Exceptional Revenue Growth and Gross Margin Expansion
Revenue surged 103.9% YoY to $1.33B in Q2 FY2026, while gross profit reached $794.62M as gross margin expanded by 256 basis points to 59.79%.
Source: 10-Q Income Statement (XBRL)
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 outstanding performance in Q2 FY2026, with revenue doubling year-over-year to $1.33B and net income surging 377.9% to $374.53M.
Revenue
$1.33B
+103.90% YoY
EPS (Diluted)
$2.38
+385.71% YoY
Gross Margin
59.8%
+2.6 pts YoY
Operating Income
$437.81M
+382.47% YoY
Source: SEC XBRL
Teradyne (TER) reported Q2 FY2026 revenue of $1.33B, up 103.9% year over year. Operating margin was 32.9%, up 19.0 points from 13.9% a year earlier. TER's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.47 | 2.11 | Beat +17.0% |
| Mar 2026 | 2.56 | 2.12 | Beat +20.5% |
| Dec 2025 | 1.80 | 1.38 | Beat +30.9% |
| Sep 2025 | 0.85 | 0.80 | Beat +6.8% |
Adjusted (non-GAAP) EPS of $2.47 versus the $2.11 analyst consensus — a +17.0% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.38.
Compiled by AI from this SEC filing
Revenue surged 103.9% YoY to $1.33B in Q2 FY2026, while gross profit reached $794.62M as gross margin expanded by 256 basis points to 59.79%.
Source: 10-Q Income Statement (XBRL)
Operating income surged 382.5% YoY to $437.81M, driving operating margin up from 13.92% to 32.94% as SG&A growth (22.0%) remained well below top-line growth.
Source: 10-Q Income Statement (XBRL)
Year-to-date operating cash flow reached $734.26M, up 113.6% YoY from $343.73M, providing strong liquidity to support operations and capital allocation.
Source: 10-Q Statement of Cash Flows (XBRL)
Compiled by AI from this SEC filing · 0 high, 2 medium, 1 low
Current liabilities grew by 64.9% YoY to $1.11B, outstripping current asset growth of 49.4% and requiring careful short-term working capital management.
Source: 10-Q Balance Sheet (XBRL)
The rapid top-line doubling reflects strong cyclical demand, which could expose profitability to downside volatility if customer capital expenditure cycles soften.
Source: 10-Q Income Statement (XBRL)
Year-to-date share buybacks decreased by 73.0% YoY to $74.24M as cash outflows shifted toward higher investing activity.
Source: 10-Q Statement of Cash Flows (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.33 $B | 0.65 $B | +103.90% |
Cost of Revenue $M | 534.37 $M | 278.79 $M | +91.68% |
Gross Profit $M | 794.62 $M | 373.01 $M | +113.03% |
Operating Income $M | 437.81 $M | 90.74 $M | +382.47% |
Net Income $M | 374.53 $M | 78.37 $M | +377.89% |
EPS (Basic) $ | 2.39 $ | 0.49 $ | +387.76% |
EPS (Diluted) $ | 2.38 $ | 0.49 $ | +385.71% |
SG&A Expense $M | 192.52 $M | 157.78 $M | +22.02% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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.
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