📊 TER Key Takeaways
Is Teradyne, Inc. (TER) a Good Investment?
Teradyne demonstrates exceptional operational profitability with 60.9% gross margin and 31.1% net margin, supported by 13.1% revenue growth and zero debt with a fortress balance sheet. However, flat net income growth despite double-digit revenue growth signals potential margin compression requiring close monitoring of expense management and operational leverage.
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.
Teradyne, Inc. Key Strengths (TER)
- Exceptional net margin (31.1%) and operating margin (36.9%) indicate strong pricing power and cost discipline
- Zero long-term debt with $241.9M cash and 2.15x current ratio provide financial flexibility and stability
- Solid free cash flow generation ($200.4M, 15.6% FCF margin) supports dividends or strategic investments
- Double-digit revenue growth (13.1% YoY) demonstrates market demand for test instrumentation solutions
- 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 flat (0% YoY) despite 13.1% revenue growth indicates margin compression or unexpected expense increases
- ROE (12.7%) and ROA (9.0%) moderate relative to exceptional operating profitability suggests capital efficiency challenges
- High insider activity (18 Form 4 filings in 90 days) warrants monitoring for potential insider knowledge of headwinds
- Dependence on semiconductor/electronics testing market exposes company to cyclical industry downturns
- 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 margin trend - critical to ensure compression does not continue
- Operating expense ratio - identify source of earnings growth deceleration
- Free cash flow conversion and sustainability of cash generation
- Capital expenditure requirements and return on invested capital improvements
- 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
Strong liquidity with a 2.15x current ratio provides a solid financial cushion.
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 |
|---|---|---|---|
| Q1 2026 | $685.7M | $98.9M | $0.61 |
| 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 |
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 Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are TER's key strengths?
Claude: Exceptional net margin (31.1%) and operating margin (36.9%) indicate strong pricing power and cost discipline. Zero long-term debt with $241.9M cash and 2.15x current ratio provide financial flexibility and stability. 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 flat (0% YoY) despite 13.1% revenue growth indicates margin compression or unexpected expense increases. ROE (12.7%) and ROA (9.0%) moderate relative to exceptional operating profitability suggests capital efficiency challenges. 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 $1.3B.
Does TER pay dividends?
Teradyne, Inc. pays dividends, with $20.4M 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 $2.53.
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 grade reflects both perspectives for balanced insights.
What is TER's fundamental grade?
Based on our AI fundamental analysis in June 2026, Teradyne, Inc. has a A grade with 78% 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 12.7% (sector avg: 10%), net margin of 31.1% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is TER's AI grade for 2026?
Our dual AI analysis gives Teradyne, Inc. a combined A grade 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 $265.1M, with capital expenditures of $64.7M. FCF margin is 15.6%.
How does TER compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 31.1% (avg: 12%), ROE 12.7% (avg: 10%), current ratio 2.15 (avg: 0.8).