| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | 52.4x | 17.6x | Bottom tier | |
Growth | 84 | 57.9% | 7.1% | Top tier | |
Quality | 87 | 35.8% | 4.5% | Top tier | |
Safety | 94 | — | 2.6x | Top tier | |
Capital Return | 32 | 0.13% | 2.15% | Bottom tier | |
Momentum | 79 | 288.5% | 2.3% | Top tier | |
Sentiment | 61 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Teradyne operates in semiconductor and product testing and industrial automation, with a strategy spanning wafer-level chip testing, board testing, optical and copper interconnect testing, and robot-assisted data center assembly. The company generates revenue from system-on-chip, memory, and storage test equipment; product test solutions such as Omnyx and Photon 100 and products from the MultiLane Test Products project; and robots used in electronics and semiconductor manufacturing. In fiscal Q2 2026, AI-driven revenue accounted for more than 60% of the company’s revenue, illustrating the current growth dependence on the expansion of data center infrastructure.
EDGAR data for fiscal Q2 2026 showed revenue of $1.3 billion, gross profit of $794.6 million, net income of $374.5 million, and earnings per share of $2.38. In its earnings presentation, Teradyne reported more precise revenue of $1.33 billion, up more than 100% year over year and 4% sequentially, and adjusted earnings per share of $2.47, while adjusted gross margin was 59.8% and adjusted operating margin was 33.7%. The adjusted earnings per share cited on the call differs from the GAAP earnings per share in EDGAR because the company used non-GAAP measures in its presentation.
Semi Test led the fiscal Q2 2026 mix with revenue exceeding $1.1 billion, comprising $843 million from system-on-chip testing, $212 million from memory, and $67 million from storage testing. Within system-on-chip testing, compute represented 70% of product revenue, and its revenue grew by approximately 600% year over year. Product Test generated revenue of $107 million, up 26% year over year, while Robotics revenue was approximately $100 million, up 33% year over year, and electronics and semiconductor manufacturing became the group’s largest end market.
Analyst consensus rates TER as “Buy,” with an average target of $461.5 and a wide range between $390 and $550; the average is below the 52-week range high of $487.91, while the highest target exceeds that high. The breadth of the targets reflects differing assessments of the sustainability of the AI boom and market-share gains versus the fiscal Q3 2026 slowdown and margin pressure, and the data does not provide a valid price-to-earnings ratio to add another valuation anchor.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
More than 60% of fiscal Q2 2026 revenue came from AI-related demand, and total revenue rose to $1.33 billion, up more than 100% year over year. Semi Test revenue grew 128%, while compute revenue increased by approximately 600%, and compute became 70% of system-on-chip test revenue. Memory also recorded $212 million, and IST rose to $67 million, supported by HDD demand from the three leading suppliers.
The memory business generated record revenue of $212 million in fiscal Q2 2026, the third consecutive quarter above $200 million. Demand came from HBM and DRAM test solutions, alongside the beginning of a recovery in final NAND testing, and the book-to-bill ratio exceeded two. Management expects the memory test market in fiscal 2026 to be more than 40% larger than in fiscal 2025, with capacity expansion plans continuing into fiscal 2027.
The company expects revenue between $1.2 billion and $1.3 billion and adjusted earnings per share between $1.85 and $2.15 in fiscal Q3 2026. It expects gross margin between 58% and 59%, operating expenses equal to approximately 29%–30% of sales, and adjusted operating margin between 28% and 30%. Memory, IST, Product Test, Robotics, automotive, and industrial are expected to support the second half, offset by weakness in mobile phones and the timing of compute orders.
Automated analysis for informational purposes only — not investment advice.
In fiscal Q2 2026, Teradyne shipped the first order it won from a commercial GPU customer and completed technical matching at a second major cloud computing customer. Management explains that qualification at major customers progresses through competition, solution development, matching, and then production ramp-up, and typically takes nine to 12 months. The company therefore expects share gains to begin emerging gradually in fiscal 2027, benefiting from the trend among customers toward adopting two suppliers to reduce supply risk.
The recorded growth is not limited to Semi Test, although it exceeded $1.1 billion in fiscal Q2 2026. Product Test generated revenue of $107 million, up 26% year over year, and shipments of the new production board testing platform began, while MLTP solutions for high-speed access are also growing. Robotics revenue was approximately $100 million, up 33% year over year, and electronics and semiconductor manufacturing became the group’s largest end market.
The main risk is that more than 60% of fiscal Q2 2026 revenue was linked to AI, increasing sensitivity to the data center spending cycle. The company also expects gross margin to decline to 58%–59% in fiscal Q3 2026, with continued pressure from the memory mix during fiscal 2027, in addition to weakness in mobile phones and the timing of compute orders. Competition for market share remains strong, as management said compute gains will be gradual beginning in fiscal 2027 rather than an immediate shift.
