Teradyne (TER) Q4 FY2025 earnings: revenue $1.1 billion, up 43.9% on the year

Teradyne, Inc. (TER) reported revenue of $1.1 billion for Q4 FY2025, the quarter ended 31 December 2025, up 43.9% on the same quarter a year earlier. Net income was $257 million, up 75.9% on the year, and diluted earnings per share $1.63. The figures are the company's own, from the 10-K it filed with the SEC on 19 February 2026.

Revenue

$1.1 billion

+43.9% on the year · +40.8% on the quarter

Q1 FY2024Q4 FY2025

Operating margin

27.1%

20.4% a year earlier

Q1 FY2024Q4 FY2025

Net income

$257 million

+75.9% on the year · +115.1% on the quarter

Q1 FY2024Q4 FY2025

Diluted EPS

$1.63

+81.1% on the year · +117.3% on the quarter

Q1 FY2024Q4 FY2025

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 new.

Q4 revenue rose 44% year over year: Revenue reached $1.083 billion, up 44% from the prior-year quarter and 41% from the third quarter.
Quarterly EPS higher on both bases: GAAP net income was $257.2 million, or $1.63 per diluted share, against $0.90 a year earlier. The non-GAAP figure excluded acquired intangible amortization, restructuring and other charges, and pension mark-to-market.
Semiconductor Test was the largest group: Q4 revenue by group: Semiconductor Test $883 million, Product Test $110 million and Robotics $89 million.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Revenue	1,083	769	753	+40.8%	+43.9%
Cost of revenue	464	320	306	+44.9%	+51.7%
Gross profit	620	449	447	+37.9%	+38.5%
Gross margin	57.2%	58.4%	59.4%
Research and development	143	125	128	+14.8%	+11.6%
Selling, general and administrative	165	169	156	-2.6%	+5.7%
Operating income	293	145	154	+101.8%	+90.9%
Operating margin	27.1%	18.9%	20.4%
Interest expense	3.9	1.3	0.6	+200.8%	+569.6%
Pre-tax income	290	148	158	+95.5%	+83.5%
Income tax	29.2	23.3	5.4	+24.9%	+439.0%
Effective tax rate	10.1%	15.8%	3.4%
Net income	257	120	146	+115.1%	+75.9%
Net margin	23.7%	15.5%	19.4%
Diluted EPS	$1.63	$0.75	$0.90	+117.3%	+81.1%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Operating cash flow	282	49.0	283	+474.2%	-0.3%
Capital expenditure	62.9	46.7	57.4	+34.7%	+9.6%
Free cash flow	219	2.4	225	+9,177.0%	-2.9%
Free cash flow margin	20.2%	0.3%	29.9%
Cash from investing	-60.9	-67.5	-67.5
Cash from financing	-201	-47.8	-163
Depreciation and amortisation	35.8	30.5	31.1	+17.2%	+14.9%
Share-based compensation	16.4	15.5	14.9	+5.8%	+10.7%
Buybacks	183	244	144	-24.8%	+27.8%
Dividends paid	18.7	19.0	19.5	-1.4%	-4.0%
Dividend per share	n/a	$0.12	n/a
Diluted shares, weighted	158m	159m	163m	-0.9%	-3.4%
Shares outstanding at period end	156m	157m	162m	-0.7%	-3.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q4 FY2025	Q3 FY2025	Q4 FY2024	On the quarter	On the year
Shareholders' equity	2,796	2,717	2,819	+2.9%	-0.8%
Redeemable equity	0.0	n/a	n/a
Debt	200	200	0.0	0.0%
Operating lease liabilities	63.9	49.7	57.9	+28.5%	+10.3%
Other liabilities	1,124	997	831	+12.8%	+35.2%
Total liabilities and equity	4,184	3,964	3,709	+5.5%	+12.8%
Fixed assets	563	570	508	-1.2%	+10.8%
Goodwill	521	520	395	+0.3%	+31.8%
Intangible assets	51.3	54.7	15.9	-6.3%	+221.9%
Securities held for sale or to maturity	97.1	99.9	116	-2.8%	-16.3%
Cash and equivalents	294	273	553	+7.7%	-46.9%
Receivables	787	594	471	+32.5%	+66.9%
Inventory	380	367	298	+3.5%	+27.2%
Other assets	1,491	1,486	1,350	+0.3%	+10.4%
Total assets	4,184	3,964	3,709	+5.5%	+12.8%

Questions

What was Teradyne's revenue in Q4 FY2025?

Teradyne (TER) reported revenue of $1.1 billion for Q4 FY2025, the quarter ended 31 December 2025, up 43.9% on the same quarter a year earlier.

How much did Teradyne earn in Q4 FY2025?

Net income for Q4 FY2025 was $257 million, up 75.9% on the year, and diluted earnings per share $1.63.

When did Teradyne report Q4 FY2025 results?

Teradyne filed its 10-K for the year that ended with the quarter on 19 February 2026; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	885	755	841	827	732	618	684	704	671	600	730	737	753	686	652	769	1,083	1,282	1,329	1,306
Cost of revenue	358	300	334	342	311	261	282	305	291	261	304	301	306	270	279	320	464	502	534	535
Gross profit	527	455	506	485	420	356	402	398	380	339	426	437	447	415	373	449	620	781	795	771
Gross margin	60%	60%	60%	59%	57%	58%	59%	57%	57%	57%	58%	59%	59%	61%	57%	58%	57%	61%	60%	59%
R&D	110	108	112	112	109	106	106	104	102	103	112	117	128	118	118	125	143	136	156	163
SG&A	143	140	140	136	143	151	146	138	142	149	154	158	156	157	158	169	165	167	193	199
Operating income	256	186	248	232	167	92.9	140	144	124	77.8	210	152	154	121	90.7	145	293	473	438	402
Operating margin	29%	25%	29%	28%	23%	15%	20%	20%	19%	13%	29%	21%	20%	18%	14%	19%	27%	37%	33%	31%
Interest expense	2.5	1.0	0.2	0.2	1.0	1.0	1.0	1.0	0.8	0.7	1.5	0.8	0.6	0.8	0.8	1.3	3.9	3.2	3.0	0.9
Pre-tax income	255	180	239	226	195	97.1	144	144	140	72.9	219	159	158	119	96.6	148	290	466	444	404
Tax rate	12%	10%	17%	19%	12%	14%	17%	11%	16%	12%	15%	8%	3%	12%	13%	16%	10%	13%	15%	15%
Net income	224	162	198	183	172	83.5	120	128	117	64.2	186	146	146	98.9	78.4	120	257	399	375	342
Net margin	25%	21%	24%	22%	24%	14%	18%	18%	17%	11%	26%	20%	19%	14%	12%	16%	24%	31%	28%	26%
Diluted EPS	$1.27	$0.92	$1.16	$1.10	$1.04	$0.50	$0.73	$0.78	$0.72	$0.40	$1.14	$0.89	$0.90	$0.61	$0.49	$0.75	$1.63	$2.53	$2.38	$2.17
Operating cash flow	331	7.5	115	272	183	19.3	143	174	249	7.3	216	166	283	162	182	49.0	282	265	469	314
Capital expenditure	29.3	44.0	45.7	38.9	34.6	41.4	39.3	34.6	44.3	44.0	44.8	51.8	57.4	64.0	50.4	46.7	62.9	64.7	90.7	86.3
Free cash flow	302	-36.5	69.7	233	149	-22.1	104	140	204	-36.7	171	114	225	97.6	132	2.4	219	200	378	227
Buybacks	194	201	331	217	2.1	93.3	135	119	50.7	22.1	8.2	24.7	144	157	117	244	183	5.5	68.7	99.3
Dividends paid	16.3	17.9	17.5	17.1	17.2	17.2	17.0	16.9	16.8	18.4	19.0	19.6	19.5	19.4	19.2	19.0	18.7	20.4	20.3	20.3
Shares outstanding	n/a	161m	158m	156m	156m	155m	154m	153m	153m	154m	162m	163m	162m	161m	159m	157m	156m	157m	156m	156m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 December 2025, filed 19 February 2026: the filing.