TER earnings analysis
What we found in TER's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenue reached $1.282 billion, up 86.8% from $685.7 million in Q1 2025.
- Significant EPS Beat
- EPS of $2.56 saw a strong increase compared to $0.61 in Q1 2025, surpassing the estimate of $2.11.
- Record Semiconductor Test Revenue
- The Semiconductor Test revenue was $1.111 billion, marking a 104.8% year-over-year increase.
- Improved Cash Flow from Operations
- Operating cash flow increased to $265.1 million from $161.6 million year-over-year.
- Successful Segment Contributions
- All segments reported growth, with Robotics up 32.3% and Product Test up 8.4% year-over-year.
- Increased Shareholder Returns
- $25.9 million returned to shareholders through buybacks and dividends during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- Increased Dependence on AI Demand
- The Semiconductor Test segment's growth heavily relies on AI-related markets, posing risks if demand fluctuates.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.56
- Gross margin
- 60.9%
- Operating margin
- 36.9%
- Segment
- Semiconductor Test
- Segment
- Robotics
- Segment
- Product Test
What they said about what is next.
Guidance reflects continued strength in AI-related segments.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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