Teradyne, Inc. (TER)

In March 2025, shares tumbled approximately 17% after the company updated its business guidance and announced the acquisition of Quantifi Photonics. In April 2025, the stock underperformed broader market indices due to weaker guidance for Q1 2025. Teradyne reported Q1 2025 revenue of $686 million and non-GAAP EPS of $0.75, exceeding guidance, but Q2 2025 guidance was conservative. Teradyne reported Q2 2025 revenue of $652 million and non-GAAP EPS of $0.57, both surpassing expectations, and the stock surged by over 20%. The company provided an optimistic outlook for Q3 2025, projecting revenue between $710 million and $770 million, and non-GAAP EPS between $0.69 and $0.87. In September-October 2025, the stock reached a new 52-week high, analysts adjusted their price targets, and insider selling by CEO Gregory Stephen Smith was reported. Teradyne is scheduled to announce Q3 2025 results on October 28, 2025.

Demand for Teradyne's products and services is influenced by the cyclical nature of the semiconductor industry. The Semiconductor Test segment experiences a seasonal drop in demand in the fourth quarter, but there is growing demand for AI accelerator ASICs and High Bandwidth Memory (HBM) testing. The robotics segment has faced challenges, but restructuring efforts and potential involvement in large-scale warehouse automation programs are expected to drive future growth. Teradyne's strategic focus on high-growth areas like AI, 5G, and automotive is positioning it for sustained expansion.

Teradyne, Inc. designs and manufactures automatic test equipment (ATE) and robotics products, operating in the Technology sector, specifically in the Test & Automation and Semiconductor Equipment & Testing industries. The company's core business is segmented into Semiconductor Test, Robotics, and Product Test. Semiconductor Test includes test equipment for integrated circuit manufacturers. Industrial Automation (Robotics) includes collaborative robotic arms (cobots) and autonomous mobile robots (AMRs). Product Test includes defense/aerospace test instrumentation and systems, circuit-board test and inspection systems, and wireless test systems.

Teradyne has a global presence, designing, developing, manufacturing, and selling its products in the United States, Asia Pacific, Europe, the Middle East, and Africa. The United States accounts for 16.2% of net sales, Korea for 14.7%, Taiwan for 14.4%, China for 11.8%, Japan for 10.5%, and Europe for 10.2%. Other significant regions include the Philippines (7.1%), Singapore (4.4%), Thailand (3.4%), and Malaysia (3.3%). The company maintains major facilities worldwide, with its headquarters in North Reading, Massachusetts.

Teradyne maintains a strong brand reputation as a leading supplier of automated test equipment and robotics solutions. The company is considered a vital partner to chipmakers and has strong relationships with Apple and Taiwan Semiconductor. Its reputation is built on providing high-quality products and services, a deep understanding of customer needs, and a wide product portfolio. Continuous innovation and strategic acquisitions have expanded its market reach and diversified revenue streams. Recent product launches and collaboration with NVIDIA also contribute positively to its reputation.

Teradyne's ownership is predominantly institutional, with approximately 101.37% of the stock held by institutional shareholders, 1.10% by insiders, and 0.00% by retail investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp.