Teradyne (TER)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$357.03+5.45%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Revenue grows to about $1.2 billion next quarter: Q3 FY26 rev guidance $1.25B vs $1.2B target; Q2 actual $1.33B.
Teradyne's sales nearly doubled from $686M to $1.28B in one year. Profit grew from $121M to $473M in the same period. New contracts and partnerships support future sales growth. The company beats earnings estimates consistently.
The stock fell 29% from its high recently. Profit margins may weaken if costs rise. Growth could slow if demand for test equipment drops.
The price is about 19% above our fair value near $291. Analysts expect 29% revenue growth, which is priced in. Our fair value is below the Street median, so the market may be optimistic.
Breaks if: Gross profit falls below $600M next quarter
Breaks if: Operating income falls below $350M next quarter
Breaks if: Revenue falls below ~$1.0B next quarter
Focus on growing revenue through strategic initiatives and market expansion.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth driven by AI demand. The current thesis state is stable, as recent performance has been strong, although there are some risks to monitor.
The market currently prices TER at a premium compared to peers, reflecting expectations for continued growth. However, there is a slight expectations gap, indicating that the market may not fully account for potential volatility in execution quality.
Fundamentals are likely to show continued revenue growth, particularly from AI-related demand, and improved margins. However, there is a low probability of missing earnings expectations, though recent trends suggest that earnings surprises may be declining.
The thesis hinges on management's ability to maintain revenue growth and margin improvement, as well as external factors like Fed interest rate decisions and performance of sector leaders. Any guidance cuts could negatively impact sentiment.
Overall, TER's position is supported by strong fundamentals and a clear growth strategy, but it faces risks that could affect its trajectory. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the positive outlook. Strong demand for AI-related solutions reinforces revenue growth expectations. This aligns with the company's growth thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.