Key Takeaways
- • Teradyne stock surged 311.6% over the past year, driven by strong semiconductor test segment demand and AI-related tailwinds in the automated test equipment market.
- • The stock trades at $356.55 (as of May 14, 2026) with a market capitalization of $55.8 billion, reflecting a trailing P/E ratio of 66.27 and forward P/E of 51.02, indicating substantial valuation premium relative to historical levels.
- • JP Morgan upgraded Teradyne to "Overweight" on April 30, 2026, maintaining a $400 price target, signaling analyst confidence in earnings trajectory and growth prospects.
- • Teradyne reported trailing twelve-month (TTM) revenue of $3.79 billion with net income of $854.06 million, delivering diluted EPS of $5.38 and a robust 22.55% profit margin, demonstrating strong operational execution.
- • The company's return on equity stands at 28.75% (TTM) with return on assets of 15.84%, indicating efficient capital deployment and shareholder value creation despite elevated valuation multiples.
Summary
Teradyne, Inc. (NASDAQ: TER, ISIN: US8807701029), a global supplier of automated test equipment and robotics solutions, continues to attract institutional investor interest following exceptional stock performance and sustained earnings strength. The semiconductor test equipment specialist has delivered remarkable returns, with shares appreciating 311.6% over the past twelve months as of May 15, 2026, reflecting robust demand dynamics across the semiconductor testing and AI infrastructure segments.
As of May 14, 2026, Teradyne traded at $356.55 per share with an intraday market capitalization of $55.8 billion. The stock's 52-week range of $75.99 to $422.11 underscores the significant volatility and upward trajectory within the valuation expansion cycle. The company's valuation metrics reflect this premium positioning: a trailing P/E of 66.27, forward P/E of 51.02, and price-to-sales ratio of 15.07. While elevated by historical standards, the PEG ratio of 1.42 (based on five-year expected growth) suggests the valuation remains partially justified by forward earnings growth expectations.
Teradyne's financial performance demonstrates operational strength supporting the valuation premium. The company generated $3.79 billion in trailing twelve-month revenue with net income attributable to common shareholders of $854.06 million, yielding diluted EPS of $5.38. The 22.55% profit margin reflects strong pricing power and operational leverage in the automated test equipment market. Return on equity of 28.75% and return on assets of 15.84% indicate efficient capital allocation and improved profitability compared to earlier periods. The company maintains a quarterly dividend of $0.13 per share with an ex-dividend date of May 21, 2026.
Analyst support remains constructive. JP Morgan issued an upgrade to "Overweight" on April 30, 2026, maintaining a $400 price target, providing near-term upside potential from May levels and reinforcing institutional confidence in the company's growth trajectory. The analyst action reflects conviction in Teradyne's positioning within the semiconductor testing ecosystem and anticipated benefits from continued AI infrastructure buildout and semiconductor manufacturing capacity expansion globally.
As of May 14, 2026, Teradyne traded at $356.55 per share with an intraday market capitalization of $55.8 billion. The stock's 52-week range of $75.99 to $422.11 underscores the significant volatility and upward trajectory within the valuation expansion cycle. The company's valuation metrics reflect this premium positioning: a trailing P/E of 66.27, forward P/E of 51.02, and price-to-sales ratio of 15.07. While elevated by historical standards, the PEG ratio of 1.42 (based on five-year expected growth) suggests the valuation remains partially justified by forward earnings growth expectations.
Teradyne's financial performance demonstrates operational strength supporting the valuation premium. The company generated $3.79 billion in trailing twelve-month revenue with net income attributable to common shareholders of $854.06 million, yielding diluted EPS of $5.38. The 22.55% profit margin reflects strong pricing power and operational leverage in the automated test equipment market. Return on equity of 28.75% and return on assets of 15.84% indicate efficient capital allocation and improved profitability compared to earlier periods. The company maintains a quarterly dividend of $0.13 per share with an ex-dividend date of May 21, 2026.
Analyst support remains constructive. JP Morgan issued an upgrade to "Overweight" on April 30, 2026, maintaining a $400 price target, providing near-term upside potential from May levels and reinforcing institutional confidence in the company's growth trajectory. The analyst action reflects conviction in Teradyne's positioning within the semiconductor testing ecosystem and anticipated benefits from continued AI infrastructure buildout and semiconductor manufacturing capacity expansion globally.
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