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Teradyne (TER) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Teradyne
NasdaqGS•Technology•Semiconductor Equipment & Materials
$261.01-13.36(-0.05%)Pre-market
Market Cap
$40.79B
P/E
29.7x
P/S
8.2x
P/B
11.1x

Teradyne, Inc. engages in the design, development, manufacture, and sale of automated test systems and robotics products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through Semiconductor Test, Robotics, and Other segments. The Semiconductor Test segment offers products and services for wafer level and device package testing, and system level testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The Robotics segment provides collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. It also provides product test instruments which includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. The company has a strategic collaboration with Tokyo Electron Limited for the development of a test cell solution for device screening in AI and data center applications. Teradyne, Inc. was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

A

How this company scores

ExcellentMetricSide Score: 85/100

Strongest: Growth (25/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability22/25
Growth25/25
Balance Sheet & Red Flags15/25
Cash & Earnings Quality23/25
Strengths
Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 29.7x5y range 0.0x – 59.4x
P/E 29.7x · near its 20-quarter median

Currently near its 20-quarter median.

P/S · 8.2x5y range 0.0x – 15.3x
P/S 8.2x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 11.1x5y range 0.0x – 19.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume
Market Cap $40.79B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$5.00B
5Q
Q. Revenue
$1.31B
70%
TTM EBITDA
$1.74B
5Q
TTM Op. Income
$1.61B
4Q
Q. Op. Income
$401.97M
2Q
TTM Net Income
$1.37B
4Q
Q. Net Income
$342.41M
2Q
EPS
$2.19
2Q
Shares Out.
$156.26M
1%
$5.00B in TTM revenue grew 74.9% YoY, reaching $1.31B last quarter. TTM EBITDA of $1.74B and TTM operating income of $1.61B show growth is flowing through to the bottom line. TTM net income of $1.37B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
59.1%
2Q
EBITDA Margin
33.6%
2Q
Op. Margin
30.8%
2Q
Net Margin
26.2%
2Q
Op. margin of 30.8% is up 11.9% YoY — cost efficiency is improving. Net margin at 26.2% and gross margin of 59.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
29.7x
39%
P/S Ratio
8.2x
9%
P/B Ratio
11.1x
40%
At 29.7x P/E, the stock trades within typical market levels. P/S of 8.2x and P/B of 11.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 39% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$5.45B
6Q
Cash
$460.74M
2Q
Long-Term Debt
N/A
Book Value
$3.69B
4Q
D/E Ratio
N/A
Debt/EBITDA
0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$313.61M
539%
TTM Free Cash Flow
$1.02B
3Q
FCF Margin
20.5%
3Q
FCF / Net Income
0.7
2Q
TTM FCF of $1.02B on $313.61M in operating cash flow. The FCF / Net Income ratio of 0.7x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.

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· above its 20-quarter median

Currently above its 20-quarter median.