Northland Securities Lifts Earnings Estimates for Teradyne

Key Points

• Northland Securities raised its FY2026 EPS forecast for Teradyne to $9.40 from $9.34, above the $9.17 consensus estimate, while issuing quarterly estimates through Q2 2027.
• Teradyne exceeded third-quarter expectations with EPS of $2.29 versus $2.09 projected and revenue of $1.31 billion, up 69.8% year over year, driven by strong AI-related testing demand.
• Analysts maintain a generally positive view, with 11 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $405.86, though the stock’s premium valuation and margin concerns remain potential risks.

Teradyne, Inc. (NASDAQ:TER - Free Report) - Research analysts at Northland Securities increased their FY2026 earnings per share (EPS) estimates for Teradyne in a research report issued on Thursday, October 29th. Northland Securities analyst G. Richard now expects that the company will post earnings per share of $9.40 for the year, up from their prior forecast of $9.34. The consensus estimate for Teradyne's current full-year earnings is $9.17 per share. Northland Securities also issued estimates for Teradyne's Q4 2026 earnings at $2.10 EPS, Q1 2027 earnings at $2.27 EPS and Q2 2027 earnings at $2.63 EPS.

Teradyne (NASDAQ:TER - Get Free Report) last issued its earnings results on Tuesday, October 27th. The company reported $2.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.09 by $0.20. Teradyne had a net margin of 27.46% and a return on equity of 43.81%. The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the firm earned $0.85 earnings per share. The business's revenue was up 69.8% on a year-over-year basis.

Several other brokerages have also recently issued reports on TER. The Goldman Sachs Group set a $440.00 target price on shares of Teradyne in a report on Wednesday. Zacks Research lowered shares of Teradyne from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Weiss Ratings raised shares of Teradyne from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Morgan Stanley raised their price target on Teradyne from $387.00 to $397.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $550.00 price objective on shares of Teradyne in a report on Wednesday, July 29th. Eleven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $405.86.

Teradyne Stock Performance

Shares of NASDAQ TER opened at $296.23 on Friday. Teradyne has a 52-week low of $151.52 and a 52-week high of $487.91. The firm has a market capitalization of $46.31 billion, a price-to-earnings ratio of 34.01, a PEG ratio of 0.63 and a beta of 1.75. The stock has a 50 day moving average price of $366.38 and a 200 day moving average price of $348.15.

Teradyne Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a $0.13 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 0.2%. Teradyne's dividend payout ratio is 7.13%.

Insider Activity

In other news, CEO Gregory Smith sold 4,000 shares of the firm's 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 sale, the chief executive officer directly owned 104,495 shares in the company, valued at $35,662,053.60. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 12,000 shares of company stock worth $4,416,440. Corporate insiders own 0.19% of the company's stock.

Institutional Trading of Teradyne

A number of institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in Teradyne in the 2nd quarter valued at $9,404,408,000. Andar Capital Management HK Ltd acquired a new position in Teradyne in the 2nd quarter valued at about $37,800,000. State Street Corp lifted its holdings in Teradyne by 4.6% in the second quarter. State Street Corp now owns 7,290,460 shares of the company's stock valued at $3,527,416,000 after acquiring an additional 320,034 shares during the last quarter. Van ECK Associates Corp raised its position in Teradyne by 5.0% in the second quarter. Van ECK Associates Corp now owns 2,607,914 shares of the company's stock valued at $1,261,813,000 after purchasing an additional 123,549 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Teradyne by 0.6% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,978,124 shares of the company's stock valued at $957,096,000 after buying an additional 12,659 shares during the period. 99.77% of the stock is currently owned by hedge funds and other institutional investors.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported third-quarter revenue of approximately $1.31 billion, up nearly 70% year over year, while EPS of $2.29 exceeded the $2.09 consensus estimate. AI-related demand drove record revenue in memory and integrated-systems testing, supporting the company’s expectations for continued growth. Teradyne Q3 Earnings Beat Estimates, Revenues Increase Year over Year
• Positive Sentiment: Management highlighted expanding AI compute programs, capacity investments and a targeted compute ramp in mid-2027. The company’s AI-driven growth outlook and record memory-test activity could support Teradyne’s longer-term earnings trajectory. Teradyne Q3 Earnings Call Highlights AI Demand and 2027 Growth Plans
• Neutral Sentiment: Northland Securities made mixed estimate changes: its FY2026 EPS forecast increased to $9.40 from $9.34 and its Q2 2027 forecast rose to $2.63, but its Q1 2027 estimate fell to $2.27 from $2.59 and its Q4 2026 estimate edged down to $2.10. The FY2026 forecast remains above the $9.17 consensus. Teradyne analyst estimates
• Negative Sentiment: Shares fell after the earnings release because fourth-quarter revenue guidance of $1.25 billion to $1.35 billion and commentary about margin pressure did not fully match the market’s elevated expectations, despite the earnings beat. Teradyne stock falls despite Q3 earnings beat
• Negative Sentiment: UBS lowered its price target to $430 from $485 while maintaining a Buy rating. Analysts and investors are also questioning whether Teradyne’s substantial prior gains and premium valuation already reflect much of its AI growth potential. Teradyne stock may be above fair value despite record AI demand

Teradyne Company Profile

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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