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↑Improving
- Wide Moat High Quality Platform→Stable
- +1 more pillar — see the Why tab for full reasoning
Teradyne, Inc. (TER) Stock Analysis
Technology · Semiconductor Equipment & Materials
Wait for pullback to $351.40. At $372.00 the A.R:R is 0.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $351.40 (Gap Fill 50 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%); Thin upside margin: 6.5%.
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 $351.40. At $372.00 the A.R:R is 0.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $351.40 (Gap Fill 50 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%); Thin upside margin: 6.5%. Chart setup: No clear chart pattern; technical signals are mixed. V9 Gate blocked: R/R 0.4x at spot < 1.5 minimum. Wait for improvement. Score 6.7/10, moderate confidence.
Passes 8/10 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.60, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear, sector concentration cap sector=technology 7/10). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-30Recent Developments — Teradyne, Inc.
Latest news
- NEWS Why Teradyne Stock Is Gaining Today - The Motley Fool — The Motley Fool positive
- NEWS Teradyne Stock Jumps as Earnings Guidance Impresses Wall Street - Barron's — Barron's positive
- NEWS Teradyne Stock Jumps as Earnings Guidance Does the Seemingly Impossible—Impresses Wall Street - Barron's — Barron's positive
- NEWS Teradyne Stock Jumps as Earnings Guidance Does the Seemingly Impossible—Impresses Wall Street - barrons.com — barrons.com positive
- NEWS Why Is Teradyne Stock Soaring Wednesday? - Benzinga — Benzinga positive
Generated 2026-07-30T22:08:44Z.
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
2 floor-breakers·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Technicals 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 $351.40. At $372.00 the A.R:R is 0.4:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $351.40 (Gap Fill 50 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%); Thin upside margin: 6.5%. Chart setup: No clear chart pattern; technical signals are mixed. V9 Gate blocked: R/R 0.4x at spot < 1.5 minimum. Wait for improvement. Target $389.14 (+4.6%), stop $287.66 (−29.3%), A.R:R 0.4:1. Score 6.7/10, moderate confidence.
Take-profit target: $389.14 (+6.5% upside). Target $389.14 (+4.6%), stop $287.66 (−29.3%), A.R:R 0.4:1. Stop-loss: $287.66.
Concentration risk — Geographic: outside United States (89.0%); Thin upside margin: 6.5%; Expensive valuation.
Teradyne, Inc. trades at a P/E of 59.3 (forward 30.9). TrendMatrix value score: 3.6/10. Verdict: Buy (Wait for Entry).
23 analysts cover TER with a consensus score of 3.9/5. Average price target: $432.
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.