Teradyne (NASDAQ:TER) Posts Earnings Results, Beats Expectations By $0.38 EPS

Teradyne (NASDAQ:TER) posted its earnings results on Tuesday. The company reported $2.47 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38, Zacks reports. 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 period in the previous year, the firm earned $0.57 EPS. The firm’s revenue was up 103.9% compared to the same quarter last year. Teradyne updated its Q3 2026 guidance to 1.850-2.150 EPS.

Teradyne Price Performance

NASDAQ:TER traded up $41.21 during mid-day trading on Thursday, reaching $360.62. The stock had a trading volume of 1,624,463 shares, compared to its average volume of 3,846,453. Teradyne has a 12 month low of $102.42 and a 12 month high of $487.91. The stock has a market capitalization of $56.45 billion, a PE ratio of 49.72, a P/E/G ratio of 0.93 and a beta of 1.74. The stock has a 50-day simple moving average of $382.18 and a two-hundred day simple moving average of $335.81.

Teradyne Increases Dividend

The company also recently declared 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 was Thursday, May 21st. This represents a $0.52 annualized dividend and a dividend yield of 0.1%. This is a positive change from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio (DPR) is 9.63%.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q2 results significantly exceeded estimates: Revenue rose 103.9% year over year to $1.33 billion, above the $1.22 billion consensus, while non-GAAP EPS reached $2.47 versus expectations near $2.09 and $0.57 a year earlier. Semiconductor Test generated $1.12 billion of revenue, supported by record memory-test sales. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Upbeat Q3 outlook was the main catalyst: Teradyne forecasts revenue of $1.2 billion to $1.3 billion, with a $1.25 billion midpoint well above the roughly $1.0 billion analyst expectation. Adjusted EPS guidance of $1.85 to $2.15 also exceeds the consensus estimate of $1.43. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: AI-related demand remains strong: Management indicated that more complex chips used in AI data centers and vehicles are increasing demand for sophisticated, higher-priced testing equipment. Continued investment in wafer-fabrication capacity and AI test solutions supports the company’s growth outlook. Teradyne projects Q3 revenue as AI-driven demand supports investment
• Positive Sentiment: Analyst support improved sentiment: Cantor Fitzgerald reaffirmed its “overweight” rating and maintained a $550 price target, implying substantial potential upside from the reference price. Benzinga analyst report
• Neutral Sentiment: Investors are also weighing valuation and execution risk. Teradyne trades at a relatively elevated P/E multiple, while management cited margin variability and market competition as ongoing challenges. The stock’s recent volatility and sharp prior pullback raise the bar for continued earnings beats.

Insider Buying and Selling at Teradyne

In other Teradyne news, VP Ryan Driscoll sold 680 shares of the firm’s stock in a transaction 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 sale, the vice president owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. This trade represents a 8.15% decrease in their position. The sale was disclosed in a document filed 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, 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 value of $1,692,120.00. Following the completion of the transaction, the chief executive officer owned 120,470 shares in the company, valued at approximately $50,962,424.10. The trade was a 3.21% 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. In the last quarter, insiders have sold 14,941 shares of company stock valued at $5,444,112. 0.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in TER. Compound Planning Inc. boosted its stake in shares of Teradyne by 31.4% in the 4th quarter. Compound Planning Inc. now owns 2,428 shares of the company’s stock valued at $470,000 after purchasing an additional 580 shares in the last quarter. Corient Private Wealth LLC lifted its stake in Teradyne by 2,189.2% in the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock valued at $208,254,000 after purchasing an additional 1,028,916 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in Teradyne by 19.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 40,374 shares of the company’s stock valued at $7,815,000 after purchasing an additional 6,463 shares during the last quarter. Beacon Pointe Advisors LLC acquired a new stake in Teradyne in the fourth quarter valued at approximately $241,000. Finally, State of Tennessee Department of Treasury grew its stake in shares of Teradyne by 34.6% during the fourth quarter. State of Tennessee Department of Treasury now owns 52,573 shares of the company’s stock worth $10,176,000 after buying an additional 13,512 shares during the last quarter. Institutional investors own 99.77% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Citigroup upped their price objective on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Zacks Research upgraded shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $550.00 target price on shares of Teradyne in a report on Wednesday. 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 note on Tuesday, April 28th. Finally, Bank of America increased their price target on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. 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 company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $394.53.

About Teradyne

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.