Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Teradyne delivered solid FY2025 revenue growth of 13.1% to $3.19B, but net income grew only 2.2% to $554M as higher costs and a dramatic surge in share buybacks ($702M, up 254%) weighed on cash balances and equity.
Revenue
$3.19B
+13.13% YoY
EPS (Diluted)
$3.47
+4.52% YoY
Gross Margin
58.2%
-0.3 pts YoY
Operating Income
$650.05M
+9.48% YoY
Source: SEC XBRL
Teradyne (TER) reported FY2025 revenue of $3.19B, up 13.1% year over year. Operating margin was 20.4%, down 0.7 points from 21.1% a year earlier. Operating cash flow was $674.41M, up 0.3% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.47 | 2.11 | Beat +17.0% |
| Mar 2026 | 2.56 | 2.12 | Beat +20.5% |
| Dec 2025This filing | 1.80 | 1.38 | Beat +30.9% |
| Sep 2025 | 0.85 | 0.80 | Beat +6.8% |
Reported EPS of $1.80 versus the $1.38 analyst consensus — a +30.9% beat for Dec 2025.
Compiled by AI from this SEC filing
Teradyne's total revenue increased 13.1% year-over-year to $3.19B in FY2025, up from $2.82B in the prior year, reflecting strong demand across its test and automation segments. This top-line expansion outpaced the prior year's growth rate and signals continued market penetration.
Source: 10-K Income Statement (XBRL Financial Data)
Gross margin came in at 58.2% in FY2025, essentially flat versus 58.5% in the prior year (a decline of only ~0.3 percentage points), indicating that Teradyne maintained pricing discipline and cost control even as cost of revenue rose 13.8% to $1.33B.
Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Operating income grew 9.5% to $650M, but operating margin declined from 21.1% to 20.4% as SG&A expenses rose 5.2% to $649M. The margin compression reflects ongoing investment in sales infrastructure and administrative costs growing faster than operating leverage.
Source: 10-K Income Statement (XBRL Financial Data)
Teradyne repurchased $702M in shares during FY2025, a 253.6% increase from $199M in the prior year, which significantly exceeded operating cash flow of $674M. This aggressive buyback program reduced cash and equivalents by 46.9% to $294M and contributed to a 56% surge in total liabilities.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Total liabilities surged 56.0% to $1.39B, with current liabilities jumping 78.6% to $1.12B, likely reflecting debt issuance to fund buybacks. Stockholders' equity declined slightly by 0.8% to $2.80B, and the debt-to-equity ratio rose to approximately 0.50x, signaling a more leveraged capital structure than the prior year.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Total liabilities increased 56% year-over-year to $1.39B, and current liabilities surged 78.6% to $1.12B, likely driven by debt taken on to fund the $702M share repurchase program. This elevated leverage increases Teradyne's sensitivity to interest rate changes and could constrain financial flexibility in a downturn.
Source: 10-K Balance Sheet (XBRL Financial Data)
Cash and equivalents fell 46.9% to $294M in FY2025, a reduction of approximately $260M. With current liabilities at $1.12B and a current ratio of only 1.75x, the company's liquidity buffer has narrowed, potentially limiting its ability to respond to unexpected operational or market disruptions.
Source: 10-K Balance Sheet & Cash Flow Statement (XBRL Financial Data)
While revenue grew 13.1%, net income grew only 2.2% to $554M, indicating meaningful margin compression below the operating line (possibly from higher interest expense on new debt). If this trend continues, earnings quality could deteriorate even as top-line growth remains healthy.
Source: 10-K Income Statement (XBRL Financial Data)
Share repurchases of $702M in FY2025 exceeded operating cash flow of $674M, meaning Teradyne effectively borrowed to buy back stock. Sustaining this pace of buybacks without proportional earnings growth or additional debt could pressure the balance sheet further.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Cost of revenue rose 13.8% versus gross profit growth of 12.6%, indicating a slight deterioration in unit economics. If input costs or product mix continue to shift unfavorably, gross margin — currently at 58.2% — could face further pressure in future periods.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.19 $B | 2.82 $B | +13.13% |
Cost of Revenue $B | 1.33 $B | 1.17 $B | +13.81% |
Gross Profit $B | 1.86 $B | 1.65 $B | +12.64% |
Operating Income $M | 650.05 $M | 593.79 $M | +9.48% |
Net Income $M | 554.05 $M | 542.37 $M | +2.15% |
EPS (Basic) $ | 3.48 $ | 3.41 $ | +2.05% |
EPS (Diluted) $ | 3.47 $ | 3.32 $ | +4.52% |
SG&A Expense $M | 648.87 $M | 617.05 $M | +5.16% |
Answers draw on this SEC filing and the data on this page
Teradyne delivered outstanding performance in Q2 FY2026, with revenue doubling year-over-year to $1.33B and net income surging 377.9% to $374.53M.
Teradyne delivered an exceptional Q1 2026, with revenue surging 87.0% YoY to $1.28B and net income more than tripling to $398.9M, driven by explosive demand growth that expanded operating margins by over 19 percentage points.
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