TERADYNE, INC Annual Report, Year Ended Dec 31, 2025

Teradyne, Inc. reported strong performance in its 2025 fiscal year, with notable growth in its Semiconductor Test segment driven by increasing demand for Artificial Intelligence (AI) applications. This segment's strategic pivot towards AI-related semiconductor testing proved successful, with AI customer demand dominating the latter half of the year and expected to continue into 2026. The Product Test segment also saw revenue growth, primarily fueled by strength in defense and aerospace applications. While the Robotics segment experienced a year-over-year revenue decline, it demonstrated sequential revenue growth for the third consecutive quarter, indicating a positive trend supported by strategic partnerships and cost reduction efforts. Teradyne continued its proactive acquisition strategy in 2025, acquiring Quantifi Photonics for PIC test solutions and Infineon's AET technology for its Semiconductor Test segment, both aimed at enhancing product offerings and market position. The company also announced a joint venture with MultiLane to target the AI Data Center equipment market. Financially, Teradyne managed its capital effectively, returning significant value to shareholders through share repurchases and dividends, while also maintaining a strong liquidity position supported by its credit facility. Despite some headwinds, such as the strengthening U.S. dollar impacting Robotics revenue and ongoing global trade complexities, the company's focus on high-growth areas like AI positions it well for continued expansion.