01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Teradyne, Inc. (TER) reported total revenues of $651.8 milliona for the three months ended June 29, 2025, a decrease of 10.4% compared to $729.9 million in the prior year period.
The decrease was primarily driven by lower sales in the Semiconductor Test and Robotics segments. Despite the revenue decline, gross profit remained relatively strong at 57.2% of revenue, though down from 58.3% in the prior year. Net income for the quarter was $78.4 millionb, or $0.49 per diluted share, a significant decrease from $186.3 million, or $1.14 per diluted share, in the same period last year.
This decline was impacted by lower revenues, increased operating expenses (particularly in Selling & Administrative and Engineering & Development), and the absence of a significant gain on sale of business recorded in the prior year. The company also completed two acquisitions in the first half of 2025, Quantifi Photonics and Infineon's AET technology, which are expected to bolster future growth in Product Test and Semiconductor Test segments, respectively. Teradyne continues to execute its capital allocation strategy with share repurchases and dividends.
02—Key points
Key Highlights
- Total revenues decreased by 10.4% year-over-year to $651.8 million for the three months ended June 29, 2025, primarily due to lower sales in Semiconductor Test and Robotics segments.
- Net income declined substantially to $78.4 million ($0.49/share) from $186.3 million ($1.14/share) in the prior year's quarter, impacted by lower revenues and increased operating expenses.
- Gross profit margin was 57.2%, a slight decrease from 58.3% in the prior year, attributed to lower volumes and margin declines in the Robotics segment.
- The company completed two strategic acquisitions in the first half of 2025: Quantifi Photonics for $127.2 million and Infineon's AET technology for $18.3 million, to enhance its offerings in PIC test solutions and Semiconductor Test.
- Operating expenses increased, with Selling & Administrative expenses up 2.1% and Engineering & Development expenses up 5.9% year-over-year, driven by investments in Semiconductor Test.
- Cash provided by operating activities was $343.7 million for the six months ended June 29, 2025, demonstrating strong operational cash flow generation despite reduced profitability.
- Teradyne repurchased $274.9 million of its common stock and paid $38.6 million in dividends during the first six months of 2025, underscoring its commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Teradyne, Inc kept $0.12.
- Revenue$651.8M100.0%
- Cost of revenue−$278.8M42.8%
- Gross profit$373.0M57.2%
- Operating costs−$282.3M43.3%
- Operating income$90.7M13.9%
- Interest, other & tax−$12.4M1.9%
- Net income$78.4M12.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $651.80M$729.88M | −10.7% |
| Cost of Revenue | $278.79M$304.04M | −8.3% |
| Gross Profit | $373.01M$425.84M | −12.4% |
| SG&A Expenses | $157.78M$154.47M | +2.1% |
| Operating Expenses | $282.27M$215.48M | +31.0% |
| Operating Income | $90.74M$210.37M | −56.9% |
| Interest Expense | $805K$1.53M | −47.4% |
| Net Income | $78.37M$186.27M | −57.9% |
| EPS (Basic) | $0.49$1.18 | −58.5% |
| EPS (Diluted) | $0.49$1.14 | −57.0% |
| Shares Outstanding (Basic) | 159.97M157.80M | +1.4% |
| Shares Outstanding (Diluted) | 160.13M163.47M | −2.0% |
05—Questions
Frequently Asked Questions
What is the primary driver for the decrease in revenue compared to the prior year?
The primary driver for the revenue decrease of 10.4% to $651.8 million in the three months ended June 29, 2025, was lower sales in the Semiconductor Test segment (down $68.0 million, primarily due to memory applications) and the Robotics segment (down $15.3 million, due to lower sales of collaborative robotic arms amid market weakness).
How did the acquisitions of Quantifi Photonics and AET impact the financial results?
The acquisitions of Quantifi Photonics ($127.2 million) and Infineon's AET technology ($18.3 million) were completed in the first half of 2025. While their financial impact on the current quarter's results was not material enough to be separately disclosed as pro forma information, they are expected to enhance Teradyne's product offerings in PIC test solutions and Semiconductor Test, positioning the company for future growth.
What is the company's outlook for the Semiconductor Test segment?
Teradyne sees strengthening demand in the Semiconductor Test segment for the second half of the year, specifically in AI Compute, networking, and memory applications. This positive outlook is supporting revenue growth in this segment for the six months ended June 29, 2025, which increased by 4.0% to $1,034.4 million.
How is the Robotics segment performing, and what is the strategy to address its challenges?
The Robotics segment experienced a revenue decline of 17.0% to $74.9 million for the quarter, impacted by ongoing macroeconomic challenges and leadership changes. This segment recorded a quarterly loss. Teradyne is focused on its channel transformation strategy to serve large direct customers and is cautiously managing operating expenses with the aim of achieving profitability in the mid-term.
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