Teradyne (NASDAQ:TER) Trading Up 7.6% on Earnings Beat

Teradyne, Inc. (NASDAQ:TER) shares shot up 7.6% during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $281.00 and last traded at $268.4690. 3,623,523 shares were traded during mid-day trading, an increase of 22% from the average session volume of 2,973,737 shares. The stock had previously closed at $249.53.

The company reported $1.80 EPS for the quarter, beating the consensus estimate of $1.36 by $0.44. Teradyne had a net margin of 17.37% and a return on equity of 22.68%. The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $970.44 million. During the same quarter last year, the business posted $0.95 EPS. The company’s revenue for the quarter was up 43.9% on a year-over-year basis. Teradyne has set its Q1 2026 guidance at 1.890-2.250 EPS.

Teradyne Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 13th will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $0.48 annualized dividend and a yield of 0.2%. Teradyne’s payout ratio is currently 17.45%.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q4 results: Teradyne reported $1.08B revenue and $1.80 adjusted EPS, handily beating consensus as AI-related demand lifted semiconductor test sales. Teradyne reports Q4 revenue of $1.08B, driven by AI demand
• Positive Sentiment: Very strong forward view: management outlined a model implying roughly $6B revenue and $9.50–$11 EPS (AI expected to drive ~70% of Q1 sales), signaling continued multi-quarter demand for test equipment. Teradyne targets $6B revenue and $9.50–$11 EPS model with AI driving 70% of Q1 sales
• Positive Sentiment: Market reaction and momentum: the stock hit all-time highs as multiple outlets and analysts celebrated the quarter and guidance, boosting short‑term momentum and volume. Teradyne (TER) Touches All-Time High on Stellar Earnings
• Neutral Sentiment: Earnings materials and transcript are available for deeper read — useful for modeling revenue cadence, margin assumptions and segment detail. Teradyne, Inc. (TER) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Wide media coverage (CNBC, MarketWatch, Benzinga, etc.) amplified the story — increases visibility but also attracts short-term traders. Teradyne stock pops on earnings beat driven by AI demand
• Negative Sentiment: Analyst/valuation caution: Northland reaffirmed a “market perform” stance with a ~$270 price target, signaling some firms view current valuation as close to fair value and may cap near-term upside. TER Teradyne downgraded to Market Perform at Northland on valuation
• Negative Sentiment: Profit-taking and valuation risk: commentators warn of a high‑multiple/peak-demand setup and concentrated institutional ownership that could produce pullbacks if buyers pause or institutions trim positions. Teradyne Inc: Sky’s the Limit for This Market, Until It Isn’t

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Teradyne in a research note on Thursday, January 22nd. Industrial Alliance Securities set a $175.00 price objective on shares of Teradyne in a research report on Tuesday, October 28th. JPMorgan Chase & Co. increased their target price on shares of Teradyne from $122.00 to $190.00 and gave the company a “neutral” rating in a research report on Thursday, October 30th. UBS Group raised their price target on shares of Teradyne from $200.00 to $275.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Finally, Citigroup increased their price objective on Teradyne from $215.00 to $325.00 and gave the company a “buy” rating in a report on Wednesday. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Teradyne has a consensus rating of “Moderate Buy” and a consensus target price of $255.18.

Insider Transactions at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 1,108 shares of the stock in a transaction on Friday, December 12th. The stock was sold at an average price of $201.31, for a total transaction of $223,051.48. Following the sale, the chief executive officer owned 93,409 shares in the company, valued at $18,804,165.79. This represents a 1.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.16% of the stock is owned by insiders.

Institutional Trading of Teradyne

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of Nova Scotia lifted its position in Teradyne by 546.5% in the second quarter. Bank of Nova Scotia now owns 98,254 shares of the company’s stock valued at $8,835,000 after purchasing an additional 83,055 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in shares of Teradyne by 291.6% in the second quarter. Thrivent Financial for Lutherans now owns 24,995 shares of the company’s stock worth $2,247,000 after buying an additional 18,612 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in Teradyne by 9.2% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 91,120 shares of the company’s stock valued at $12,542,000 after buying an additional 7,648 shares during the last quarter. Fort Washington Investment Advisors Inc. OH bought a new stake in Teradyne during the 3rd quarter valued at $895,000. Finally, Teacher Retirement System of Texas boosted its position in Teradyne by 61.0% during the 3rd quarter. Teacher Retirement System of Texas now owns 39,513 shares of the company’s stock valued at $5,439,000 after buying an additional 14,969 shares during the period. 99.77% of the stock is currently owned by institutional investors.

Teradyne Stock Performance

The firm has a market cap of $42.14 billion, a PE ratio of 77.32, a PEG ratio of 2.01 and a beta of 1.83. The company’s 50-day simple moving average is $213.39 and its two-hundred day simple moving average is $161.22.

Teradyne Company Profile

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.