Teradyne (NASDAQ:TER) Shares Gap Down - Here's What Happened

Key Points

• Teradyne posted a strong Q1 beat: revenue $1.282B (+87% YoY) and EPS $2.56, driven largely by semiconductor test demand and an expanded robotics partnership with Flex.
• Shares plunged about 16.8% — the stock gapped from $380.13 to an open of $314.54 and last traded near $327 — after management set Q2 EPS guidance of $1.86–$2.15, with the low end below the consensus midpoint, prompting profit-taking.
• Analyst sentiment remains mostly bullish: several firms raised price targets (e.g., Stifel to $390, UBS to $440) and the consensus rating is "Moderate Buy" with an average target of $328.87.

Shares of Teradyne, Inc. (NASDAQ:TER - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $380.13, but opened at $314.54. Teradyne shares last traded at $326.9870, with a volume of 3,310,234 shares trading hands.

Trending Headlines about Teradyne

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Teradyne reported strong Q1 results — revenue $1.282B, GAAP EPS $2.53 (non‑GAAP $2.56), revenue up ~87% YoY with semiconductor test representing the bulk of sales; the quarter materially beat consensus and showed margin/ROE strength. BusinessWire Q1 Release
• Positive Sentiment: Analysts and press highlighted the beat — multiple writeups note EPS/R revenue beats, reinforcing the message that AI-driven demand boosted results. Zacks: Q1 Beat
• Positive Sentiment: Teradyne expanded its partnership with Flex to scale “physical AI”/robotics deployments — strategic commercial traction that supports longer‑term robotics recurring revenue potential. The Robot Report
• Positive Sentiment: Stifel raised its price target to $390 and maintained a Buy, indicating continued analyst bullishness that can underpin upside. Benzinga: Stifel Note
• Neutral Sentiment: Transcripts, slides and conference materials from the quarter are available — useful for investors but informational rather than market-moving by themselves. Earnings Transcript (Yahoo)
• Neutral Sentiment: Coverage pieces are adding Teradyne to robotics/AI watchlists for 2026, supporting thematic interest but not immediate catalysts. Zacks: Robotics Picks
• Negative Sentiment: Teradyne issued Q2 FY26 EPS guidance of $1.860–$2.150 and revenue roughly $1.2–$1.3B; the lower end of the EPS range is below the consensus midpoint (1.92), creating some near‑term uncertainty and giving traders a reason to take profits.

Analyst Ratings Changes

TER has been the topic of several recent analyst reports. Robert W. Baird raised their price objective on shares of Teradyne from $305.00 to $332.00 and gave the company an "outperform" rating in a research report on Monday, March 30th. Stifel Nicolaus raised their price target on Teradyne from $325.00 to $390.00 and gave the company a "buy" rating in a report on Tuesday. Vertical Research cut Teradyne from a "buy" rating to a "hold" rating and set a $220.00 target price for the company. in a research report on Friday, January 9th. Citigroup lifted their target price on Teradyne from $215.00 to $325.00 and gave the company a "buy" rating in a research note on Wednesday, February 4th. Finally, UBS Group lifted their target price on Teradyne from $325.00 to $440.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Ten analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $328.87.

Teradyne Stock Down 16.8%

The company has a market cap of $49.54 billion, a PE ratio of 90.95, a P/E/G ratio of 2.37 and a beta of 1.79. The stock's 50 day moving average is $328.70 and its 200-day moving average is $247.95.

Teradyne (NASDAQ:TER - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $2.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.11 by $0.45. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.19 billion. Teradyne had a net margin of 17.37% and a return on equity of 22.68%. Teradyne's revenue was up 87.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.75 earnings per share. Teradyne has set its Q2 2026 guidance at 1.860-2.150 EPS. On average, analysts anticipate that Teradyne, Inc. will post 6.22 EPS for the current fiscal year.

Institutional Investors Weigh In On Teradyne

Hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd purchased a new stake in Teradyne during the fourth quarter valued at $28,000. SJS Investment Consulting Inc. lifted its position in Teradyne by 192.9% in the first quarter. SJS Investment Consulting Inc. now owns 164 shares of the company's stock worth $49,000 after buying an additional 108 shares during the last quarter. Ascentis Independent Advisors bought a new stake in Teradyne in the first quarter worth $56,000. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Teradyne in the fourth quarter valued at $37,000. Finally, True Wealth Design LLC raised its stake in shares of Teradyne by 49.6% in the fourth quarter. True Wealth Design LLC now owns 211 shares of the company's stock valued at $41,000 after acquiring an additional 70 shares during the period. Hedge funds and other institutional investors own 99.77% of the company's stock.

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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