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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
$361.09+7.95(0.02%)Market open
Market Cap
$55.25B
P/E
48.0x
P/S
12.4x
P/B
16.1x

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

No red flags in the last 8 quarters.

Valuation vs. 5-year range

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

P/E · 48.0x5y range 0.0x – 55.5x
P/E 48.0x · above its 20-quarter median

Currently above its 20-quarter median.

P/S · 12.4x5y range 0.0x – 12.4x
P/S 12.4x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 16.1x5y range 0.0x – 16.1x
P/B 16.1x · above its 20-quarter median

Currently above its 20-quarter median.

Price & Volume
Market Cap $55.25B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue
$4.46B
4Q
Q. Revenue
$1.33B
4Q
TTM EBITDA
$1.48B
4Q
TTM Op. Income
$1.35B
3Q
Q. Op. Income
$437.81M
382%
TTM Net Income
$1.15B
3Q
Q. Net Income
$374.53M
378%
EPS
$2.39
388%
Shares Out.
$156.47M
2%
$4.46B in TTM revenue grew 57.9% YoY, reaching $1.33B last quarter. TTM EBITDA of $1.48B and TTM operating income of $1.35B show growth is flowing through to the bottom line. TTM net income of $1.15B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
59.8%
4%
EBITDA Margin
35.5%
89%
Op. Margin
32.9%
137%
Net Margin
28.2%
134%
Op. margin of 32.9% is up 19.0% YoY — cost efficiency is improving. Net margin at 28.2% and gross margin of 59.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 137% — a weakening trend.

Price Ratios

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

P/E Ratio
48.0x
2Q
P/S Ratio
12.4x
5Q
P/B Ratio
16.1x
5Q
At 48.0x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 12.4x and P/B of 16.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

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

Total Assets
$4.93B
5Q
Cash
$349.54M
3%
Long-Term Debt
N/A
Book Value
$3.44B
3Q
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
$469.14M
158%
TTM Free Cash Flow
$799.93M
2Q
FCF Margin
17.9%
2Q
FCF / Net Income
0.7
43%
TTM FCF of $799.93M on $469.14M in operating cash flow. The FCF / Net Income ratio of 0.7x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.

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