10-Q · October 30, 2025
Teradyne reported Q3 revenue of $769.21M (vs. $737.30M a year ago), beating consensus and showing sequential recovery. Gross margin was 58.4% and operating margin 18.9%; diluted EPS was $0.75. Balance sheet shows…
Earnings analysis · 10-Q
TER earnings analysis
Filed May 1, 2026 · Our reading of the company's report
The latest report
Teradyne's Q1 2026 results showcased significant revenue growth driven by a remarkable 104.8% increase in the Semiconductor Test segment, primarily due to AI-related demand. The company achieved a revenue of $1.282…
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Teradyne's Q1 2026 results showcased significant revenue growth driven by a remarkable 104.8% increase in the Semiconductor Test segment, primarily due to AI-related demand. The company achieved a revenue of $1.282 billion and EPS of $2.56, besting previous forecasts and reflecting strong operational execution and strategic investments in product development.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.56
- Segment
- Semiconductor Test
- Segment
- Robotics
- Segment
- Product Test
What stood out
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Strong Revenue Growth
Q1 2026 revenue reached $1.282 billion, up 86.8% from $685.7 million in Q1 2025.
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Significant EPS Beat
EPS of $2.56 saw a strong increase compared to $0.61 in Q1 2025, surpassing the estimate of $2.11.
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Record Semiconductor Test Revenue
The Semiconductor Test revenue was $1.111 billion, marking a 104.8% year-over-year increase.
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Improved Cash Flow from Operations
Operating cash flow increased to $265.1 million from $161.6 million year-over-year.
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Successful Segment Contributions
All segments reported growth, with Robotics up 32.3% and Product Test up 8.4% year-over-year.
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Increased Shareholder Returns
$25.9 million returned to shareholders through buybacks and dividends during the quarter.
What to watch
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Higher Inventory Levels
Inventories decreased to $362.8 million from $379.6 million but the rapid growth in sales raises risk of future inventory overhang.
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Increased Dependence on AI Demand
The Semiconductor Test segment's growth heavily relies on AI-related markets, posing risks if demand fluctuates.
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Interest Expense Growth
Interest expense rose to $3.2 million for Q1 2026, up from $0.8 million in Q1 2025, creating a potential burden in tightening credit conditions.
Management's outlook
Guidance reflects continued strength in AI-related segments.
Earlier filings 4
10-Q · May 2, 2025
Teradyne reported quarter revenues of $685.68M (up from $599.82M a year ago) and GAAP diluted EPS of $0.61 (vs $0.40 a year ago). Gross margin expanded to 60.6% and operating income rose to $120.8M, supported by strong…
10-Q · November 1, 2024
Teradyne reported Q3 revenue of $737,298,000 (up vs. $703,732,000 a year ago) and GAAP diluted EPS of $0.89 (vs. $0.78 a year ago), both beating consensus. Gross margin expanded to 59.2% and operating income was…
10-Q · November 4, 2022
Teradyne reported Q3 revenue of $827,073,000, down from $950,501,000 in Q3 2021, with net income of $183,485,000 (diluted EPS $1.10) versus $256,718,000 (diluted EPS $1.41) a year ago. Semiconductor Test was the largest…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.