Northland Securities Raises Earnings Estimates for Teradyne

Key Points

• Northland Securities raised its Teradyne EPS forecast for Q3 2026 to $2.11 from $1.40, while estimating $9.25 in FY2026 earnings and $9.00 in FY2027 earnings.
• Teradyne’s latest quarter significantly exceeded expectations, with EPS of $2.47 versus $2.09 expected and revenue of $1.33 billion, up 103.9% year over year, driven by AI-related semiconductor testing demand.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $396.80, although Teradyne trades at a lofty valuation with a P/E ratio of 50.44.

Teradyne, Inc. (NASDAQ:TER - Free Report) - Equities researchers at Northland Securities upped their Q3 2026 earnings per share (EPS) estimates for shares of Teradyne in a research report issued on Thursday, July 30th. Northland Securities analyst G. Richard now anticipates that the company will earn $2.11 per share for the quarter, up from their prior forecast of $1.40. The consensus estimate for Teradyne's current full-year earnings is $8.86 per share. Northland Securities also issued estimates for Teradyne's Q4 2026 earnings at $2.11 EPS, FY2026 earnings at $9.25 EPS, Q1 2027 earnings at $2.59 EPS, Q2 2027 earnings at $2.50 EPS and FY2027 earnings at $9.00 EPS.

TER has been the subject of several other research reports. Cantor Fitzgerald reiterated an "overweight" rating and set a $550.00 price objective on shares of Teradyne in a report on Wednesday, July 29th. Weiss Ratings lowered shares of Teradyne from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, July 20th. Bank of America lifted their price objective on shares of Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. Susquehanna boosted their price target on Teradyne from $415.00 to $550.00 and gave the company a "positive" rating in a research note on Tuesday, June 30th. Finally, Stifel Nicolaus raised their price objective on Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $396.80.

Teradyne Price Performance

NASDAQ TER opened at $367.69 on Monday. The company has a 50 day moving average price of $382.61 and a 200 day moving average price of $337.87. Teradyne has a 52 week low of $102.42 and a 52 week high of $487.91. The firm has a market cap of $57.56 billion, a PE ratio of 50.44, a price-to-earnings-growth ratio of 0.76 and a beta of 1.78.

Teradyne (NASDAQ:TER - Get Free Report) last announced its earnings results on Tuesday, July 28th. The company reported $2.47 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.38. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 39.93%. The firm's revenue was up 103.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.57 earnings per share. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS.

Teradyne Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Thursday, May 21st were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 0.1%. This is a positive change from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Thursday, May 21st. Teradyne's dividend payout ratio is 7.13%.

Insider Transactions at Teradyne

In related news, CEO Gregory Stephen Smith sold 4,000 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $423.03, for a total transaction of $1,692,120.00. Following the sale, the chief executive officer owned 120,470 shares in the company, valued at approximately $50,962,424.10. This trade represents a 3.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Ryan Driscoll sold 680 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $377.60, for a total value of $256,768.00. Following the completion of the sale, the vice president directly owned 7,665 shares in the company, valued at approximately $2,894,304. The trade was a 8.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,941 shares of company stock valued at $5,444,112 in the last 90 days. 0.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Teradyne

A number of large investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd acquired a new position in shares of Teradyne in the 4th quarter valued at $28,000. Community Financial Services Group LLC acquired a new position in shares of Teradyne in the 2nd quarter worth approximately $29,000. McIlrath & Eck LLC purchased a new position in shares of Teradyne during the 1st quarter worth approximately $30,000. Elevation Wealth Partners LLC increased its holdings in Teradyne by 1,320.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 71 shares of the company's stock valued at $34,000 after purchasing an additional 66 shares during the last quarter. Finally, CYBER HORNET ETFs LLC acquired a new stake in Teradyne in the 2nd quarter valued at approximately $35,000. 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: AI demand produced record results: Teradyne reported second-quarter revenue of $1.33 billion, up 103.9% year over year and above the $1.22 billion analyst consensus. Adjusted earnings of $2.47 per share exceeded expectations of $2.09, while management tied the performance to rising demand for semiconductor testing associated with AI data centers, advanced chips and vehicles. TER Q2 Deep Dive: AI Demand Drives Growth Across Semiconductor Test and Robotics
• Positive Sentiment: Strong third-quarter outlook supports continued momentum: Teradyne’s projected third-quarter revenue midpoint of $1.25 billion was reportedly about 21% above analyst expectations. Increased wafer-fabrication investment, more complex chip designs and expanding memory opportunities are supporting demand for the company’s test systems. Teradyne Beats Q2 Expectations As AI Chip Demand Lifts Q3 Outlook
• Positive Sentiment: Robotics also contributed to growth: Teradyne Robotics revenue increased 33% year over year in the second quarter, adding diversification beyond semiconductor testing and reinforcing the company’s exposure to factory automation. Teradyne Robotics revenue rises 33% year over year in Q2
• Positive Sentiment: Analyst estimates and sentiment improved: Northland Securities raised its projected third- and fourth-quarter 2027 EPS to $2.05 and $1.86, respectively. Cantor Fitzgerald assigned an “Overweight” rating, while Morgan Stanley lifted its price target to $397 but retained an “Equal Weight” rating. Teradyne Earns Overweight Rating from Cantor Fitzgerald
• Neutral Sentiment: Investor consideration: The strong results have reinforced Teradyne’s AI-growth narrative, though the Morgan Stanley “Equal Weight” stance indicates that some analysts may view the improved outlook as largely reflected in the stock’s valuation.

Teradyne Company Profile

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company's product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.

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