Teradyne Reports Strong Q4 Earnings, Exceeds Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: stocktwits
- Significant Revenue Growth: Teradyne reported Q4 revenue of $1.08 billion, a 44% increase year-over-year, significantly surpassing analyst estimates of $970.5 million, indicating strong demand driven by AI in compute and memory sectors.
- Substantial Net Income Increase: The company's net income for Q4 reached $283 million, or $1.80 per diluted share, nearly a 90% jump from the previous year, exceeding analyst expectations of $1.36 per share, showcasing robust business performance.
- Optimistic Future Outlook: Teradyne anticipates Q1 2026 revenue between $1.15 billion and $1.25 billion, with CEO Greg Smith stating that all business segments are expected to achieve year-over-year growth, particularly with strong momentum in compute.
- Analyst Rating Upgrade: Evercore ISI raised Teradyne's price target from $200 to $280 while maintaining an 'Outperform' rating, citing positive fundamentals and multiple growth avenues, particularly in compute and high bandwidth memory testing revenue.
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Analyst Views on TER
Wall Street analysts forecast TER stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TER is 206.12 USD with a low forecast of 161.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
4 Hold
1 Sell
Moderate Buy
Current: 241.050
Low
161.00
Averages
206.12
High
240.00
Current: 241.050
Low
161.00
Averages
206.12
High
240.00
About TER
Teradyne, Inc. is a global supplier of automated test equipment and robotics solutions. It designs, develops, manufactures and sells automated test systems and robotics products. Its segment includes Semiconductor Test, Robotics, and Product Test. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services, inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Its offerings also include defense/aerospace test instrumentation and systems, circuit-board test and inspection (production board test) systems, and wireless test systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Teradyne Reports Strong Q4 Earnings, Exceeds Expectations
- Significant Revenue Growth: Teradyne reported Q4 revenue of $1.08 billion, a 44% increase year-over-year, significantly surpassing analyst estimates of $970.5 million, indicating strong demand driven by AI in compute and memory sectors.
- Substantial Net Income Increase: The company's net income for Q4 reached $283 million, or $1.80 per diluted share, nearly a 90% jump from the previous year, exceeding analyst expectations of $1.36 per share, showcasing robust business performance.
- Optimistic Future Outlook: Teradyne anticipates Q1 2026 revenue between $1.15 billion and $1.25 billion, with CEO Greg Smith stating that all business segments are expected to achieve year-over-year growth, particularly with strong momentum in compute.
- Analyst Rating Upgrade: Evercore ISI raised Teradyne's price target from $200 to $280 while maintaining an 'Outperform' rating, citing positive fundamentals and multiple growth avenues, particularly in compute and high bandwidth memory testing revenue.
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