Teradyne (TER) stock
Information Technology · Semiconductor Materials & Equipment
Teradyne (TER) is a Semiconductor Materials & Equipment company in the Information Technology sector, headquartered in North Reading, Massachusetts. As of October 23, 2026, TER closed at $308.85, a market capitalization of $48.29 billion, the 239th largest company in the S&P 500. Over the last twelve months it generated $4.46 billion in revenue (+104% year over year) and $799.93 million in free cash flow. The stock trades at 42.4x trailing earnings and 26.9x forward earnings.
- 1-year total return: +113.4% (dividends reinvested)
- 5-year return: +22.1% a year
- 52-week range: $144.11 – $487.91
- Gross margin 59.2%, operating margin 33.2%
- Dividend yield: 0.17%
- FI Handbook report card: B+ across 10 metrics
- 46th largest of 75 Information Technology stocks in the S&P 500
TER price chart
1Y price change: +112.9% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| TER | -20.6% | +59.8% | +113.4% | +50.9% | +22.1% | +31.3% | +11.1% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1973.
TER key statistics
- Market cap
- $48.3B
- #239 in S&P 500
- P/E (TTM)
- 42.4x
- Forward P/E
- 26.9x
- EPS (TTM)
- $7.28
- Revenue (TTM)
- $4.5B
- +104%
- Free cash flow
- $799.9M
- Gross margin
- 59.2%
- Operating margin
- 33.2%
- Return on equity
- 36.5%
- Dividend yield
- 0.17%
- 52-week range
- $144.11 – $487.91
- Beta
- 1.75
- Price / sales
- 10.8x
- EV / EBITDA
- 31.9x
- Debt / equity
- 0.03x
- Employees
- 6,600
TER report card
B+Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth103.9%A
- Gross margin59.2%B
- Operating margin33.2%A
- FCF margin17.9%B
- Return on equity36.5%A
- Net debt / EBITDA-0.2xA
- Forward P/E26.9xC
- PEG ratio0.7xA
- Shareholder yield1.6%C
- Share count change / yr-2.7%A
Teradyne financials
Revenue went from $1.8B in fiscal 2016 to $3.2B in fiscal 2025, growing 6.9% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.8B | $2.1B | $2.1B | $2.3B | $3.1B | $3.7B | $3.2B | $2.7B | $2.8B | $3.2B |
| Gross profit | $958.6M | $1.2B | $1.2B | $1.3B | $1.8B | $2.2B | $1.9B | $1.5B | $1.6B | $1.9B |
| Operating income | -$63.0M | $525.3M | $473.8M | $553.7M | $928.4M | $1.2B | $831.9M | $501.1M | $593.8M | $650.1M |
| Net income | -$43.4M | $257.7M | $451.8M | $467.5M | $784.1M | $1.0B | $715.5M | $448.8M | $542.4M | $554.0M |
| EPS (diluted) | $-0.21 | $1.28 | $2.35 | $2.60 | $4.28 | $5.53 | $4.22 | $2.73 | $3.32 | $3.47 |
| Free cash flow | $369.9M | $521.1M | $362.5M | $444.1M | $684.0M | $965.9M | $414.7M | $425.6M | $474.1M | $450.4M |
| Buybacks | $146.3M | $200.3M | $823.5M | $500.0M | $88.5M | $600.0M | $752.1M | $397.2M | $198.6M | $702.1M |
| Dividends paid | $48.6M | $55.4M | $67.3M | $61.3M | $66.5M | $66.0M | $69.7M | $67.9M | $76.4M | $76.3M |
| Diluted shares | 202.6M | 201.6M | 192.6M | 179.5M | 183.0M | 183.6M | 169.7M | 164.3M | 163.3M | 159.7M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into TER?
A reverse DCF asks what growth the current price requires. With an enterprise value of $48.0B and $799.9M of trailing free cash flow, Teradyne needs to grow free cash flow about 39.6% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew -8.0% a year over the last five years.
P/E ratio history
Current 89.0x vs. median 26.0x (10th–90th percentile 10.0x–52.6x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
TER dividend
- Dividend yield
- 0.17%
- Annual dividend
- $0.52
- Years of increases
- —
- 5-yr dividend growth
- 3.7%
- per year
- Payout ratio
- 7%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
TER earnings
Next report: October 27, 2026. Teradyne has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $1.3B (+104% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Jul 28, 2026 | $2.05 | $2.47 | +20.3% |
| Apr 28, 2026 | $2.12 | $2.56 | +20.9% |
| Feb 2, 2026 | $1.38 | $1.80 | +30.1% |
| Oct 28, 2025 | $0.79 | $0.85 | +7.5% |
| Jul 29, 2025 | $0.54 | $0.57 | +4.9% |
| Apr 28, 2025 | $0.62 | $0.75 | +21.7% |
| Jan 29, 2025 | $0.91 | $0.95 | +4.5% |
| Oct 23, 2024 | $0.79 | $0.90 | +14.2% |
Stocks like TER
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
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TER news
- Should You Buy, Sell, or Hold TER Stock Before Q3 Earnings Release? · Oct 23, 2026
- Teradyne Stock Faces A New Test As Warehouse Robotics Partnership Expands · Oct 23, 2026
- Allegro MicroSystems, Lattice Semiconductor, Amkor, Teradyne, and Entegris shares plummet, what you need to know · Oct 23, 2026
- Teradyne (TER) Registers a Bigger Fall Than the Market: Important Facts to Note · Oct 22, 2026
- The Zacks Analyst Blog Highlights Chord Energy, Halozyme, Sezzle, SanDisk and Teradyne · Oct 22, 2026
TER stock FAQ
What is TER's market cap?
Teradyne's market capitalization is $48.29 billion as of October 23, 2026, ranking 239th in the S&P 500.
What is TER's P/E ratio?
TER trades at a trailing price-to-earnings ratio of 42.4x and a forward P/E of 26.9x. Its median P/E over the period we track is 26.0x.
Does TER pay a dividend?
Yes. Teradyne pays $0.52 per share a year, a 0.17% yield. Dividends grew 3.7% a year over the last five years.
How much has TER stock returned?
Including reinvested dividends, TER returned +113.4% over one year, +22.1% a year over five years, +31.3% a year over ten years through October 23, 2026.
Is TER stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Teradyne must grow free cash flow about 40% a year for the next decade. Its free cash flow fell 8% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does TER report earnings?
Teradyne is expected to report earnings on October 27, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Teradyne have?
Teradyne has about 6,600 full-time employees, or $676,368 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology