Teradyne (TER)
Teradyne builds the sophisticated testing equipment that ensures the microchips inside your phone, car, and computer actually work before they reach you.
Is Teradyne a good stock for a UK beginner?
The honest version: Teradyne builds the sophisticated testing equipment that ensures the microchips inside your phone, car, and computer actually work before they reach you.
Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Dominance in testing for next-generation AI chips
Obsolescence of current testing methods
What does Teradyne do?
Teradyne is a behind-the-scenes giant in the tech world, making the complex machines that test semiconductors and electronics to ensure they don't fail. Selling those high-tech testing systems to chip manufacturers and supplying factory automation tools is how it earns. Its fortunes hinge on global demand for new, more powerful chips continuing to grow, since the business leans heavily on the health of the electronics industry.
On our factor screen it looks strongest on growth and quality, and weakest on value.
- ✓Pays a dividend - about 0.1% a year
- ✓Growing - revenue up about 104% over the year
- ✓Very profitable - turns about 26% of sales into profit
- !High P/E of 51 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 36%)
- Quality screens high (82/100)
- Growth screens high (96/100)
- Momentum screens high (75/100)
- High profit margins show a strong, efficient business model
- Essential role in the global electronics supply chain
- Value screens low (20/100)
- Heavy reliance on the cyclical nature of the semiconductor industry
- Potential for trade tensions to disrupt global tech sales
- High beta suggests the stock may fall sharply during market downturns
What do Teradyne's numbers mean?
How much money does Teradyne make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Teradyne pay a dividend?
Yes - Teradyne currently pays a dividend of about 0.1% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Teradyne report earnings, and how did recent quarters go?
Teradyne is next scheduled to report on about 2026-10-21 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-28 | $2.05 | $2.47 | Beat +20% |
| 2026-04-28 | $2.12 | $2.56 | Beat +21% |
| 2026-02-02 | $1.38 | $1.80 | Beat +30% |
| 2025-10-28 | $0.79 | $0.85 | Beat +7% |
| 2025-07-29 | $0.54 | $0.57 | Beat +5% |
| 2025-04-28 | $0.62 | $0.75 | Beat +22% |
Across the last 6 quarters here, Teradyne came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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NetApp, Inc.What are the scenarios for Teradyne?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Teradyne?
How many points the write-up makes each way — a balance check, not a score or verdict.
- High profit margins show a strong, efficient business model
- Essential role in the global electronics supply chain
- Strong recent growth in both sales and earnings
- Very high valuation compared to current earnings
- Share price is prone to significant volatility
- Minimal dividend payout for those seeking regular income
- Heavy reliance on the cyclical nature of the semiconductor industry
- Potential for trade tensions to disrupt global tech sales
- High beta suggests the stock may fall sharply during market downturns
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global semiconductor manufacturing
- Competitors developing cheaper or more effective testing alternatives
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.