📊 TER Key Takeaways
Is Teradyne, Inc. (TER) a Good Investment?
Teradyne demonstrates exceptional financial health with strong profitability metrics, robust revenue growth of 13.1% YoY, and excellent cash generation capability. The company maintains zero long-term debt, superior liquidity ratios, and converts 14.1% of revenue into free cash flow, indicating high-quality earnings and operational efficiency.
Teradyne shows strong core fundamentals, with double-digit revenue growth, high gross margins, solid operating profitability, and healthy free cash flow generation. Its debt-free balance sheet, strong liquidity, and high returns on equity and assets support financial resilience, though flat net income suggests investors should watch whether recent top-line growth converts into stronger bottom-line expansion.
Why Buy Teradyne, Inc. Stock? TER Key Strengths
- Outstanding profitability with 58.2% gross margin and 20.4% operating margin
- Strong revenue growth of 13.1% YoY paired with stable net margins at 17.4%
- Excellent cash flow generation with $450.4M free cash flow and 67.2% operating cash flow conversion
- Zero long-term debt with $293.8M cash position and 95.0x interest coverage ratio
- Superior returns on equity (19.8%) and assets (13.2%) indicating efficient capital deployment
- Strong liquidity position with 1.75x current ratio and 1.41x quick ratio
- High profitability with 58.2% gross margin and 20.4% operating margin
- Debt-free balance sheet with solid liquidity and very strong interest coverage
- Positive growth quality supported by $674.41M operating cash flow and $450.41M free cash flow
TER Stock Risks: Teradyne, Inc. Investment Risks
- Net income growth flat at 0.0% YoY despite 13.1% revenue growth, suggesting margin compression or one-time items
- High insider activity with 22 Form 4 filings in last 90 days warrants monitoring for potential confidence concerns
- Exposure to cyclical semiconductor testing equipment market which can face demand volatility
- Capital intensity with $224.0M capex annually reducing overall free cash flow conversion potential
- Net income was flat year over year despite 13.1% revenue growth, implying some margin or cost pressure
- Free cash flow margin of 14.1% is solid but trails gross and operating profitability, so capital intensity remains worth monitoring
- Cash balance is modest relative to total assets, reducing flexibility if operating conditions weaken materially
Key Metrics to Watch
- Net income growth trajectory to ensure profitability expansion matches revenue growth
- Gross margin sustainability amid competitive pressures in test equipment sector
- Free cash flow consistency and capital allocation decisions for shareholder returns
- Operating leverage improvement as company scales revenue base
- Customer concentration and geographic exposure in semiconductor industry demand cycles
- Operating margin and net income conversion on incremental revenue
- Free cash flow margin and capital expenditure levels
Teradyne, Inc. (TER) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Teradyne, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TER Profit Margin, ROE & Profitability Analysis
TER vs Utilities Sector: How Teradyne, Inc. Compares
How Teradyne, Inc. compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Teradyne, Inc. Stock Overvalued? TER Valuation Analysis 2026
Based on fundamental analysis, Teradyne, Inc. appears fundamentally strong relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Teradyne, Inc. Balance Sheet: TER Debt, Cash & Liquidity
TER Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Teradyne, Inc.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $2.73 reflects profitable operations.
TER Revenue Growth, EPS Growth & YoY Performance
TER Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $737.3M | $119.6M | $0.75 |
| Q2 2025 | $651.8M | $78.4M | $0.49 |
| Q1 2025 | $599.8M | $64.2M | $0.40 |
| Q3 2024 | $703.7M | $128.1M | $0.78 |
| Q2 2024 | $684.4M | $120.1M | $0.73 |
| Q1 2024 | $599.8M | $64.2M | $0.40 |
| Q3 2023 | $703.7M | $128.1M | $0.78 |
| Q2 2023 | $684.4M | $120.1M | $0.73 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Teradyne, Inc. Dividends, Buybacks & Capital Allocation
TER SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Teradyne, Inc. (CIK: 0000097210)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TER
What is the AI rating for TER?
Teradyne, Inc. (TER) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TER's key strengths?
Claude: Outstanding profitability with 58.2% gross margin and 20.4% operating margin. Strong revenue growth of 13.1% YoY paired with stable net margins at 17.4%. ChatGPT: High profitability with 58.2% gross margin and 20.4% operating margin. Debt-free balance sheet with solid liquidity and very strong interest coverage.
What are the risks of investing in TER?
Claude: Net income growth flat at 0.0% YoY despite 13.1% revenue growth, suggesting margin compression or one-time items. High insider activity with 22 Form 4 filings in last 90 days warrants monitoring for potential confidence concerns. ChatGPT: Net income was flat year over year despite 13.1% revenue growth, implying some margin or cost pressure. Free cash flow margin of 14.1% is solid but trails gross and operating profitability, so capital intensity remains worth monitoring.
What is TER's revenue and growth?
Teradyne, Inc. reported revenue of $3.2B.
Does TER pay dividends?
Teradyne, Inc. pays dividends, with $76.3M distributed to shareholders in the trailing twelve months.
Where can I find TER SEC filings?
Official SEC filings for Teradyne, Inc. (CIK: 0000097210) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TER's EPS?
Teradyne, Inc. has a diluted EPS of $3.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TER a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Teradyne, Inc. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TER stock overvalued or undervalued?
Valuation metrics for TER: ROE of 19.8% (sector avg: 10%), net margin of 17.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy TER stock in 2026?
Our dual AI analysis gives Teradyne, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TER's free cash flow?
Teradyne, Inc.'s operating cash flow is $674.4M, with capital expenditures of $224.0M. FCF margin is 14.1%.
How does TER compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 17.4% (avg: 12%), ROE 19.8% (avg: 10%), current ratio 1.75 (avg: 0.8).