Teradyne (NASDAQ:TER) Trading Up 7.6% on Better-Than-Expected Earnings

Teradyne, Inc. (NASDAQ:TER) shares shot up 7.6% during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $281.00 and last traded at $268.4690. 3,623,523 shares traded hands 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 earnings per share (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 22.70%. The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $970.44 million. During the same quarter last year, the firm earned $0.95 earnings per share. 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 business also recently declared 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. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Friday, February 13th. Teradyne’s payout ratio is 17.45%.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q4 results materially beat expectations: non-GAAP EPS $1.80 vs. ~$1.36 consensus and revenue $1.083B (≈+44% YoY), marking Teradyne’s first billion-dollar quarter since 2021 — this is the immediate catalyst driving buying. Teradyne Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Very strong guidance: Q1 FY2026 EPS guide of $1.89–$2.25 and revenue guidance roughly $1.2B–$1.3B well above Street estimates — signals continued AI/data‑center capex driving near-term revenue visibility. Teradyne forecasts upbeat quarterly revenue
• Positive Sentiment: Demand driver — management and reporters point to AI-related spending (GPUs, high‑bandwidth memory, data‑center expansion) as the core reason for the surge in Semiconductor Test sales; commentary suggests multi‑quarter tailwinds. Teradyne stock pops on earnings beat driven by AI demand
• Neutral Sentiment: Management detail and trends available in the earnings call transcript and slide deck — review for segment-level growth, backlog, and timing of customer ramps (useful for assessing sustainability). Teradyne, Inc. (TER) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst and options activity: several analysts raised price targets after results and there was unusually large call buying ahead of the print — signals bullish positioning but also higher expectations. Teradyne Q4 Earnings Report: What Investors Need to Know
• Negative Sentiment: Valuation and concentration risk: TER is trading at a high multiple (PE expansion reflected in the move), institutional ownership is concentrated — rapid gains increase risk of profit‑taking or a pullback if growth disappoints. Teradyne Inc: Sky’s the Limit for This Market, Until It Isn’t

Analyst Ratings Changes

A number of research firms recently commented on TER. JPMorgan Chase & Co. lifted their price objective on Teradyne from $122.00 to $190.00 and gave the stock a “neutral” rating in a research note on Thursday, October 30th. Cantor Fitzgerald boosted their price target on shares of Teradyne from $240.00 to $270.00 and gave the stock an “overweight” rating in a research report on Monday. Bank of America upped their price objective on shares of Teradyne from $250.00 to $260.00 and gave the company a “buy” rating in a research note on Thursday, January 22nd. Weiss Ratings reissued a “hold (c)” rating on shares of Teradyne in a research note on Thursday, January 22nd. Finally, Robert W. Baird set a $195.00 target price on shares of Teradyne in a report on Friday, October 31st. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Teradyne has a consensus rating of “Moderate Buy” and a consensus price target of $231.12.

Insider Transactions at Teradyne

In other Teradyne news, CEO Gregory Stephen Smith sold 1,108 shares of the firm’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $201.31, for a total value of $223,051.48. Following the completion of the sale, the chief executive officer directly owned 93,409 shares in the company, valued at approximately $18,804,165.79. This trade represents a 1.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Teradyne

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Thurston Springer Miller Herd & Titak Inc. bought a new stake in Teradyne in the 4th quarter valued at about $37,000. True Wealth Design LLC grew its stake in Teradyne by 49.6% in the fourth quarter. True Wealth Design LLC now owns 211 shares of the company’s stock valued at $41,000 after acquiring an additional 70 shares during the period. Root Financial Partners LLC bought a new stake in shares of Teradyne during the third quarter valued at approximately $31,000. Davidson Capital Management Inc. bought a new stake in shares of Teradyne during the third quarter valued at approximately $31,000. Finally, Activest Wealth Management raised its position in shares of Teradyne by 73.6% during the fourth quarter. Activest Wealth Management now owns 243 shares of the company’s stock worth $47,000 after purchasing an additional 103 shares during the period. Institutional investors own 99.77% of the company’s stock.

Teradyne Stock Performance

The business has a fifty day moving average of $211.60 and a 200-day moving average of $160.46. The company has a market capitalization of $44.32 billion, a P/E ratio of 81.32, a PEG ratio of 1.78 and a beta of 1.83.

About Teradyne

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.