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Teradyne (TER) FY2025 results: revenue $3.2 billion, up 13.1% on the year

Teradyne, Inc. (TER) reported revenue of $3.2 billion for fiscal 2025, the year ended 31 December 2025, up 13.1% on the year before. Net income was $554 million, up 2.2%, and diluted earnings per share $3.47. The figures are the company's own, from the 10-K it filed with the SEC on 19 February 2026.

Revenue
$3.2 billion
+13.1% on the year
FY2018FY2025
Operating margin
20.4%
21.1% a year earlier
FY2018FY2025
Net income
$554 million
+2.2% on the year
FY2018FY2025
Diluted EPS
$3.47
+4.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

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.
  • Non-GAAP operating margin reached 29.0%: Non-GAAP operating income was $314.0 million, or 29.0% of revenue, against 20.4% in the third quarter.
  • Operating cash flow reached $281.6 million: Operating cash flow was $281.6 million in the quarter and $674.4 million for 2025, against $672.2 million in 2024.
Read the Q4 FY2025 earnings call summary

From this 10-K

Teradyne was founded in 1960 and supplies automated test equipment and robotics. Its test systems check semiconductors, wireless products, data storage, silicon photonics and complex electronic systems for consumer electronics, wireless, automotive, industrial, computing, communications and aerospace and defence customers. Its robotics products are mainly collaborative robotic arms and autonomous mobile robots used by manufacturing, logistics and industrial customers. In the first quarter of 2025 the production board test, defence and aerospace and wireless test businesses were combined into a new Product Test division, effective March 2025, so the segments are Semiconductor Test, Robotics and Product Test.

Teradyne, Inc., the 10-K for 2025

Teradyne was founded in 1960 and supplies automated test equipment and robotics. Its test systems check semiconductors, wireless products, data storage, silicon photonics and complex electronic systems for consumer electronics, wireless, automotive, industrial, computing, communications and aerospace and defence customers. Its robotics products are mainly collaborative robotic arms and autonomous mobile robots used by manufacturing, logistics and industrial customers. In the first quarter of 2025 the production board test, defence and aerospace and wireless test businesses were combined into a new Product Test division, effective March 2025, so the segments are Semiconductor Test, Robotics and Product Test.

Semiconductor Test

The segment designs, makes, sells and supports semiconductor, hard disk drive and solid state disk test systems and related services worldwide, used for wafer level, device package and system level testing. The devices tested run from simple microcontrollers, operational amplifiers and voltage regulators to processors for digital signals, machine learning training chips, high performance computing parts, microprocessors and memory. Buyers are integrated device manufacturers that fabricate their own wafers, fabless companies that outsource fabrication, foundries that process and manufacture wafers, and assembly and test providers that handle final packaged devices for both. Customers use the systems to control product quality, measure and improve performance, shorten time to market and raise production yields. The FLEX Test Platform architecture is built for multi-site testing, where many devices are tested in parallel to improve the economics of test, with an operating system called IG-XL that allows fast program development and conversion from single to multi-site test.

Product Test and Robotics

Product Test sells test equipment and services for high performance electronic and photonic assemblies, sub-assemblies, modules and components, to customers in high performance computing and data centres, automotive and industrial, defence and aerospace and consumer electronics, covering high volume manufacturing test as well as the development, verification and scaling of new technologies. Robotics sells into ecommerce, logistics, semiconductor and electronics, working through partnerships with original equipment manufacturers, systems integrators and large enterprise accounts, and its cost base was cut through restructuring during 2025.

Deals

On 31 January 2025 the company acquired Infineon Technologies' automated test equipment technology and its development team in Regensburg, Germany, which sits in Semiconductor Test. On 31 May 2025 it acquired Quantifi Photonics, in photonic integrated circuit test, which sits in Product Test, and the filing states that it intends over time to fold that engineering expertise into the UltraFlexplus platform in Semiconductor Test. On 29 January 2026 it announced an agreement with MultiLane, a high-speed input and output test and measurement company, to form a joint venture called MultiLane Test Products, into which MultiLane contributes its test and measurement assets and Teradyne takes 75% ownership, aimed at test solutions for high speed data connections in AI data centre equipment and expected to close in the first half of 2026.

Customers

The market for the test products is concentrated, with a limited number of customers accounting for much of the purchasing, and the filing states that this is expected to continue. The five largest direct customers were 44% of consolidated revenues in 2025, against 36% in 2024 and 32% in 2023. Teradyne distinguishes the specifying customer, an equipment maker, integrated device manufacturer or fabless company that chooses the platform and drives demand, from the purchasing customer that places the order. In 2025 two specifying customers, both in Semiconductor Test and Product Test, drove 12% and 10% of consolidated revenues, and one direct purchasing customer in Semiconductor Test accounted for 19%.

Selling, making and people

There are sales and service offices across North America, Central America, Asia and Europe, and selling is predominantly direct, except for Robotics products, which go mainly through distributors and original equipment manufacturers. Sales to customers outside the United States were 89% of the total in 2025, 87% in 2024 and 84% in 2023. Manufacturing for the test businesses runs mainly through subcontractors and outsourced contract manufacturers with large operations in Malaysia, while Robotics manufacturing is done in the company's own plants in Denmark and the United States. At 31 December 2025 the company employed approximately 6,600 people, approximately 2,200 of them in the United States, with the largest populations elsewhere in the Philippines, Denmark, Costa Rica, China and Taiwan, alongside approximately 600 contractors, and it has had no work stoppages since the business began.

From Teradyne's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 19 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue3,1902,8202,676+13.1%
Cost of revenue1,3331,1711,140+13.8%
Gross profit1,8571,6491,537+12.6%
Gross margin58.2%58.5%57.4%
Research and development505461418+9.5%
Selling, general and administrative649617577+5.2%
Operating income650594501+9.5%
Operating margin20.4%21.1%18.7%
Interest expense6.83.63.8+90.9%
Pre-tax income653609526+7.3%
Income tax79.359.576.8+33.3%
Effective tax rate12.1%9.8%14.6%
Net income554542449+2.2%
Net margin17.4%19.2%16.8%
Diluted EPS$3.47$3.32$2.73+4.5%
$ million except per share.
Read moreFree 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

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow674672585+0.3%
Capital expenditure224198160+13.1%
Free cash flow450474426-5.0%
Free cash flow margin14.1%16.8%15.9%
Cash from investing-369-622-180
Cash from financing-562-252-502
Depreciation and amortisation128120111+6.9%
Share-based compensation64.060.157.7+6.4%
Buybacks702199397+253.6%
Dividends paid76.376.467.9-0.1%
Dividend per share$0.48$0.48$0.440.0%
Diluted shares, weighted160m163m164m-2.2%
Shares outstanding at period end156m162m153m-3.5%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity2,7962,8192,526-0.8%
Redeemable equity0.0n/an/a
Debt2000.00.0
Operating lease liabilities63.957.965.1+10.3%
Other liabilities1,124831896+35.2%
Total liabilities and equity4,1843,7093,487+12.8%
Fixed assets563508445+10.8%
Goodwill521395416+31.8%
Intangible assets51.315.935.4+221.9%
Securities held for sale or to maturity97.1116132-16.3%
Cash and equivalents294553758-46.9%
Receivables787471422+66.9%
Inventory380298310+27.2%
Other assets1,4911,350968+10.4%
Total assets4,1843,7093,487+12.8%

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