Teradyne
TER · NasdaqInstruments For Meas & Testing of Electricity & Elec Signals · Fiscal year ends Dec 31
Teradyne reported revenue of $3.2B in the fiscal year ended Dec 2025, up 13.1% from the year before. Operating income was $650M, an operating margin of 20.4%, and net income was $554M. Operating cash flow of $674M less capital expenditure of $224M left free cash flow of $450M.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $3.7B | $3.2B | $2.7B | $2.8B | $3.2B |
| Cost of revenue | $1.5B | $1.3B | $1.1B | $1.2B | $1.3B |
| Gross profit | $2.2B | $1.9B | $1.5B | $1.6B | $1.9B |
| Selling, general & admin | $548M | $558M | $577M | $617M | $649M |
| Operating income | $1.2B | $832M | $501M | $594M | $650M |
| Interest expense | $18M | $4M | $4M | $4M | $7M |
| Pre-tax income | $1.2B | $840M | $526M | $609M | $653M |
| Income tax | $146M | $125M | $77M | $60M | $79M |
| Net income | $1B | $716M | $449M | $542M | $554M |
| Diluted EPS | 5.53 | 4.22 | 2.73 | 3.32 | 3.47 |
| Diluted shares | 184M | 170M | 164M | 163M | 160M |
Balance sheet
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $1.1B | $855M | $758M | $553M | $294M |
| Receivables | $551M | $491M | $422M | $471M | $787M |
| Inventory | $243M | $325M | $310M | $298M | $380M |
| Current assets | $2.6B | $2.3B | $2.2B | $1.8B | $1.9B |
| Net PP&E | $387M | $419M | $445M | $508M | $563M |
| Goodwill | $426M | $403M | $416M | $395M | $521M |
| Total assets | $3.8B | $3.5B | $3.5B | $3.7B | $4.2B |
| Payables | $153M | $140M | $180M | $135M | $269M |
| Current liabilities | $805M | $746M | $660M | $625M | $1.1B |
| Short-term debt | – | – | – | – | $200M |
| Total liabilities | $1.2B | $1B | $961M | $889M | $1.4B |
| Shareholders' equity | $2.6B | $2.5B | $2.5B | $2.8B | $2.8B |
| Backlog (remaining obligations) | $1.3B | $1.2B | $1.1B | $1.2B | $101M |
Cash flow
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $1.1B | $578M | $585M | $672M | $674M |
| Capital expenditure | $132M | $163M | $160M | $198M | $224M |
| Free cash flow | $966M | $415M | $426M | $474M | $450M |
| Depreciation & amortisation | $125M | $111M | $111M | $120M | $128M |
| Stock-based compensation | $46M | $48M | $58M | $60M | $64M |
| Acquisitions | $12M | $0 | $0 | $0 | $144M |
| Share buybacks | $600M | $752M | $397M | $199M | $702M |
| Dividends paid | $66M | $70M | $68M | $76M | $76M |
| Dividend per share | 0.40 | 0.44 | 0.44 | 0.48 | 0.48 |
Key ratios
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | −14.8% | −15.2% | 5.4% | 13.1% |
| Operating income growth (YoY) | – | −30.7% | −39.8% | 18.5% | 9.5% |
| EPS growth (YoY) | – | −23.7% | −35.3% | 21.6% | 4.5% |
| Gross margin | 59.6% | 59.2% | 57.4% | 58.5% | 58.2% |
| Operating margin | 32.4% | 26.4% | 18.7% | 21.1% | 20.4% |
| Net margin | 27.4% | 22.7% | 16.8% | 19.2% | 17.4% |
| Return on equityBlank when equity is negative | 39.6% | 29.2% | 17.8% | 19.2% | 19.8% |
| ROCEEBIT ÷ (assets − current liabilities) | 40.0% | 30.2% | 17.7% | 19.3% | 21.2% |
| Free cash flow margin | 26.1% | 13.1% | 15.9% | 16.8% | 14.1% |
| Cash conversion (CFO ÷ net income) | 1.08x | 0.81x | 1.30x | 1.24x | 1.22x |
| Receivable days | 54 | 57 | 58 | 61 | 90 |
| Inventory days | 59 | 92 | 99 | 93 | 104 |
| Payable days | 37 | 40 | 58 | 42 | 74 |
| Interest cover | 67.4x | 224x | 132x | 166x | 95.0x |
| Current ratio | 3.20x | 3.03x | 3.28x | 2.91x | 1.75x |
Recent filings
More in Instruments For Meas & Testing Of Electricity & Elec Signals
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.