A premier provider of high-performance semiconductor testing hardware and software enabling faster time-to-market for chips used in smartphones, automotive, and industrial applications.
The stock offers compelling value given the company's dominant market position in high-mix, low-volume testing segments and the potential for revenue growth as global semiconductor design spending rebounds strongly from recent lows.
Despite current profitability, the recent decline in revenue over the past two years highlights vulnerability to industry cycles, while massive cash outflows of $608.7M for investing activities suggest heavy capital deployment that may strain liquidity if equipment orders do not accelerate quickly enough.
Teradyne, Inc. (TER) is a global leader in semiconductor test equipment and manufacturing execution systems, serving the electronics design and manufacturing industry with innovative solutions that accelerate chip development and optimize production efficiency.
In 2025, Teradyne reported revenue of $3.19B and net profit of $554M, reflecting a significant recovery from the previous year's lower figures and indicating strong demand for its advanced testing solutions following a period of market contraction.
The semiconductor equipment sector is highly cyclical and closely tied to global GDP growth, consumer electronics demand, and the expansion of data centers and automotive electrification, with Teradyne positioned as a critical enabler for next-generation chip production.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.16B | $2.68B | $2.82B | $3.19B |
| Cost of Revenue | $1.29B | $1.14B | $1.17B | $1.33B |
| Gross Profit | $1.87B | $1.54B | $1.65B | $1.86B |
| Operating Expenses | $1.04B | $1.04B | $1.06B | $1.21B |
| Operating Income | $831.9M | $501.1M | $593.8M | $650.1M |
| G&A | $558.1M | $577.3M | $165.6M | $168.6M |
| Marketing | — | — | $351.0M | $366.6M |
| Stock-Based Comp | $48.2M | $57.7M | $60.1M | $64.0M |
| D&A | $110.7M | $110.9M | $119.7M | $128.0M |
| Depreciation | $90.8M | $92.1M | $101.0M | $111.4M |
| Amortization | $19.3M | $19.0M | $18.8M | $15.3M |
| Other OpEx | $477.1M | $458.4M | $538.5M | $672.1M |
| Non-Operating Income | $8.4M | $24.5M | $15.3M | $3.2M |
| Interest Expense | $3.7M | $3.8M | $3.6M | $6.8M |
| Interest Income | $6.4M | $27.3M | $24.8M | $15.7M |
| Pre-Tax Income | $840.4M | $525.6M | $609.1M | $653.3M |
| Income Tax | $124.9M | $76.8M | $59.5M | $79.3M |
| Continuing Ops | $715.5M | $448.8M | $549.6M | $574.0M |
| Discontinued Ops | $0 | $0 | $-7.2M | $-19.9M |
| Net Income | $715.5M | $448.8M | $542.4M | $554.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $715.5M | $448.8M | $542.4M | $554.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.26B | $2.16B | $1.82B | $1.95B |
| Cash & Equivalents | $854.8M | $757.6M | $553.4M | $293.8M |
| Accounts Receivable | $491.1M | $422.1M | $471.4M | $786.9M |
| Inventory | $325.0M | $310.0M | $298.5M | $379.6M |
| Other Current Assets | $587.0M | $672.4M | $493.1M | $489.1M |
| Long-Term Assets | $1.24B | $1.32B | $1.89B | $2.23B |
| PP&E (Net) | $418.7M | $445.5M | $508.2M | $563.0M |
| Intangibles | $53.5M | $35.4M | $15.9M | $51.3M |
| Goodwill | $403.2M | $415.7M | $395.4M | $521.0M |
| Operating Leases | $73.7M | $73.4M | $70.2M | $76.6M |
| Other LT Assets | $294.2M | $354.8M | $408.2M | $485.3M |
| Total Assets | $3.50B | $3.49B | $3.71B | $4.18B |
| Current Liabilities | $746.3M | $660.0M | $624.6M | $1.12B |
| Accounts Payable | $139.7M | $180.1M | $134.8M | $269.2M |
| Current Leases | $18.6M | $17.5M | $18.7M | $19.3M |
| Taxes Payable | $65.0M | $48.7M | $67.6M | $106.7M |
| Other Current Liab | $522.9M | $413.6M | $403.5M | $719.9M |
| Long-Term Liabilities | $303.7M | $301.0M | $264.8M | $272.6M |
| LT Operating Leases | $64.2M | $65.1M | $57.9M | $63.9M |
| Other LT Liab | $180.4M | $191.6M | $182.3M | $208.7M |
| Total Liabilities | $1.05B | $960.9M | $889.4M | $1.39B |
| Shareholders' Equity | $2.45B | $2.53B | $2.82B | $2.80B |
| Retained Earnings | $725.7M | $706.5M | $970.8M | $744.4M |
| AOCI | $-49.9M | $-27.0M | $-81.2M | $41.9M |
| Treasury Stock | $1.35B | $400.5M | $199.4M | $708.7M |
| Total L&E | $3.50B | $3.49B | $3.71B | $4.18B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $715.5M | $448.8M | $542.4M | $554.0M |
| Non-Cash Adjustments | $-206.8M | $212.5M | $256.9M | $-488.4M |
| Working Capital Changes | $69.2M | $-76.0M | $-127.1M | $608.7M |
| Cash from Operations | $577.9M | $585.2M | $672.2M | $674.4M |
| Capital Expenditures | $163.2M | $159.6M | $198.1M | $224.0M |
| Cash from Investing | $43.8M | $-179.6M | $-622.3M | $-368.6M |
| Share Buybacks | $752.1M | $397.2M | $198.6M | $702.1M |
| Dividends Paid | $69.7M | $67.9M | $76.4M | $76.3M |
| Cash from Financing | $-893.0M | $-501.9M | $-251.8M | $-562.2M |
| FX Effect | $3.9M | $-876.0K | $-2.3M | $-3.2M |
| Net Change in Cash | $-267.4M | $-97.2M | $-204.2M | $-259.6M |
| Beginning Cash | $1.12B | $854.8M | $757.6M | $553.4M |
| Ending Cash | $854.8M | $757.6M | $553.4M | $293.8M |
The company operates primarily through its Semiconductor Test Equipment segment, delivering advanced silicon testers and manufacturing execution systems that integrate hardware with proprietary software to streamline the chip fabrication process for major global foundries and fabless designers.
Investors should monitor the cyclical nature of the semiconductor capital equipment industry, potential slowdowns in global smartphone and automotive demand that could reduce equipment orders, currency exchange rate fluctuations impacting international revenues, and the intense competitive pressure from rival testing equipment manufacturers.
Teradyne possesses deep technological expertise in high-speed serial testing protocols, a robust installed base of equipment generating recurring revenue through service contracts, and strong customer relationships driven by its ability to shorten semiconductor product development cycles.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.