Teradyne (TEY) AI Stock Analysis

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Teradyne

(XETRA:TEY)

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Action:N/A

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Positive Factors

Broad AI-driven growthAI demand is extending across semiconductor test, product test, and robotics rather than relying on one isolated product. This broad adoption supports durable revenue expansion, improves Teradyne’s relevance in data-center investment, and creates multiple avenues for continued growth.

Negative Factors

Semiconductor-cycle revenue volatilityTeradyne’s capital-equipment exposure makes revenue and cash generation sensitive to semiconductor production cycles, technology transitions, and customer spending plans. Even with a strong recovery, uneven historical results can make earnings less consistent across the next several quarters.

Teradyne (TEY) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 41.49B
Dividend Yield: 0.18%
Average Volume (3M): 564
Price to Earnings (P/E): 30.3
Beta (1Y): 0.52
Revenue Growth: 66.23%
EPS Growth: 201.88%
Country: Germany
Employees: 6,600
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Teradyne Business Overview & Revenue Model

Company Description

Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, is a global leader specializing in the creation, production, sale, and maintenance of automated testing solutions. The company's operations are categorized into fo...

Teradyne Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-16.53%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was strongly positive, with record revenue and EPS, broad AI-driven growth across all business groups, record memory and robotics results, strong cash flow, expanding backlog and positive 2027 expectations. The main challenges were mobile remaining below historical levels, quarterly and compute-program timing variability, near-term robotics visibility, CPO ramp uncertainty, supply-chain lead times and product-mix and inflationary pressure on margins. Highlights significantly outweighed lowlights.

Positive Updates

Record Quarterly Revenue and EPS Growth

Third-quarter revenue topped $1.3 billion, up 70% year over year and consistent quarter over quarter, while non-GAAP EPS was $2.29, up over 150% year over year. Revenue and non-GAAP EPS were both above the high end of guidance.

Negative Updates

Mobile Remains Below Historical Levels

Mobile revenue was up 60% year over year from a low base but remained below historical levels. Management said mobile is underperforming expectations from its prior model and is reassessing when an edge-AI-driven recovery may occur.

Company Guidance

For the fourth quarter, Teradyne expects revenue in the range of $1.25 billion to $1.35 billion, non GAAP EPS of $1.95 to $2.25, gross margins in the range of 57.5% to 58.5%, operating expenses at 28.5% to 29.5% of fourth quarter sales, and a non GAAP operating profit rate between 28-30%; the Q4 guidance midpoint of $1.3 billion represents growth of approximately 20% over the last year's fourth quarter, bringing full year revenue to approximately $5.2 billion, up over 60%. Q4 is expected to be the fourth consecutive quarter of revenue above $1.25 billion, memory is expected to continue at a really strong level, and 2027 is expected to be another year of healthy growth, with each quarter next year expected to grow in comparative to 26, although there could be variability within quarter. CPO test equipment TAM is estimated at somewhere in the neighborhood of $100 million in 2026 and could grow to $300 million to $700 million by 2028.

Teradyne Risk Analysis

Teradyne disclosed 34 risk factors in its most recent earnings report. Teradyne reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Teradyne Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:TEY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORM	72Outperform	$6.71B	43.14	15.83%	―	29.08%	320.89%
ONTO	69Neutral	$9.69B	70.05	7.44%	―	30.86%	-13.97%
CAMT	64Neutral	$4.77B	37.17	19.34%	―	12.18%	173.28%
COHU	62Neutral	$2.06B	-95.11	-2.90%	―	34.00%	69.09%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEHR	57Neutral	$1.95B	1103.69	1.20%	―	-15.21%	-81.50%

* Technology Sector Average

Performance Comparison

DE:TEY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:TEY	Teradyne	243.90	96.77	65.77%
AEHR	Aehr Test	65.78	45.04	217.16%
CAMT	Camtek	107.05	7.48	7.51%
COHU	Cohu Inc	45.98	23.57	105.15%
FORM	Formfactor	95.78	45.06	88.84%
ONTO	Onto Innovation	215.06	85.33	65.78%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Teradyne AI Stock Analysis