis. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. On average, sell-side analysts predict that Teradyne will post 7.2 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.1%. This is a boost from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. Teradyne’s dividend payout ratio is 9.63%.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Cantor Fitzgerald reissued an “overweight” rating and issued a $550.00 price target on shares of Teradyne in a research report on Wednesday. Citigroup upped their price objective on shares of Teradyne from $325.00 to $400.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. The Goldman Sachs Group reiterated a “buy” rating and issued a $465.00 target price on shares of Teradyne in a research note on Tuesday. Morgan Stanley set a $387.00 target price on shares of Teradyne in a report on Thursday, April 30th. Finally, Robert W. Baird set a $420.00 target price on shares of Teradyne in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $396.13.

Insider Buying and Selling

In other Teradyne news, VP Ryan Driscoll sold 680 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the sale, the vice president directly owned 7,665 shares in the company, valued at $2,894,304. This trade represents a 8.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 transaction, the chief executive officer owned 124,470 shares in the company, valued at approximately $42,192,840.60. The trade was a 6.46% decrease in their position. 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 quarter, insiders have sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is owned by company insiders.

Key Stories Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q2 results exceeded expectations: Teradyne reported $1.33 billion in revenue, up approximately 104% year over year, and non-GAAP EPS of $2.47, well above the roughly $2.09 analyst consensus. Semiconductor Test generated $1.12 billion, while Product Test contributed $107 million and Robotics $100 million. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Upbeat third-quarter guidance drove the investor reaction: Management forecast revenue of $1.2 billion to $1.3 billion, with a midpoint substantially above Wall Street expectations, and EPS of $1.85 to $2.15 versus consensus near $1.43. The outlook suggests that elevated wafer-fabrication spending and semiconductor test demand may persist. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: AI is strengthening Teradyne’s growth narrative: More complex chips for data centers and vehicles require sophisticated, higher-priced testing systems. Record memory-test sales and rising AI-related investment supported a second consecutive quarter of record revenue.
• Positive Sentiment: Analyst support remains favorable: Cantor Fitzgerald reaffirmed its overweight rating and maintained a $550 price target, indicating continued confidence in Teradyne’s semiconductor-cycle recovery and AI exposure.
• Neutral Sentiment: Columbia Threadneedle’s technology fund highlighted Teradyne as a beneficiary of semiconductor-test recovery and rising chip complexity, reinforcing the broader institutional investment case. Teradyne Rose on Semiconductor Test Recovery and Rising Chip Complexity
• Negative Sentiment: Investors still face execution risks, including margin variability, competition and the possibility that the semiconductor and AI spending cycle could moderate. Teradyne’s elevated valuation also leaves less room for future results to disappoint.

Institutional Investors Weigh In On Teradyne

A number of institutional investors have recently added to or reduced their stakes in the company. UMB Bank n.a. raised its holdings in 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 in the last quarter. Truvestments Capital LLC increased its position in shares of Teradyne by 3.8% during the fourth quarter. Truvestments Capital LLC now owns 1,440 shares of the company’s stock valued at $279,000 after purchasing an additional 53 shares during the period. Quadrant Capital Group LLC increased its position in shares of Teradyne by 1.1% during the fourth quarter. Quadrant Capital Group LLC now owns 5,546 shares of the company’s stock valued at $1,073,000 after purchasing an additional 59 shares during the period. Parallel Advisors LLC increased its position in shares of Teradyne by 5.6% during the third quarter. Parallel Advisors LLC now owns 1,312 shares of the company’s stock valued at $181,000 after purchasing an additional 69 shares during the period. Finally, Equitable Holdings Inc. raised its stake in shares of Teradyne by 3.2% in the third quarter. Equitable Holdings Inc. now owns 2,534 shares of the company’s stock valued at $349,000 after purchasing an additional 79 shares in the last quarter. 99.77% of the stock is owned by institutional investors and hedge funds.

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.