Teradyne Inc【TER】株式ニュース

Teradyne Reports First Quarter 2026 ResultsApril 28, 2026 4:30 PM
Business Wire

Record revenue and earnings both above the high end of our Q1 Guidance

Revenue of $1.282B up 87%, GAAP EPS of $2.53 and non-GAAP EPS of $2.56, both up significantly from Q1’25

Record results driven by AI-related demand strength across compute segments and memory

Teradyne, Inc. (NASDAQ:TER):

Q1'26

Q1'25

Q4'25

Revenue (mil)

$

1,282

$

686

$

1,083

GAAP EPS

$

2.53

$

0.61

$

1.63

Non-GAAP EPS

$

2.56

$

0.75

$

1.80

Teradyne, Inc. (NASDAQ:TER) reported revenue of $1,282 million for the first quarter of 2026 of which $1,111 million was in Semiconductor Test, $91 million in Robotics, and $80 million in Product Test. GAAP net income for the first quarter of 2026 was $398.9 million, or $2.53 per diluted share. On a non-GAAP basis, Teradyne’s net income for the first quarter of 2026 was $402.9 million, or $2.56 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and the related tax impact on non-GAAP adjustments.

"Our Q1 results reached a new record high. With approximately 70% of our revenue tied to AI-related demand, our results reflect the strength of our wafer to AI data center strategy. All of our business groups - Semiconductor Test, Product Test, and Robotics - delivered strong year-over-year growth which we expect to continue with robust AI driven momentum as the catalyst,” said Teradyne CEO Greg Smith.

Guidance for the second quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.83 to $2.12 per diluted share and non-GAAP net income of $1.86 to $2.15 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the first quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, April 29, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income excludes acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current or future geopolitical conflicts; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR FIRST FISCAL QUARTER OF 2026

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands)

Quarter Ended

March 29,

2026

December 31,

2025

March 30,

2025

Net revenues

$

1,282,494

$

1,083,337

$

685,680

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

501,545

463,647

270,344

Gross profit

780,949

619,690

415,336

Operating expenses:

Selling and administrative (2)

166,737

164,693

157,257

Engineering and development

135,561

143,265

118,188

Acquired intangible assets amortization

2,224

3,451

4,573

Restructuring and other (3)

3,425

15,081

14,515

Operating expenses

307,947

326,490

294,533

Income from operations

473,002

293,200

120,803

Interest and other (income) expense (4)

7,326

3,625

1,779

Income before income taxes

465,676

289,575

119,024

Income tax provision

62,157

29,151

14,544

Income before equity in net earnings of affiliate

$

403,519

$

260,424

$

104,480

Equity in net earnings of affiliate

(4,611

)

(3,204

)

(5,584

)

Net income

$

398,908

$

257,220

$

98,896

Net income per common share:

Basic

$

2.55

$

1.64

$

0.61

Diluted

$

2.53

$

1.63

$

0.61

Weighted average common shares - basic

156,410

156,412

161,501

Weighted average common shares - diluted

157,636

157,651

161,996

Cash dividend declared per common share

$

0.13

$

0.12

$

0.12

(1) Cost of revenues includes:

Quarter Ended

March 29,

2026

December 31,

2025

March 30,

2025

Provision for excess and obsolete inventory

$

4,682

$

6,607

$

4,945

Inventory step-up

118

348

216

Sale of previously written down inventory

(297

)

(494

)

(324

)

$

4,503

$

6,461

$

4,837

(2)

For the quarters ended March 29, 2026, December 31, 2025, and March 30, 2025, selling and administrative expenses included $1.7 million, $1.9 million, and $0.7 million, respectively, of expenses directly related to a planned ERP system implementation.

(3)

Restructuring and other consists of:

Quarter Ended

March 29,

2026

December 31,

2025

March 30,

2025

Acquisition and divestiture related expenses

$

1,699

$

602

$

1,972

Employee severance (a)

854

10,851

11,395

Asset impairment

—

3,329

1,142

Other

872

299

6

$

3,425

$

15,081

$

14,515

(a)

For the three months ended December 31, 2025, and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively.

(4) Interest and other includes:

Quarter Ended

March 29,

2026

December 31,

2025

March 30,

2025

Pension actuarial losses (gains)

$

—

$

1,338

$

—

Pension settlement loss (gain)

—

18

—

Loss (gain) on foreign exchange contract

—

—

(561

)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

March 29,

2026

December 31,

2025

Assets

Cash and cash equivalents

$

241,944

$

293,751

Marketable securities

3,653

28,247

Accounts receivable, net

1,107,522

786,913

Inventories, net

362,757

379,552

Prepayments

438,577

427,564

Other current assets

18,720

33,273

Total current assets

2,173,173

1,949,300

Property, plant and equipment, net

585,724

562,999

Operating lease right-of-use assets, net

76,222

76,635

Marketable securities

148,374

126,256

Deferred tax assets

281,776

275,265

Retirement plans assets

12,078

12,059

Equity method investment

522,583

537,098

Other assets

70,743

71,697

Acquired intangible assets, net

48,979

51,271

Goodwill

514,175

521,019

Total assets

$

4,433,827

$

4,183,599

Liabilities

Accounts payable

$

344,681

$

269,185

Accrued employees’ compensation and withholdings

156,194

254,973

Deferred revenue and customer advances

197,127

153,124

Other accrued liabilities

122,512

111,845

Operating lease liabilities

18,438

19,340

Short-term debt

—

200,000

Income taxes payable

173,259

106,740

Total current liabilities

1,012,211

1,115,207

Retirement plans liabilities

143,354

144,874

Long-term deferred revenue and customer advances

58,371

50,888

Deferred tax liabilities

4,556

5,378

Long-term other accrued liabilities

7,559

7,601

Long-term operating lease liabilities

63,960

63,899

Total liabilities

1,290,011

1,387,847

Shareholders’ equity

3,143,816

2,795,752

Total liabilities and shareholders’ equity

$

4,433,827

$

4,183,599

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

Quarter Ended

March 29,

2026

March 30,

2025

Cash flows from operating activities:

Net income

$

398,908

$

98,896

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

30,240

25,523

Stock-based compensation

21,902

15,204

Equity in net earnings of affiliate

4,611

5,584

Amortization

2,415

4,779

Provision for excess and obsolete inventory

4,682

4,945

Losses (gains) on investments

3,317

3,372

Deferred taxes

(7,777

)

(7,811

)

Other

2,286

3,483

Changes in operating assets and liabilities, net of businesses acquired:

Accounts receivable

(322,017

)

13,053

Inventories

20,827

(31,049

)

Prepayments and other assets

4,049

13,650

Accounts payable and other liabilities

(15,025

)

(9,950

)

Deferred revenue and customer advances

51,964

10,200

Retirement plans contributions

(1,534

)

(1,282

)

Income taxes

66,276

13,040

Net cash provided by operating activities

265,124

161,637

Cash flows from investing activities:

Purchases of property, plant and equipment

(64,733

)

(64,021

)

Purchase of investment in a business

—

(3,011

)

Purchases of marketable securities

(40,797

)

(10,753

)

Acquisition of businesses, net of cash and cash equivalents acquired

—

(17,002

)

Proceeds from maturities of marketable securities

10,910

27,381

Proceeds from sales of marketable securities

27,328

5,633

Net cash used for investing activities

(67,292

)

(61,773

)

Cash flows from financing activities:

Proceeds from borrowings on revolving credit facility

50,000

—

Repayments of borrowings on revolving credit facility

(250,000

)

—

Dividend payments

(20,362

)

(19,406

)

Repurchase of common stock

(5,518

)

(157,475

)

Payments related to net settlement of employee stock compensation awards

(39,437

)

(14,726

)

Issuance of common stock under stock purchase and stock option plans

15,101

14,792

Net cash used for financing activities

(250,216

)

(176,815

)

Effects of exchange rate changes on cash and cash equivalents

577

(771

)

(Decrease) increase in cash and cash equivalents

(51,807

)

(77,722

)

Cash and cash equivalents at beginning of period

293,751

553,354

Cash and cash equivalents at end of period

$

241,944

$

475,632

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

Quarter Ended

March 29,

2026

% of Net Revenues

December 31,

2025

% of Net Revenues

March 30,

2025

% of Net Revenues

Net revenues

$

1,282.5

$

1,083.3

$

685.7

Gross profit GAAP

780.9

60.9

%

619.7

57.2

%

415.3

60.6

%

Inventory step-up

0.1

0.0

%

0.3

0.0

%

0.2

0.0

%

Gross profit non-GAAP

781.0

60.9

%

620.0

57.2

%

415.5

60.6

%

Income from operations - GAAP

473.0

36.9

%

293.2

27.1

%

120.8

17.6

%

Restructuring and other (1)

3.4

0.3

%

15.1

1.4

%

14.5

2.1

%

Acquired intangible assets amortization

2.2

0.2

%

3.5

0.3

%

4.6

0.7

%

ERP related expenses (2)

1.7

0.1

%

1.9

0.2

%

0.7

0.1

%

Inventory step-up

0.1

0.0

%

0.3

0.0

%

0.2

0.0

%

Income from operations - non-GAAP

$

480.4

37.5

%

$

314.0

29.0

%

$

140.8

20.5

%

Net Income per Common Share

Net Income per Common Share

Net Income per Common Share

March 29,

2026

% of Net Revenues

Basic

Diluted

December 31,

2025

% of Net Revenues

Basic

Diluted

March 30,

2025

% of Net Revenues

Basic

Diluted

Net income - GAAP

$

398.9

31.1

%

$

2.55

$

2.53

$

257.2

23.7

%

$

1.64

$

1.63

$

98.9

14.4

%

$

0.61

$

0.61

Amortization of equity method investment

7.7

0.6

%

0.05

0.05

7.6

0.7

%

0.05

0.05

7.4

1.1

%

0.05

0.05

Restructuring and other (1)

3.4

0.3

%

0.02

0.02

15.1

1.4

%

0.10

0.10

14.5

2.1

%

0.09

0.09

Acquired intangible assets amortization

2.2

0.2

%

0.01

0.01

3.5

0.3

%

0.02

0.02

4.6

0.7

%

0.03

0.03

ERP related expenses (2)

1.7

0.1

%

0.01

0.01

1.9

0.2

%

0.01

0.01

0.7

0.1

%

0.00

0.00

Inventory step-up

0.1

0.0

%

0.00

0.00

0.3

0.0

%

0.00

0.00

0.2

0.0

%

0.00

0.00

Pension mark-to-market adjustment (3)

—

—

—

—

1.3

0.1

%

0.01

0.01

—

—

—

—

Pension settlement loss (gain)

—

—

—

—

0.1

0.0

%

0.00

0.00

—

—

—

—

Loss (gain) of foreign exchange contract

—

—

—

—

—

—

—

—

(0.6

)

-0.1

%

(0.00

)

(0.00

)

Exclude discrete tax adjustments

(9.3

)

-0.7

%

(0.06

)

(0.06

)

0.4

0.0

%

0.00

0.00

0.9

0.1

%

0.01

0.01

Non-GAAP tax adjustments

(1.8

)

-0.1

%

(0.01

)

(0.01

)

(4.3

)

-0.4

%

(0.03

)

(0.03

)

(5.1

)

-0.7

%

(0.03

)

(0.03

)

Net income - non-GAAP

$

402.9

31.4

%

$

2.58

$

2.56

$

283.0

26.1

%

$

1.81

$

1.80

$

121.5

17.7

%

$

0.75

$

0.75

GAAP and non-GAAP weighted average common shares - basic

156.4

156.4

161.5

GAAP and non-GAAP weighted average common shares - diluted

157.6

157.7

162.0

(1) Restructuring and other consists of:

Quarter Ended

March 29,

2026

December 31,

2025

March 30,

2025

Acquisition and divestiture related expenses

$

1.7

$

0.6

$

2.0

Employee severance (a)

0.9

10.9

11.4

Asset impairment

—

3.3

1.1

Other

0.9

0.3

—

$

3.5

$

15.1

$

14.5

(a) For the quarters ended December 31, 2025 and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively.

(2)

For the quarters ended March 29, 2026, December 31, 2025 and March 30, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.

(3)

For the quarter ended December 31, 2025, adjustment to exclude actuarial loss recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

GAAP to Non-GAAP Reconciliation of Second Quarter 2026 guidance:

GAAP and non-GAAP second quarter revenue guidance:

$1,150 million

to

$1,250 million

GAAP net income per diluted share

$

1.83

$

2.12

Exclude acquired intangible assets amortization

0.01

$

0.01

Exclude equity method investment amortization

0.03

$

0.03

Non-GAAP tax adjustments

(0.01

)

$

(0.01

)

Non-GAAP net income per diluted share

$

1.86

$

2.15

For press releases and other information of interest to investors, please visit Teradyne’s homepage at https://www.teradyne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428196406/en/
For more information:

Amy McAndrews

Investor Relations

Tel 978.370.3945

Investor.relations@teradyne.com

Original: Teradyne Reports First Quarter 2026 Results

Teradyne Reports Fourth Quarter and Full Year 2025 ResultsFebruary 2, 2026 4:30 PM
Business Wire

Revenue and earnings above the high-end of Q4 guidance

Revenue of $1.083 billion in Q4’25, up 44% from Q4’24 and up 41% from Q3'25

Q4 growth driven by strong AI-related demand in compute and memory

Revenue of $3.19 billion in 2025, up 13% from 2024

Teradyne, Inc. (NASDAQ: TER):

Q4'25

Q4'24

Q3'25

FY 2025

FY 2024

Revenue (mil)

$

1,083

$

753

$

769

$

3,190

$

2,820

GAAP EPS

$

1.63

$

0.90

$

0.75

$

3.47

$

3.32

Non-GAAP EPS

$

1.80

$

0.95

$

0.85

$

3.96

$

3.22

Teradyne, Inc. (NASDAQ: TER) reported revenue of $1,083 million for the fourth quarter of 2025 of which $883 million was in Semiconductor Test, $110 million in Product Test, and $89 million in Robotics. GAAP net income for the fourth quarter of 2025 was $257.2 million or $1.63 per diluted share. On a non-GAAP basis, Teradyne’s net income in the fourth quarter of 2025 was $283.0 million, or $1.80 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, pension mark-to-market adjustment, and included the related tax impact on non-GAAP adjustments.

“Our Q4 results were above the high end of our guidance range, fueled by AI-related demand in compute, networking and memory within our Semi Test business. Across all of our business groups – Semi Test, Product Test, and Robotics – we experienced sequential growth, and at the company level we achieved 13% growth in 2025,” said Teradyne CEO, Greg Smith. “In 2026, we expect year-over-year growth across all of our businesses, with strong momentum in compute driven by AI.”

Guidance for the first quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.82 to $2.19 per diluted share and non-GAAP net income of $1.89 to $2.25 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization, amortization on our investment in Technoprobe, restructuring and other costs, as well as the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the fourth quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, Tuesday, February 03, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR FOURTH FISCAL QUARTER OF 2025

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Quarter Ended

Year Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net revenues

$

1,083,337

$

769,210

$

752,884

$

3,190,024

$

2,819,880

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

463,647

319,904

305,597

1,332,679

1,170,953

Gross profit

619,690

449,306

447,287

1,857,345

1,648,927

Operating expenses:

Selling and administrative (2)

164,693

169,144

155,739

648,874

617,047

Engineering and development

143,265

124,760

128,387

504,596

460,876

Acquired intangible assets amortization

3,451

3,514

4,656

15,270

18,764

Restructuring and other (3)

15,081

6,585

4,554

38,554

15,571

Loss (gain) on sale of business (4)

—

—

367

—

(57,119

)

Operating expenses

326,490

304,003

293,703

1,207,294

1,055,139

Income from operations

293,200

145,303

153,584

650,051

593,788

Interest and other (income) expense (5)

3,625

(2,797

)

(4,213

)

(3,209

)

(15,298

)

Income before income taxes and equity in net earnings of affiliate

289,575

148,100

157,797

653,260

609,086

Income tax provision

29,151

23,344

5,408

79,299

59,503

Income before equity in net earnings of affiliate

260,424

124,756

152,389

573,961

549,583

Equity in net earnings of affiliate

(3,204

)

(5,198

)

(6,136

)

(19,914

)

(7,211

)

Net income

$

257,220

$

119,558

$

146,253

$

554,047

$

542,372

Net income per common share:

Basic

$

1.64

$

0.75

$

0.90

$

3.48

$

3.41

Diluted

$

1.63

$

0.75

$

0.90

$

3.47

$

3.32

Weighted average common shares - basic

156,412

158,595

162,478

159,119

159,083

Weighted average common shares - diluted (6)

157,651

159,097

163,184

159,719

163,314

Cash dividend declared per common share

$

0.12

$

0.12

$

0.12

$

0.48

$

0.48

(1)

Cost of revenues includes:

Quarter Ended

Year Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Provision for excess and obsolete inventory

$

6,607

$

6,829

$

3,406

$

25,782

$

18,921

Inventory step-up

348

351

—

1,258

—

Legal settlement

—

—

—

—

3,600

Sale of previously written down inventory

(494

)

(1,726

)

(441

)

(3,649

)

(2,227

)

$

6,461

$

5,454

$

2,965

$

23,391

$

20,294

(2)

For the quarters ended December 31, 2025, September 28, 2025, and the year ended December 31, 2025, selling and administrative expenses included $1.9 million, $1.1 million, and $4.8 million, respectively, of expenses directly related to a planned ERP system implementation. For the year ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements.

(3)

Restructuring and other consists of:

Quarter Ended

Year Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Employee severance (a)

$

10,851

$

4,786

$

378

$

29,351

$

5,234

Asset impairment

3,329

328

1,284

4,870

1,284

Acquisition and divestiture related expenses

602

173

—

2,250

2,214

Other

299

1,298

2,892

2,083

6,840

$

15,081

$

6,585

$

4,554

$

38,554

$

15,572

(a)

For the three months ended December 31, 2025 employee severance relates primarily to Robotics restructuring which impacted approximately 200 employees. For the year ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 400 employees.

(4)

On May 27, 2024, Teradyne sold Teradyne's Device Interface Solution ("DIS") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"), for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

(5)

Interest and other includes:

Quarter Ended

Year Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Pension actuarial losses (gains)

$

1,338

$

—

$

(1,842

)

$

1,465

$

(4,355

)

Pension settlement loss (gain)

18

(800

)

—

(782

)

—

Loss (gain) on foreign exchange contract

—

—

—

(561

)

9,765

(6)

Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the year ended December 31, 2024, diluted shares included 3.6 million shares from the convertible note hedge transaction.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

December 31,

2025

December 31,

2024

Assets

Cash and cash equivalents

$

293,751

$

553,354

Marketable securities

28,247

46,312

Accounts receivable, net

773,567

471,426

Inventories, net

379,552

298,492

Prepayments

427,564

429,086

Other current assets

33,273

17,727

Total current assets

1,935,954

1,816,397

Property, plant and equipment, net

562,999

508,171

Operating lease right-of-use assets, net

76,635

70,185

Marketable securities

126,256

124,121

Deferred tax assets

275,265

222,438

Retirement plans assets

12,059

11,994

Equity method investment

537,098

494,494

Other assets

71,697

49,620

Acquired intangible assets, net

51,271

15,927

Goodwill

521,019

395,367

Total assets

$

4,170,253

$

3,708,714

Liabilities

Accounts payable

$

269,185

$

134,792

Accrued employees’ compensation and withholdings

254,973

204,991

Deferred revenue and customer advances

139,778

107,710

Other accrued liabilities

111,845

90,777

Operating lease liabilities

19,340

18,699

Short-term debt

200,000

—

Income taxes payable

106,740

67,610

Total current liabilities

1,101,861

624,579

Retirement plans liabilities

144,874

133,338

Long-term deferred revenue and customer advances

50,888

40,505

Deferred tax liabilities

5,378

1,038

Long-term other accrued liabilities

7,601

7,442

Long-term operating lease liabilities

63,899

57,922

Long-term income taxes payable

—

24,596

Total liabilities

1,374,501

889,420

Shareholders’ equity

2,795,752

2,819,294

Total liabilities and shareholders’ equity

$

4,170,253

$

3,708,714

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

Quarter Ended

Twelve Months Ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Cash flows from operating activities:

Net income

$

257,220

$

146,253

$

554,047

$

542,372

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

31,961

26,497

111,445

100,977

Stock-based compensation

16,437

14,855

63,999

60,122

Equity in net earnings of affiliate

3,204

6,136

19,914

7,211

Amortization

3,813

4,631

16,536

18,764

Provision for excess and obsolete inventory

6,607

3,406

25,782

18,922

Losses (gains) on investments

(698

)

(83

)

(5,420

)

10,056

Loss (gain) on sale of business

—

367

—

(57,119

)

Deferred taxes

(22,967

)

(20,099

)

(52,067

)

(46,360

)

Retirement plan actuarial losses (gains)

1,356

(1,842

)

683

(4,355

)

Other

8,661

2,751

12,005

(2,290

)

Changes in operating assets and liabilities, net of businesses acquired:

Accounts receivable

(180,468

)

12,607

(292,255

)

(52,659

)

Inventories

6,194

(2,420

)

(28,424

)

8,707

Prepayments and other assets

16,008

58,016

(6,591

)

119,454

Accounts payable and other liabilities

87,402

9,279

208,848

(54,386

)

Deferred revenue and customer advances

13,628

8,552

39,280

12,176

Retirement plans contributions

(1,497

)

(1,645

)

(8,483

)

(5,814

)

Income taxes

34,777

15,296

15,116

(3,602

)

Net cash provided by operating activities

281,638

282,557

674,415

672,176

Cash flows from investing activities:

Purchases of property, plant and equipment

(62,888

)

(57,385

)

(224,009

)

(198,095

)

Investments in businesses

—

(5,000

)

(25,519

)

(532,060

)

Purchases of marketable securities

(5,535

)

(10,700

)

(32,999

)

(45,796

)

Acquisition of businesses, net of cash and cash equivalents acquired

—

—

(144,380

)

—

Proceeds from the sale of a business, net of cash and cash equivalents sold

—

—

—

90,348

Proceeds from maturities of marketable securities

7,330

5,190

48,951

38,353

Proceeds from sales of marketable securities

167

436

9,339

24,035

Proceeds from life insurance

—

—

—

873

Net cash used for investing activities

(60,926

)

(67,459

)

(368,617

)

(622,342

)

Cash flows from financing activities:

Proceeds from borrowings on revolving credit facility

50,000

—

250,000

185,000

Payments of borrowings on revolving credit facility

(50,000

)

—

(50,000

)

(185,000

)

Dividend payments

(18,739

)

(19,487

)

(76,313

)

(76,423

)

Repurchase of common stock

(183,437

)

(143,521

)

(702,095

)

(198,574

)

Payments related to net settlement of employee stock compensation awards

(448

)

(267

)

(15,702

)

(14,100

)

Issuance of common stock under stock purchase and stock option plans

1,784

65

31,860

37,330

Net cash used for financing activities

(200,840

)

(163,210

)

(562,250

)

(251,767

)

Effects of exchange rate changes on cash and cash equivalents

1,179

(8,570

)

(3,151

)

(2,284

)

Increase (decrease) in cash and cash equivalents

21,051

43,318

(259,603

)

(204,217

)

Cash and cash equivalents at beginning of period

272,700

510,036

553,354

757,571

Cash and cash equivalents at end of period

$

293,751

$

553,354

$

293,751

$

553,354

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

Quarter Ended

December 31,

2025

% of Net Revenues

September 28,

2025

% of Net Revenues

December 31,

2024

% of Net Revenues

Net revenues

$

1,083.3

$

769.2

$

752.9

Gross profit - GAAP

619.7

57.2

%

449.3

58.4

%

447.3

59.4

%

Inventory step-up

0.3

0.0

%

0.4

0.1

%

—

—

Gross profit - non-GAAP

620.0

57.2

%

449.7

58.5

%

447.3

59.4

%

Income from operations - GAAP

293.2

27.1

%

145.3

18.9

%

153.6

20.4

%

Restructuring and other (1)

15.1

1.4

%

6.6

0.9

%

4.6

0.6

%

Acquired intangible assets amortization

3.5

0.3

%

3.5

0.5

%

4.7

0.6

%

ERP related expenses (2)

1.9

0.2

%

1.1

0.1

%

—

—

Inventory step-up

0.3

0.0

%

0.4

0.1

%

—

—

Loss (gain) on sale of business (3)

—

—

—

—

0.4

0.0

%

Income from operations - non-GAAP

$

314.0

29.0

%

$

156.9

20.4

%

$

163.2

21.7

%

Net Income

per Common Share

Net Income

per Common Share

Net Income

per Common Share

December 31,

2025

% of Net Revenues

Basic

Diluted

September 28,

2025

% of Net Revenues

Basic

Diluted

December 31,

2024

% of Net Revenues

Basic

Diluted

Net income - GAAP

$

257.2

23.7

%

$

1.64

$

1.63

$

119.6

15.5

%

$

0.75

$

0.75

$

146.3

19.4

%

$

0.90

$

0.90

Restructuring and other (1)

15.1

1.4

%

0.10

0.10

6.6

0.9

%

0.04

0.04

4.6

0.6

%

0.03

0.03

Amortization of equity method investment

7.6

0.7

%

0.05

0.05

7.7

1.0

%

0.05

0.05

8.0

1.1

%

0.05

0.05

Acquired intangible assets amortization

3.5

0.3

%

0.02

0.02

3.5

0.5

%

0.02

0.02

4.7

0.6

%

0.03

0.03

ERP related expenses (2)

1.9

0.2

%

0.01

0.01

1.1

0.1

%

0.01

0.01

—

—

—

—

Pension mark-to-market adjustment (4)

1.3

0.1

%

0.01

0.01

—

—

—

—

(1.8

)

-0.2

%

(0.01

)

(0.01

)

Inventory step-up

0.3

0.0

%

0.00

0.00

0.4

0.1

%

0.00

0.00

—

—

—

—

Pension settlement loss (gain)

0.1

0.0

%

0.00

0.00

(0.8

)

-0.1

%

(0.01

)

(0.01

)

—

—

—

—

Loss (gain) on sale of business (3)

—

—

—

—

—

—

—

—

0.4

0.1

%

0.00

0.00

Exclude discrete tax adjustments

0.4

0.0

%

0.00

0.00

(0.6

)

-0.1

%

(0.00

)

(0.00

)

(8.0

)

-1.1

%

(0.05

)

(0.05

)

Non-GAAP tax adjustments

(4.3

)

-0.4

%

(0.03

)

(0.03

)

(1.6

)

-0.2

%

(0.01

)

(0.01

)

0.9

0.1

%

0.01

0.01

Net income - non-GAAP

$

283.0

26.1

%

1.81

1.80

$

135.9

17.7

%

$

0.86

$

0.85

$

155.0

20.6

%

$

0.95

$

0.95

GAAP and non-GAAP weighted average common shares - basic

156.4

158.6

162.5

GAAP and non-GAAP weighted average common shares - diluted

157.7

159.1

163.2

(1)

Restructuring and other consists of:

Quarter Ended

December 31,

2025

September 28,

2025

December 31,

2024

Employee severance

$

10.9

$

4.8

$

0.4

Asset impairment

3.3

0.3

1.3

Acquisition and divestiture related expenses

0.6

0.2

—

Other

0.3

1.3

2.9

$

15.1

$

6.6

$

4.6

(a)

For the quarter ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 employees.

(2)

For the quarters ended December 31, 2025, and September 28, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.

(3)

On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

(4)

For the quarters ended December 31, 2025, and December 31, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

Twelve Months Ended

December 31,

2025

% of Net Revenues

December 31,

2024

% of Net Revenues

Net Revenues

$

3,190.0

$

2,819.9

Gross profit - GAAP

1,857.3

58.2

%

1,648.9

58.5

%

Inventory step-up

1.3

0.0

%

—

—

Legal settlement (1)

—

—

3.6

0.1

%

Gross profit - non-GAAP

1,858.6

58.3

%

1,652.5

58.6

%

Income from operations - GAAP

650.1

20.4

%

593.8

21.1

%

Restructuring and other (2)

38.6

1.2

%

15.6

0.6

%

Acquired intangible assets amortization

15.3

0.5

%

18.8

0.7

%

ERP related expenses (3)

4.8

0.2

%

—

—

Inventory step-up

1.3

0.0

%

—

—

Legal settlement (1)

—

—

3.6

0.1

%

Equity modification charge (4)

—

—

1.7

0.1

%

Loss (gain) on sale of business (5)

—

—

(57.1

)

-2.0

%

Income from operations - non-GAAP

$

710.1

22.3

%

$

576.3

20.4

%

Net Income

per Common Share

Net Income

per Common Share

December 31,

2025

% of Net Revenues

Basic

Diluted

December 31,

2024

% of Net Revenues

Basic

Diluted

Net income - GAAP

$

554.0

17.4

%

$

3.48

$

3.47

$

542.4

19.2

%

$

3.39

$

3.32

Restructuring and other (2)

38.6

1.2

%

0.24

0.24

15.6

0.6

%

0.10

0.10

Amortization of equity method investment

30.1

0.9

%

0.19

0.19

10.4

0.4

%

0.07

0.06

Acquired intangible assets amortization

15.3

0.5

%

0.10

0.10

18.8

0.7

%

0.12

0.11

ERP related expenses (3)

4.8

0.2

%

0.03

0.03

—

—

—

—

Pension mark-to-market adjustment (6)

1.5

0.0

%

0.01

0.01

(4.4

)

-0.2

%

(0.03

)

(0.03

)

Inventory step-up

1.3

0.0

%

0.01

0.01

—

—

—

—

Loss (gain) on foreign exchange contract

(0.6

)

0.0

%

(0.00

)

(0.00

)

9.8

0.3

%

0.06

0.06

Pension settlement loss (gain)

(0.8

)

0.0

%

(0.01

)

(0.01

)

—

—

—

—

Legal settlement (1)

—

—

—

—

3.6

0.1

%

0.02

0.02

Equity modification charge (4)

—

—

—

—

1.7

0.1

%

0.01

0.01

Loss (gain) on sale of business (5)

—

—

—

—

(57.1

)

-2.0

%

(0.36

)

(0.35

)

Exclude discrete tax adjustments

0.5

0.0

%

0.00

0.00

(8.7

)

-0.3

%

(0.05

)

(0.05

)

Non-GAAP tax adjustments

(12.6

)

-0.4

%

(0.08

)

(0.08

)

(6.9

)

-0.2

%

(0.04

)

(0.04

)

Net income - non-GAAP

$

632.1

19.8

%

$

3.97

$

3.96

$

525.1

18.6

%

$

3.29

$

3.22

GAAP and non-GAAP weighted average common shares - basic

159.1

159.8

GAAP and non-GAAP weighted average common shares - diluted (7)

159.7

163.3

(1)

For the twelve months ended December 31, 2024, legal settlement includes charges for a settlement following a judgment against the Company for infringement of expired patents.

(2)

Restructuring and other consists of:

Twelve Months Ended

December 31,

2025

December 31,

2024

Employee severance (a)

$

29.4

$

5.2

Asset impairment

4.9

1.3

Acquisition and divestiture related expenses

2.3

2.2

Other

2.1

6.8

$

38.6

$

15.6

(a)

For the twelve months ended December 31, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 400 employees.

(3)

For the twelve months ended December 31, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.

(4)

For the twelve months ended December 31, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne’s executives' retirement agreements.

(5)

On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

(6)

For twelve months ended December 31, 2025, and December 31, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

(7)

For the twelve months ended December 31, 2024, non-GAAP weighted average diluted common shares included 3.6 million shares from the convertible note hedge transaction.

GAAP to Non-GAAP Reconciliation of First Quarter 2026 guidance:

GAAP and non-GAAP first quarter revenue guidance:

$1,150 million

to

$1,250 million

GAAP net income per diluted share

$

1.82

$

2.19

Exclude acquired intangible assets amortization

0.03

0.03

Exclude equity method investment amortization

0.04

0.04

Non-GAAP tax adjustments

(0.01

)

(0.01

)

Non-GAAP net income per diluted share

$

1.89

$

2.25

For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260202176532/en/
For more information:

Amy McAndrews

Investor Relations

Tel 978.370.3945

Investor.relations@teradyne.com

Original: Teradyne Reports Fourth Quarter and Full Year 2025 Results