AI Takeaway
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.
Revenue
$1.28B
++87.04% YoY
EPS (Basic)
$2.55
++318.03% YoY
Gross Margin
60.9%
++0.32% YoY
Operating Income
$473M
++291.55% YoY
Filed · Source: SEC EDGAR 10-Q filing
Teradyne reported Q1 2026 revenue of $1.28B, up 87.0% from $685.7M in Q1 2025, reflecting a dramatic acceleration in demand across its test and automation segments. This represents one of the strongest quarterly growth rates in the company's recent history.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income surged 291.5% YoY to $473.0M, pushing operating margin from 17.6% to 36.9% — a gain of approximately 19.3 percentage points. This demonstrates significant operating leverage as revenue growth far outpaced the 6.0% increase in SG&A expenses ($166.7M vs. $157.3M).
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income reached $398.9M in Q1 2026, up 303.4% from $98.9M in Q1 2025, with diluted EPS rising to $2.53 from $0.61 — a 314.8% increase. Net margin expanded to 31.1%, reflecting both top-line strength and disciplined cost management.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockRevenue nearly doubled in a single quarter, suggesting potential concentration in a small number of large customers or end markets (e.g., semiconductor or AI-related test demand). If this demand is cyclical or driven by a single customer ramp, a pullback could cause a sharp revenue reversal. The company's history in semiconductor test makes it inherently exposed to chip industry capex cycles.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.56 versus the $2.12 analyst consensus — a +20.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.28B | $685.68M | +87.04% |
Cost of Revenue | $501.55M | $270.34M | +85.52% |
Gross Profit | $780.95M | $415.34M | +88.03% |
Operating Income | $473M | $120.8M | +291.55% |
Net Income | $398.91M | $98.9M | +303.36% |
EPS (Basic) | $2.55 | $0.61 | +318.03% |
EPS (Diluted) | $2.53 | $0.61 | +314.75% |
SG&A Expense | $166.74M | $157.26M | +6.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.43B | $3.71B | +19.64% |
Current Assets | $2.17B | $1.76B | +23.79% |
Total Liabilities | $1.29B | $908.34M | +42.02% |
Current Liabilities | $1.01B | $649.07M | +55.95% |
Stockholders' Equity | $3.14B | $2.8B | +12.38% |
Cash & Equivalents | $241.94M | $475.63M | -49.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $265.12M | $161.64M | +64.02% |
Investing Cash Flow | $-67.29M | $-61.77M | -8.93% |
Financing Cash Flow | $-250.22M | $-176.81M | -41.51% |
Dividends Paid | $20.36M | $19.41M | +4.93% |
Share Buybacks | $5.52M | $157.47M | -96.50% |
D&A | $32.66M | $30.3M | +7.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.9% | 60.6% | +0.32% |
Operating Margin | 36.9% | 17.6% | +19.26% |
Net Margin | 31.1% | — | — |
ROE | 12.7% | — | — |
ROA | 9.0% | — | — |
Current Ratio | $2.147 | — | — |
Debt to Equity | $0.41 | — | — |
Other companies in Semiconductor Materials & Equipment
Teradyne delivered outstanding Q1 2026 results, with revenue jumping 87.0% YoY to $1.28B and net income surging 303.4% to $398.9M. Diluted EPS came in at $2.53, up from $0.61 in Q1 2025, representing one of the company's strongest quarterly performances in recent history.
While specific segment details were not available in the provided filing text, the financial data shows revenue nearly doubled to $1.28B, consistent with a major surge in semiconductor or AI-related test equipment demand. Operating leverage was exceptional, with operating income growing 291.5% on an 87.0% revenue increase, suggesting strong demand from high-volume customers.
Teradyne's balance sheet remains solid with a current ratio of 2.15, debt-to-equity of 0.41, and stockholders' equity of $3.14B. However, cash and equivalents declined 49.1% YoY to $241.9M, and current liabilities rose 55.9% to $1.01B, which are trends worth monitoring going forward.
Yes, significantly — Teradyne's operating margin expanded from 17.6% to 36.9%, a gain of over 19 percentage points, while gross margin held steady at approximately 61%. Net margin reached 31.1%, reflecting exceptional profitability driven by operating leverage on the near-doubling of revenue.
The primary risks include the sustainability of the dramatic revenue and margin expansion, as a slowdown in semiconductor test demand could sharply reverse operating leverage. Additionally, cash balances fell nearly 50% to $241.9M while current liabilities surged 55.9%, and share buybacks were nearly eliminated (down 96.5% to $5.5M), raising questions about capital allocation priorities.