Teradyne
TER
$379.52
+2.83%
Teradyne is a leading provider of automated test equipment for the semiconductor industry, also offering system testing for hard drives, circuit boards, and wireless devices, along with industrial automation solutions through collaborative robots. As a dominant player in semiconductor testing, it serves vertically integrated, fabless, and foundry chipmakers, with a growing presence in factory automation. The current investor narrative centers on Teradyne's pivotal role in enabling AI chip testing, driving a massive stock rally, but recent volatility reflects concerns over near-term margin pressure and revenue lumpiness despite blockbuster quarterly results.…
TER
Teradyne
$379.52
Related headlines
TER 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Teradyne's 12-month outlook, with a consensus price target around $493.38 and implied upside of +30.0% versus the current price.
Average Target
$493.38
10 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
10
covering this stock
Price Range
$304 - $493
Analyst target range
Teradyne is covered by 10 analysts, with a consensus leaning bullish. The average EPS estimate for the current fiscal year is $13.80, with a low of $10.26 and high of $18.27. The average revenue estimate is $6.98 billion, with a range of $6.85 billion to $7.10 billion. While specific price targets are not provided, the consensus recommendation based on recent ratings is bullish: all recent actions from Baird, Goldman Sachs, Citigroup, Evercore, Cantor Fitzgerald, Stifel, and UBS are Buy/Outperform/Overweight. The implied upside from the current price of $369.09 to the average target (not given) cannot be calculated, but the strong buy consensus suggests analysts see further upside. The target range (low to high) is not available, but the wide EPS estimate range ($10.26 to $18.27) indicates uncertainty about earnings power. The high end assumes continued AI-driven demand and margin expansion, while the low end may price in a cyclical downturn or competitive pressures. Recent upgrades and reiterations from multiple firms in early 2026 reinforce positive sentiment. The lack of explicit price targets is a limitation, but the uniform bullishness among analysts signals confidence in Teradyne's growth story.
TER Technical Analysis
Teradyne's stock is in a powerful long-term uptrend, with a 1-year price change of +291.9%, far outpacing the S&P 500's +19.1%. The current price of $369.09 sits at 70.5% of its 52-week range ($88.60 low to $487.91 high), indicating it is still in the upper half but off the highs, suggesting a pullback from overextended levels rather than a trend reversal. The stock's beta of 1.742 implies 74% more volatility than the market, amplifying both upside and downside moves. Short-term momentum shows a 1-month decline of -6.0% and a 3-month gain of +19.2%, creating a divergence from the 1-year trend. The 1-month drop contrasts with the 3-month and 1-year gains, signaling a short-term pullback within a broader uptrend, possibly a mean-reversion after the stock surged to $487.91 in late June. The 1-month relative strength vs. SPY is -4.7%, confirming underperformance recently. Key support is the 52-week low of $88.60, though more immediate support lies near the $320 area (March lows). Resistance is the 52-week high of $487.91; a breakout above that level would signal a resumption of the uptrend, while a breakdown below $320 could indicate a deeper correction. With a beta of 1.742, the stock is highly sensitive to market moves, requiring careful position sizing.
Beta
1.74
1.74x market volatility
Max Drawdown
-26.7%
Largest decline past year
52-Week Range
$89-$488
Price range past year
Annual Return
+307.8%
Cumulative gain past year
| Period | TER Return | S&P 500 |
|---|---|---|
| 1m | +6.0% | +1.9% |
| 3m | +18.4% | +14.0% |
| 6m | +70.6% | +8.9% |
| 1y | +307.8% | +20.1% |
| ytd | +82.8% | +10.2% |
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TER Fundamental Analysis
Teradyne's revenue trajectory is accelerating strongly, with Q4 2025 revenue of $1.083 billion, up 43.9% year-over-year from $752.9 million in Q4 2024. The sequential trend shows robust growth: Q1 2025 revenue was $685.7 million, Q2 $651.8 million, Q3 $769.2 million, and Q4 $1.083 billion, indicating a sharp ramp in the second half. Product revenue of $943.5 million dominates, while service contributed $139.9 million. This growth is driven by demand for testing complex AI chips, positioning Teradyne as a key enabler of the AI infrastructure buildout. Profitability is strong and improving. Net income in Q4 2025 was $257.2 million, up from $146.3 million a year ago, with a net margin of 23.7% vs. 19.4% in Q4 2024. Gross margin was 57.5%, slightly below the 59.4% in Q4 2024 but still healthy. Operating margin expanded to 28.6% from 20.4%, reflecting operating leverage. The company is consistently profitable, with EPS of $1.64 in Q4 2025, up from $0.90 in Q4 2024. Balance sheet is solid with low leverage. Debt-to-equity ratio is 0.12, indicating minimal debt. Free cash flow (TTM) is $450.4 million, and the company generated $281.6 million in operating cash flow in Q4 2025. ROE is 19.8%, and the current ratio of 1.76 suggests adequate liquidity. The company is self-funding growth, with ample cash to invest in R&D and potential acquisitions.
Quarterly Revenue
$1.1B
2025-12
Revenue YoY Growth
+0.43%
YoY Comparison
Gross Margin
+0.57%
Latest Quarter
Free Cash Flow
$450404999.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TER Overvalued?
Since net income is positive, the trailing P/E ratio of 55.5x is the primary valuation metric. The forward P/E of 37.5x implies the market expects significant earnings growth, with the gap between trailing and forward suggesting a 32% earnings increase over the next year. The PEG ratio of 23.6x indicates the stock is priced for high growth, but the PEG is elevated, suggesting the market may be overly optimistic. Compared to the semiconductor industry, Teradyne's trailing P/E of 55.5x is a premium to the industry average (not provided, but typically in the 20-30x range). The PS ratio of 9.5x is also high, reflecting the market's willingness to pay for revenue growth. The premium is justified by Teradyne's dominant position in AI chip testing and accelerating revenue growth, but it leaves little room for error. Historically, Teradyne's trailing P/E has ranged from roughly 17x to 67x over the past five years. The current 55.5x is near the top of that range, suggesting the market is pricing in optimistic expectations. The PB ratio of 10.8x is also elevated versus historical levels, indicating the stock is trading at a premium to book value, consistent with a growth company.
PE
55.5x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 16x~67x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
39.5x
Enterprise Value Multiple