Teradyne (NASDAQ:TER) Trading 7.6% Higher Following Earnings Beat

Teradyne, Inc. (NASDAQ:TER) traded up 7.6% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $281.00 and last traded at $268.4690. 3,623,523 shares traded hands during mid-day trading, an increase of 22% from the average session volume of 2,973,737 shares. The stock had previously closed at $249.53.

The company reported $1.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.44. Teradyne had a return on equity of 18.04% and a net margin of 15.49%.The firm had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $970.44 million. During the same quarter in the prior year, the firm posted $0.95 earnings per share. Teradyne’s revenue for the quarter was up 43.9% compared to the same quarter last year. Teradyne has set its Q1 2026 guidance at 1.890-2.250 EPS.

Teradyne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 13th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Friday, February 13th. Teradyne’s payout ratio is currently 18.91%.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q4 beat on revenue and EPS, signaling stronger demand and margin expansion; company press release shows Semiconductor Test led the gains. Teradyne Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: “Blowout” Q1 guidance — EPS and revenue targets materially above consensus — lifts forward expectations and drives the rally. Teradyne forecasts upbeat quarterly revenue (Reuters)
• Positive Sentiment: Management attributes strength to AI-driven data center investment and chip testing demand — investors view Teradyne as a direct beneficiary of the AI buildout. Teradyne Stock Surges After Earnings (WSJ)
• Positive Sentiment: Analysts and media upgraded tone after the report; coverage calling the guidance a catalyst has amplified buying interest. Analyst revisions ahead of earnings (Benzinga)
• Neutral Sentiment: Heavy options / call buying and increased premarket attention are amplifying intraday moves but add speculative flow. (news summaries)
• Neutral Sentiment: Market futures and major outlets highlighted Teradyne as an early leader on the session, increasing visibility to momentum traders. S&P 500 Futures Rise; Teradyne Leads (Barron’s)
• Negative Sentiment: Valuation and volatility risk: TER trades at a high P/E (reflecting growth expectations) and has a beta >1.8 — strong upside but also potential for sharp pullbacks if AI spending softens or guidance disappoints. (company fundamentals/market data)

Analyst Ratings Changes

TER has been the subject of a number of recent research reports. Susquehanna reaffirmed a “positive” rating and set a $275.00 price objective on shares of Teradyne in a research report on Monday, January 12th. Royal Bank Of Canada set a $270.00 target price on Teradyne in a research note on Monday. JPMorgan Chase & Co. lifted their price target on Teradyne from $122.00 to $190.00 and gave the company a “neutral” rating in a report on Thursday, October 30th. Bank of America raised their price target on Teradyne from $250.00 to $260.00 and gave the company a “buy” rating in a report on Thursday, January 22nd. Finally, Stifel Nicolaus raised their target price on Teradyne from $270.00 to $280.00 and gave the company a “buy” rating in a research note on Friday. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $218.06.

Insider Buying and Selling at Teradyne

In related news, CEO Gregory Stephen Smith sold 1,108 shares of the stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $201.31, for a total value of $223,051.48. Following the completion of the sale, the chief executive officer directly owned 93,409 shares of the company’s stock, valued at approximately $18,804,165.79. This represents a 1.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.16% of the company’s stock.

Institutional Investors Weigh In On Teradyne

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in Teradyne by 4.9% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 333,456 shares of the company’s stock valued at $69,212,000 after purchasing an additional 15,599 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in Teradyne by 2.0% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 22,690 shares of the company’s stock worth $4,392,000 after purchasing an additional 450 shares during the last quarter. SBI Securities Co. Ltd. raised its position in shares of Teradyne by 160.5% in the fourth quarter. SBI Securities Co. Ltd. now owns 3,756 shares of the company’s stock valued at $727,000 after purchasing an additional 2,314 shares during the period. Morse Asset Management Inc increased its stake in shares of Teradyne by 158.6% in the fourth quarter. Morse Asset Management Inc now owns 2,746 shares of the company’s stock worth $532,000 after purchasing an additional 1,684 shares during the period. Finally, Milestone Asset Management Group LLC bought a new position in Teradyne during the fourth quarter worth $292,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.

Teradyne Stock Performance

The company’s 50 day moving average is $209.29 and its 200 day moving average is $159.13. The stock has a market capitalization of $42.59 billion, a price-to-earnings ratio of 96.81, a PEG ratio of 1.73 and a beta of 1.84.

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.