Northland Securities Expects Stronger Earnings for Teradyne

Key Points

• Northland Securities raised Teradyne’s FY2026 EPS estimate to $9.34 from $9.25, above the current consensus estimate of $9.11.
• Teradyne’s latest quarter exceeded expectations, with EPS of $2.29 versus $2.09 expected and revenue of $1.31 billion, up 69.8% year over year.
• Analyst sentiment remains positive, with an overall “Moderate Buy” rating and an average price target of $410.86, though the stock’s premium valuation and potential moderation before a 2027 compute-related growth ramp remain concerns.

Teradyne, Inc. (NASDAQ:TER - Free Report) - Analysts at Northland Securities raised their FY2026 earnings per share (EPS) estimates for Teradyne in a report issued on Wednesday, October 28th. Northland Securities analyst G. Richard now expects that the company will post earnings of $9.34 per share for the year, up from their previous estimate of $9.25. The consensus estimate for Teradyne's current full-year earnings is $9.11 per share.

Teradyne (NASDAQ:TER - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.20. Teradyne had a return on equity of 39.93% and a net margin of 25.77%. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the prior year, the business earned $0.85 EPS. The business's revenue for the quarter was up 69.8% on a year-over-year basis.

Other equities analysts also recently issued research reports about the company. Weiss Ratings raised shares of Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Evercore restated an "outperform" rating and set a $420.00 price target on shares of Teradyne in a report on Thursday, July 30th. Wall Street Zen raised shares of Teradyne from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. Robert W. Baird downgraded shares of Teradyne from an "outperform" rating to a "neutral" rating and set a $420.00 price objective on the stock. in a research report on Friday, August 21st. Finally, Morgan Stanley upped their price objective on shares of Teradyne from $387.00 to $397.00 and gave the company an "equal weight" rating in a research note on Thursday, July 30th. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $410.86.

Teradyne Price Performance

NASDAQ:TER opened at $313.24 on Thursday. Teradyne has a fifty-two week low of $151.52 and a fifty-two week high of $487.91. The stock's 50-day moving average is $368.05 and its two-hundred day moving average is $347.75. The stock has a market cap of $48.97 billion, a PE ratio of 42.97, a price-to-earnings-growth ratio of 0.62 and a beta of 1.75.

Teradyne Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Friday, September 4th. Teradyne's dividend payout ratio is 7.13%.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of the stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $341.28, for a total transaction of $1,365,120.00. Following the transaction, the chief executive officer owned 104,495 shares of the company's stock, valued at approximately $35,662,053.60. This represents a 3.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 12,000 shares of company stock worth $4,416,440. Corporate insiders own 0.19% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in Teradyne in the 2nd quarter worth $9,404,408,000. Andar Capital Management HK Ltd acquired a new position in Teradyne during the 2nd quarter worth $37,800,000. Bank of America Corp DE bought a new stake in Teradyne during the second quarter valued at about $842,822,000. Legal & General Group Plc bought a new stake in Teradyne during the second quarter valued at about $656,058,000. Finally, Assenagon Asset Management S.A. boosted its holdings in Teradyne by 2,171.0% during the third quarter. Assenagon Asset Management S.A. now owns 1,074,459 shares of the company's stock valued at $430,761,000 after acquiring an additional 1,027,146 shares during the period. 99.77% of the stock is owned by institutional investors.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Q3 results significantly exceeded expectations. Teradyne reported revenue of approximately $1.306 billion, up 69.8% year over year, and adjusted earnings of $2.29 per share versus the $2.09 consensus estimate. Net income rose to $342.4 million from $119.6 million a year earlier. Teradyne Shares Fall 4% Despite Q3 Revenue And Profit Growth
• Positive Sentiment: AI-related semiconductor testing demand remains a major growth driver. Strong demand in Memory and Integrated Systems Test contributed to record revenue and profitability, while management described an expected compute-related ramp beginning around mid-2027. Teradyne Q3 Earnings Beat Estimates, Revenues Increase Year over Year
• Neutral Sentiment: Fourth-quarter guidance was above consensus but implies a possible moderation. Teradyne forecast revenue of $1.25 billion to $1.35 billion, with a $1.30 billion midpoint reportedly about 1.8% above analyst expectations. However, the outlook suggests investors may need to wait for the next major compute growth phase. Teradyne Q4 2026 Revenue Guidance
• Negative Sentiment: The market’s reaction indicates very high expectations were already reflected in TER’s valuation. Despite the earnings and guidance beats, investors appeared to take profits and question whether near-term growth can sustain the stock’s premium valuation. Analyst Argus also lowered its price target to $382. Argus Lowers Teradyne Price Target

About Teradyne

Teradyne, Inc develops and supplies automated test equipment and industrial automation products. Its systems help manufacturers test the functionality, performance, and reliability of semiconductor devices, electronic systems, wireless products, and other complex products throughout the production process.

The company's product portfolio includes semiconductor test systems, memory and system-level test equipment, and solutions for printed circuit boards and electronic products. Teradyne also provides collaborative robots through Universal Robots and autonomous mobile robots through Mobile Industrial Robots (MiR), supporting applications such as assembly, material handling, machine tending, packaging, and warehouse logistics.

Founded in 1960 and headquartered in North Reading, Massachusetts, Teradyne serves customers worldwide, including semiconductor manufacturers, electronics producers, automotive companies, and industrial businesses.

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