Revenue growth accelerated to 87.0% in 2026Q1, while structural improvements pushed gross margins to 60.9% compared to the 56-59% range observed throughout 2024.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 3.79B | 3.19B | 2.82B | 2.68B | 3.16B | 3.7B | 3.12B | 2.29B | 2.1B | 2.14B | 1.75B | 1.64B | 1.65B | 1.43B | 1.66B | 1.43B | 1.57B | 819.41M | 1.11B | 1.1B | 1.36B | 1.05B | 1.41B | 1.35B | 1.22B | 1.44B | 3.04B | 1.79B | 1.49B | 1.27B | 1.17B |
| Revenue Growth % | 30.32% | 13.13% | 5.36% | -15.17% | -14.79% | 18.63% | 36.01% | 9.24% | -1.68% | 21.87% | 6.93% | -0.5% | 15.4% | -13.81% | 15.93% | -8.75% | 91.13% | -25.98% | 0.43% | -18.73% | 29.77% | -25.89% | 4.24% | 10.69% | -15.16% | -52.67% | 69.97% | 20.26% | 17.6% | 8.08% | -1.63% |
| Cost of Goods Sold | 1.56B | 1.32B | 1.17B | 1.14B | 1.29B | 1.5B | 1.34B | 955.14M | 880.41M | 915.15M | 794.64M | 723.93M | 769.02M | 619.13M | 770.71M | 717.24M | 708.58M | 507.77M | 608.85M | 588.85M | 704.37M | 650.05M | 749.34M | 953.97M | 989.57M | 1.18B | 1.67B | 961.4M | 870.8M | 675.2M | 724.62M |
| COGS % of Revenue | - | 41.45% | 41.52% | 42.58% | 40.82% | 40.41% | 42.79% | 41.62% | 41.91% | 42.83% | 45.32% | 44.15% | 46.67% | 43.36% | 46.52% | 50.19% | 45.24% | 61.97% | 55% | 53.42% | 51.93% | 62.2% | 53.14% | 70.51% | 80.96% | 82.04% | 54.85% | 53.68% | 58.47% | 53.32% | 61.85% |
| Gross Profit | 2.23B | 1.87B | 1.65B | 1.54B | 1.87B | 2.21B | 1.79B | 1.34B | 1.22B | 1.22B | 958.61M | 915.64M | 878.81M | 808.8M | 886.04M | 711.82M | 857.58M | 311.63M | 498.19M | 513.43M | 651.88M | 395.06M | 660.88M | 398.9M | 232.67M | 258.77M | 1.37B | 829.5M | 618.4M | 591.1M | 446.99M |
| Gross Margin % | 58.79% | 58.55% | 58.48% | 57.42% | 59.18% | 59.59% | 57.21% | 58.38% | 58.09% | 57.17% | 54.68% | 55.85% | 53.33% | 56.64% | 53.48% | 49.81% | 54.76% | 38.03% | 45% | 46.58% | 48.07% | 37.8% | 46.86% | 29.49% | 19.04% | 17.96% | 45.15% | 46.32% | 41.53% | 46.68% | 38.15% |
| Gross Profit Growth % | - | 13.28% | 7.3% | -17.7% | -15.39% | 23.57% | 33.28% | 9.79% | -0.09% | 27.42% | 4.69% | 4.19% | 8.66% | -8.72% | 24.47% | -17% | 175.19% | -37.45% | -2.97% | -21.24% | 65.01% | -40.22% | 65.68% | 71.44% | -10.09% | -81.17% | 65.67% | 34.14% | 4.62% | 32.24% | -17.93% |
| Operating Expenses | 1.21B | 1.17B | 1.06B | 1.04B | 1.04B | 1.01B | 857.33M | 800.05M | 731.37M | 686.75M | 661.35M | 667.59M | 682.12M | 616.06M | 606.39M | 473.58M | 446.45M | 397.56M | 816.16M | 455.19M | 485.45M | 462.36M | 504.37M | 504.06M | 584.3M | 558.74M | 663.48M | 571.4M | 484.5M | 415.8M | 324.2M |
| OpEx % of Revenue | - | 36.82% | 37.42% | 38.7% | 32.81% | 27.17% | 27.47% | 34.86% | 34.81% | 32.14% | 37.72% | 40.72% | 41.4% | 43.14% | 36.6% | 33.14% | 28.51% | 48.52% | 73.72% | 41.29% | 35.79% | 44.24% | 35.77% | 37.26% | 47.81% | 38.79% | 21.8% | 31.91% | 32.53% | 32.84% | 27.67% |
| Selling, General & Admin | 656.46M | 644.07M | 617.05M | 577.32M | 558.1M | 547.56M | 464.77M | 437.08M | 390.67M | 348.91M | 316.54M | 306.31M | 319.71M | 279.56M | 277.02M | 232.09M | 225.33M | 200.43M | 247.79M | 250.84M | 283.01M | 245.99M | 254.41M | 249.46M | 290.38M | 270.08M | 362.56M | 256.4M | 212.9M | 194.1M | 180.26M |
| SG&A % of Revenue | - | 20.19% | 21.88% | 21.57% | 17.69% | 14.79% | 14.89% | 19.05% | 18.6% | 16.33% | 18.05% | 18.68% | 19.4% | 19.58% | 16.72% | 16.24% | 14.39% | 24.46% | 22.38% | 22.76% | 20.87% | 23.54% | 18.04% | 18.44% | 23.76% | 18.75% | 11.91% | 14.32% | 14.3% | 15.33% | 15.39% |
| Research & Development | 521.97M | 504.6M | 460.88M | 418.09M | 440.59M | 427.61M | 374.96M | 322.82M | 301.5M | 307.31M | 292.16M | 292.25M | 291.64M | 264.06M | 255.87M | 201.02M | 191.86M | 164.84M | 218.06M | 204.34M | 202.44M | 216.37M | 249.97M | 254.6M | 293.92M | 288.66M | 300.92M | 228.6M | 195.2M | 162.5M | 143.93M |
| R&D % of Revenue | - | 15.82% | 16.34% | 15.62% | 13.96% | 11.55% | 12.01% | 14.07% | 14.35% | 14.38% | 16.66% | 17.82% | 17.7% | 18.49% | 15.44% | 14.07% | 12.25% | 20.12% | 19.7% | 18.54% | 14.93% | 20.7% | 17.73% | 18.82% | 24.05% | 20.04% | 9.89% | 12.76% | 13.11% | 12.83% | 12.28% |
| Other Operating Expenses | 4M | 25.78M | -22.78M | 40.28M | 36.52M | 30.77M | 17.6M | 40.15M | 39.19M | 30.53M | 52.65M | 69.03M | 70.77M | 72.45M | 73.51M | 40.47M | 29.25M | 32.3M | 350.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 86.4M | 76.4M | 59.2M | 0 |
| Operating Income | 1.02B | 693.4M | 593.79M | 501.07M | 831.94M | 1.2B | 928.41M | 553.65M | 473.8M | 525.34M | -62.97M | 242.97M | 96.42M | 190.66M | 287.37M | 231.5M | 414.94M | -122.42M | -380.74M | 42.21M | 202.47M | -84.95M | 155.3M | -176.45M | -555.8M | -352.85M | 710.76M | 258.1M | 133.9M | 175.3M | 122.8M |
| Operating Margin % | 26.91% | 21.74% | 21.06% | 18.72% | 26.37% | 32.43% | 29.74% | 24.12% | 22.55% | 24.59% | -3.59% | 14.82% | 5.85% | 13.35% | 17.35% | 16.2% | 26.49% | -14.94% | -34.39% | 3.83% | 14.93% | -8.13% | 11.01% | -13.04% | -45.47% | -24.49% | 23.35% | 14.41% | 8.99% | 13.84% | 10.48% |
| Operating Income Growth % | - | 16.78% | 18.5% | -39.77% | -30.71% | 29.33% | 67.69% | 16.85% | -9.81% | 934.28% | -125.92% | 151.98% | -49.43% | -33.65% | 24.13% | -44.21% | 438.94% | 67.85% | -1002.08% | -79.15% | 338.35% | -154.7% | 188.01% | 68.25% | -57.52% | -149.64% | 175.38% | 92.76% | -23.62% | 42.76% | -49.75% |
| EBITDA | 1.12B | 820.12M | 713.53M | 611.95M | 942.61M | 1.33B | 1.06B | 674.31M | 587.02M | 633.42M | 57.04M | 383.74M | 248.97M | 341.35M | 432.88M | 338.18M | 508.45M | -16.34M | -285.98M | 109.7M | 276.01M | 6.22M | 255.43M | -23.96M | -396.12M | -214.18M | 812.63M | 344.5M | 210.3M | 234.5M | 173.7M |
| EBITDA Margin % | 29.53% | 25.71% | 25.3% | 22.87% | 29.88% | 35.82% | 33.8% | 29.38% | 27.94% | 29.65% | 3.25% | 23.4% | 15.11% | 23.9% | 26.13% | 23.66% | 32.46% | -1.99% | -25.83% | 9.95% | 20.35% | 0.6% | 18.11% | -1.77% | -32.41% | -14.87% | 26.7% | 19.24% | 14.12% | 18.52% | 14.83% |
| EBITDA Growth % | 47.4% | 14.94% | 16.6% | -35.08% | -28.92% | 25.69% | 56.48% | 14.87% | -7.32% | 1010.5% | -85.14% | 54.13% | -27.06% | -21.15% | 28% | -33.49% | 3211.71% | 94.29% | -360.69% | -60.25% | 4336.7% | -97.56% | 1166.02% | 93.95% | -84.95% | -126.36% | 135.89% | 63.81% | -10.32% | 35% | -39.58% |
| D&A (Non-Cash Add-back) | 99.19M | 126.72M | 119.74M | 110.89M | 110.67M | 125.48M | 126.74M | 120.66M | 113.22M | 108.08M | 120.01M | 140.77M | 152.54M | 150.69M | 145.51M | 106.68M | 93.52M | 106.08M | 94.76M | 67.5M | 73.54M | 91.17M | 100.13M | 152.49M | 159.69M | 138.67M | 101.86M | 86.4M | 76.4M | 59.2M | 50.9M |
| EBIT | 1.01B | 641.37M | 612.67M | 529.38M | 844.1M | 1.18B | 925.2M | 548M | 489.58M | 546.08M | -51.42M | 255M | 102.31M | 228.02M | 290.51M | 238.12M | 420.8M | -119M | -368.18M | 58.25M | 166.43M | -67.3M | 156.51M | -105.17M | -351.63M | -299.97M | 710.76M | 258.1M | 133.9M | 175.3M | 122.8M |
| Net Interest Income | -775K | 10.83M | 21.18M | 23.54M | 2.66M | -15.19M | -18.2M | -5.23M | -1.32M | -3.86M | 5.66M | 5.34M | -675K | -21.97M | -20.44M | -17.08M | -18.59M | -20.22M | -1.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 13.78M | 18.85M | 24.77M | 27.35M | 6.38M | 2.63M | 5.98M | 16.99M | 20.46M | 17.8M | 9.3M | 7.21M | 6.26M | 4.13M | 4.09M | 6.62M | 5.86M | 3.42M | 12.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 14.55M | 8.02M | 3.59M | 3.81M | 3.72M | 17.82M | 24.18M | 22.22M | 21.78M | 21.66M | 3.64M | 1.88M | 6.93M | 26.1M | 24.53M | 23.69M | 24.45M | 23.63M | 14.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -27.72M | -60.06M | 8.09M | 24.5M | 8.45M | -39.77M | -27.39M | -27.88M | -6M | -931K | 7.91M | 10.15M | -1.05M | 11.26M | -13.67M | -17.08M | -18.59M | -20.22M | -1.68M | 37.04M | 33.56M | 1.56M | -829K | -9.74M | -5.14M | 26.69M | 28.88M | 15.8M | 12M | 18M | 16.87M |
| Pretax Income | 991.51M | 633.35M | 601.88M | 525.57M | 840.38M | 1.16B | 901.01M | 525.77M | 467.8M | 524.41M | -55.06M | 253.12M | 95.38M | 201.92M | 265.98M | 218.64M | 396.35M | -142.64M | -386.02M | 79.24M | 230.4M | -80.14M | 154.47M | -186.19M | -560.95M | -326.15M | 739.65M | 273.9M | 145.9M | 193.3M | 139.66M |
| Pretax Margin % | 26.18% | 19.85% | 21.34% | 19.64% | 26.64% | 31.35% | 28.87% | 22.91% | 22.27% | 24.54% | -3.14% | 15.44% | 5.79% | 14.14% | 16.05% | 15.3% | 25.31% | -17.41% | -34.87% | 7.19% | 16.99% | -7.67% | 10.95% | -13.76% | -45.9% | -22.64% | 24.3% | 15.29% | 9.8% | 15.26% | 11.92% |
| Income Tax | 132.84M | 79.3M | 59.5M | 76.82M | 124.88M | 146.37M | 116.87M | 58.3M | 16.02M | 266.72M | -11.64M | 46.65M | 14.1M | 36.98M | 48.93M | -129.54M | 16.66M | -8.8M | 12.58M | 7.36M | 27.87M | -19.73M | 21.85M | 7.8M | 157.52M | -123.94M | 221.89M | 82.2M | 43.8M | 65.7M | 46.09M |
| Effective Tax Rate % | 13.4% | 12.52% | 9.89% | 14.62% | 14.86% | 12.61% | 12.97% | 11.09% | 3.42% | 50.86% | 21.14% | 18.43% | 14.79% | 18.31% | 18.4% | -59.25% | 4.2% | 6.17% | -3.26% | 9.29% | 12.1% | 24.62% | 14.14% | -4.19% | -28.08% | 38% | 30% | 30.01% | 30.02% | 33.99% | 33% |
| Net Income | 854.06M | 554.05M | 542.37M | 448.75M | 715.5M | 1.01B | 784.15M | 467.47M | 451.78M | 257.69M | -43.42M | 206.48M | 81.27M | 164.95M | 217.05M | 349.44M | 379.73M | -133.84M | -397.83M | 71.81M | 198.76M | -46.3M | 165.24M | -193.99M | -718.47M | -202.22M | 453.62M | 191.69M | 102.12M | 127.61M | 93.57M |
| Net Margin % | 22.55% | 17.37% | 19.23% | 16.77% | 22.68% | 27.4% | 25.12% | 20.37% | 21.51% | 12.06% | -2.48% | 12.59% | 4.93% | 11.55% | 13.1% | 24.45% | 24.25% | -16.33% | -35.94% | 6.51% | 14.65% | -4.43% | 11.72% | -14.34% | -58.78% | -14.04% | 14.9% | 10.7% | 6.86% | 10.08% | 7.99% |
| Net Income Growth % | 48% | 2.15% | 20.86% | -37.28% | -29.48% | 29.39% | 67.74% | 3.47% | 75.32% | 693.47% | -121.03% | 154.06% | -50.73% | -24% | -37.89% | -7.98% | 383.73% | 66.36% | -654% | -63.87% | 529.23% | -128.02% | 185.18% | 73% | -255.3% | -144.58% | 136.64% | 87.72% | -19.98% | 36.37% | -41.25% |
| Net Income (Continuing) | 858.67M | 554.05M | 542.37M | 448.75M | 715.5M | 1.01B | 784.15M | 467.47M | 451.78M | 257.69M | -43.42M | 206.48M | 81.27M | 164.95M | 217.05M | 343.96M | 379.69M | -133.84M | -395M | 71.88M | 208.16M | -63.66M | 132.62M | -193.99M | -718.47M | -202.22M | 517.75M | 191.7M | 102.1M | 127.6M | 93.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 32.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.42 | 3.48 | 3.32 | 2.73 | 4.22 | 5.53 | 4.28 | 2.60 | 2.35 | 1.28 | -0.21 | 0.97 | 0.37 | 0.70 | 0.94 | 1.60 | 1.73 | -0.77 | -2.33 | 0.42 | 1.01 | 0.46 | 0.84 | -1.03 | -3.93 | -1.15 | 2.51 | 1.07 | 0.30 | 0.37 | 0.55 |
| EPS Growth % | 52.7% | 4.82% | 21.61% | -35.31% | -23.69% | 29.21% | 64.62% | 10.64% | 83.59% | 709.52% | -121.65% | 162.16% | -47.14% | -25.53% | -41.25% | -7.51% | 324.68% | 66.95% | -654.76% | -58.42% | 119.57% | -45.24% | 181.55% | 73.79% | -241.74% | -145.82% | 134.58% | 256.67% | -18.92% | -32.73% | 5.77% |
| EPS (Basic) | - | 3.49 | 3.41 | 2.91 | 4.52 | 6.15 | 4.72 | 2.74 | 2.41 | 1.30 | -0.21 | 0.98 | 0.40 | 0.86 | 1.16 | 1.97 | 2.11 | -0.77 | -2.33 | 0.42 | 1.02 | 0.46 | 0.85 | -1.03 | -3.93 | -1.15 | 2.62 | 1.12 | 0.31 | 0.38 | 0.55 |
| Diluted Shares Outstanding | 157.64M | 157.65M | 163.31M | 164.3M | 169.73M | 183.63M | 183.04M | 179.46M | 192.6M | 201.64M | 202.58M | 213.32M | 222.55M | 235.6M | 230.25M | 226.82M | 226.81M | 173.6M | 170.59M | 185.37M | 204.41M | 196.28M | 196.71M | 188.34M | 182.82M | 175.83M | 181.01M | 178.55M | 343.86M | 345.38M | 339.89M |
| Basic Shares Outstanding | 156.41M | 156.41M | 159.08M | 154.31M | 158.43M | 164.96M | 166.12M | 170.43M | 187.67M | 198.07M | 202.58M | 211.54M | 202.91M | 190.77M | 186.88M | 184.68M | 179.92M | 173.6M | 170.59M | 184.02M | 194.73M | 196.28M | 194.4M | 188.34M | 182.82M | 175.83M | 173.31M | 170.52M | 335.29M | 345.38M | 339.89M |
| Dividend Payout Ratio | - | 13.77% | 14.09% | 15.13% | 9.74% | 6.5% | 8.48% | 13.11% | 14.9% | 21.52% | - | 24.56% | 46.05% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical supply chain exposure
According to recent quarterly filings, Teradyne's revenue growth accelerated sharply to 87.0% in 2026Q1, marking a significant departure from the mid-single-digit growth observed in previous periods and suggesting a robust demand inflection tied to high-end semiconductor testing requirements for AI-related compute architectures.
The dramatic top-line expansion appears to be a direct consequence of increased test intensity required for advanced nodes and HBM integration. Investors should monitor whether this trajectory is sustainable or if it represents a front-loading of capital expenditure by major OSATs ahead of broader industry cycles.
As reported in financial statements, Teradyne achieved a gross margin of 60.9% in 2026Q1, reflecting a structural improvement over the 56-59% range maintained throughout 2024, which suggests the company is successfully capturing premium pricing for its highly specialized test platforms in a complex semiconductor environment.
This margin expansion indicates that the company's proprietary software ecosystem and high-end hardware are providing significant pricing power. The ability to maintain these levels despite potential inflationary pressures on specialized components suggests a strong competitive moat in the ATE duopoly.
Based on the provided income statement data, operating income surged to $473.0M in 2026Q1, demonstrating significant operating leverage as the operating margin expanded to 36.9% compared to the 13-20% range seen in the prior year, indicating efficient management of fixed costs during periods of high revenue growth.
The disproportionate growth in operating income relative to revenue suggests that Teradyne's cost structure is highly scalable once volume thresholds are met. This efficiency implies that the company is well-positioned to maximize profitability during cyclical upswings without requiring proportional increases in SG&A or R&D spending.
Analysis of the income statement reveals that R&D expenses remained relatively contained at $135.6M in 2026Q1, representing a declining percentage of total revenue, which suggests management is maintaining expense discipline while simultaneously benefiting from the high-volume throughput of its current product generation.
While R&D is essential for maintaining the competitive edge in ATE, the current trend suggests that the company is successfully leveraging its existing intellectual property base. Investors should watch for any future spikes in R&D that might indicate a need to pivot toward new, unproven transistor architectures.
Quick answers to the most common questions about buying TER stock.
For fiscal year 2025, Teradyne, Inc. (TER) reported total revenue of $3.19B. This represents a 172.3% increase compared to $1.17B in 1996.
Teradyne, Inc. (TER) is profitable, generating $554.0M in net income for the fiscal year ending 2025 with a net profit margin of 17.4%.
Teradyne, Inc. (TER) reported an operating income of $693.4M, resulting in an operating profit margin of 21.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Teradyne, Inc. (TER) generated $1.87B in gross profit for the year, representing a gross profit margin of 58.6%. This demonstrates the company's core pricing power and production efficiency.