Teradyne (NASDAQ:TER) Issues Q3 2026 Earnings Guidance

Key Points

• Teradyne issued strong Q3 2026 guidance, forecasting EPS of $1.85–$2.15 and revenue of $1.2–$1.3 billion, above consensus estimates of $1.43 EPS and $1.0 billion in revenue.
• Shares fell $13.70 to $321.07 in midday trading, despite the company’s prior-quarter earnings beat. The stock remains well below its 52-week high of $487.91.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $394.53, while Teradyne raised its quarterly dividend to $0.13 per share from $0.12.

Teradyne (NASDAQ:TER - Get Free Report) issued an update on its third quarter 2026 earnings guidance on Tuesday. The company provided EPS guidance of 1.850-2.150 for the period, compared to the consensus EPS estimate of 1.430. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.0 billion.

Teradyne Price Performance

Shares of TER stock traded down $13.70 during mid-day trading on Tuesday, hitting $321.07. The company had a trading volume of 5,621,385 shares, compared to its average volume of 3,826,436. The stock's 50 day moving average price is $382.69 and its 200-day moving average price is $334.39. Teradyne has a 52-week low of $89.18 and a 52-week high of $487.91. The company has a market capitalization of $50.26 billion, a P/E ratio of 59.46, a P/E/G ratio of 1.01 and a beta of 1.74.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $2.47 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.38. Teradyne had a return on equity of 31.79% and a net margin of 22.55%.Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. On average, equities research analysts expect that Teradyne will post 7.2 earnings per share for the current year.

Teradyne Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 0.2%. This is a positive change from Teradyne's previous quarterly dividend of $0.12. The ex-dividend date was Thursday, May 21st. Teradyne's dividend payout ratio (DPR) is presently 9.63%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on TER shares. JPMorgan Chase & Co. raised shares of Teradyne from a "neutral" rating to an "overweight" rating and set a $400.00 target price on the stock in a research note on Thursday, April 30th. Zacks Research raised shares of Teradyne from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Stifel Nicolaus raised their price objective on shares of Teradyne from $325.00 to $390.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Weiss Ratings cut Teradyne from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, July 20th. Finally, Bank of America raised their price target on Teradyne from $365.00 to $525.00 and gave the stock a "buy" rating in a research note on Tuesday, June 23rd. One research 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 stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $394.53.

Insider Activity at Teradyne

In related news, insider Shannon John Poulin sold 656 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $355.00, for a total value of $232,880.00. Following the completion of the sale, the insider directly owned 15,722 shares of the company's stock, valued at $5,581,310. This represents a 4.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Ryan Driscoll sold 680 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the completion of the sale, the vice president directly owned 7,665 shares of the company's stock, valued at $2,894,304. The trade was a 8.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,941 shares of company stock worth $5,444,112 over the last three months. 0.19% of the stock is owned by corporate insiders.

More Teradyne News

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Investor attention remains focused on strong AI-driven demand, semiconductor testing activity and the potential contribution from Teradyne’s Tokyo Electron partnership. These factors could support revenue growth and the company’s longer-term robotics and semiconductor businesses if management provides favorable guidance. Teradyne Earnings Put AI-Driven Fair Value Narrative to the Test
• Neutral Sentiment: The upcoming earnings report is the primary near-term catalyst. Investors will assess revenue growth, margins, orders, AI-related demand and the outlook for the remainder of 2026. The company’s prior quarter exceeded analyst expectations, raising the importance of another strong performance. Teradyne Reports Earnings Tomorrow: What to Expect
• Neutral Sentiment: Several market reports have highlighted Teradyne among robotics stocks worth watching, reflecting continued interest in automation, robotics and AI exposure. However, these articles provide limited new company-specific information ahead of the earnings release. Robotics Stocks to Watch Now
• Negative Sentiment: Valuation and exceptionally high expectations are weighing on sentiment. Teradyne has delivered substantial long-term gains, but its shares are now viewed as roughly fairly valued, leaving less room for disappointment. The recent 30-day pullback suggests investors may be reducing risk before results, particularly because the stock’s premium valuation requires continued earnings growth and bullish guidance. Teradyne Stock May Trade Near Fair Value on Earnings

Institutional Trading of Teradyne

A number of institutional investors have recently made changes to their positions in the business. State Street Corp increased its position in Teradyne by 0.9% during the 4th quarter. State Street Corp now owns 7,078,635 shares of the company's stock valued at $1,370,141,000 after buying an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in Teradyne by 3.0% in the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company's stock worth $442,413,000 after acquiring an additional 143,058 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Teradyne by 18.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company's stock worth $813,640,000 after acquiring an additional 659,273 shares in the last quarter. Invesco Ltd. grew its stake in shares of Teradyne by 3.5% during the third quarter. Invesco Ltd. now owns 2,959,330 shares of the company's stock worth $407,322,000 after acquiring an additional 99,864 shares during the last quarter. Finally, Morgan Stanley grew its stake in shares of Teradyne by 1.9% during the fourth quarter. Morgan Stanley now owns 2,442,014 shares of the company's stock worth $472,677,000 after acquiring an additional 45,089 shares during the last quarter. Institutional investors and hedge funds own 99.77% of the company's stock.

About Teradyne

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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