XStocksXray

Research report · 16 October 2026

Teradyne, Inc (TER)

Information Technology · Semiconductor Materials & Equipment · US stock · price as of 16 Oct 2026

Key indicators

Price	$325.00
52-week range	$135.57 – $487.72
Market cap	$51.3B
P/E (trailing)	44.8×
EV / EBITDA	34.3×
Free-cash-flow yield	1.6%
Dividend yield	0.2%
Revenue (last 12 months)	$4.5B
Revenue growth (3y a year)	0.4%
Operating margin	30.2%
Return on invested capital	37.8%
Net debt / EBITDA	-0.2×

Fair value

Blended fair value$155.20 range $151 – $159

Versus priceOvervalued−52% to fair value

Peer multiples	$200.62
Fundamentals-adjusted multiple	$148.85
10-year DCF (market-scaled)	$116.12
Earnings power value (floor, not blended)	$57.08
Model uncertainty	Medium

X-Ray Score

44/ 100 · High confidence · ahead of 31% of sector peers

Valuation28

Growth28

Profitability55

Financial health71

Dividends36

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

Teradyne designs and manufactures automated test equipment, which chipmakers use to check semiconductors for defects before they are shipped. It also makes testing systems for electronics and storage devices, and it operates a robotics business that includes collaborative robots, which work alongside people, and mobile robots used in factories and warehouses. Its customers are semiconductor manufacturers, electronics makers and industrial companies.

Teradyne earns revenue from the supply of testing systems, robots and related support. Sales for the last twelve months came to $4.5 billion, and growth over the last three years was 0.4% a year. The operating margin is 30.2%, and the business earns a profit of 38% on the capital invested in it. It has net debt of -0.2 times EBITDA, meaning more cash than debt. A dividend is paid, with a yield of 0.2%.

StocksXray gives Teradyne, Inc an X-Ray Score of 44 out of 100 (high confidence), ahead of 31% of the S&P 500 stocks in its sector. Its strongest lens is financial health (71) and its weakest is growth (28).

Our fair value blend is $155.20 (range $151.29 to $158.95). At $325.00 the stock trades 109% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.

XStocksXray

Teradyne, Inc (TER)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2021	FY2022	FY2023	FY2024	FY2025	Now
Price	$160.55	$86.14	$107.48	$125.23	$193.33	$325.00
Market cap	$29.5B	$14.6B	$17.7B	$20.5B	$30.9B	$51.3B
P/E	29.0×	20.4×	39.4×	37.7×	55.7×	44.8×
EV / revenue	7.7×	4.4×	6.3×	7.1×	9.7×	11.4×
EV / EBITDA	21.4×	14.6×	27.6×	27.9×	39.6×	34.4×
Price / free cash flow	30.5×	35.3×	41.5×	43.1×	68.6×	64.1×
Free-cash-flow yield	3.3%	2.8%	2.4%	2.3%	1.5%	1.6%
Price / book	11.5×	6.0×	7.0×	7.3×	11.0×	14.9×
Dividend yield	0.25%	0.51%	0.41%	0.38%	0.25%	0.16%

Fundamentals checklist ● 7 Good · ● 2 Average · ● 7 Bad · each check graded against the sector

Cash quality

Earnings backed by cash1.7%Bad

Free-cash-flow yield1.6%Bad

Risk models

Altman Z score6.9×Good

Piotroski F-Score6 of 9Average

Growth

EPS growth (3y)−6.3%Bad

Free-cash-flow growth (3y)2.8%Bad

Revenue growth (3y)0.4%Bad

Growth consistency80%Bad

Balance sheet

Current ratio2.1×Good

Net debt / EBITDA-0.2×Good

Interest coverno interest costGood

Valuation

Fair value vs price0.5×Bad

EBIT / EV yield2.6%Average

Profitability

Return on invested capital37.8%Good

Operating margin30.2%Good

Gross profitability53.7%Good

XStocksXray

Teradyne, Inc (TER)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY21	FY22	FY23	FY24	FY25	LTM
Revenue	3,703	3,155	2,676	2,820	3,190	4,464
Gross profit	2,207	1,867	1,537	1,649	1,857	2,645
Operating income	1,201	832	501	594	650	1,349
Net income	1,015	716	449	542	554	1,150
Diluted EPS ($)	5.53	4.22	2.73	3.32	3.47	7.26
Free cash flow	966	415	426	474	450	800
Gross margin	59.6%	59.2%	57.4%	58.5%	58.2%	59.2%
Operating margin	32.4%	26.4%	18.7%	21.1%	20.4%	30.2%
Net margin	27.4%	22.7%	16.8%	19.2%	17.4%	25.8%
Balance sheet	FY21	FY22	FY23	FY24	FY25	LTM
Total assets	3,809	3,501	3,487	3,709	4,184	4,926
Cash	1,122	855	758	553	294	350
Total debt	–	–	–	–	200	0
Equity	2,562	2,451	2,526	2,819	2,796	3,437
Dividend per share ($)	0.40	0.44	0.44	0.48	0.48	0.50

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	686	652	769	1,083	1,282	1,329
Growth vs a year earlier	+14.3%	−10.7%	+4.3%	+43.9%	+87.0%	+103.9%
Net income ($M)	99	78	120	257	399	375
Diluted EPS ($)	0.61	0.49	0.75	–	2.53	2.38

XStocksXray

Teradyne, Inc (TER)

Peers in Semiconductor Materials & Equipment

Company	X-Ray
TER · Teradyne, Inc	44
LRCX · Lam Research Corp	56
AMAT · Applied Materials Inc	52
KLAC · Kla Corp	50
Q · Qnity Electronics, Inc.	38

Market Compass outlook for Information Technology: Favourable (75/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	−19.3%
1 month	−8.0%
3 months	−2.6%
6 months	−14.5%
1 year	+130.9%
3 years	+230.0%
5 years	+202.4%

Technical summary

DailyStrongly bearish3 bullish · 1 neutral · 12 bearish

WeeklyNeutral6 bullish · 1 neutral · 5 bearish

MonthlyBullish5 bullish · 1 neutral · 2 bearish

50-day / 200-day average	$380.44 / $344.53
52-week low / high	$135.57 / $487.72
Classic pivot, support and resistance	S2 313.11 · S1 319.06 · P – · R1 335.98 · R2 346.95

Recent dividends

Ex-dividend date	Amount per share
4 Sep 2026	$0.1300
21 May 2026	$0.1300
13 Feb 2026	$0.1300
24 Nov 2025	$0.1200
5 Sep 2025	$0.1200
22 May 2025	$0.1200

XStocksXray

Teradyne, Inc (TER)

Strengths

Return on invested capital of 37.8% is ahead of 74% of its sector peers.
Operating margin of 30.2% is ahead of 69% of its sector peers.
Interest cover of no interest cost is ahead of 93% of its sector peers.
Holds more cash than debt (net debt to EBITDA of -0.2×).
Piotroski F-Score of 6 out of 9: most of the nine accounting health tests pass.

Risks and weak spots

Earnings backed by cash is weak against Information Technology peers (1.7%).
Free-cash-flow yield is weak against Information Technology peers (1.6%).
EPS growth (3y) is weak against Information Technology peers (−6.3%).
Free-cash-flow growth (3y) is weak against Information Technology peers (2.8%).
Revenue growth (3y) is weak against Information Technology peers (0.4%).
Growth consistency is weak against Information Technology peers (80%).
Fair value vs price is weak against Information Technology peers (0.5×).
The price is above our fair value range, so good news may already be in the price.

Latest SEC filings

Date	Form	Items
10 Aug 2026	8-K	1.01,2.03,9.01
31 Jul 2026	10-Q
29 Jul 2026	8-K	2.02,9.01
11 May 2026	8-K	5.07
1 May 2026	10-Q
29 Apr 2026	8-K	2.02,9.01
27 Mar 2026	DEF 14A
19 Feb 2026	10-K

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.