Revenue accelerated 103.9% YoY to $1.3B in Q2 2026, with gross margin expanding to 59.8% and operating leverage driving a 383% increase in operating income to $437.8M.
Teradyne, Inc. (TER) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 4.46B | 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 % | 57.87% | 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 | 1.82B | 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 | 2.65B | 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 % | 59.31% | 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 | 1.28B | 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 | 691.19M | 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 | 559.87M | 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 | 1.37B | 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 % | 30.61% | 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 | 1.47B | 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 % | 32.88% | 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 % | 129.22% | 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) | 101.42M | 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 | 1.35B | 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 | 5.26M | 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 | 18.11M | 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 | 12.85M | 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 | -27.73M | -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 | 1.34B | 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 % | 29.99% | 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 | 183.39M | 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 % | 13.7% | 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 | 1.15B | 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 % | 25.77% | 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 % | 145.16% | 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) | 1.16B | 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 | 36.15M | 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) | 7.30 | 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 % | 152.58% | 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 | 157.66M | 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 | 156.44M | 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% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
China export controls
Metrics are mathematically derived from official filings.
AI-Driven Revenue Inflection
Teradyne's revenue surged 103.9% year-over-year in 2026Q2 to $1.3B, according to recent SEC filings, marking a dramatic acceleration from the modest growth seen in 2024 and early 2025.
The sequential progression from 4.3% growth in 2025Q3 to triple-digit growth by 2026Q2 indicates a step-change in demand, likely tied to AI compute and HBM testing. This is not a gradual uptick but a sharp inflection, suggesting that the company is capturing a disproportionate share of the AI-driven capital expenditure cycle. Investors should monitor whether this pace is sustainable or if it represents a pull-forward of demand.
Gross Margin Expansion on Premium Mix
Gross margin expanded to 59.8% in 2026Q2, up from 57.2% a year earlier, as reported in financial statements, reflecting a richer product mix and pricing power in AI-related testers.
The margin improvement is notable given the revenue surge, indicating that Teradyne is not sacrificing pricing for volume. The structural gross margin near 60% is among the highest in the semiconductor equipment space, second only to KLA's 61.3%. This suggests that the company's software ecosystem and high switching costs continue to support premium pricing, though the sustainability of this mix shift warrants monitoring as AI demand matures.
Operating Leverage Amplifies Earnings
Operating income grew from $90.7M in 2025Q2 to $437.8M in 2026Q2, a 383% increase, as per company filings, far outpacing the 103.9% revenue growth, demonstrating significant operating leverage.
The operating margin jumped from 13.9% to 32.9% year-over-year, indicating that fixed costs are being absorbed efficiently as volumes scale. R&D and SG&A grew at a much slower pace than revenue, highlighting the scalability of the business model. This leverage is a key driver of the EPS beat, but investors should be cautious about the potential for margin compression if revenue growth decelerates.
Clean Earnings with Tax Tailwind
Net income of $374.5M in 2026Q2, as disclosed in quarterly results, translated to a 28.2% net margin, with no stock-based compensation reported, suggesting high-quality reported earnings.
The absence of SBC in the data is unusual and may indicate that the figures are adjusted or that SBC is immaterial. The effective tax rate appears lower than the statutory rate, contributing to the net margin expansion. Investors should verify the tax rate sustainability and whether any one-time items are inflating net income, though the operating income trend supports the earnings quality.
2026: The AI Tipping Point
The most significant inflection occurred in 2026Q1-Q2, with revenue jumping from $769M in 2025Q3 to $1.3B by 2026Q2, as per income statement data, marking a clear break from the prior cyclical pattern.
This inflection appears driven by the AI compute cycle, with demand for advanced testers for AI accelerators and HBM. The sustained high growth over two consecutive quarters suggests a structural shift rather than a one-off spike. The lasting impact is likely a higher baseline for revenue and margins, but the cyclicality of the semiconductor industry means a downturn could still occur.
Sustainability of AI Demand Questioned
Despite the record results, management's conservative guidance for the next quarter (EPS $1.85-$2.15) implies a sequential decline, as noted in recent earnings commentary, raising questions about the durability of the AI-driven surge.
The maintained guidance despite the beat suggests that management sees the current demand as potentially front-loaded or anticipates a digestion period. Short-sellers might argue that the AI capex cycle is peaking and that Teradyne's revenue is highly concentrated in a few customers. Additionally, export controls on high-speed testers to China could limit future growth, as China is a vital market. Investors should monitor order trends and customer concentration for signs of a slowdown.