Teradyne (NASDAQ:TER) Stock Price Up 7.6% After Earnings Beat

Teradyne, Inc. (NASDAQ:TER)’s share price rose 7.6% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $281.00 and last traded at $268.4690. Approximately 3,623,523 shares traded hands during trading, an increase of 22% from the average daily volume of 2,973,737 shares. The stock had previously closed at $249.53.

The company reported $1.80 earnings per share for the quarter, beating analysts’ consensus estimates of $1.36 by $0.44. The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $970.44 million. Teradyne had a return on equity of 18.04% and a net margin of 15.49%.The firm’s revenue for the quarter was up 43.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.95 EPS. Teradyne has set its Q1 2026 guidance at 1.890-2.250 EPS.

Teradyne Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 13th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.2%. The ex-dividend date is Friday, February 13th. Teradyne’s payout ratio is presently 18.91%.

Key Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q4 beat on revenue and EPS, signaling stronger demand and margin expansion; company press release shows Semiconductor Test led the gains. Teradyne Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: “Blowout” Q1 guidance — EPS and revenue targets materially above consensus — lifts forward expectations and drives the rally. Teradyne forecasts upbeat quarterly revenue (Reuters)
• Positive Sentiment: Management attributes strength to AI-driven data center investment and chip testing demand — investors view Teradyne as a direct beneficiary of the AI buildout. Teradyne Stock Surges After Earnings (WSJ)
• Positive Sentiment: Analysts and media upgraded tone after the report; coverage calling the guidance a catalyst has amplified buying interest. Analyst revisions ahead of earnings (Benzinga)
• Neutral Sentiment: Heavy options / call buying and increased premarket attention are amplifying intraday moves but add speculative flow. (news summaries)
• Neutral Sentiment: Market futures and major outlets highlighted Teradyne as an early leader on the session, increasing visibility to momentum traders. S&P 500 Futures Rise; Teradyne Leads (Barron’s)
• Negative Sentiment: Valuation and volatility risk: TER trades at a high P/E (reflecting growth expectations) and has a beta >1.8 — strong upside but also potential for sharp pullbacks if AI spending softens or guidance disappoints. (company fundamentals/market data)

Analysts Set New Price Targets

Several analysts recently commented on the stock. Evercore ISI raised their price objective on shares of Teradyne from $200.00 to $280.00 and gave the company an “outperform” rating in a research note on Monday. Robert W. Baird set a $195.00 price target on shares of Teradyne in a research report on Friday, October 31st. Royal Bank Of Canada set a $270.00 price objective on Teradyne in a research note on Monday. Stifel Nicolaus lifted their price objective on Teradyne from $270.00 to $280.00 and gave the stock a “buy” rating in a report on Friday. Finally, UBS Group upped their target price on Teradyne from $200.00 to $275.00 and gave the company a “buy” rating in a report on Monday, January 26th. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $218.06.

Insider Activity

In other news, CEO Gregory Stephen Smith sold 1,108 shares of Teradyne stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $201.31, for a total transaction of $223,051.48. Following the completion of the sale, the chief executive officer directly owned 93,409 shares in the company, valued at $18,804,165.79. The trade was a 1.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.16% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Bank of Nova Scotia increased its holdings in Teradyne by 546.5% during the 2nd quarter. Bank of Nova Scotia now owns 98,254 shares of the company’s stock worth $8,835,000 after purchasing an additional 83,055 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in shares of Teradyne by 291.6% in the second quarter. Thrivent Financial for Lutherans now owns 24,995 shares of the company’s stock worth $2,247,000 after buying an additional 18,612 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH raised its holdings in Teradyne by 9.2% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 91,120 shares of the company’s stock valued at $12,542,000 after acquiring an additional 7,648 shares in the last quarter. Fort Washington Investment Advisors Inc. OH bought a new position in Teradyne during the 3rd quarter valued at $895,000. Finally, Sequoia Financial Advisors LLC grew its holdings in Teradyne by 73.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,585 shares of the company’s stock worth $412,000 after acquiring an additional 1,939 shares in the last quarter. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

Teradyne Stock Performance

The company has a market capitalization of $42.59 billion, a price-to-earnings ratio of 96.81, a price-to-earnings-growth ratio of 1.73 and a beta of 1.84. The company’s fifty day simple moving average is $209.29 and its two-hundred day simple moving average is $159.13.

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.