Should I Buy TER? TER 2026 Analysis

Should You Buy Teradyne Inc (TER) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

249.540

1 Day change

-0.38%

52 Week Range

253.610

Analysis Updated At

2026/01/26

Teradyne Inc. (TER) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the stock has positive momentum in the semiconductor sector and favorable analyst ratings, its recent financial performance shows declining net income and EPS, and the valuation warning raises concerns. Additionally, hedge funds are aggressively selling, and technical indicators suggest a neutral to slightly bearish short-term trend. Given the user's impatience and unwillingness to wait for optimal entry points, holding off on investing in TER until clearer positive signals emerge is recommended.

Technical Analysis

The stock's MACD is negative and expanding, indicating bearish momentum. RSI is neutral at 61.446, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 218.345, and resistance is at 236.116. Pre-market price is $227.25, slightly below the pivot level of $227.23, suggesting limited upside potential in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Analysts have raised price targets, with TD Cowen setting a high target of $650 and BofA raising its target to $
The semiconductor sector is experiencing strong momentum, supported by TSMC's increased capex plans.
Favorable long-term growth prospects in AI-related markets and semiconductor equipment demand.

Neutral/Negative Catalysts

Hedge funds are selling aggressively, with a 6736.93% increase in selling activity last quarter.
Teradyne issued a valuation warning, ranking in the bottom 10% for fundamental metrics.
Financial performance in Q3 2025 showed declining net income (-17.91% YoY) and EPS (-15.73% YoY).
Short-term stock trend analysis predicts a potential decline of -1.46% in the next day and -5.9% in the next month.

Financial Performance

In Q3 2025, revenue increased by 4.33% YoY to $769.21M, but net income dropped by 17.91% YoY to $119.56M. EPS also declined by 15.73% YoY to $0.75, and gross margin fell slightly to 57.95%. These figures indicate weakening profitability despite revenue growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are generally bullish on TER, with multiple Buy ratings and raised price targets. TD Cowen has a high target of $650, and BofA raised its target to $260. However, Vertical Research downgraded the stock to Hold with a target of $220, citing mixed signals. Overall, analysts see long-term growth potential in AI and semiconductor markets, but near-term risks remain.

18 Analyst Rating

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 USD and a high forecast of 240 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.

13 Buy

4 Hold

1 Sell

Moderate Buy

Current: 250.480

Low

161

Averages

206.12

High

240

Current: 250.480

Low

161

Averages

206.12

High

240

UBS

Buy

upgrade

$200 -> $275

AI Analysis

2026-01-26

New

Reason

UBS

Price Target

$200 -> $275

AI Analysis

2026-01-26

New

upgrade

Buy

Reason

UBS raised the firm's price target on Teradyne to $275 from $200 and keeps a Buy rating on the shares.

TD Cowen

Buy

maintain

$600 -> $650

2026-01-22

Reason

TD Cowen

Price Target

$600 -> $650

2026-01-22

maintain

Buy

Reason

TD Cowen raised the firm's price target on Teradyne to $650 from $600 and keeps a Buy rating on the shares. The company's visibility remains high with its unmanned and space businesses continuing to expand rapidly, the analyst tells investors in a research note. It believes Teradyne's short cycle guidance is conservative to start the year.

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TER Should I Buy

TER Should I Buy

Should You Buy Teradyne Inc (TER) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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