TER AI Stock Analysis – Buy, Hold, or Avoid?
Teradyne, Inc. (TER)
Fundamentals
Teradyne demonstrates solid fundamental strength, with robust revenue and earnings growth supported by efficient margin expansion and quality earnings. The company leverages its strong market position in semiconductor test equipment with consistent improvements in operational performance and a clear growth trajectory fueled by technological innovation and end-market demand.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
103.90% YoY
Q2 2026
Net Income
377.89% YoY
Q2 2026
Net Margin
Q2 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q2 2026
Net Income Growth YoY
Latest Quarter: Q2 2026
Revenue Per Share Growth YoY
Latest Quarter: Q2 2026
EPS Growth YoY
Latest Quarter: Q2 2026
Book Value Per Share Growth YoY
Latest Quarter: Q2 2026
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.3B | 1.1B | 769.2M | 651.8M | 685.7M | 752.9M | 737.3M |
| Revenue Growth YoY | +103.90% | +87.04% | +43.89% | +4.33% | -10.70% | +14.31% | +12.27% | +4.77% |
| Net Income | 374.5M | 398.9M | 257.2M | 119.6M | 78.4M | 98.9M | 146.3M | 145.6M |
| Net Income Growth YoY | +377.89% | +303.36% | +75.87% | -17.91% | -57.93% | +54.05% | +24.94% | +13.69% |
| EPS | $2.39 | $2.55 | $1.64 | $0.75 | $0.49 | $0.61 | $0.90 | $0.89 |
| EPS Growth YoY | +387.76% | +318.03% | +82.22% | -15.73% | -58.47% | +45.24% | +16.88% | +7.23% |
Profitability Metrics
Technical Analysis
TER is currently in an advancing phase characterized by an institutional accumulation uptrend, though short-term price action shows mixed signals with weak momentum and range-bound conditions. The stock is trading below its 50-day SMA but well above its 200-day SMA, suggesting a longer-term bullish trend overshadowing recent short-term weakness. Key technical indicators point to a neutral momentum environment awaiting potential directional confirmation.
No extreme reading
Mixed signals
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Teradyne demonstrates solid fundamental strength, with robust revenue and earnings growth supported by efficient margin expansion and quality earnings. The company leverages its strong market position in semiconductor test equipment with consistent improvements in operational performance and a clear growth trajectory fueled by technological innovation and end-market demand.
Latest Earnings
Q2 2026 Earnings (Jun 28, 2026)
Earnings Per Share (EPS)
Actual
$2.47
Estimated
$2.09
Surprise
+$0.38
Surprise %
+18.18%
Revenue
Actual
$1.33B
Estimated
$1.22B
Surprise
+$109.44M
Surprise %
+8.97%
Historical Earnings
| Q2 2026 | Q1 2026 | Q4 2025 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $2.47 | $2.56 | $1.80 | $1.80 | $0.85 | $0.57 | $0.75 | $0.95 |
| EPS (Estimated) | $2.09 | $2.11 | $1.38 | $1.38 | $0.79 | $0.54 | $0.62 | $0.91 |
| EPS Surprise | +$0.38 | +$0.45 | +$0.42 | +$0.42 | +$0.06 | +$0.03 | +$0.13 | +$0.04 |
| % Diff | +18.2% | +21.3% | +30.4% | +30.4% | +7.6% | +5.2% | +21.2% | +4.4% |
| Revenue | ||||||||
| Revenue (Actual) | $1.33B | $1.28B | $1.08B | $1.08B | $769.21M | $651.8M | $685.68M | $752.88M |
| Revenue (Estimated) | $1.22B | $1.2B | $977.22M | $977.22M | $744.13M | $650.59M | $680.5M | $740.91M |
| Revenue Surprise | +$109.44M | +$82.45M | +$106.12M | +$106.12M | +$25.08M | +$1.2M | +$5.18M | +$11.98M |
| % Diff | +9.0% | +6.9% | +10.9% | +10.9% | +3.4% | +0.2% | +0.8% | +1.6% |
Valuation
Teradyne (TER) is currently trading at a premium valuation supported by strong revenue and earnings growth driven by significant AI-related demand in the semiconductor testing and automation sectors. Despite impressive financial performance and positive market sentiment, valuation multiples are notably elevated relative to industry averages, reflecting high growth expectations priced in by the market.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 48.45 | 27.09 | 29.51 | 44.78 | 45.88 | 33.85 | 34.98 | 37.62 |
| Price to Sales | 54.53 | 33.70 | 27.95 | 27.70 | 22.07 | 19.46 | 27.17 | 29.61 |
| Price to Book | 21.08 | 13.75 | 10.83 | 7.84 | 5.07 | 4.77 | 7.26 | 7.52 |
| Enterprise Value to EBITDA | 151.41 | 90.62 | 93.20 | 121.40 | 110.09 | 86.49 | 105.75 | 112.90 |
| Enterprise Value to Revenue | 54.34 | 33.58 | 28.00 | 27.76 | 21.75 | 18.94 | 26.62 | 29.11 |
Sentiment & Analyst Ratings
Teradyne's market sentiment is predominantly positive, driven by robust Q2 2026 earnings and optimistic guidance for Q3. Analysts broadly support the stock with a consensus rating close to 'Moderate Buy' and several high price targets reflecting confidence in its AI-driven growth prospects. Retail sentiment on social media is bullish, reflecting widespread optimism about the company's positioning in semiconductor testing and AI markets.
Analyst Recommendations
Risk Assessment
Teradyne presents a financially robust profile with strong liquidity and minimal leverage, supported by exceptional recent earnings driven by AI semiconductor testing demand. While the company shows excellent short-term financial health and commanding market position, it faces moderate risks from geopolitical factors, product demand variability, and supply chain constraints. Analyst sentiment is broadly positive, forecasting moderate upside with a cautious view on valuation and cyclical industry dynamics.
Liquidity & Solvency
Frequently Asked Questions about TER
AI Answers: Common Questions About TER
Get AI-powered answers to the questions investors ask most about Teradyne, Inc.
Teradyne is a good buy for medium- to long-term investors due to strong revenue growth exceeding 30% year-over-year, EPS growth over 200% recently, and expanding operating margins near 33%. The stock trades at a premium P/E of 63.6, reflecting high growth expectations.
Selling is not recommended currently as fundamentals and sentiment remain strong. However, consider selling or reducing exposure if the stock fails to break above $380-$390 resistance or if semiconductor capital spending weakens significantly.
Key risks include semiconductor industry cyclicality affecting demand, geopolitical tensions impacting supply chains and exports, and the risk of valuation correction given the elevated P/E and EV/EBITDA multiples.
Analyst price targets range from $397 to $550, reflecting confidence in AI-driven growth and margin expansion. A breakout above $380-$390 would support upside toward these targets.
Teradyne is currently overvalued relative to sector averages with a P/E above 60 and high EV/EBITDA and price-to-sales ratios. This premium is justified by strong earnings growth and market leadership but implies limited margin for error.
Fundamentals are strong with revenue growing from $2.68B in 2023 to over $3.19B in 2025, gross margins near 60%, operating margins expanding to 32.9%, and EPS tripling over the past year. The company has a dominant market position and strong liquidity.
Technically, the stock is consolidating below the 50-day SMA near $380 with neutral RSI at 51. Support levels at $328 and $289 provide downside protection. A confirmed breakout above $380-$390 would signal renewed bullish momentum.
Upcoming catalysts include continued strong quarterly earnings reports, raised guidance, and potential technical breakout above resistance levels. Growth in AI semiconductor testing and automotive electronics also support upside.
Want a Personalized Answer?
Get AI-powered insights tailored to your risk tolerance and investment goals.