US Market News
2 months ago
Teradyne Reports First Quarter 2026 ResultsApril 28, 2026 4:30 PM
Business Wire
Record revenue and earnings both above the high end of our Q1 Guidance
Revenue of $1.282B up 87%, GAAP EPS of $2.53 and non-GAAP EPS of $2.56, both up significantly from Q1’25
Record results driven by AI-related demand strength across compute segments and memory
Teradyne, Inc. (NASDAQ:TER):
Q1'26
Q1'25
Q4'25
Revenue (mil)
$
1,282
$
686
$
1,083
GAAP EPS
$
2.53
$
0.61
$
1.63
Non-GAAP EPS
$
2.56
$
0.75
$
1.80
Teradyne, Inc. (NASDAQ:TER) reported revenue of $1,282 million for the first quarter of 2026 of which $1,111 million was in Semiconductor Test, $91 million in Robotics, and $80 million in Product Test. GAAP net income for the first quarter of 2026 was $398.9 million, or $2.53 per diluted share. On a non-GAAP basis, Teradyne’s net income for the first quarter of 2026 was $402.9 million, or $2.56 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and the related tax impact on non-GAAP adjustments.
"Our Q1 results reached a new record high. With approximately 70% of our revenue tied to AI-related demand, our results reflect the strength of our wafer to AI data center strategy. All of our business groups - Semiconductor Test, Product Test, and Robotics - delivered strong year-over-year growth which we expect to continue with robust AI driven momentum as the catalyst,” said Teradyne CEO Greg Smith.
Guidance for the second quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.83 to $2.12 per diluted share and non-GAAP net income of $1.86 to $2.15 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.
Webcast
A conference call to discuss the first quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, April 29, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.
Non-GAAP Results
In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income excludes acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.
About Teradyne
Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.
Safe Harbor Statement
This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current or future geopolitical conflicts; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.
The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
TERADYNE, INC. REPORT FOR FIRST FISCAL QUARTER OF 2026
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands)
Quarter Ended
March 29,
2026
December 31,
2025
March 30,
2025
Net revenues
$
1,282,494
$
1,083,337
$
685,680
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)
501,545
463,647
270,344
Gross profit
780,949
619,690
415,336
Operating expenses:
Selling and administrative (2)
166,737
164,693
157,257
Engineering and development
135,561
143,265
118,188
Acquired intangible assets amortization
2,224
3,451
4,573
Restructuring and other (3)
3,425
15,081
14,515
Operating expenses
307,947
326,490
294,533
Income from operations
473,002
293,200
120,803
Interest and other (income) expense (4)
7,326
3,625
1,779
Income before income taxes
465,676
289,575
119,024
Income tax provision
62,157
29,151
14,544
Income before equity in net earnings of affiliate
$
403,519
$
260,424
$
104,480
Equity in net earnings of affiliate
(4,611
)
(3,204
)
(5,584
)
Net income
$
398,908
$
257,220
$
98,896
Net income per common share:
Basic
$
2.55
$
1.64
$
0.61
Diluted
$
2.53
$
1.63
$
0.61
Weighted average common shares - basic
156,410
156,412
161,501
Weighted average common shares - diluted
157,636
157,651
161,996
Cash dividend declared per common share
$
0.13
$
0.12
$
0.12
(1) Cost of revenues includes:
Quarter Ended
March 29,
2026
December 31,
2025
March 30,
2025
Provision for excess and obsolete inventory
$
4,682
$
6,607
$
4,945
Inventory step-up
118
348
216
Sale of previously written down inventory
(297
)
(494
)
(324
)
$
4,503
$
6,461
$
4,837
(2)
For the quarters ended March 29, 2026, December 31, 2025, and March 30, 2025, selling and administrative expenses included $1.7 million, $1.9 million, and $0.7 million, respectively, of expenses directly related to a planned ERP system implementation.
(3)
Restructuring and other consists of:
Quarter Ended
March 29,
2026
December 31,
2025
March 30,
2025
Acquisition and divestiture related expenses
$
1,699
$
602
$
1,972
Employee severance (a)
854
10,851
11,395
Asset impairment
—
3,329
1,142
Other
872
299
6
$
3,425
$
15,081
$
14,515
(a)
For the three months ended December 31, 2025, and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively.
(4) Interest and other includes:
Quarter Ended
March 29,
2026
December 31,
2025
March 30,
2025
Pension actuarial losses (gains)
$
—
$
1,338
$
—
Pension settlement loss (gain)
—
18
—
Loss (gain) on foreign exchange contract
—
—
(561
)
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
March 29,
2026
December 31,
2025
Assets
Cash and cash equivalents
$
241,944
$
293,751
Marketable securities
3,653
28,247
Accounts receivable, net
1,107,522
786,913
Inventories, net
362,757
379,552
Prepayments
438,577
427,564
Other current assets
18,720
33,273
Total current assets
2,173,173
1,949,300
Property, plant and equipment, net
585,724
562,999
Operating lease right-of-use assets, net
76,222
76,635
Marketable securities
148,374
126,256
Deferred tax assets
281,776
275,265
Retirement plans assets
12,078
12,059
Equity method investment
522,583
537,098
Other assets
70,743
71,697
Acquired intangible assets, net
48,979
51,271
Goodwill
514,175
521,019
Total assets
$
4,433,827
$
4,183,599
Liabilities
Accounts payable
$
344,681
$
269,185
Accrued employees’ compensation and withholdings
156,194
254,973
Deferred revenue and customer advances
197,127
153,124
Other accrued liabilities
122,512
111,845
Operating lease liabilities
18,438
19,340
Short-term debt
—
200,000
Income taxes payable
173,259
106,740
Total current liabilities
1,012,211
1,115,207
Retirement plans liabilities
143,354
144,874
Long-term deferred revenue and customer advances
58,371
50,888
Deferred tax liabilities
4,556
5,378
Long-term other accrued liabilities
7,559
7,601
Long-term operating lease liabilities
63,960
63,899
Total liabilities
1,290,011
1,387,847
Shareholders’ equity
3,143,816
2,795,752
Total liabilities and shareholders’ equity
$
4,433,827
$
4,183,599
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Quarter Ended
March 29,
2026
March 30,
2025
Cash flows from operating activities:
Net income
$
398,908
$
98,896
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
30,240
25,523
Stock-based compensation
21,902
15,204
Equity in net earnings of affiliate
4,611
5,584
Amortization
2,415
4,779
Provision for excess and obsolete inventory
4,682
4,945
Losses (gains) on investments
3,317
3,372
Deferred taxes
(7,777
)
(7,811
)
Other
2,286
3,483
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable
(322,017
)
13,053
Inventories
20,827
(31,049
)
Prepayments and other assets
4,049
13,650
Accounts payable and other liabilities
(15,025
)
(9,950
)
Deferred revenue and customer advances
51,964
10,200
Retirement plans contributions
(1,534
)
(1,282
)
Income taxes
66,276
13,040
Net cash provided by operating activities
265,124
161,637
Cash flows from investing activities:
Purchases of property, plant and equipment
(64,733
)
(64,021
)
Purchase of investment in a business
—
(3,011
)
Purchases of marketable securities
(40,797
)
(10,753
)
Acquisition of businesses, net of cash and cash equivalents acquired
—
(17,002
)
Proceeds from maturities of marketable securities
10,910
27,381
Proceeds from sales of marketable securities
27,328
5,633
Net cash used for investing activities
(67,292
)
(61,773
)
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facility
50,000
—
Repayments of borrowings on revolving credit facility
(250,000
)
—
Dividend payments
(20,362
)
(19,406
)
Repurchase of common stock
(5,518
)
(157,475
)
Payments related to net settlement of employee stock compensation awards
(39,437
)
(14,726
)
Issuance of common stock under stock purchase and stock option plans
15,101
14,792
Net cash used for financing activities
(250,216
)
(176,815
)
Effects of exchange rate changes on cash and cash equivalents
577
(771
)
(Decrease) increase in cash and cash equivalents
(51,807
)
(77,722
)
Cash and cash equivalents at beginning of period
293,751
553,354
Cash and cash equivalents at end of period
$
241,944
$
475,632
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
Quarter Ended
March 29,
2026
% of Net Revenues
December 31,
2025
% of Net Revenues
March 30,
2025
% of Net Revenues
Net revenues
$
1,282.5
$
1,083.3
$
685.7
Gross profit GAAP
780.9
60.9
%
619.7
57.2
%
415.3
60.6
%
Inventory step-up
0.1
0.0
%
0.3
0.0
%
0.2
0.0
%
Gross profit non-GAAP
781.0
60.9
%
620.0
57.2
%
415.5
60.6
%
Income from operations - GAAP
473.0
36.9
%
293.2
27.1
%
120.8
17.6
%
Restructuring and other (1)
3.4
0.3
%
15.1
1.4
%
14.5
2.1
%
Acquired intangible assets amortization
2.2
0.2
%
3.5
0.3
%
4.6
0.7
%
ERP related expenses (2)
1.7
0.1
%
1.9
0.2
%
0.7
0.1
%
Inventory step-up
0.1
0.0
%
0.3
0.0
%
0.2
0.0
%
Income from operations - non-GAAP
$
480.4
37.5
%
$
314.0
29.0
%
$
140.8
20.5
%
Net Income per Common Share
Net Income per Common Share
Net Income per Common Share
March 29,
2026
% of Net Revenues
Basic
Diluted
December 31,
2025
% of Net Revenues
Basic
Diluted
March 30,
2025
% of Net Revenues
Basic
Diluted
Net income - GAAP
$
398.9
31.1
%
$
2.55
$
2.53
$
257.2
23.7
%
$
1.64
$
1.63
$
98.9
14.4
%
$
0.61
$
0.61
Amortization of equity method investment
7.7
0.6
%
0.05
0.05
7.6
0.7
%
0.05
0.05
7.4
1.1
%
0.05
0.05
Restructuring and other (1)
3.4
0.3
%
0.02
0.02
15.1
1.4
%
0.10
0.10
14.5
2.1
%
0.09
0.09
Acquired intangible assets amortization
2.2
0.2
%
0.01
0.01
3.5
0.3
%
0.02
0.02
4.6
0.7
%
0.03
0.03
ERP related expenses (2)
1.7
0.1
%
0.01
0.01
1.9
0.2
%
0.01
0.01
0.7
0.1
%
0.00
0.00
Inventory step-up
0.1
0.0
%
0.00
0.00
0.3
0.0
%
0.00
0.00
0.2
0.0
%
0.00
0.00
Pension mark-to-market adjustment (3)
—
—
—
—
1.3
0.1
%
0.01
0.01
—
—
—
—
Pension settlement loss (gain)
—
—
—
—
0.1
0.0
%
0.00
0.00
—
—
—
—
Loss (gain) of foreign exchange contract
—
—
—
—
—
—
—
—
(0.6
)
-0.1
%
(0.00
)
(0.00
)
Exclude discrete tax adjustments
(9.3
)
-0.7
%
(0.06
)
(0.06
)
0.4
0.0
%
0.00
0.00
0.9
0.1
%
0.01
0.01
Non-GAAP tax adjustments
(1.8
)
-0.1
%
(0.01
)
(0.01
)
(4.3
)
-0.4
%
(0.03
)
(0.03
)
(5.1
)
-0.7
%
(0.03
)
(0.03
)
Net income - non-GAAP
$
402.9
31.4
%
$
2.58
$
2.56
$
283.0
26.1
%
$
1.81
$
1.80
$
121.5
17.7
%
$
0.75
$
0.75
GAAP and non-GAAP weighted average common shares - basic
156.4
156.4
161.5
GAAP and non-GAAP weighted average common shares - diluted
157.6
157.7
162.0
(1) Restructuring and other consists of:
Quarter Ended
March 29,
2026
December 31,
2025
March 30,
2025
Acquisition and divestiture related expenses
$
1.7
$
0.6
$
2.0
Employee severance (a)
0.9
10.9
11.4
Asset impairment
—
3.3
1.1
Other
0.9
0.3
—
$
3.5
$
15.1
$
14.5
(a) For the quarters ended December 31, 2025 and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively.
(2)
For the quarters ended March 29, 2026, December 31, 2025 and March 30, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.
(3)
For the quarter ended December 31, 2025, adjustment to exclude actuarial loss recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.
GAAP to Non-GAAP Reconciliation of Second Quarter 2026 guidance:
GAAP and non-GAAP second quarter revenue guidance:
$1,150 million
to
$1,250 million
GAAP net income per diluted share
$
1.83
$
2.12
Exclude acquired intangible assets amortization
0.01
$
0.01
Exclude equity method investment amortization
0.03
$
0.03
Non-GAAP tax adjustments
(0.01
)
$
(0.01
)
Non-GAAP net income per diluted share
$
1.86
$
2.15
For press releases and other information of interest to investors, please visit Teradyne’s homepage at https://www.teradyne.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428196406/en/
For more information:
Amy McAndrews
Investor Relations
Tel 978.370.3945
Investor.relations@teradyne.com
Original: Teradyne Reports First Quarter 2026 Results
US Market News
5 months ago
Teradyne Reports Fourth Quarter and Full Year 2025 ResultsFebruary 2, 2026 4:30 PM
Business Wire
Revenue and earnings above the high-end of Q4 guidance
Revenue of $1.083 billion in Q4’25, up 44% from Q4’24 and up 41% from Q3'25
Q4 growth driven by strong AI-related demand in compute and memory
Revenue of $3.19 billion in 2025, up 13% from 2024
Teradyne, Inc. (NASDAQ: TER):
Q4'25
Q4'24
Q3'25
FY 2025
FY 2024
Revenue (mil)
$
1,083
$
753
$
769
$
3,190
$
2,820
GAAP EPS
$
1.63
$
0.90
$
0.75
$
3.47
$
3.32
Non-GAAP EPS
$
1.80
$
0.95
$
0.85
$
3.96
$
3.22
Teradyne, Inc. (NASDAQ: TER) reported revenue of $1,083 million for the fourth quarter of 2025 of which $883 million was in Semiconductor Test, $110 million in Product Test, and $89 million in Robotics. GAAP net income for the fourth quarter of 2025 was $257.2 million or $1.63 per diluted share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter of 2025 was $283.0 million, or $1.80 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, pension mark-to-market adjustment, and included the related tax impact on non-GAAP adjustments.
“Our Q4 results were above the high end of our guidance range, fueled by AI-related demand in compute, networking and memory within our Semi Test business. Across all of our business groups – Semi Test, Product Test, and Robotics – we experienced sequential growth, and at the company level we achieved 13% growth in 2025,” said Teradyne CEO, Greg Smith. “In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI.”
Guidance for the first quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.82 to $2.19 per diluted share and non-GAAP net income of $1.89 to $2.25 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, amortization on our investment in Technoprobe, restructuring and other costs, as well as the related tax impact on non-GAAP adjustments.
Webcast
A conference call to discuss the fourth quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Tuesday, February 03, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.
Non-GAAP Results
In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.
About Teradyne
Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.
Safe Harbor Statement
This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.
The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter Ended
Year Ended
December 31,
2025
September 28,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net revenues
$
1,083,337
$
769,210
$
752,884
$
3,190,024
$
2,819,880
Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)
463,647
319,904
305,597
1,332,679
1,170,953
Gross profit
619,690
449,306
447,287
1,857,345
1,648,927
Operating expenses:
Selling and administrative (2)
164,693
169,144
155,739
648,874
617,047
Engineering and development
143,265
124,760
128,387
504,596
460,876
Acquired intangible assets amortization
3,451
3,514
4,656
15,270
18,764
Restructuring and other (3)
15,081
6,585
4,554
38,554
15,571
Loss (gain) on sale of business (4)
—
—
367
—
(57,119
)
Operating expenses
326,490
304,003
293,703
1,207,294
1,055,139
Income from operations
293,200
145,303
153,584
650,051
593,788
Interest and other (income) expense (5)
3,625
(2,797
)
(4,213
)
(3,209
)
(15,298
)
Income before income taxes and equity in net earnings of affiliate
289,575
148,100
157,797
653,260
609,086
Income tax provision
29,151
23,344
5,408
79,299
59,503
Income before equity in net earnings of affiliate
260,424
124,756
152,389
573,961
549,583
Equity in net earnings of affiliate
(3,204
)
(5,198
)
(6,136
)
(19,914
)
(7,211
)
Net income
$
257,220
$
119,558
$
146,253
$
554,047
$
542,372
Net income per common share:
Basic
$
1.64
$
0.75
$
0.90
$
3.48
$
3.41
Diluted
$
1.63
$
0.75
$
0.90
$
3.47
$
3.32
Weighted average common shares - basic
156,412
158,595
162,478
159,119
159,083
Weighted average common shares - diluted (6)
157,651
159,097
163,184
159,719
163,314
Cash dividend declared per common share
$
0.12
$
0.12
$
0.12
$
0.48
$
0.48
(1)
Cost of revenues includes:
Quarter Ended
Year Ended
December 31,
2025
September 28,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Provision for excess and obsolete inventory
$
6,607
$
6,829
$
3,406
$
25,782
$
18,921
Inventory step-up
348
351
—
1,258
—
Legal settlement
—
—
—
—
3,600
Sale of previously written down inventory
(494
)
(1,726
)
(441
)
(3,649
)
(2,227
)
$
6,461
$
5,454
$
2,965
$
23,391
$
20,294
(2)
For the quarters ended December 31, 2025, September 28, 2025, and the year ended December 31, 2025, selling and administrative expenses included $1.9 million, $1.1 million, and $4.8 million, respectively, of expenses directly related to a planned ERP system implementation. For the year ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements.
(3)
Restructuring and other consists of:
Quarter Ended
Year Ended
December 31,
2025
September 28,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Employee severance (a)
$
10,851
$
4,786
$
378
$
29,351
$
5,234
Asset impairment
3,329
328
1,284
4,870
1,284
Acquisition and divestiture related expenses
602
173
—
2,250
2,214
Other
299
1,298
2,892
2,083
6,840
$
15,081
$
6,585
$
4,554
$
38,554
$
15,572
(a)
For the three months ended December 31, 2025 employee severance relates primarily to Robotics restructuring which impacted approximately 200 employees. For the year ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 400 employees.
(4)
On May 27, 2024, Teradyne sold Teradyne's Device Interface Solution ("DIS") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"), for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(5)
Interest and other includes:
Quarter Ended
Year Ended
December 31,
2025
September 28,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Pension actuarial losses (gains)
$
1,338
$
—
$
(1,842
)
$
1,465
$
(4,355
)
Pension settlement loss (gain)
18
(800
)
—
(782
)
—
Loss (gain) on foreign exchange contract
—
—
—
(561
)
9,765
(6)
Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the year ended December 31, 2024, diluted shares included 3.6 million shares from the convertible note hedge transaction.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
December 31,
2025
December 31,
2024
Assets
Cash and cash equivalents
$
293,751
$
553,354
Marketable securities
28,247
46,312
Accounts receivable, net
773,567
471,426
Inventories, net
379,552
298,492
Prepayments
427,564
429,086
Other current assets
33,273
17,727
Total current assets
1,935,954
1,816,397
Property, plant and equipment, net
562,999
508,171
Operating lease right-of-use assets, net
76,635
70,185
Marketable securities
126,256
124,121
Deferred tax assets
275,265
222,438
Retirement plans assets
12,059
11,994
Equity method investment
537,098
494,494
Other assets
71,697
49,620
Acquired intangible assets, net
51,271
15,927
Goodwill
521,019
395,367
Total assets
$
4,170,253
$
3,708,714
Liabilities
Accounts payable
$
269,185
$
134,792
Accrued employees’ compensation and withholdings
254,973
204,991
Deferred revenue and customer advances
139,778
107,710
Other accrued liabilities
111,845
90,777
Operating lease liabilities
19,340
18,699
Short-term debt
200,000
—
Income taxes payable
106,740
67,610
Total current liabilities
1,101,861
624,579
Retirement plans liabilities
144,874
133,338
Long-term deferred revenue and customer advances
50,888
40,505
Deferred tax liabilities
5,378
1,038
Long-term other accrued liabilities
7,601
7,442
Long-term operating lease liabilities
63,899
57,922
Long-term income taxes payable
—
24,596
Total liabilities
1,374,501
889,420
Shareholders’ equity
2,795,752
2,819,294
Total liabilities and shareholders’ equity
$
4,170,253
$
3,708,714
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Quarter Ended
Twelve Months Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Cash flows from operating activities:
Net income
$
257,220
$
146,253
$
554,047
$
542,372
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
31,961
26,497
111,445
100,977
Stock-based compensation
16,437
14,855
63,999
60,122
Equity in net earnings of affiliate
3,204
6,136
19,914
7,211
Amortization
3,813
4,631
16,536
18,764
Provision for excess and obsolete inventory
6,607
3,406
25,782
18,922
Losses (gains) on investments
(698
)
(83
)
(5,420
)
10,056
Loss (gain) on sale of business
—
367
—
(57,119
)
Deferred taxes
(22,967
)
(20,099
)
(52,067
)
(46,360
)
Retirement plan actuarial losses (gains)
1,356
(1,842
)
683
(4,355
)
Other
8,661
2,751
12,005
(2,290
)
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable
(180,468
)
12,607
(292,255
)
(52,659
)
Inventories
6,194
(2,420
)
(28,424
)
8,707
Prepayments and other assets
16,008
58,016
(6,591
)
119,454
Accounts payable and other liabilities
87,402
9,279
208,848
(54,386
)
Deferred revenue and customer advances
13,628
8,552
39,280
12,176
Retirement plans contributions
(1,497
)
(1,645
)
(8,483
)
(5,814
)
Income taxes
34,777
15,296
15,116
(3,602
)
Net cash provided by operating activities
281,638
282,557
674,415
672,176
Cash flows from investing activities:
Purchases of property, plant and equipment
(62,888
)
(57,385
)
(224,009
)
(198,095
)
Investments in businesses
—
(5,000
)
(25,519
)
(532,060
)
Purchases of marketable securities
(5,535
)
(10,700
)
(32,999
)
(45,796
)
Acquisition of businesses, net of cash and cash equivalents acquired
—
—
(144,380
)
—
Proceeds from the sale of a business, net of cash and cash equivalents sold
—
—
—
90,348
Proceeds from maturities of marketable securities
7,330
5,190
48,951
38,353
Proceeds from sales of marketable securities
167
436
9,339
24,035
Proceeds from life insurance
—
—
—
873
Net cash used for investing activities
(60,926
)
(67,459
)
(368,617
)
(622,342
)
Cash flows from financing activities:
Proceeds from borrowings on revolving credit facility
50,000
—
250,000
185,000
Payments of borrowings on revolving credit facility
(50,000
)
—
(50,000
)
(185,000
)
Dividend payments
(18,739
)
(19,487
)
(76,313
)
(76,423
)
Repurchase of common stock
(183,437
)
(143,521
)
(702,095
)
(198,574
)
Payments related to net settlement of employee stock compensation awards
(448
)
(267
)
(15,702
)
(14,100
)
Issuance of common stock under stock purchase and stock option plans
1,784
65
31,860
37,330
Net cash used for financing activities
(200,840
)
(163,210
)
(562,250
)
(251,767
)
Effects of exchange rate changes on cash and cash equivalents
1,179
(8,570
)
(3,151
)
(2,284
)
Increase (decrease) in cash and cash equivalents
21,051
43,318
(259,603
)
(204,217
)
Cash and cash equivalents at beginning of period
272,700
510,036
553,354
757,571
Cash and cash equivalents at end of period
$
293,751
$
553,354
$
293,751
$
553,354
GAAP to Non-GAAP Earnings Reconciliation
(In millions, except per share amounts)
Quarter Ended
December 31,
2025
% of Net Revenues
September 28,
2025
% of Net Revenues
December 31,
2024
% of Net Revenues
Net revenues
$
1,083.3
$
769.2
$
752.9
Gross profit - GAAP
619.7
57.2
%
449.3
58.4
%
447.3
59.4
%
Inventory step-up
0.3
0.0
%
0.4
0.1
%
—
—
Gross profit - non-GAAP
620.0
57.2
%
449.7
58.5
%
447.3
59.4
%
Income from operations - GAAP
293.2
27.1
%
145.3
18.9
%
153.6
20.4
%
Restructuring and other (1)
15.1
1.4
%
6.6
0.9
%
4.6
0.6
%
Acquired intangible assets amortization
3.5
0.3
%
3.5
0.5
%
4.7
0.6
%
ERP related expenses (2)
1.9
0.2
%
1.1
0.1
%
—
—
Inventory step-up
0.3
0.0
%
0.4
0.1
%
—
—
Loss (gain) on sale of business (3)
—
—
—
—
0.4
0.0
%
Income from operations - non-GAAP
$
314.0
29.0
%
$
156.9
20.4
%
$
163.2
21.7
%
Net Income
per Common Share
Net Income
per Common Share
Net Income
per Common Share
December 31,
2025
% of Net Revenues
Basic
Diluted
September 28,
2025
% of Net Revenues
Basic
Diluted
December 31,
2024
% of Net Revenues
Basic
Diluted
Net income - GAAP
$
257.2
23.7
%
$
1.64
$
1.63
$
119.6
15.5
%
$
0.75
$
0.75
$
146.3
19.4
%
$
0.90
$
0.90
Restructuring and other (1)
15.1
1.4
%
0.10
0.10
6.6
0.9
%
0.04
0.04
4.6
0.6
%
0.03
0.03
Amortization of equity method investment
7.6
0.7
%
0.05
0.05
7.7
1.0
%
0.05
0.05
8.0
1.1
%
0.05
0.05
Acquired intangible assets amortization
3.5
0.3
%
0.02
0.02
3.5
0.5
%
0.02
0.02
4.7
0.6
%
0.03
0.03
ERP related expenses (2)
1.9
0.2
%
0.01
0.01
1.1
0.1
%
0.01
0.01
—
—
—
—
Pension mark-to-market adjustment (4)
1.3
0.1
%
0.01
0.01
—
—
—
—
(1.8
)
-0.2
%
(0.01
)
(0.01
)
Inventory step-up
0.3
0.0
%
0.00
0.00
0.4
0.1
%
0.00
0.00
—
—
—
—
Pension settlement loss (gain)
0.1
0.0
%
0.00
0.00
(0.8
)
-0.1
%
(0.01
)
(0.01
)
—
—
—
—
Loss (gain) on sale of business (3)
—
—
—
—
—
—
—
—
0.4
0.1
%
0.00
0.00
Exclude discrete tax adjustments
0.4
0.0
%
0.00
0.00
(0.6
)
-0.1
%
(0.00
)
(0.00
)
(8.0
)
-1.1
%
(0.05
)
(0.05
)
Non-GAAP tax adjustments
(4.3
)
-0.4
%
(0.03
)
(0.03
)
(1.6
)
-0.2
%
(0.01
)
(0.01
)
0.9
0.1
%
0.01
0.01
Net income - non-GAAP
$
283.0
26.1
%
1.81
1.80
$
135.9
17.7
%
$
0.86
$
0.85
$
155.0
20.6
%
$
0.95
$
0.95
GAAP and non-GAAP weighted average common shares - basic
156.4
158.6
162.5
GAAP and non-GAAP weighted average common shares - diluted
157.7
159.1
163.2
(1)
Restructuring and other consists of:
Quarter Ended
December 31,
2025
September 28,
2025
December 31,
2024
Employee severance
$
10.9
$
4.8
$
0.4
Asset impairment
3.3
0.3
1.3
Acquisition and divestiture related expenses
0.6
0.2
—
Other
0.3
1.3
2.9
$
15.1
$
6.6
$
4.6
(a)
For the quarter ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 employees.
(2)
For the quarters ended December 31, 2025, and September 28, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.
(3)
On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(4)
For the quarters ended December 31, 2025, and December 31, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.
Twelve Months Ended
December 31,
2025
% of Net Revenues
December 31,
2024
% of Net Revenues
Net Revenues
$
3,190.0
$
2,819.9
Gross profit - GAAP
1,857.3
58.2
%
1,648.9
58.5
%
Inventory step-up
1.3
0.0
%
—
—
Legal settlement (1)
—
—
3.6
0.1
%
Gross profit - non-GAAP
1,858.6
58.3
%
1,652.5
58.6
%
Income from operations - GAAP
650.1
20.4
%
593.8
21.1
%
Restructuring and other (2)
38.6
1.2
%
15.6
0.6
%
Acquired intangible assets amortization
15.3
0.5
%
18.8
0.7
%
ERP related expenses (3)
4.8
0.2
%
—
—
Inventory step-up
1.3
0.0
%
—
—
Legal settlement (1)
—
—
3.6
0.1
%
Equity modification charge (4)
—
—
1.7
0.1
%
Loss (gain) on sale of business (5)
—
—
(57.1
)
-2.0
%
Income from operations - non-GAAP
$
710.1
22.3
%
$
576.3
20.4
%
Net Income
per Common Share
Net Income
per Common Share
December 31,
2025
% of Net Revenues
Basic
Diluted
December 31,
2024
% of Net Revenues
Basic
Diluted
Net income - GAAP
$
554.0
17.4
%
$
3.48
$
3.47
$
542.4
19.2
%
$
3.39
$
3.32
Restructuring and other (2)
38.6
1.2
%
0.24
0.24
15.6
0.6
%
0.10
0.10
Amortization of equity method investment
30.1
0.9
%
0.19
0.19
10.4
0.4
%
0.07
0.06
Acquired intangible assets amortization
15.3
0.5
%
0.10
0.10
18.8
0.7
%
0.12
0.11
ERP related expenses (3)
4.8
0.2
%
0.03
0.03
—
—
—
—
Pension mark-to-market adjustment (6)
1.5
0.0
%
0.01
0.01
(4.4
)
-0.2
%
(0.03
)
(0.03
)
Inventory step-up
1.3
0.0
%
0.01
0.01
—
—
—
—
Loss (gain) on foreign exchange contract
(0.6
)
0.0
%
(0.00
)
(0.00
)
9.8
0.3
%
0.06
0.06
Pension settlement loss (gain)
(0.8
)
0.0
%
(0.01
)
(0.01
)
—
—
—
—
Legal settlement (1)
—
—
—
—
3.6
0.1
%
0.02
0.02
Equity modification charge (4)
—
—
—
—
1.7
0.1
%
0.01
0.01
Loss (gain) on sale of business (5)
—
—
—
—
(57.1
)
-2.0
%
(0.36
)
(0.35
)
Exclude discrete tax adjustments
0.5
0.0
%
0.00
0.00
(8.7
)
-0.3
%
(0.05
)
(0.05
)
Non-GAAP tax adjustments
(12.6
)
-0.4
%
(0.08
)
(0.08
)
(6.9
)
-0.2
%
(0.04
)
(0.04
)
Net income - non-GAAP
$
632.1
19.8
%
$
3.97
$
3.96
$
525.1
18.6
%
$
3.29
$
3.22
GAAP and non-GAAP weighted average common shares - basic
159.1
159.8
GAAP and non-GAAP weighted average common shares - diluted (7)
159.7
163.3
(1)
For the twelve months ended December 31, 2024, legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents.
(2)
Restructuring and other consists of:
Twelve Months Ended
December 31,
2025
December 31,
2024
Employee severance (a)
$
29.4
$
5.2
Asset impairment
4.9
1.3
Acquisition and divestiture related expenses
2.3
2.2
Other
2.1
6.8
$
38.6
$
15.6
(a)
For the twelve months ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 400 employees.
(3)
For the twelve months ended December 31, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.
(4)
For the twelve months ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne’s executives' retirement agreements.
(5)
On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.
(6)
For twelve months ended December 31, 2025, and December 31, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.
(7)
For the twelve months ended December 31, 2024, non-GAAP weighted average diluted common shares included 3.6 million shares from the convertible note hedge transaction.
GAAP to Non-GAAP Reconciliation of First Quarter 2026 guidance:
GAAP and non-GAAP first quarter revenue guidance:
$1,150 million
to
$1,250 million
GAAP net income per diluted share
$
1.82
$
2.19
Exclude acquired intangible assets amortization
0.03
0.03
Exclude equity method investment amortization
0.04
0.04
Non-GAAP tax adjustments
(0.01
)
(0.01
)
Non-GAAP net income per diluted share
$
1.89
$
2.25
For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260202176532/en/
For more information:
Amy McAndrews
Investor Relations
Tel 978.370.3945
Investor.relations@teradyne.com
Original: Teradyne Reports Fourth Quarter and Full Year 2025 Results
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