Teradyne, Inc.TER
NasdaqGS•Technology•Semiconductor Equipment & Materials
Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.
Teradyne, Inc. (TER) reported trailing twelve months revenue of $3.79B as of March 2026, a 30.3% increase year-over-year. Quarterly revenue reached $1.28B, reflecting continued top-line momentum.
Teradyne, Inc. generated $854.06M in TTM net income, with quarterly EBITDA of $505.66M. The operating margin expanded from 17.6% to 36.9%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (36.9%) and net margin (31.1%) indicates moderate non-operating costs. Net margin has improved from 14.4% a year ago, signaling stronger bottom-line efficiency.
TER trades at a P/E of 54.1x (a premium multiple) and a P/S of 12.2x. The price-to-book ratio of 14.7x indicates a significant premium over book value.
The company generated $200.39M in free cash flow over the trailing twelve months, a 105.3% increase year-over-year, indicating cash generation ability. The balance sheet shows $4.43B in total assets with no in long-term debt against $3.14B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~23.0%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 19.4% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (6 of 7 quarters up), with ~40.0% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~24.2% — no sign of cost or pricing stress.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation