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Valued at a market cap of $57.1 billion, Teradyne, Inc. (TER) is a technology company that designs and manufactures automated test equipment (ATE) and advanced robotics systems. Based in North Reading, Massachusetts, its testing solutions are used to test semiconductors, wireless products, data storage, silicon photonics, and other complex electronic systems, helping manufacturers ensure their products meet performance and reliability standards before reaching customers.
Teradyne has delivered a staggering run over the past year, with TER shares soaring 262.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31%. The stock has also climbed 96.1% so far in 2026, handily outpacing the index’s 19.9% advance.
Narrowing the focus, TER has also outpaced the State Street Technology Select Sector SPDR ETF’s (XLK) 40.9% rise over the past 52 weeks and 29.3% YTD uptick.
On July 28, 2026, Teradyne delivered a solid second-quarter report, marking its second consecutive quarter of record revenue and once again topping the high end of its guidance. Revenue surged 103.8% year over year to $1.33 billion, fueled by robust demand across all three business groups. Semiconductor Test led the charge with $1.12 billion in revenue, while Product Test and Robotics contributed $107 million and $100 million, respectively. The company also posted record Memory revenue, benefiting from sustained DRAM demand and a rebound in NAND final-test activity.
The bottom line was equally impressive. Non-GAAP EPS jumped 333.3% year over year to $2.47, while gross profit more than doubled to $794.6 million. With AI-related semiconductor demand continuing to drive growth, management expects Q3 revenue of $1.2 billion to $1.3 billion and non-GAAP EPS of $1.85 to $2.15. Although TER shares initially slipped 4.2% following the results, investor sentiment quickly turned around, with the stock surging more than 14% on July 30.
For the current fiscal year, ending in December, analysts expect TER’s EPS to grow 129.8% year over year to $9.10. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 12 “Strong Buy,” one "Moderate Buy,” and three “Hold” ratings.
The configuration has remained consistent over the past three months.
On July 30, 2026, JPMorgan analyst Joseph Cardoso raised Teradyne’s price target to $465 from $450 while maintaining an “Overweight” rating, reflecting continued confidence in the company’s growth prospects.
The mean price target of $447.86 suggests a 18% premium to its current price levels, while its Street-high price target of $550 implies a 44.9% potential upside.
