Teradyne (NASDAQ:TER) Updates Q3 2026 Earnings Guidance

Teradyne (NASDAQ:TER) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.850-2.150 for the period, compared to the consensus estimate of 1.430. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.0 billion.

Teradyne Price Performance

Shares of NASDAQ TER traded up $8.83 during mid-day trading on Wednesday, hitting $329.48. 4,032,963 shares of the stock traded hands, compared to its average volume of 3,827,933. The company has a market cap of $51.58 billion, a PE ratio of 60.94, a price-to-earnings-growth ratio of 0.97 and a beta of 1.74. Teradyne has a twelve month low of $102.42 and a twelve month high of $487.91. The firm has a 50 day simple moving average of $382.68 and a two-hundred day simple moving average of $335.09.

Teradyne (NASDAQ:TER) last issued its earnings results on Wednesday, July 29th. The company reported $2.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.38. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.The business had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm earned $0.57 EPS. The business’s revenue for the quarter was up 103.9% compared to the same quarter last year. On average, equities research analysts anticipate that Teradyne will post 7.2 earnings per share for the current fiscal year.

Teradyne Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were issued a $0.13 dividend. This is a boost from Teradyne’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. Teradyne’s dividend payout ratio (DPR) is 9.63%.

Analyst Upgrades and Downgrades

TER has been the topic of several recent research reports. Robert W. Baird lifted their target price on shares of Teradyne from $350.00 to $446.00 and gave the stock an “outperform” rating in a research report on Tuesday, June 23rd. Citigroup upped their price target on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price target for the company in a research note on Thursday, April 30th. Zacks Research upgraded Teradyne from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, May 12th. Finally, Stifel Nicolaus upped their price objective on shares of Teradyne from $325.00 to $390.00 and gave the company a “buy” rating in a research note on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $394.53.

Insider Activity

In other Teradyne news, CEO Gregory Stephen Smith sold 8,597 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $338.98, for a total value of $2,914,211.06. Following the completion of the sale, the chief executive officer directly owned 124,470 shares of the company’s stock, valued at approximately $42,192,840.60. This represents a 6.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $345.37, for a total transaction of $348,132.96. Following the transaction, the insider directly owned 15,066 shares of the company’s stock, valued at $5,203,344.42. This represents a 6.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 14,941 shares of company stock worth $5,444,112 over the last 90 days. 0.19% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported second-quarter revenue of $1.33 billion, up 103.9% year over year and ahead of the approximately $1.22 billion consensus estimate. Non-GAAP earnings were $2.47 per share, beating expectations by roughly 20%. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Third-quarter guidance significantly exceeded Wall Street expectations. Teradyne forecast revenue of $1.2 billion to $1.3 billion and EPS of $1.85 to $2.15, versus consensus estimates of about $1.0 billion in revenue and $1.43 EPS. Teradyne forecasts upbeat revenue on strong chip equipment demand
• Positive Sentiment: The semiconductor test business generated $1.12 billion of second-quarter revenue, reinforcing the view that AI-related chip complexity and increased wafer-fabrication investment are supporting demand for Teradyne’s higher-value testing systems. Teradyne Stock Jumps as Earnings Guidance Impresses Wall Street
• Positive Sentiment: Cantor Fitzgerald reaffirmed its Overweight rating and set a $550 price target, signaling substantial potential upside based on its expectations for continued growth. Cantor Fitzgerald rating update
• Negative Sentiment: Despite the earnings reaction, valuation remains a risk: Teradyne trades at a relatively high earnings multiple after a substantial one-year advance, leaving the stock vulnerable if AI-related demand or future guidance falls short of elevated expectations.

Hedge Funds Weigh In On Teradyne

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new position in Teradyne during the fourth quarter valued at approximately $28,000. CYBER HORNET ETFs LLC bought a new stake in Teradyne in the 2nd quarter worth $35,000. DV Equities LLC purchased a new position in Teradyne during the 4th quarter valued at about $42,000. MUFG Securities EMEA plc purchased a new stake in shares of Teradyne in the 2nd quarter worth about $43,000. Finally, Intesa Sanpaolo Wealth Management purchased a new stake in Teradyne in the fourth quarter worth about $48,000. Hedge funds and other institutional investors own 99.77% of the company’s stock.

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.