Teradyne Stock: Analyst Estimates & Ratings
Valued at a market cap of $41.5 billion, Teradyne, Inc. (TER) is an American technology company headquartered in North Reading, Massachusetts, specializing in automated test equipment and advanced robotics solutions. The company designs, develops, and manufactures systems used to test semiconductors, wireless products, data storage devices, and other complex electronic components, helping manufacturers ensure product quality, reliability, and performance.
Teradyne has delivered a staggering run over the past year, with TER shares soaring 47.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.8%. The stock has declined 26.4% over the past six months, handily outpacing the index’s 2.6% advance.
Narrowing the focus, TER has also outpaced the State Street Technology Select Sector SPDR ETF’s (XLK) 18.2% rise over the past 52 weeks and marginal drop over the past six weeks.
On Oct. 27, Teradyne delivered a strong third-quarter 2026 performance, significantly exceeding its guidance as accelerating AI-related demand drove growth across semiconductor testing, product testing, and robotics. Revenue surged 69.8% year over year to $1.31 billion, while adjusted EPS jumped 169.4% to $2.29 from $0.85, exceeding the high end of management's guidance. Gross profit rose 71.7% to $771.28 million, with gross margin improving to 59.1% from 58.5%. Investors were impressed, and sent the shares up 4.8%.
For the current fiscal year, ending in December, analysts expect TER’s EPS to grow 137.6% year over year to $9.41. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 12 “Strong Buy,” one "Moderate Buy,” and four “Hold” ratings.
The consensus is bullish than a month ago when the stock had an overall “Moderate Buy” rating.
On Nov. 10, Jefferies initiated coverage of Teradyne with a “Buy” rating and a $284 price target, citing the company's growing exposure to AI-driven semiconductor testing. Analyst Dushyant Ailani noted that Teradyne's business has evolved from its traditional strength in mobile chip testing into an increasingly important AI computing testing opportunity.
The mean price target of $408 suggests a 54.7% premium to its current price levels, while its Street-high price target of $550 implies a 108.5% potential upside.
On the date of publication, Kritika Sarmah did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.