Teradyne has achieved 87% revenue growth year-over-year, holds a wide economic moat with a Piotroski financial health score of 7 out of 9 and 29% return on equity, and receives strongly positive news sentiment — but at $432 per share the stock trades 22% above the analyst consensus target with a forward price-to-earnings of 45.5 times, and free cash flow represents only 35% of net income.
Thesis pillars
- Exceptional Revenue Growth→Stable
- Geographic Revenue Concentration↓Deteriorating
- Wide Moat High Quality Platform→Stable
- +1 more pillar — see the Why tab for full reasoning
Teradyne, Inc. (TER) Stock Analysis
Temporary headwind edge
Technology · Semiconductor Equipment & Materials
Wait for pullback to $343.15. At $359.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $343.15 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: outside United States (89.0%); Sector modifier (Technology): -0.8.
Teradyne designs and sells automated test equipment (Semiconductor Test and Product Test segments) and collaborative/autonomous robots (Robotics segment) globally, with 89% of 2025 revenues from outside the United States. Five largest direct customers accounted for 44% of... Read more
Wait for pullback to $343.15. At $359.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $343.15 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: outside United States (89.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.73, quality 8.5/10, growth 10.0/10). Score 6.8/10, moderate confidence.
Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-10-15Recent Developments — Teradyne, Inc.
Latest news
- NEWS Why Teradyne Stock Is Gaining Today - The Motley Fool — The Motley Fool positive
- NEWS Why Teradyne Stock Is Gaining Today - fool.com — fool.com positive
- NEWS Teradyne Q2 Earnings Beat Estimates, Revenues Increase Year over Year - TradingView — TradingView positive
- NEWS Why Teradyne Stock Is Gaining Today - The Globe and Mail — The Globe and Mail positive
- NEWS Teradyne Stock Jumps as Earnings Guidance Does the Seemingly Impossible—Impresses Wall Street - Barron's — Barron's positive
Generated 2026-10-15T11:27:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHGeographicoutside United States89%10-K Item 1: 'Sales to customers outside the United States were 89%, 87%, and 84%, respectively, of our consolidated revenues in 2025, 2024 and 2023'
- MEDIUMCustomerfive largest direct customers44%10-K Item 1: 'our five largest direct customers in aggregate accounted for 44%, 36%, and 32% of our consolidated revenues, respectively'
- LOWCustomeradditional direct customer (19%)19%10-K Item 1A: 'The additional direct customer accounted for 19% of consolidated revenues including certain revenues specified by our 10% specifiers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker·1 ceiling hit
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $343.15. At $359.44 the A.R:R is 1.1:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $343.15 (Ma200 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Geographic: outside United States (89.0%); Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 0.73, quality 8.5/10, growth 10.0/10). Target $401.82 (+11.8%), stop $319.13 (−12.6%), A.R:R 1.1:1. Score 6.8/10, moderate confidence.
Take-profit target: $401.82 (+11.8% upside). Target $401.82 (+11.8%), stop $319.13 (−12.6%), A.R:R 1.1:1. Stop-loss: $319.13.
Concentration risk — Geographic: outside United States (89.0%); Sector modifier (Technology): -0.8; Negative momentum.
Teradyne, Inc. trades at a P/E of 52.2 (forward 32.6). TrendMatrix value score: 4.1/10. Verdict: Buy (Wait for Entry).
22 analysts cover TER with a consensus score of 3.9/5. Average price target: $446.
What does Teradyne, Inc. do?Teradyne designs and sells automated test equipment (Semiconductor Test and Product Test segments) and...
Teradyne designs and sells automated test equipment (Semiconductor Test and Product Test segments) and collaborative/autonomous robots (Robotics segment) globally, with 89% of 2025 revenues from outside the United States. Five largest direct customers accounted for 44% of consolidated revenues in 2025; approximately 6,600 employees at year-end.