Teradyne, Inc. (TER) is listed on NASDAQ and operates in the Semiconductors industry (Technology sector).
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing 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; 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 System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems. The Industrial Automation segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and light industrial customers. The Wireless Test segment provides test solutions for use in the development and manufacture of wireless devices and modules, smartphones, tablets, ...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 20 |
| Hold | 11 |
| Sell | 0 |
| Strong Sell | 0 |
Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, designs and manufactures automatic test equipment globally. The company operates through four main segments: Semiconductor Test, System Test, Industrial Automation, and Wireless Test.
The Semiconductor Test segment provides solutions for wafer level and device package testing across various applications, including automotive, industrial, and consumer electronics. Key products include the FLEX, J750, Magnum, and ETS test platforms, serving integrated device manufacturers, fabless companies, foundries, and semiconductor assembly and test providers.
The System Test segment offers test instrumentation and systems for defense/aerospace, storage, and circuit-board inspection.
In Industrial Automation, Teradyne supplies collaborative robotic arms, autonomous mobile robots, and advanced control software for manufacturing, logistics, and light industrial sectors.
The Wireless Test segment, under the LitePoint brand, delivers test solutions for wireless devices and modules, including smartphones and IoT devices. It features products like IQxel for Wi-Fi, IQxstream for cellular technologies, and IQcell for multi-device cellular signaling.
Over the past three fiscal years, the company has demonstrated robust growth and profitability improvements. Revenue consistently increased at a compound annual growth rate (CAGR) of 9.2%, rising from $2.68 billion in 2023 to $3.19 billion in 2025. This revenue growth was accompanied by a notable increase in earnings per share (EPS), which grew at a 12.9% CAGR, reaching $3.48 in 2025. Operating margins expanded by 3.0 percentage points, from 18.7% in 2023 to 21.7% in 2025, indicating effective operating leverage as the company scaled. Despite this, net margins showed some inconsistency, ending slightly higher at 17.4% in 2025. Cash generation was strong, with operating cash flow (OCF) increasing consistently to $674 million by 2025, although free cash flow (FCF) showed some volatility, ending at $450 million. The company's net debt position increased from a net cash position of $610 million in 2023 to a net debt of $53 million in 2025, reflecting a strategic shift in capital structure. Despite a decrease in cash conversion ratio (CCR) to 1.22, the company maintained a healthy liquidity position with a current ratio of 1.76. The reduction in days inventory outstanding (DIO) from 230 days to 144 days suggests improved inventory management, contributing to a more efficient cash conversion cycle. Overall, the company has effectively leveraged its revenue growth into improved profitability and maintained a solid cash flow position, although the increase in net debt warrants monitoring.
Recent developments for Teradyne, Inc. (NASDAQ: TER) are highlighted by significant analyst activity and strategic acquisitions. On April 17, Teradyne's stock reached a new 1-year high following an analyst upgrade, with Evercore raising their price target from $200 to $315, and the stock trading as high as $376. This reflects strong market confidence in Teradyne's growth prospects. Additionally, on April 16, Teradyne announced the acquisition of TestInsight, a move aimed at accelerating the time to market for AI and data center devices, further expanding its strategic portfolio. Institutional trading activity also saw notable changes, with ARK Investment Management LLC increasing its holdings by purchasing an additional 548,140 shares, now owning over 2.7 million shares valued at approximately $374.7 million. Conversely, Altfest L J & Co. Inc. reduced its position by selling 6,150 shares. These transactions indicate active portfolio management among institutional investors. Furthermore, Teradyne is set to announce its first-quarter 2026 financial results, which are anticipated to provide further insights into its performance and future guidance. These developments underscore Teradyne's strategic focus on AI infrastructure and its appeal to growth-oriented investors.