Teradyne Inc
NASDAQ:TER
Teradyne Inc
Founded in 1960, Teradyne Inc. emerged from a humble beginning with an ambitious vision to revolutionize the testing equipment industry. The company found its niche in manufacturing automatic test equipment, a crucial component for the electronics and semiconductor industry. It thrived by creating sophisticated systems designed to test semiconductors, wireless products, and other electronic devices, ensuring quality and performance in an industry where precision is critical. With Boston as its headquarters, Teradyne leveraged the burgeoning technological climate to expand its capabilities, evolving in step with rapid advancements in electronics and providing essential quality assurance tools.
As technology evolved, so too did Teradyne, venturing into the realm of industrial automation. Acquiring companies like Universal Robots and Mobile Industrial Robots, Teradyne diversified its portfolio significantly. This strategic shift enabled it to tap into the robotic automation market, particularly in collaborative robots ("cobots") designed to work alongside humans in manufacturing and distribution settings. By marrying their traditional strengths in test equipment with cutting-edge robotic automation, Teradyne now profits from both testing and automation solutions, establishing itself as a key player in industries that hinge on innovation, reliability, and the seamless integration of technology into manufacturing processes.
Founded in 1960, Teradyne Inc. emerged from a humble beginning with an ambitious vision to revolutionize the testing equipment industry. The company found its niche in manufacturing automatic test equipment, a crucial component for the electronics and semiconductor industry. It thrived by creating sophisticated systems designed to test semiconductors, wireless products, and other electronic devices, ensuring quality and performance in an industry where precision is critical. With Boston as its headquarters, Teradyne leveraged the burgeoning technological climate to expand its capabilities, evolving in step with rapid advancements in electronics and providing essential quality assurance tools.
As technology evolved, so too did Teradyne, venturing into the realm of industrial automation. Acquiring companies like Universal Robots and Mobile Industrial Robots, Teradyne diversified its portfolio significantly. This strategic shift enabled it to tap into the robotic automation market, particularly in collaborative robots ("cobots") designed to work alongside humans in manufacturing and distribution settings. By marrying their traditional strengths in test equipment with cutting-edge robotic automation, Teradyne now profits from both testing and automation solutions, establishing itself as a key player in industries that hinge on innovation, reliability, and the seamless integration of technology into manufacturing processes.
Q4 Strength: Teradyne reported a strong fourth quarter, with revenue and EPS above the high end of guidance, driven by robust AI demand.
Record AI Contribution: Over 60% of Q4 revenue was AI-driven, with expectations for this to rise to 70% in Q1 2026.
Full Year Growth: 2025 revenue grew 13% year-over-year to $3.2 billion, and EPS rose by 23% to $3.96.
New Target Model: Teradyne introduced a new earnings model, aiming for $6 billion in revenue and $9.50–$11 EPS at an ATE TAM of $12–14 billion.
Q1 2026 Guidance: Q1 sales expected between $1.15B and $1.25B, an 11% sequential and 75% year-over-year increase, with gross margin guided to 58.5–59.5%.
Customer Concentration: Two specifying and one purchasing customer each contributed around 10% of revenue in 2025.
AI & Robotics Tailwinds: Continued share gains are expected in AI compute, memory, and robotics, with a large e-commerce customer driving robotics growth.
