At a glance
Teradyne Inc is worth $40.75B, about 75 times its fiscal 2025 earnings. Revenue grew 13.1% to $3.19B in fiscal 2025, with 17.4% kept as profit; over 5 years it has grown 0.4% a year. It pays a 0.2% dividend yield, and returned $3.01B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +43.9% over the past year with dividends reinvested and +13.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 34.8% in the 2020 crash (S&P 500: 33.7%) and 56.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 37 months after the lows.
The business in plain English
Teradyne, founded in 1960 and incorporated in Massachusetts, makes automated test equipment. These are machines that check whether chips and electronic products work before they ship. It also makes industrial robots. Revenue was $3.19 billion in 2025, with 83.4% from products and 16.6% from service. Taiwan accounted for 36.2% of revenue, China 14.1%, South Korea 14% and the US 11.3%. Teradyne's five largest direct customers made up 44% of revenue.
Semiconductor Test is the core of the business, at 79.1% of 2025 revenue. Its testers, including the UltraFLEXplus, J750 and Magnum platforms, check chips while they are still on the silicon wafer, after packaging and in system-level tests. Customers include chipmakers with their own factories, "fabless" designers that outsource production, contract foundries, and outside firms that assemble and test chips. Demand tied to artificial intelligence (AI), mainly for networking and computing chips, drove most revenue in the second half of 2025. Teradyne also gained share in testing high bandwidth memory (HBM), a fast memory used in AI systems.
Product Test, at 11.2% of revenue, tests circuit boards, wireless devices, and defense and aerospace systems. It added testing for photonic (light-based) chips through the $127.2 million acquisition of Quantifi Photonics in May 2025. Robotics, at 9.7%, makes collaborative robot arms that work alongside people. It also makes autonomous mobile robots that move materials in factories and warehouses.
Price history
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TER +43.9% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Product | $2.66B | 83.4% |
| Service | $529.8M | 16.6% |
By business segment
| Semiconductor Test | $2.52B | 79.1% |
| Product Test | $358.0M | 11.2% |
| Robotics | $308.3M | 9.7% |
By geography
| TW | $1.16B | 36.2% |
| CN | $451.3M | 14.1% |
| KR | $446.3M | 14% |
| US | $360.9M | 11.3% |
| Europe | $215.4M | 6.8% |
| Rest Of World | $132.5M | 4.2% |
| MY | $107.4M | 3.4% |
| SG | $95.2M | 3% |
| PH | $92.5M | 2.9% |
| TH | $67.6M | 2.1% |
| JP | $65.6M | 2.1% |
Latest results
- In Q3 FY2026 (ended Sep 27, 2026), revenue was $1.31B, up 69.8% from a year earlier, and net income was $342.4M (+186.4%).
- For fiscal 2025, revenue was $3.19B (+13.1% year over year; +0.4% a year from FY2020 to FY2025) with a 17.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +0.4% watch |
|---|---|
| Operating margin | 20.4% good |
| Free cash flow margin | 14.1% good |
| Return on equity (FY2025) | 19.8% good |
| Return on assets (FY2025) | 13.2% good |
| Net cash (cash minus debt) | $460.7M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.12B | $784.1M | $684.0M |
| FY2021 | $3.70B | $1.01B | $965.9M |
| FY2022 | $3.16B | $715.5M | $414.7M |
| FY2023 | $2.68B | $448.8M | $425.6M |
| FY2024 | $2.82B | $542.4M | $474.1M |
| FY2025 | $3.19B | $554.0M | $450.4M |
Valuation snapshot
| Market value | $40.75B |
|---|---|
| P/E ratio | 75.2 |
| Dividend yield | 0.2% |
Rank among 1514 US companies
Market value at each year end
Teradyne’s market value went from $5.11B at the end of 2016 to $40.75B on Nov 2, 2026, about 8.0 times as much; since the end of 2025 it is up 34%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $40.75B | +34.4% |
| 2025 | $30.31B | +47.8% |
| 2024 | $20.51B | +23.6% |
| 2023 | $16.59B | +21.9% |
| 2022 | $13.61B | -49.0% |
| 2021 | $26.66B | +33.9% |
| 2020 | $19.91B | +74.2% |
| 2019 | $11.43B | +103.2% |
| 2018 | $5.62B | -31.5% |
| 2017 | $8.21B | +60.7% |
| 2016 | $5.11B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TER price data to Nov 2, 2026 | +35.0% | +43.9% | +45.4% | +13.8% | +28.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +35.0% |
| 2025 | +54.4% |
| 2024 | +16.5% |
| 2023 | +24.8% |
| 2022 | -46.3% |
| 2021 | +36.8% |
| 2020 | +76.7% |
| 2019 | +118.9% |
| 2018 | -24.4% |
| 2017 | +66.2% |
| 2016 | +24.3% |
| 2015 | +5.7% |
| 2014 | +13.4% |
| 2013 | +4.3% |
| 2012 | +23.9% |
| 2011 | -2.9% |
| 2010 | +30.9% |
| 2009 | +154.3% |
| 2008 | -59.2% |
| 2007 | -30.9% |
| 2006 | +2.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 75.9% over that stretch · deepest drop along the way 79.2%, back to its old high 25.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.3% over that stretch · deepest drop along the way 34.8%, back to its old high 2.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 56.5% over that stretch · deepest drop along the way 56.6%, back to its old high 36.6 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 16 sales ($10.1M), 16 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 17, 2026 | Gregory Stephen Smith President and CEO, Director | sell (plan) | $1.7M |
| Jun 15, 2026 | Gregory Stephen Smith President and CEO, Director | sell (plan) | $1.7M |
| Jul 15, 2026 | Gregory Stephen Smith President and CEO, Director | sell (plan) | $1.4M |
| Oct 15, 2026 | Gregory Stephen Smith President and CEO, Director | sell (plan) | $1.4M |
| Sep 15, 2026 | Gregory Stephen Smith President and CEO, Director | sell (plan) | $1.4M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 11.1% | Jun 30, 2026 |
| Vanguard Capital Management | 7.49% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.5% | Mar 31, 2026 |
| FMR LLC | 4.9% | Mar 31, 2025 |
ETFs with the most weight in TER
| ARKQ ARK Autonomous Technology & Robotics ETF | 7.07% |
| ARKX ARK Space Exploration & Innovation ETF | 5.34% |
| MGRO VanEck Morningstar Wide Moat Growth ETF | 3.81% |
| FBOT Fidelity Disruptive Automation ETF | 2.68% |
| SOXX iShares Semiconductor ETF | 1.96% |
| FTXL First Trust Nasdaq Semiconductor ETF | 1.87% |
| ARKK ARK Innovation ETF | 1.83% |
| TOLL Tema Monopolies and Oligopolies ETF | 1.75% |
What could go wrong
- A few customers drive much of revenue. The five largest direct customers made up 44% of 2025 revenue, up from 32% in 2023. One direct customer alone was 19%. Teradyne has little contractual protection if a major customer stops ordering.
- Heavy reliance on AI-related chip demand. Demand tied to artificial intelligence (AI) drove most revenue in the second half of 2025. If AI spending slows, orders could fall quickly at Semiconductor Test, which was 79.1% of 2025 revenue.
- Export controls, tariffs and China exposure. China was 14.1% of 2025 revenue. US export controls limit which customers Teradyne can supply and support, and some rivals do not face the same rules. Tariffs could also raise costs.
- Boom-and-bust cycles in chip equipment. Revenue depends on how much chipmakers and electronics firms spend on new equipment, and that spending swings with industry cycles. Revenue fell from $3.70 billion in 2021 to $2.68 billion in 2023 before recovering.
- Tough rivals, including customers' in-house tools. Large, well-funded competitors, emerging Asian firms and customers developing their own test equipment all compete for orders. Losing ground could mean lower prices, fewer orders and thinner profit margins.
- Acquisitions and joint ventures may disappoint. Teradyne acquired Quantifi Photonics for $127.2 million in 2025. In January 2026 it agreed to invest about $157 million for 75% of a joint venture with MultiLane. Expected benefits may not materialize.
Recent events
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Quarterly results released
For income and retirement investors
Teradyne pays a small dividend: $0.48 per share in 2025, up from $0.40 in 2020, or about 3.7% a year. It raised the payout in 2022 and 2024 but held it flat in 2021, 2023 and 2025. The dividend used just 13.8% of 2025 earnings and 16.9% of free cash flow (cash left after investing in the business). The yield was only 0.16% as of October 28, 2026, so income investors get little cash and returns depend mainly on the share price. Buybacks (repurchases of its own shares) are far larger: $2.65 billion over 2021–2025, against $356 million in dividends. The share count fell 5.2% between August 2021 and July 2026.
The stock has fallen hard in downturns: 79.2% in the 2008 financial crisis, 34.8% in the 2020 COVID crash and 56.6% in the 2022 bear market. Recovering from the 2022 low took about three years. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Teradyne make money?
Mostly by making and servicing machines that test computer chips. In 2025, Teradyne's revenue was $3.19 billion. Semiconductor Test, which checks chips used in AI, memory, phones and cars, brought in 79.1%. Product Test added 11.2%. It covers circuit boards, wireless devices, light-based photonic chips, and defense and aerospace systems. Robotics, which makes collaborative robot arms and autonomous mobile robots, added 9.7%. Service and support made up 16.6% of total revenue, and products made up the rest.
Does Teradyne pay a dividend?
Yes, but it is small. Teradyne paid $0.48 per share in 2025, the same as in 2024, and the yield was 0.16% as of October 28, 2026. The dividend used only 13.8% of 2025 earnings, so it is well covered, but it has not risen every year. Teradyne returns far more cash through buybacks (repurchases of its own shares): $2.65 billion over 2021–2025, against $356 million in dividends.
Is Teradyne an AI stock?
In large part, yes. Teradyne says demand tied to artificial intelligence (AI), mainly for networking and computing chips, drove most of its revenue in the second half of 2025. Growth continued into 2026: revenue for the quarter ended June 28, 2026 was $1.33 billion, up 103.9% from a year earlier. That reliance cuts both ways. A slowdown in AI spending could hurt results. As of October 28, 2026, the shares traded at 90.3 times 2025 earnings per share, a high price-to-earnings ratio.
Who are Teradyne's biggest customers?
A small group of customers accounts for a large share of revenue. In 2025, Teradyne's five largest direct customers made up 44% of revenue, up from 36% in 2024 and 32% in 2023. One direct customer alone accounted for 19%. Two companies that tell their suppliers which testers to use drove 12% and 10%, partly overlapping with that 19%. By region, Taiwan accounted for 36.2% of 2025 revenue.
Why is Teradyne stock so volatile?
Because its results rise and fall with chipmakers' spending, which swings sharply. Over the year to October 28, 2026, the stock's beta was 3.18. That means it tended to move about three times as much as the overall market. It gained 117.4% over that year but fell 21.9% in the final month. Past declines were deep: 79.2% in the 2008 financial crisis and 56.6% in the 2022 bear market. Its deepest drop over roughly 21 years was 83.8%.