01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Significant revenue growth in the Semiconductor Test segment (18.8% increase) driven by AI applications.
- Product Test segment achieved revenue growth of 8.1%, bolstered by defense and aerospace demand.
- Robotics segment showed sequential revenue growth for the third consecutive quarter, indicating recovery and strategic progress.
- Acquisition of Quantifi Photonics for $127.2 million to bolster PIC test solutions.
- Acquisition of Infineon's AET technology for $18.3 million to strengthen Semiconductor Test capabilities.
- Announcement of a joint venture with MultiLane (MLTP) to address the AI Data Center market.
- Return of approximately $778.4 million to shareholders in 2025 through share buybacks ($702.1M) and dividends ($76.3M).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Teradyne, Inc kept $0.17.
- Revenue$3.19B100.0%
- Cost of revenue−$1.33B41.8%
- Gross profit$1.86B58.2%
- Operating costs−$1.21B37.8%
- Operating income$650.1M20.4%
- Interest, other & tax−$96.0M3.0%
- Net income$554.0M17.4%
Where FY2025 revenue went
$3.19B- Cost of revenue: $1.33B, 42% of revenue
- SG&A: $648.9M, 20% of revenue
- Other operating costs: $558.4M, 18% of revenue
- Net income: $554.0M, 17% of revenue
- Interest, other & tax: $96.0M, 3.0% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $3.19B$2.82B | +13.1% |
| Cost of Revenue | $1.33B$1.17B | +13.8% |
| Gross Profit | $1.86B$1.65B | +12.6% |
| SG&A Expenses | $648.87M$617.05M | +5.2% |
| Operating Expenses | $1.21B$1.06B | +14.4% |
| Operating Income | $650.05M$593.79M | +9.5% |
| Interest Expense | $6.85M$3.59M | +90.9% |
| Net Income | $554.05M$542.37M | +2.2% |
| EPS (Basic) | $3.48$3.41 | +2.1% |
| EPS (Diluted) | $3.47$3.32 | +4.5% |
| Shares Outstanding (Basic) | 159.12M159.08M | 0.0% |
| Shares Outstanding (Diluted) | 159.72M163.31M | −2.2% |
05—Questions
Frequently Asked Questions
What was the main driver of growth for Teradyne in 2025?
The primary driver of Teradyne's growth in 2025 was its Semiconductor Test segment, which saw a significant increase in revenue driven by robust demand from Artificial Intelligence (AI) applications, particularly in networking and vertically integrated producer compute solutions.
How did the Robotics segment perform in 2025, and what is the outlook?
The Robotics segment experienced a revenue decrease of 15.5% in 2025 compared to 2024. However, it achieved its third consecutive quarter of sequential revenue growth in Q4 2025, signaling a positive turnaround. The company focused on strategic partnerships and cost reductions within this segment to improve its future positioning.
What strategic acquisitions or partnerships did Teradyne undertake in 2025 or early 2026?
In 2025, Teradyne acquired Quantifi Photonics for $127.2 million to enhance its Product Test segment, specifically in PIC test solutions, and also acquired Infineon Technologies AG's automated test equipment technology (AET) for $18.3 million to bolster its Semiconductor Test segment. In early 2026, Teradyne announced an agreement to form a joint venture with MultiLane (MLTP) to target the AI Data Center equipment market.
How did Teradyne return capital to shareholders in 2025?
In 2025, Teradyne returned approximately $778.4 million to shareholders, consisting of $702.1 million through share repurchases and $76.3 million in dividend payments.
06—Continue