Teradyne, Inc. (TER) Stock Price & How to Invest

Teradyne designs and sells automated test equipment (ATE) used to verify that semiconductors work before they ship. Its largest business, Semiconductor Test, sells systems like the UltraFLEX and J750 platforms that test system-on-chip (SoC) and memory devices, including the high bandwidth memory and compute processors that power AI data centers. The company makes money mostly from selling these test systems plus recurring service, software, and consumables. Beyond chip test, Teradyne runs a Robotics segment built around Universal Robots (collaborative robot arms) and Mobile Industrial Robots (MiR autonomous mobile robots), plus a smaller Product Test unit, giving it exposure to factory and warehouse automation alongside the core test franchise.

Teradyne traces back to 1960 and became one of two dominant players in the global ATE market alongside Japan's Advantest, with the two together holding the large majority of industry share. Over the years it expanded through acquisitions such as Eagle Test Systems and LitePoint (wireless and RF test) and built the Robotics segment by acquiring Universal Robots and MiR in the 2010s. The business has always moved with the semiconductor capital-spending cycle, but the rise of AI compute and memory testing has lifted recent demand to record levels, with the company describing a wafer-to-AI-data-center strategy that ties its test tools to the AI buildout.

The 2026 numbers have been the strongest in the company's history. Revenue reached about $1.28 billion in the first quarter and about $1.33 billion in the June quarter, up roughly 104 percent year over year, taking trailing 12-month revenue to about $4.46 billion and net income to about $1.15 billion. Adjusted EPS of $2.47 in the June quarter beat the $2.05 consensus, the fourth straight beat. Analysts expect a slightly lower September quarter (about $1.26 billion of revenue and $2.05 of EPS, reported October 27, 2026), then about $5.14 billion of revenue for 2026 and $6.26 billion for 2027. In October Teradyne also launched a test platform aimed at edge AI devices, extending its AI test push beyond data center chips. The shares fell about 10 percent in the month to October 16 as semiconductor equipment stocks sold off.

Semiconductor test equipment is one of the most cyclical corners of the chip industry, and Teradyne's revenue can swing materially as customers add or pause capacity. The customer base is concentrated, so a handful of large memory and compute customers drive a large share of orders, and an order delay at any of them can dent a quarter. The robotics business is growing but still small and has historically ramped slowly, so it cannot fully offset a test downturn. Teradyne also competes directly with Advantest, which leads the broader ATE market, so share shifts and pricing pressure are ongoing risks. After a large run-up the shares carry an elevated valuation (about 46 times trailing and 29 times forward earnings as of October 2026), which leaves less margin for error if AI test demand normalizes; the roughly 10 percent drop in the month to October 16 shows how quickly that can reverse. Consensus also calls for September-quarter revenue below the June quarter, so the October 27 report will be read for whether that dip is a pause or a peak.

15 analysts publish price targets on TER, averaging $424.67 against a $260.12 price as of November 2026, or +63.3%. The published targets run from $340.00 to $550.00, a moderate spread, and the ratings split 13 buy, 4 hold, 0 sell. Over the last six months there have been 8 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full TER forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Teradyne, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. AI compute and HBM test demand. AI accelerators and high bandwidth memory are complex and expensive, which raises the amount and value of testing each part needs. The most optimistic published target, $550.00, assumes this works close to its best case.

The case against. Semiconductor test equipment is one of the most cyclical corners of the chip industry, and Teradyne's revenue can swing materially as customers add or pause capacity. The most pessimistic target, $340.00, is roughly what TER is worth if this bites instead.

Read the full bull and bear case on TER, including what would have to change to break either one. Walnut is not an investment adviser.

No. Teradyne, Inc. (TER) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Teradyne, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$4.46 billion
• Q2 2026 revenue: ~$1.33 billion (up ~104% year over year)
• Gross margin (TTM): ~59%, operating margin ~33%
• Net income (TTM): ~$1.15 billion
• P/E ratio: ~46x trailing, ~29x forward
• Market capitalization: ~$52 billion
• Dividend yield: ~0.15% (small dividend)

As of October 16, 2026, Teradyne trades near $334, about 46 times trailing and 29 times forward earnings and about 11.7 times trailing sales, a premium to the broader semiconductor group that reflects AI-driven growth of roughly 100 percent in the June quarter. The multiple has come down from earlier in 2026 as earnings rose and the stock pulled back from its high near $488. The analyst mean target is about $446, and third-quarter results on October 27 are the next checkpoint.

If you want TER exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

These are the investment theses TER naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.

Other names that sit close to TER: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get TER exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (ROBO, ARKQ, ARKX), which spreads the position across many companies. Or build it into a focused thematic portfolio, so TER sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where TER fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Teradyne today is primarily a semiconductor test company whose growth is being driven by AI-related compute and memory test demand: management said roughly 70% of revenue was tied to AI applications in early 2026, and Q2 2026 revenue roughly doubled year over year to ~$1.33 billion after Q1's ~$1.28 billion. If you believe AI chip volumes and HBM content keep climbing for several more years, the question becomes sizing and overlap with the rest of your portfolio (TER often correlates with other semiconductor and AI-infrastructure names), not timing the exact entry. The risk is the cyclicality of test equipment spending and concentration among a handful of large customers, which can compress results quickly when the chip cycle turns. Third-quarter results are due October 27, 2026.

Whether TER is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TER a buy or a sell?, and where the stock could go from here in the TER stock forecast.

For income investors, whether TER pays a dividend and how the payout looks is covered in does TER pay a dividend? And to weigh TER against a peer, read the full side-by-side comparisons: TER vs ROK and TER vs EMR.