Business
Teradyne Reports First Quarter 2026 Results
NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NASDAQ:TER): Q1'26 Q1'25 Q4'25 Revenue (mil) $ 1,282 $ 686 $ 1,083 GAAP EPS $
About this update from Teradyne, Inc.
NORTH READING, Mass.--( BUSINESS WIRE )-- Teradyne, Inc. (NASDAQ:TER): Q1'26 Q1'25 Q4'25 Revenue (mil) $ 1,282 $ 686 $ 1,083 GAAP EPS $ 2.53 $ 0.61 $ 1.63 Non-GAAP EPS $ 2.56 $ 0.75 $ 1.80 Expand Teradyne, Inc. (NASDAQ:TER) reported revenue of $1,282 million for the first quarter of 2026 of which $1,111 million was in Semiconductor Test, $91 million in Robotics, and $80 million in Product Test. GAAP net income for the first quarter of 2026 was $398.9 million, or $2.53 per diluted share. On a non-GAAP basis, Teradyne’s net income for the first quarter of 2026 was $402.9 million, or $2.56 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and the related tax impact on non-GAAP adjustments. "Our Q1 results reached a new record high. With approximately 70% of our revenue tied to AI-related demand, our results reflect the strength of our wafer to AI data center strategy. All of our business groups - Semiconductor Test, Product Test, and Robotics - delivered strong year-over-year growth which we expect to continue with robust AI driven momentum as the catalyst,” said Teradyne CEO Greg Smith. Guidance for the second quarter of 2026 is revenue of $1,150 million to $1,250 million, with GAAP net income of $1.83 to $2.12 per diluted share and non-GAAP net income of $1.86 to $2.15 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments. Webcast A conference call to discuss the first quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, April 29, 2026. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors . Non-GAAP Results In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income excludes acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, pension actuarial gains and losses, discrete income tax adjustments, and the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP. About Teradyne Teradyne ( NASDAQ:TER ) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com . Teradyne ® is a registered trademark of Teradyne, Inc., in the U.S. and other countries. Safe Harbor Statement This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current or future geopolitical conflicts; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. TERADYNE, INC. REPORT FOR FIRST FISCAL QUARTER OF 2026 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands) Quarter Ended March 29, 2026 December 31, 2025 March 30, 2025 Net revenues $ 1,282,494 $ 1,083,337 $ 685,680 Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1) 501,545 463,647 270,344 Gross profit 780,949 619,690 415,336 Operating expenses: Selling and administrative (2) 166,737 164,693 157,257 Engineering and development 135,561 143,265 118,188 Acquired intangible assets amortization 2,224 3,451 4,573 Restructuring and other (3) 3,425 15,081 14,515 Operating expenses 307,947 326,490 294,533 Income from operations 473,002 293,200 120,803 Interest and other (income) expense (4) 7,326 3,625 1,779 Income before income taxes 465,676 289,575 119,024 Income tax provision 62,157 29,151 14,544 Income before equity in net earnings of affiliate $ 403,519 $ 260,424 $ 104,480 Equity in net earnings of affiliate (4,611 ) (3,204 ) (5,584 ) Net income $ 398,908 $ 257,220 $ 98,896 Net income per common share: Basic $ 2.55 $ 1.64 $ 0.61 Diluted $ 2.53 $ 1.63 $ 0.61 Weighted average common shares - basic 156,410 156,412 161,501 Weighted average common shares - diluted 157,636 157,651 161,996 Cash dividend declared per common share $ 0.13 $ 0.12 $ 0.12 Expand (1) Cost of revenues includes: Quarter Ended March 29, 2026 December 31, 2025 March 30, 2025 Provision for excess and obsolete inventory $ 4,682 $ 6,607 $ 4,945 Inventory step-up 118 348 216 Sale of previously written down inventory (297 ) (494 ) (324 ) $ 4,503 $ 6,461 $ 4,837 Expand (2) For the quarters ended March 29, 2026, December 31, 2025, and March 30, 2025, selling and administrative expenses included $1.7 million, $1.9 million, and $0.7 million, respectively, of expenses directly related to a planned ERP system implementation. (3) Restructuring and other consists of: Expand Quarter Ended March 29, 2026 December 31, 2025 March 30, 2025 Acquisition and divestiture related expenses $ 1,699 $ 602 $ 1,972 Employee severance (a) 854 10,851 11,395 Asset impairment — 3,329 1,142 Other 872 299 6 $ 3,425 $ 15,081 $ 14,515 Expand (a) For the three months ended December 31, 2025, and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively. Expand (4) Interest and other includes: Quarter Ended March 29, 2026 December 31, 2025 March 30, 2025 Pension actuarial losses (gains) $ — $ 1,338 $ — Pension settlement loss (gain) — 18 — Loss (gain) on foreign exchange contract — — (561 ) Expand CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 29, 2026 December 31, 2025 Assets Cash and cash equivalents $ 241,944 $ 293,751 Marketable securities 3,653 28,247 Accounts receivable, net 1,107,522 786,913 Inventories, net 362,757 379,552 Prepayments 438,577 427,564 Other current assets 18,720 33,273 Total current assets 2,173,173 1,949,300 Property, plant and equipment, net 585,724 562,999 Operating lease right-of-use assets, net 76,222 76,635 Marketable securities 148,374 126,256 Deferred tax assets 281,776 275,265 Retirement plans assets 12,078 12,059 Equity method investment 522,583 537,098 Other assets 70,743 71,697 Acquired intangible assets, net 48,979 51,271 Goodwill 514,175 521,019 Total assets $ 4,433,827 $ 4,183,599 Liabilities Accounts payable $ 344,681 $ 269,185 Accrued employees’ compensation and withholdings 156,194 254,973 Deferred revenue and customer advances 197,127 153,124 Other accrued liabilities 122,512 111,845 Operating lease liabilities 18,438 19,340 Short-term debt — 200,000 Income taxes payable 173,259 106,740 Total current liabilities 1,012,211 1,115,207 Retirement plans liabilities 143,354 144,874 Long-term deferred revenue and customer advances 58,371 50,888 Deferred tax liabilities 4,556 5,378 Long-term other accrued liabilities 7,559 7,601 Long-term operating lease liabilities 63,960 63,899 Total liabilities 1,290,011 1,387,847 Shareholders’ equity 3,143,816 2,795,752 Total liabilities and shareholders’ equity $ 4,433,827 $ 4,183,599 Expand CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Quarter Ended March 29, 2026 March 30, 2025 Cash flows from operating activities: Net income $ 398,908 $ 98,896 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 30,240 25,523 Stock-based compensation 21,902 15,204 Equity in net earnings of affiliate 4,611 5,584 Amortization 2,415 4,779 Provision for excess and obsolete inventory 4,682 4,945 Losses (gains) on investments 3,317 3,372 Deferred taxes (7,777 ) (7,811 ) Other 2,286 3,483 Changes in operating assets and liabilities, net of businesses acquired: Accounts receivable (322,017 ) 13,053 Inventories 20,827 (31,049 ) Prepayments and other assets 4,049 13,650 Accounts payable and other liabilities (15,025 ) (9,950 ) Deferred revenue and customer advances 51,964 10,200 Retirement plans contributions (1,534 ) (1,282 ) Income taxes 66,276 13,040 Net cash provided by operating activities 265,124 161,637 Cash flows from investing activities: Purchases of property, plant and equipment (64,733 ) (64,021 ) Purchase of investment in a business — (3,011 ) Purchases of marketable securities (40,797 ) (10,753 ) Acquisition of businesses, net of cash and cash equivalents acquired — (17,002 ) Proceeds from maturities of marketable securities 10,910 27,381 Proceeds from sales of marketable securities 27,328 5,633 Net cash used for investing activities (67,292 ) (61,773 ) Cash flows from financing activities: Proceeds from borrowings on revolving credit facility 50,000 — Repayments of borrowings on revolving credit facility (250,000 ) — Dividend payments (20,362 ) (19,406 ) Repurchase of common stock (5,518 ) (157,475 ) Payments related to net settlement of employee stock compensation awards (39,437 ) (14,726 ) Issuance of common stock under stock purchase and stock option plans 15,101 14,792 Net cash used for financing activities (250,216 ) (176,815 ) Effects of exchange rate changes on cash and cash equivalents 577 (771 ) (Decrease) increase in cash and cash equivalents (51,807 ) (77,722 ) Cash and cash equivalents at beginning of period 293,751 553,354 Cash and cash equivalents at end of period $ 241,944 $ 475,632 Expand GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts) Quarter Ended March 29, 2026 % of Net Revenues December 31, 2025 % of Net Revenues March 30, 2025 % of Net Revenues Net revenues $ 1,282.5 $ 1,083.3 $ 685.7 Gross profit GAAP 780.9 60.9 % 619.7 57.2 % 415.3 60.6 % Inventory step-up 0.1 0.0 % 0.3 0.0 % 0.2 0.0 % Gross profit non-GAAP 781.0 60.9 % 620.0 57.2 % 415.5 60.6 % Income from operations - GAAP 473.0 36.9 % 293.2 27.1 % 120.8 17.6 % Restructuring and other (1) 3.4 0.3 % 15.1 1.4 % 14.5 2.1 % Acquired intangible assets amortization 2.2 0.2 % 3.5 0.3 % 4.6 0.7 % ERP related expenses (2) 1.7 0.1 % 1.9 0.2 % 0.7 0.1 % Inventory step-up 0.1 0.0 % 0.3 0.0 % 0.2 0.0 % Income from operations - non-GAAP $ 480.4 37.5 % $ 314.0 29.0 % $ 140.8 20.5 % Net Income per Common Share Net Income per Common Share Net Income per Common Share March 29, 2026 % of Net Revenues Basic Diluted December 31, 2025 % of Net Revenues Basic Diluted March 30, 2025 % of Net Revenues Basic Diluted Net income - GAAP $ 398.9 31.1 % $ 2.55 $ 2.53 $ 257.2 23.7 % $ 1.64 $ 1.63 $ 98.9 14.4 % $ 0.61 $ 0.61 Amortization of equity method investment 7.7 0.6 % 0.05 0.05 7.6 0.7 % 0.05 0.05 7.4 1.1 % 0.05 0.05 Restructuring and other (1) 3.4 0.3 % 0.02 0.02 15.1 1.4 % 0.10 0.10 14.5 2.1 % 0.09 0.09 Acquired intangible assets amortization 2.2 0.2 % 0.01 0.01 3.5 0.3 % 0.02 0.02 4.6 0.7 % 0.03 0.03 ERP related expenses (2) 1.7 0.1 % 0.01 0.01 1.9 0.2 % 0.01 0.01 0.7 0.1 % 0.00 0.00 Inventory step-up 0.1 0.0 % 0.00 0.00 0.3 0.0 % 0.00 0.00 0.2 0.0 % 0.00 0.00 Pension mark-to-market adjustment (3) — — — — 1.3 0.1 % 0.01 0.01 — — — — Pension settlement loss (gain) — — — — 0.1 0.0 % 0.00 0.00 — — — — Loss (gain) of foreign exchange contract — — — — — — — — (0.6 ) -0.1 % (0.00 ) (0.00 ) Exclude discrete tax adjustments (9.3 ) -0.7 % (0.06 ) (0.06 ) 0.4 0.0 % 0.00 0.00 0.9 0.1 % 0.01 0.01 Non-GAAP tax adjustments (1.8 ) -0.1 % (0.01 ) (0.01 ) (4.3 ) -0.4 % (0.03 ) (0.03 ) (5.1 ) -0.7 % (0.03 ) (0.03 ) Net income - non-GAAP $ 402.9 31.4 % $ 2.58 $ 2.56 $ 283.0 26.1 % $ 1.81 $ 1.80 $ 121.5 17.7 % $ 0.75 $ 0.75 GAAP and non-GAAP weighted average common shares - basic 156.4 156.4 161.5 GAAP and non-GAAP weighted average common shares - diluted 157.6 157.7 162.0 Expand (1) Restructuring and other consists of: Quarter Ended March 29, 2026 December 31, 2025 March 30, 2025 Acquisition and divestiture related expenses $ 1.7 $ 0.6 $ 2.0 Employee severance (a) 0.9 10.9 11.4 Asset impairment — 3.3 1.1 Other 0.9 0.3 — $ 3.5 $ 15.1 $ 14.5 (a) For the quarters ended December 31, 2025 and March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 200 and 150 employees, respectively. Expand (2) For the quarters ended March 29, 2026, December 31, 2025 and March 30, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation. (3) For the quarter ended December 31, 2025, adjustment to exclude actuarial loss recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting. Expand GAAP to Non-GAAP Reconciliation of Second Quarter 2026 guidance: GAAP and non-GAAP second quarter revenue guidance: $1,150 million to $1,250 million GAAP net income per diluted share $ 1.83 $ 2.12 Exclude acquired intangible assets amortization 0.01 $ 0.01 Exclude equity method investment amortization 0.03 $ 0.03 Non-GAAP tax adjustments (0.01 ) $ (0.01 ) Non-GAAP net income per diluted share $ 1.86 $ 2.15 Expand For press releases and other information of interest to investors, please visit Teradyne’s homepage at https://www.teradyne.com .