Teradyne (NASDAQ:TER) Releases Earnings Results, Beats Estimates By $0.38 EPS

Teradyne (NASDAQ:TER) released its quarterly earnings results on Tuesday. The company reported $2.47 earnings per share for the quarter, beating analysts’ consensus estimates 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 Price Performance

TER traded down $13.70 on Tuesday, reaching $321.07. 5,725,249 shares of the company traded hands, compared to its average volume of 3,827,925. The company 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. The stock’s 50 day moving average price is $382.69 and its 200-day moving average price is $334.39. Teradyne has a 52-week low of $89.18 and a 52-week high of $487.91.

Teradyne Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Thursday, May 21st. This is a boost from Teradyne’s previous quarterly dividend of $0.12. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. Teradyne’s payout ratio is presently 9.63%.

Insiders Place Their Bets

In other Teradyne news, CEO Gregory Stephen Smith sold 4,000 shares of Teradyne stock in a transaction on Monday, June 15th. The shares were sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the completion of 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 sale was disclosed in a filing with the SEC, which is available at 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 business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the transaction, the insider owned 15,722 shares in the company, valued at approximately $5,581,310. This represents 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 worth $5,444,112 in the last quarter. 0.19% of the stock is currently owned by corporate insiders.

Institutional Trading of Teradyne

A number of institutional investors have recently bought and sold shares of TER. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Teradyne during the 4th quarter worth about $28,000. CYBER HORNET ETFs LLC bought a new stake in shares of Teradyne in the 2nd quarter valued at approximately $35,000. DV Equities LLC bought a new stake in shares of Teradyne in the 4th quarter valued at approximately $42,000. MUFG Securities EMEA plc acquired a new position in Teradyne in the second quarter worth approximately $43,000. Finally, Intesa Sanpaolo Wealth Management acquired a new position in Teradyne in the fourth quarter worth approximately $48,000. Institutional investors and hedge funds own 99.77% of the company’s stock.

Key Teradyne News

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

Analyst Ratings Changes

Several brokerages recently commented on TER. Stifel Nicolaus upped their price target on shares of Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research report on Tuesday, April 28th. The Goldman Sachs Group lifted their price objective on shares of Teradyne from $350.00 to $465.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 target price on the stock in a research note on Thursday, April 30th. Morgan Stanley set a $387.00 target price on Teradyne in a report on Thursday, April 30th. Finally, Citigroup lifted their price target on Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. One research 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. According to data from MarketBeat, Teradyne presently has an average rating of “Moderate Buy” and a consensus target price of $394.53.

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.