Reading the tape
NASDAQ: TER
Teradyne, Inc.
Technology · Semiconductors
Market Cap
$54.08B
52w High
$422.11
52w Low
$73.11
P/E
63.26
Volume
2.88M
Outstanding Shares
156.56M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 368.18%Revenue (TTM): 30.32%FCF (TTM): -9.08%P/FCF: 100th pct
What changed
The stock rose 368.18% over the last year. Revenue grew 30.32% over the trailing twelve months. Operating margin moved from 21.92% to 26.92%. Free cash flow declined 9.08% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (100th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 26.92% — continued expansion would be needed to justify the premium. Revenue growth of 30.32% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide.
CEOGregory Stephen Smith
SectorTechnology
IndustrySemiconductors
Employees6,500
IPO dateSep 14, 1970
Valuation
Forward P/E—
EV/EBITDA39.49
Enterprise value$30.33B
Stock splits
Sep 1, 1999↑ Forward
Every 1 shares became 2
Aug 30, 1995↑ Forward
Every 1 shares became 2
Aug 1, 1983↑ Forward
Every 1 shares became 2
Oct 25, 1982↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth87.04%
Gross margin58.79%▲0.13%vs FY2024
Operating margin26.92%▲3.23%vs FY2024
ROE19.82%▲3.01%vs FY2024
Analyst consensus
RatingBuy
Target price$351.09▲1.64%
20
Buy
11
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 4, 2026
Q3 FY26 · EPS est $1.98 · Revenue est $1.21B
View
Dividends
$0.49/shareQuarterlyDividend Achiever · 11yrSafeTER pays a dividend with a 0.14% dividend yield, 11 consecutive years of growth, growing at 4.14% annually, covered 5.9× by free cash flow.
Dividend Yield
0.14%
Annual Div / Share
$0.49
5yr CAGR
+4.14%
Doubles every ~17.1yr
Payout Ratio
9.05%
Safe
Dividend Growth Rate
3yr CAGR
+3.65%
5yr CAGR
+4.14%
10yr CAGR
+7.4%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$0.49+2.1%
2024$0.48+6.7%
2023$0.45+2.3%
2022$0.44+7.3%
2021$0.41+2.5%
2020$0.40+8.1%
2019$0.37+2.8%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$1/yr
$0/mo
In 5 yrs
$2/yr+23%
$0/mo
In 10 yrs
$2/yr+50%
$0/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$1/yr $0/mo | $2/yr+23% $0/mo | $2/yr+50% $0/mo |
Yield-on-cost grows from 0.14% → 0.21% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
TER has raised its dividend for 11 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 5.9× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
No strong risk signal stands out from the latest period pair.