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TERADYNE, INC 8-K Report, Financial Results (Jul 30, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 30, 2025
Period End
July 29, 2025
Security
TER
In the record · 2016–202610-K1110-Q328-K91

TER filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 91 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jun ’17Jun ’17
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Jun ’22Jun ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed July 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Teradyne reported second quarter 2025 revenue of $652 milliona, down from $730 million a year earlier and roughly flat with the $686 million reported in Q1 2025.

Semiconductor Test generated $492 millionb, Robotics $75 million, and Product Test $85 million. GAAP net income was $78.4 million, or $0.49 per diluted share, versus $1.14 a year ago. The prior-year figure included a $57.5 million gain on the sale of the Device Interface Solutions business to Technoprobe.

Non-GAAP EPS was $0.57c, compared with $0.86 in Q2 2024 and $0.75 in Q1 2025. Management said the Q2 results beat the midpoint of guidance, with Semiconductor Test, particularly System-on-a-Chip tied to AI, the main driver. For the third quarter of 2025, Teradyne guided to revenue of $710 million to $770 million, GAAP EPS of $0.62 to $0.80, and non-GAAP EPS of $0.69 to $0.87.

Management expects stronger second-half results driven by compute, networking, and memory demand, though it noted that the timing of program ramps and capacity additions remains uncertain. Gross margin fell to 57.2% on a GAAP basis from 60.6% in Q1, and restructuring charges dropped to $2.4 milliond from $14.5 million after a Robotics workforce reduction of about 150 employees in Q1. Capital allocation was active.

Teradyne repurchased $117 million of stock in Q2 and $275 million year to date, and paid a $0.12 quarterly dividend. Cash and cash equivalents fell to $339 million from $553 million at December 31, 2024, and goodwill rose to $520 million from $395 million, reflecting acquisitions totaling about $127 million in the quarter.

The equity method investment in Technoprobe increased to $545 million. Operating cash flow was $182 million in Q2 and $344 million for the first half.

02—Key points

Key Highlights

  1. Q2 2025 revenue was $652 million, down about 11% year over year from $730 million but above the midpoint of company guidance; Semiconductor Test contributed $492 million.
  2. GAAP EPS was $0.49 versus $1.14 a year ago, which included a $57.5 million gain on the DIS divestiture; non-GAAP EPS was $0.57 versus $0.86.
  3. Q3 2025 guidance calls for revenue of $710 million to $770 million and non-GAAP EPS of $0.69 to $0.87, with management pointing to a stronger second half led by AI-related demand.
  4. GAAP gross margin declined to 57.2% from 60.6% in Q1 2025, while restructuring charges fell to $2.4 million from $14.5 million.
  5. Teradyne repurchased $117 million of stock in Q2 ($275 million year to date) and paid a $0.12 quarterly dividend.
  6. Cash and cash equivalents fell to $339 million from $553 million at year-end 2024, while acquisitions and the Technoprobe equity investment increased the balance sheet footprint (goodwill $520 million, equity method investment $545 million).
  7. Robotics revenue of $75 million was weak, and the segment underwent a restructuring affecting about 150 employees in Q1 2025.

03—Questions

Frequently Asked Questions

  1. Why did GAAP EPS drop so sharply compared with last year?

    The year-ago GAAP results included a $57.5 million pre-tax gain on the sale of the Device Interface Solutions business to Technoprobe, which lifted Q2 2024 GAAP EPS to $1.14. Excluding that gain and other adjustments, Q2 2025 non-GAAP EPS of $0.57 compares with $0.86 a year earlier, reflecting lower revenue and gross margin.

  2. What is the outlook for the third quarter and the rest of 2025?

    Teradyne guided Q3 2025 revenue to $710 million to $770 million, with GAAP EPS of $0.62 to $0.80 and non-GAAP EPS of $0.69 to $0.87. Management said visibility has improved and that AI-related demand in compute, networking, and memory should drive stronger second-half performance, while cautioning that the timing of customer program ramps and capacity additions is uncertain.

  3. How much cash does Teradyne have, and how is it returning capital?

    Cash and cash equivalents were $339 million at June 29, 2025, down from $553 million at year-end 2024, and marketable securities totaled about $149 million (current and long-term). In the first half, Teradyne repurchased $275 million of common stock and paid $39 million in dividends, funded in part by $344 million of operating cash flow. Cash also went toward acquisitions of about $144 million year to date.

  4. Are there any signs of margin pressure or restructuring?

    GAAP gross margin declined to 57.2% in Q2 from 60.6% in Q1 2025, and was 58.3% a year earlier. Restructuring and other charges were $2.4 million in Q2, down from $14.5 million in Q1, which included employee severance tied to Robotics restructuring affecting about 150 employees. Operating expenses rose modestly, with engineering and development spending of $118 million.

04—Continue

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