Summary
Teradyne, Inc. (TER) reported total revenues of $651.8 million 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 million, 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.
Financial Highlights
53 data points| Revenue | $651.80M |
| Cost of Revenue | $278.79M |
| Gross Profit | $373.01M |
| SG&A Expenses | $157.78M |
| Operating Expenses | $282.27M |
| Operating Income | $90.74M |
| Interest Expense | $805K |
| Net Income | $78.37M |
| EPS (Basic) | $0.49 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 159.97M |
| Shares Outstanding (Diluted) | 160.13M |
Key Highlights
- 1Total 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.
- 2Net 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.
- 3Gross 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.
- 4The 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.
- 5Operating 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.
- 6Cash 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.
- 7Teradyne 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.