Teradyne (TER) FY2025 10-K Annual Report

Filed: Feb 19, 2026
Health Care
Instruments For Meas & Testing of Electricity & Elec SignalsSEC EDGAR

Teradyne (TER) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Teradyne FY2025 10-K Analysis

Business Overview

  • Core business: Provider of automated test equipment and robotics for semiconductors, wireless, storage, photonics, aerospace, and industrial sectors
  • New segment: Creation of Product Test division in Q1 2025 combining board test, defense/aerospace, and wireless test businesses
  • Strategic shift: Increased focus on AI-driven semiconductor testing with majority AI-related revenue in H2 2025, expected to continue in 2026
  • Notable metric: $157M investment for 75% ownership in MultiLane joint venture targeting AI data center test solutions
  • Unusual fact: Acquisitions of Quantifi Photonics ($127.2M) and Infineon’s automated test tech ($18.3M) expanding Product Test and Semiconductor Test segments

Management Discussion & Analysis

  • Revenue growth in 2025 driven by Semiconductor Test and Product Test segments; Semiconductor Test led by AI demand and VIP compute solutions
  • Acquisitions: Quantifi Photonics $127.2M (Product Test), Infineon AET $18.3M (Semiconductor Test)
  • Robotics segment showed sequential Q4 2025 growth but impacted by strong USD on foreign currency revenues
  • Capital allocation: $778.4M returned to shareholders via $702.1M share buybacks and $76.3M dividends in 2025
  • Joint venture formation with MultiLane with $157M investment planned for 2026 to target AI Data Center test market

Risk Factors

  • Regulatory risk from the One Big Beautiful Bill Act (OBBBA, P.L. 119-21) enacted July 4, 2025, impacting U.S. federal income tax with no material 2025 impact reported
  • Geopolitical risk from high revenue concentration in Taiwan (36% of total revenues in 2025, up from 21% in 2024) and Korea (14%, down from 25%)
  • Supply chain risk from inventory provisions of $25.8M in 2025, with $151.8M total reserves for excess and obsolete inventory as of year-end
  • Competitive risk from Robotics segment revenue decline by $56.5M (15.5%) in 2025 due to lower sales of collaborative robotic arms and autonomous mobile robots
  • Financial risk from concentrated customer base with top five customers accounting for 44% of consolidated revenues in 2025, up from 36% in 2024

Teradyne FY2025 Key Financial Metrics
XBRL

Revenue

$3.2B

+13.1% YoY

Net Income

$554M

+2.2% YoY

Gross Margin

58.2%

-25bp YoY

Operating Margin

20.4%

-68bp YoY

Net Margin

17.4%

-187bp YoY

ROE

19.8%

+58bp YoY

Total Assets

$4.2B

+12.8% YoY

EPS (Diluted)

$3.47

+4.5% YoY

Operating Cash Flow

$674M

+0.3% YoY

Source: XBRL data from Teradyne FY2025 10-K filing on SEC EDGAR. All figures in USD.

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