Teradyne (NASDAQ:TER) Updates Q3 2026 Earnings Guidance

Teradyne (NASDAQ:TER) issued an update on its third quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.850-2.150 for the period, compared to the consensus EPS 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.

Analyst Ratings Changes

A number of brokerages have commented on TER. Morgan Stanley set a $387.00 price target on shares of Teradyne in a research report on Thursday, April 30th. Susquehanna boosted their price objective on shares of Teradyne from $415.00 to $550.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. Citigroup increased their target price on shares of Teradyne from $325.00 to $400.00 and gave the company a “buy” rating in a report on Thursday, April 30th. UBS Group lifted their target price on shares of Teradyne from $440.00 to $500.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. Finally, Zacks Research raised shares of Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $394.53.

Teradyne Trading Down 4.1%

TER stock traded down $13.70 during midday trading on Tuesday, hitting $321.07. The company had a trading volume of 5,727,119 shares, compared to its average volume of 3,827,925. Teradyne has a 52 week low of $89.18 and a 52 week high of $487.91. The stock’s 50 day moving average price is $382.69 and its 200 day moving average price is $334.39. The stock has a market cap of $50.26 billion, a price-to-earnings ratio of 59.46, a PEG ratio of 1.01 and a beta of 1.74.

Teradyne (NASDAQ:TER) last released its quarterly earnings data on Tuesday, July 28th. The company reported $2.47 earnings per share for the quarter, beating 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%.Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. Analysts predict that Teradyne will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Thursday, May 21st. This is an increase from Teradyne’s previous quarterly dividend of $0.12. Teradyne’s dividend payout ratio is currently 9.63%.

Insiders Place Their Bets

In other news, insider Shannon John Poulin sold 656 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total transaction of $232,880.00. Following the completion of the transaction, the insider directly owned 15,722 shares of the company’s stock, valued at approximately $5,581,310. This represents a 4.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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. Also, CEO Gregory Stephen Smith sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $423.03, for a total value of $1,692,120.00. Following the transaction, the chief executive officer directly owned 120,470 shares of the company’s stock, valued at $50,962,424.10. The trade was a 3.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 14,941 shares of company stock valued at $5,444,112 in the last quarter. Insiders own 0.19% of the company’s stock.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong earnings and AI-driven demand: Teradyne reported second-quarter revenue of $1.329 billion, up from $652 million a year earlier. Non-GAAP EPS was $2.47, exceeding the $2.09 consensus estimate, while semiconductor testing revenue reached $1.122 billion. Management attributed growth largely to demand related to artificial-intelligence semiconductors. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Above-consensus third-quarter outlook: Teradyne guided for third-quarter EPS of $1.85–$2.15 and revenue of $1.2–$1.3 billion, both substantially above analyst expectations of $1.43 EPS and approximately $1.0 billion in revenue. The guidance supports continued strength in semiconductor testing. Teradyne Reports Second Quarter 2026 Results
• Neutral Sentiment: AI and Tokyo Electron partnership remain key catalysts: Investors are assessing whether Teradyne’s AI-related testing products and partnership with Tokyo Electron can sustain growth in semiconductor testing and improve expectations for its robotics business. How Teradyne’s AI Test Push and Tokyo Electron Partnership Could Reshape Investor Expectations
• Negative Sentiment: High valuation and elevated expectations may be limiting the reaction: Teradyne’s shares had already gained significantly over the past year, while analysts cautioned before earnings that the stock appeared fairly valued rather than obviously inexpensive. A strong report may therefore have been insufficient to overcome profit-taking and concerns that much of the AI-driven upside was already reflected in the valuation. Teradyne Stock May Trade Near Fair Value On Earnings Tomorrow

Hedge Funds Weigh In On Teradyne

Hedge funds and other institutional investors have recently made changes to their positions in the business. Compound Planning Inc. increased its position in Teradyne by 31.4% during the 4th quarter. Compound Planning Inc. now owns 2,428 shares of the company’s stock valued at $470,000 after purchasing an additional 580 shares during the period. Corient Private Wealth LLC raised its holdings in Teradyne by 2,189.2% in the 4th quarter. Corient Private Wealth LLC now owns 1,075,916 shares of the company’s stock worth $208,254,000 after purchasing an additional 1,028,916 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in shares of Teradyne by 19.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 40,374 shares of the company’s stock worth $7,815,000 after purchasing an additional 6,463 shares during the period. Beacon Pointe Advisors LLC purchased a new stake in shares of Teradyne in the 4th quarter worth about $241,000. Finally, State of Tennessee Department of Treasury boosted its stake in shares of Teradyne by 34.6% during the 4th quarter. State of Tennessee Department of Treasury now owns 52,573 shares of the company’s stock valued at $10,176,000 after purchasing an additional 13,512 shares in the last quarter. 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.