Teradyne Financials
This page shows Teradyne (TER) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Teradyne remains a high-gross-margin test business, but heavier overhead and shareholder payouts are absorbing more of each sales dollar.
From FY2021 to FY2025, revenue stayed below its earlier peak, yet gross margin stability near58% contrasted with operating margin falling from32.4% to20.4% . That gap implies the main pressure sat below gross profit, where the operating cost base stayed comparatively heavy, so the sales recovery has not translated into profit the way it did in FY2021.
Cash conversion was still respectable in FY2025:
Liquidity tightened even though the company stayed profitable, with cash ending FY2025 at
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Teradyne's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Teradyne has an operating margin of 20.4%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 83/100, reflecting efficient cost management and pricing power. This is down from 21.1% the prior year.
Teradyne's revenue grew 13.1% year-over-year to $3.2B, a solid pace of expansion. This earns a growth score of 63/100.
Teradyne has a moderate D/E ratio of 0.50. This balance of debt and equity financing earns a leverage score of 60/100.
Teradyne's current ratio of 1.75 indicates adequate short-term liquidity, earning a score of 50/100. The company can meet its near-term obligations, though with limited headroom.
Teradyne converts 14.1% of revenue into free cash flow ($450.4M). This strong cash generation earns a score of 80/100.
Teradyne earns a strong 19.8% return on equity (ROE), meaning it generates $20 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 82/100. This is up from 19.2% the prior year.
Teradyne scores 26.31, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($56.8B) relative to total liabilities ($1.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Teradyne passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Teradyne generates $1.22 in operating cash flow ($674.4M OCF vs $554.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Teradyne earns $95.0 in operating income for every $1 of interest expense ($650.1M vs $6.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Teradyne generated $3.2B in revenue in fiscal year 2025. This represents an increase of 13.1% from the prior year.
Teradyne's EBITDA was $778.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 9.0% from the prior year.
Teradyne reported $554.0M in net income in fiscal year 2025. This represents an increase of 2.2% from the prior year.
Teradyne earned $3.47 per diluted share (EPS) in fiscal year 2025. This represents an increase of 4.5% from the prior year.
Cash & Balance Sheet
Teradyne generated $450.4M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 5.0% from the prior year.
Teradyne held $293.8M in cash against $0 in long-term debt as of fiscal year 2025.
Teradyne paid $0.48 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Teradyne had 156M shares outstanding in fiscal year 2025. This represents a decrease of 3.5% from the prior year.
Margins & Returns
Teradyne's gross margin was 58.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.3 percentage points from the prior year.
Teradyne's operating margin was 20.4% in fiscal year 2025, reflecting core business profitability. This is down 0.7 percentage points from the prior year.
Teradyne's net profit margin was 17.4% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.9 percentage points from the prior year.
Teradyne's ROE was 19.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.6 percentage points from the prior year.
Capital Allocation
Teradyne invested $504.6M in research and development in fiscal year 2025. This represents an increase of 9.5% from the prior year.
Teradyne spent $702.1M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 253.6% from the prior year.
Teradyne invested $224.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 13.1% from the prior year.
TER Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.3B+18.4% | $1.1B+40.8% | $769.2M+18.0% | $651.8M-4.9% | $685.7M-8.9% | $752.9M+2.1% | $737.3M+1.0% | $729.9M |
| Cost of Revenue | $501.5M+8.2% | $463.6M+44.9% | $319.9M+14.7% | $278.8M+3.1% | $270.3M-11.5% | $305.6M+1.6% | $300.8M-1.1% | $304.0M |
| Gross Profit | $780.9M+26.0% | $619.7M+37.9% | $449.3M+20.5% | $373.0M-10.2% | $415.3M-7.1% | $447.3M+2.5% | $436.5M+2.5% | $425.8M |
| R&D Expenses | $135.6M-5.4% | $143.3M+14.8% | $124.8M+5.4% | $118.4M+0.2% | $118.2M-7.9% | $128.4M+9.3% | $117.5M+5.1% | $111.8M |
| SG&A Expenses | $166.7M+1.2% | $164.7M-2.6% | $169.1M+7.2% | $157.8M+0.3% | $157.3M+1.0% | $155.7M-1.2% | $157.6M+2.1% | $154.5M |
| Operating Income | $473.0M+61.3% | $293.2M+101.8% | $145.3M+60.1% | $90.7M-24.9% | $120.8M-21.3% | $153.6M+1.0% | $152.1M-27.7% | $210.4M |
| Interest Expense | $3.2M-20.0% | $3.9M+200.8% | $1.3M+62.6% | $805K+1.3% | $795K+35.2% | $588K-27.2% | $808K-47.2% | $1.5M |
| Income Tax | $62.2M+113.2% | $29.2M+24.9% | $23.3M+90.4% | $12.3M-15.7% | $14.5M+168.9% | $5.4M-55.9% | $12.3M-63.0% | $33.1M |
| Net Income | $398.9M+55.1% | $257.2M+115.1% | $119.6M+52.6% | $78.4M-20.8% | $98.9M-32.4% | $146.3M+0.4% | $145.6M-21.8% | $186.3M |
| EPS (Diluted) | $2.53 | N/A | $0.75+53.1% | $0.49-19.7% | $0.61 | N/A | $0.89-21.9% | $1.14 |
TER Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.4B+6.0% | $4.2B+5.5% | $4.0B+5.4% | $3.8B+1.5% | $3.7B-0.1% | $3.7B-1.6% | $3.8B+3.8% | $3.6B |
| Current Assets | $2.2B+11.5% | $1.9B+11.4% | $1.8B+10.5% | $1.6B-9.8% | $1.8B-3.3% | $1.8B-1.2% | $1.8B+4.7% | $1.8B |
| Cash & Equivalents | $241.9M-17.6% | $293.8M+7.7% | $272.7M-19.6% | $339.3M-28.7% | $475.6M-14.0% | $553.4M+8.5% | $510.0M+20.9% | $421.9M |
| Inventory | $362.8M-4.4% | $379.6M+3.5% | $366.8M+4.6% | $350.5M+1.6% | $345.1M+15.6% | $298.5M+0.4% | $297.3M+3.0% | $288.7M |
| Accounts Receivable | $1.1B+40.7% | $786.9M+32.5% | $593.8M+37.1% | $433.0M-6.0% | $460.4M-2.3% | $471.4M-2.7% | $484.4M+3.0% | $470.3M |
| Goodwill | $514.2M-1.3% | $521.0M+0.3% | $519.5M-0.2% | $520.5M+27.2% | $409.3M+3.5% | $395.4M-5.7% | $419.4M+3.5% | $405.1M |
| Total Liabilities | $1.3B-7.0% | $1.4B+11.3% | $1.2B+34.8% | $924.6M+1.8% | $908.3M+2.1% | $889.4M+2.6% | $867.2M-3.7% | $900.9M |
| Current Liabilities | $1.0B-9.2% | $1.1B+12.1% | $995.0M+47.3% | $675.3M+4.0% | $649.1M+3.9% | $624.6M+5.0% | $594.9M-5.0% | $626.4M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $3.1B+12.4% | $2.8B+2.9% | $2.7B-4.2% | $2.8B+1.4% | $2.8B-0.8% | $2.8B-2.9% | $2.9B+6.3% | $2.7B |
| Retained Earnings | $1.1B+50.2% | $744.4M+8.4% | $686.8M-17.7% | $834.9M-6.5% | $893.2M-8.0% | $970.8M-1.9% | $990.0M+11.3% | $889.3M |
TER Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $265.1M-5.9% | $281.6M+474.2% | $49.0M-73.1% | $182.1M+12.7% | $161.6M-42.8% | $282.6M+69.9% | $166.3M-23.0% | $216.1M |
| Capital Expenditures | $64.7M+2.9% | $62.9M+34.7% | $46.7M-7.4% | $50.4M-21.3% | $64.0M+11.6% | $57.4M+10.7% | $51.8M+15.6% | $44.8M |
| Free Cash Flow | $200.4M-8.4% | $218.8M+9177.0% | $2.4M-98.2% | $131.7M+34.9% | $97.6M-56.6% | $225.2M+96.8% | $114.4M-33.2% | $171.2M |
| Investing Cash Flow | -$67.3M-10.5% | -$60.9M+9.7% | -$67.5M+62.2% | -$178.5M-188.9% | -$61.8M+8.4% | -$67.5M-35.5% | -$49.8M+89.6% | -$481.1M |
| Financing Cash Flow | -$250.2M-24.6% | -$200.8M-320.2% | -$47.8M+65.1% | -$136.8M+22.6% | -$176.8M-8.3% | -$163.2M-457.4% | -$29.3M-29.5% | -$22.6M |
| Dividends Paid | $20.4M+8.7% | $18.7M-1.3% | $19.0M-1.1% | $19.2M-1.1% | $19.4M-0.4% | $19.5M-0.4% | $19.6M+3.0% | $19.0M |
| Share Buybacks | $5.5M-97.0% | $183.4M-24.8% | $243.8M+107.7% | $117.4M-25.4% | $157.5M+9.7% | $143.5M+480.0% | $24.7M+202.2% | $8.2M |
TER Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 60.9%+3.7pp | 57.2%-1.2pp | 58.4%+1.2pp | 57.2%-3.3pp | 60.6%+1.2pp | 59.4%+0.2pp | 59.2%+0.9pp | 58.3% |
| Operating Margin | 36.9%+9.8pp | 27.1%+8.2pp | 18.9%+5.0pp | 13.9%-3.7pp | 17.6%-2.8pp | 20.4%-0.2pp | 20.6%-8.2pp | 28.8% |
| Net Margin | 31.1%+7.4pp | 23.7%+8.2pp | 15.5%+3.5pp | 12.0%-2.4pp | 14.4%-5.0pp | 19.4%-0.3pp | 19.8%-5.8pp | 25.5% |
| Return on Equity | 12.7%+3.5pp | 9.2%+4.8pp | 4.4%+1.6pp | 2.8%-0.8pp | 3.5%-1.7pp | 5.2%+0.2pp | 5.0%-1.8pp | 6.8% |
| Return on Assets | 9.0%+2.8pp | 6.2%+3.1pp | 3.0%+0.9pp | 2.1%-0.6pp | 2.7%-1.3pp | 3.9%+0.1pp | 3.9%-1.3pp | 5.1% |
| Current Ratio | 2.15+0.4 | 1.75-0.0 | 1.76-0.6 | 2.35-0.4 | 2.70-0.2 | 2.91-0.2 | 3.09+0.3 | 2.80 |
| Debt-to-Equity | 0.41-0.1 | 0.50+0.0 | 0.46+0.1 | 0.330.0 | 0.320.0 | 0.32+0.0 | 0.30-0.0 | 0.33 |
| FCF Margin | 15.6%-4.6pp | 20.2%+19.9pp | 0.3%-19.9pp | 20.2%+6.0pp | 14.2%-15.7pp | 29.9%+14.4pp | 15.5%-7.9pp | 23.5% |
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Frequently Asked Questions
What is Teradyne's annual revenue?
Teradyne (TER) reported $3.2B in total revenue for fiscal year 2025. This represents a 13.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Teradyne's revenue growing?
Teradyne (TER) revenue grew by 13.1% year-over-year, from $2.8B to $3.2B in fiscal year 2025.
Is Teradyne profitable?
Yes, Teradyne (TER) reported a net income of $554.0M in fiscal year 2025, with a net profit margin of 17.4%.
What is Teradyne's EBITDA?
Teradyne (TER) had EBITDA of $778.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Teradyne's gross margin?
Teradyne (TER) had a gross margin of 58.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Teradyne's operating margin?
Teradyne (TER) had an operating margin of 20.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Teradyne's net profit margin?
Teradyne (TER) had a net profit margin of 17.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Teradyne pay dividends?
Yes, Teradyne (TER) paid $0.48 per share in dividends during fiscal year 2025.
What is Teradyne's return on equity (ROE)?
Teradyne (TER) has a return on equity of 19.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Teradyne's free cash flow?
Teradyne (TER) generated $450.4M in free cash flow during fiscal year 2025. This represents a -5.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Teradyne's operating cash flow?
Teradyne (TER) generated $674.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Teradyne's total assets?
Teradyne (TER) had $4.2B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Teradyne's capital expenditures?
Teradyne (TER) invested $224.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Teradyne spend on research and development?
Teradyne (TER) invested $504.6M in research and development during fiscal year 2025.
What is Teradyne's current ratio?
Teradyne (TER) had a current ratio of 1.75 as of fiscal year 2025, which is generally considered healthy.
What is Teradyne's debt-to-equity ratio?
Teradyne (TER) had a debt-to-equity ratio of 0.50 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Teradyne's return on assets (ROA)?
Teradyne (TER) had a return on assets of 13.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Teradyne's Altman Z-Score?
Teradyne (TER) has an Altman Z-Score of 26.31, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Teradyne's Piotroski F-Score?
Teradyne (TER) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Teradyne's earnings high quality?
Teradyne (TER) has an earnings quality ratio of 1.22x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Teradyne cover its interest payments?
Teradyne (TER) has an interest coverage ratio of 95.0x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Teradyne?
Teradyne (TER) scores 70 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.