A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
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
Filed · Source: SEC EDGAR 10-Q filing
Teradyne (TER) reported Q2 FY2026 revenue of $1.33B, up 103.9% year over year. The company posted net income of $374.53M, up 377.9% from a year earlier, with diluted EPS of $2.38. Gross margin was 59.8%. Operating income was $437.81M, up 382.5% year over year. TER's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
TER reported outstanding Q2 FY2026 results with revenue doubling YoY to $1.33B and net income surging 377.9% to $374.53M.
Last 4 quarters: 4 beats
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.
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)
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)
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the TER earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.33B | $651.8M | +103.90% |
Cost of Revenue | $534.37M | $278.79M | +91.68% |
Gross Profit | $794.62M | $373.01M | +113.03% |
Operating Income | $437.81M | $90.74M | +382.47% |
Net Income | $374.53M | $78.37M | +377.89% |
EPS (Basic) | $2.39 | $0.49 | +387.76% |
EPS (Diluted) | $2.38 | $0.49 | +385.71% |
SG&A Expense | $192.52M | $157.78M | +22.02% |
TER's revenue surged 103.9% year-over-year in Q2 FY2026 to $1.33B compared to $651.80M in Q2 FY2025.
TER reported net income of $374.53M in Q2 FY2026, representing a 377.9% increase from $78.37M in the prior-year quarter, driving diluted EPS to $2.38.
TER holds $349.54M in cash and equivalents with a healthy current ratio of 2.12 and a low debt-to-equity ratio of 0.42, demonstrating strong solvency.
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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