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Teradyne Reports Second Quarter 2025 Results

  • Revenue and earnings above mid-point of Q2 guidance ranges
  • Semiconductor Test drove better than expected results in Q2
  • Strength in Compute expected to drive stronger second half results

Teradyne, Inc. (NASDAQ:TER):

 

Q2'25

 

 

Q2'24

 

 

Q1'25

 

Revenue (mil)

 

$

652

 

 

$

730

 

 

$

686

 

GAAP EPS

 

$

0.49

 

 

$

1.14

 

 

$

0.61

 

Non-GAAP EPS

 

$

0.57

 

 

$

0.86

 

 

$

0.75

 

Teradyne, Inc. (NASDAQ: TER) reported revenue of $652 million for the second quarter of 2025 of which $492 million was in Semiconductor Test, $75 million in Robotics, and $85 million in Product Test. GAAP net income for the second quarter of 2025 was $78.4 million, or $0.49 per diluted share. On a non-GAAP basis, Teradyne’s net income for the second quarter of 2025 was $91.6 million, or $0.57 per diluted share, which excluded acquired intangible asset amortization, restructuring and other charges, and included the related tax impact on non-GAAP adjustment.

“Our Semiconductor Test Group drove better than expected results in the second quarter. System-on-a-Chip (SOC), primarily for artificial intelligence applications, was the strongest growth driver,” said Teradyne CEO, Greg Smith. “Visibility into the remainder of the year has improved, and demand in compute, networking and memory is strengthening. The exact timing of program ramps and capacity adds remain uncertain, but we believe that AI will drive strong second half performance for Teradyne."

Guidance for the third quarter of 2025 is revenue of $710 million to $770 million, with GAAP net income of $0.62 to $0.80 per diluted share and non-GAAP net income of $0.69 to $0.87 per diluted share. Non-GAAP guidance excludes acquired intangible asset amortization and amortization on our investment in Technoprobe, as well as the related tax impact on non-GAAP adjustments.

Webcast

A conference call to discuss the second quarter results, along with management’s business outlook, will follow at 8:30 a.m. ET, July 30, 2025. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins. Presentation materials will be available starting at 7:30 a.m. ET. A replay will be available on the Teradyne website at www.teradyne.com/investors.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP net income exclude acquired intangible assets amortization, restructuring and other, ERP related expenses, inventory step-up, pension mark-to-market adjustment, discrete income tax adjustments, and includes the related tax impact on non-GAAP adjustments. GAAP requires that these items be included in determining income from operations and net income. Non-GAAP income from operations, non-GAAP net income, non-GAAP income from operations as a percentage of revenue, non-GAAP net income as a percentage of revenue, and non-GAAP net income per share are non-GAAP performance measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investor Relations” and then selecting “Financials” and the “GAAP to Non-GAAP Reconciliation” link. The non-GAAP performance measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NASDAQ:TER) designs, develops, and manufactures automated test equipment and advanced robotics systems. Its test solutions for semiconductors and electronics products enable Teradyne's customers to consistently deliver on their quality standards. Its advanced robotics business includes collaborative robots and mobile robots that support manufacturing and warehouse operations for companies of all sizes. For more information, visit teradyne.com. Teradyne® is a registered trademark of Teradyne, Inc., in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this press release address various matters, including statements regarding Teradyne’s financial guidance. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which Teradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in Teradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or China; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the current conflicts in Israel; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China.

The risks included above are not exhaustive. For a more detailed description of the risk factors associated with Teradyne, please refer to Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Many of these factors are macroeconomic in nature and are, therefore, beyond Teradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. Teradyne specifically disclaims any obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2025

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 29,

2025

 

 

March 30,

2025

 

 

June 30,

2024

 

 

June 29,

2025

 

 

June 30,

2024

 

Net revenues

 

$

651,797

 

 

$

685,680

 

 

$

729,879

 

 

$

1,337,477

 

 

$

1,329,698

 

Cost of revenues (exclusive of acquired intangible assets amortization shown separately below) (1)

 

 

278,785

 

 

 

270,344

 

 

 

304,035

 

 

 

549,128

 

 

 

564,572

 

Gross profit

 

 

373,012

 

 

 

415,336

 

 

 

425,844

 

 

 

788,349

 

 

 

765,126

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative (2)

 

 

157,782

 

 

 

157,257

 

 

 

154,470

 

 

 

315,039

 

 

 

303,658

 

Engineering and development

 

 

118,382

 

 

 

118,188

 

 

 

111,816

 

 

 

236,570

 

 

 

215,015

 

Acquired intangible assets amortization

 

 

3,733

 

 

 

4,573

 

 

 

4,664

 

 

 

8,306

 

 

 

9,361

 

Restructuring and other (3)

 

 

2,372

 

 

 

14,515

 

 

 

2,012

 

 

 

16,887

 

 

 

6,440

 

Loss (gain) on sale of business (4)

 

 

 

 

 

 

 

 

(57,486

)

 

 

 

 

 

(57,486

)

Operating expenses

 

 

282,269

 

 

 

294,533

 

 

 

215,476

 

 

 

576,802

 

 

 

476,988

 

Income from operations

 

 

90,743

 

 

 

120,803

 

 

 

210,368

 

 

 

211,547

 

 

 

288,138

 

Interest and other (income) expense (5)

 

 

(5,816

)

 

 

1,779

 

 

 

(9,035

)

 

 

(4,037

)

 

 

(4,167

)

Income before income taxes

 

 

96,559

 

 

 

119,024

 

 

 

219,403

 

 

 

215,584

 

 

 

292,305

 

Income tax provision

 

 

12,260

 

 

 

14,544

 

 

 

33,130

 

 

 

26,804

 

 

 

41,835

 

Income before equity in net earnings of affiliate

 

$

84,299

 

 

$

104,480

 

 

$

186,273

 

 

$

188,780

 

 

$

250,470

 

Equity in net earnings of affiliate

 

 

(5,927

)

 

 

(5,584

)

 

 

 

 

 

(11,511

)

 

 

 

Net income

 

$

78,372

 

 

$

98,896

 

 

$

186,273

 

 

$

177,269

 

 

$

250,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.49

 

 

$

0.61

 

 

$

1.18

 

 

$

1.10

 

 

$

1.61

 

Diluted

 

$

0.49

 

 

$

0.61

 

 

$

1.14

 

 

$

1.10

 

 

$

1.54

 

Weighted average common shares - basic

 

 

159,967

 

 

 

161,501

 

 

 

157,804

 

 

 

160,734

 

 

 

155,426

 

Weighted average common shares - diluted (6)

 

 

160,135

 

 

 

161,996

 

 

 

163,470

 

 

 

161,065

 

 

 

162,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividend declared per common share

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

 

$

0.24

 

 

$

0.24

 

(1)

Cost of revenues includes:

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 29,

2025

 

 

March 30,

2025

 

 

June 30,

2024

 

 

June 29,

2025

 

 

June 30,

2024

 

Provision for excess and obsolete inventory

 

$

7,402

 

 

$

4,945

 

 

$

3,261

 

 

$

12,347

 

 

$

9,438

 

Inventory step-up

 

 

343

 

 

 

216

 

 

 

 

 

 

560

 

 

 

 

Sale of previously written down inventory

 

 

(1,105

)

 

 

(324

)

 

 

(592

)

 

 

(1,429

)

 

 

(1,314

)

 

 

$

6,640

 

 

$

4,837

 

 

$

2,669

 

 

$

11,478

 

 

$

8,124

 

(2)

For the quarters ended June 29, 2025, and March 31, 2025, selling and administrative expenses included $1.1 million and $0.7 million, respectively, of expenses directly related to a planned ERP system implementation. For the six months ended June 29, 2025, selling and administrative expenses included $1.8 million of expenses directly related to a planned ERP system implementation. For the six months ended June 30, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne executives' retirement agreements.

 

(3)

Restructuring and other consists of:

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 29,

2025

 

 

March 30,

2025

 

 

June 30,

2024

 

 

June 29,

2025

 

 

June 30,

2024

 

Employee severance (a)

 

$

2,320

 

 

$

11,395

 

 

$

2,012

 

 

$

13,715

 

 

$

4,038

 

Lease terminations

 

 

72

 

 

 

1,142

 

 

 

 

 

 

1,214

 

 

 

 

Acquisition and divestiture related expenses

 

 

(422

)

 

 

1,972

 

 

 

 

 

 

1,550

 

 

 

2,214

 

Other

 

 

402

 

 

 

6

 

 

 

 

 

 

408

 

 

 

187

 

 

 

$

2,372

 

 

$

14,515

 

 

$

2,012

 

 

$

16,887

 

 

$

6,440

 

(a)

For the three months ended March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees. For the six months ended June 29, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees.

(4)

On May 27, 2024, Teradyne sold Teradyne's Device Interface Solution ("DIS") business, a component of the Semiconductor Test segment, to Technoprobe S.p.A. ("Technoprobe"), for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

 

(5)

Interest and other includes:

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 29,

2025

 

 

March 30,

2025

 

 

June 30,

2024

 

 

June 29,

2025

 

 

June 30,

2024

 

Pension actuarial losses (gains)

 

$

127

 

 

$

 

 

$

(250

)

 

$

127

 

 

$

(250

)

Loss (gain) on foreign exchange contract

 

 

 

 

 

(561

)

 

 

(4,154

)

 

 

(561

)

 

 

9,765

 

(6)

Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarter ended June 30, 2024, diluted shares included 4.9 million shares from the convertible note hedge transaction. For the six months ended June 30, 2024, diluted shares included 6.9 million shares from the convertible note hedge transaction.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

 

 

 

June 29,

2025

 

 

December 31,

2024

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

339,252

 

 

$

553,354

 

Marketable securities

 

 

28,638

 

 

 

46,312

 

Accounts receivable, net

 

 

433,001

 

 

 

471,426

 

Inventories, net

 

 

350,505

 

 

 

298,492

 

Prepayments

 

 

412,981

 

 

 

429,086

 

Other current assets

 

 

19,230

 

 

 

17,727

 

Total current assets

 

 

1,583,607

 

 

 

1,816,397

 

Property, plant and equipment, net

 

 

559,813

 

 

 

508,171

 

Operating lease right-of-use assets, net

 

 

67,407

 

 

 

70,185

 

Marketable securities

 

 

120,684

 

 

 

124,121

 

Deferred tax assets

 

 

239,809

 

 

 

222,438

 

Retirement plans assets

 

 

11,922

 

 

 

11,994

 

Equity method investment

 

 

545,414

 

 

 

494,494

 

Other assets

 

 

54,503

 

 

 

49,620

 

Acquired intangible assets, net

 

 

58,233

 

 

 

15,927

 

Goodwill

 

 

520,470

 

 

 

395,367

 

Total assets

 

$

3,761,862

 

 

$

3,708,714

 

Liabilities

 

 

 

 

 

 

Accounts payable

 

$

172,025

 

 

$

134,792

 

Accrued employees’ compensation and withholdings

 

 

176,482

 

 

 

204,991

 

Deferred revenue and customer advances

 

 

123,989

 

 

 

107,710

 

Other accrued liabilities

 

 

110,143

 

 

 

90,777

 

Operating lease liabilities

 

 

19,770

 

 

 

18,699

 

Income taxes payable

 

 

72,856

 

 

 

67,610

 

Total current liabilities

 

 

675,265

 

 

 

624,579

 

Retirement plans liabilities

 

 

139,249

 

 

 

133,338

 

Long-term deferred revenue and customer advances

 

 

40,414

 

 

 

40,505

 

Deferred tax liabilities

 

 

6,756

 

 

 

1,038

 

Long-term other accrued liabilities

 

 

8,186

 

 

 

7,442

 

Long-term operating lease liabilities

 

 

54,691

 

 

 

57,922

 

Long-term income taxes payable

 

 

 

 

 

24,596

 

Total liabilities

 

 

924,561

 

 

 

889,420

 

Shareholders’ equity

 

 

2,837,301

 

 

 

2,819,294

 

Total liabilities and shareholders’ equity

 

$

3,761,862

 

 

$

3,708,714

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 29,

2025

 

 

June 30,

2024

 

 

June 29,

2025

 

 

June 30,

2024

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

78,372

 

 

$

186,273

 

 

$

177,269

 

 

$

250,470

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

27,312

 

 

 

25,573

 

 

 

52,835

 

 

 

48,927

 

Stock-based compensation

 

 

16,827

 

 

 

14,935

 

 

 

32,031

 

 

 

30,693

 

Equity in net earnings of affiliate

 

 

5,927

 

 

 

 

 

 

11,511

 

 

 

 

Amortization

 

 

4,077

 

 

 

4,631

 

 

 

8,856

 

 

 

9,397

 

Provision for excess and obsolete inventory

 

 

7,402

 

 

 

3,261

 

 

 

12,347

 

 

 

9,438

 

Losses (gains) on investments

 

 

(4,450

)

 

 

2,624

 

 

 

(1,078

)

 

 

13,090

 

Loss (gain) on sale of business

 

 

 

 

 

(57,486

)

 

 

 

 

 

(57,486

)

Deferred taxes

 

 

(7,187

)

 

 

(7,161

)

 

 

(14,998

)

 

 

(16,830

)

Retirement plan actuarial losses (gains)

 

 

127

 

 

 

(250

)

 

 

127

 

 

 

(250

)

Other

 

 

(317

)

 

 

453

 

 

 

3,168

 

 

 

1,240

 

Changes in operating assets and liabilities, net of businesses acquired:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

36,443

 

 

 

(46,156

)

 

 

49,496

 

 

 

(54,211

)

Inventories

 

 

7,342

 

 

 

24,034

 

 

 

(23,707

)

 

 

17,102

 

Prepayments and other assets

 

 

17,230

 

 

 

11,101

 

 

 

30,879

 

 

 

22,190

 

Accounts payable and other liabilities

 

 

27,085

 

 

 

52,539

 

 

 

17,135

 

 

 

(53,009

)

Deferred revenue and customer advances

 

 

2,857

 

 

 

4,183

 

 

 

13,056

 

 

 

2,739

 

Retirement plans contributions

 

 

(4,294

)

 

 

(1,353

)

 

 

(5,576

)

 

 

(2,774

)

Income taxes

 

 

(32,665

)

 

 

(1,132

)

 

 

(19,625

)

 

 

2,622

 

Net cash provided by operating activities

 

 

182,088

 

 

 

216,069

 

 

 

343,726

 

 

 

223,348

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(50,408

)

 

 

(44,846

)

 

 

(114,429

)

 

 

(88,869

)

Investments in businesses

 

 

(2,357

)

 

 

(524,653

)

 

 

(5,368

)

 

 

(524,653

)

Purchases of marketable securities

 

 

(6,396

)

 

 

(11,715

)

 

 

(17,150

)

 

 

(27,757

)

Acquisitions of businesses, net of cash and cash equivalents

 

 

(127,378

)

 

 

 

 

 

(144,380

)

 

 

 

Proceeds from the sale of a business, net of cash and cash equivalents sold

 

 

 

 

 

87,172

 

 

 

 

 

 

87,172

 

Proceeds from maturities of marketable securities

 

 

5,223

 

 

 

12,420

 

 

 

32,603

 

 

 

26,858

 

Proceeds from sales of marketable securities

 

 

2,854

 

 

 

555

 

 

 

8,487

 

 

 

21,289

 

Proceeds from life insurance

 

 

 

 

 

 

 

 

 

 

 

873

 

Net cash used for investing activities

 

 

(178,462

)

 

 

(481,067

)

 

 

(240,237

)

 

 

(505,087

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Payments of borrowings on revolving credit facility

 

 

 

 

 

(185,000

)

 

 

 

 

 

(185,000

)

Dividend payments

 

 

(19,177

)

 

 

(19,000

)

 

 

(38,584

)

 

 

(37,370

)

Repurchase of common stock

 

 

(117,398

)

 

 

(8,189

)

 

 

(274,873

)

 

 

(30,306

)

Payments related to net settlement of employee stock compensation awards

 

 

(229

)

 

 

(319

)

 

 

(14,954

)

 

 

(13,434

)

Proceeds from borrowings on revolving credit facility

 

 

 

 

 

185,000

 

 

 

 

 

 

185,000

 

Issuance of common stock under stock purchase and stock option plans

 

 

 

 

 

4,902

 

 

 

14,792

 

 

 

21,836

 

Net cash used for financing activities

 

 

(136,804

)

 

 

(22,606

)

 

 

(313,619

)

 

 

(59,274

)

Effects of exchange rate changes on cash and cash equivalents

 

 

(3,202

)

 

 

2,105

 

 

 

(3,972

)

 

 

5,346

 

Decrease in cash and cash equivalents

 

 

(136,380

)

 

 

(285,499

)

 

 

(214,102

)

 

 

(335,667

)

Cash and cash equivalents at beginning of period

 

 

475,632

 

 

 

707,403

 

 

 

553,354

 

 

 

757,571

 

Cash and cash equivalents at end of period

 

$

339,252

 

 

$

421,904

 

 

$

339,252

 

 

$

421,904

 

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)

 

 

Quarter Ended

 

 

 

 

 

 

June 29,

2025

 

 

% of Net Revenues

 

 

 

 

 

 

March 30,

2025

 

 

% of Net Revenues

 

 

 

 

 

 

June 30,

2024

 

 

% of Net Revenues

 

 

 

 

 

Net revenues

$

651.8

 

 

 

 

 

 

 

 

 

$

685.7

 

 

 

 

 

 

 

 

 

$

729.9

 

 

 

 

 

 

 

 

Gross profit GAAP

 

373.0

 

 

 

57.2

%

 

 

 

 

 

 

415.3

 

 

 

60.6

%

 

 

 

 

 

 

425.8

 

 

 

58.3

%

 

 

 

 

Inventory step-up

 

0.3

 

 

 

0.0

%

 

 

 

 

 

 

0.2

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit non-GAAP

 

373.3

 

 

 

57.3

%

 

 

 

 

 

 

415.5

 

 

 

60.6

%

 

 

 

 

 

 

425.8

 

 

 

58.3

%

 

 

 

 

Income from operations - GAAP

 

90.7

 

 

 

13.9

%

 

 

 

 

 

 

120.8

 

 

 

17.6

%

 

 

 

 

 

 

210.4

 

 

 

28.8

%

 

 

 

 

Acquired intangible assets amortization

 

3.7

 

 

 

0.6

%

 

 

 

 

 

 

4.6

 

 

 

0.7

%

 

 

 

 

 

 

4.7

 

 

 

0.6

%

 

 

 

 

Restructuring and other (1)

 

2.4

 

 

 

0.4

%

 

 

 

 

 

 

14.5

 

 

 

2.1

%

 

 

 

 

 

 

2.0

 

 

 

0.3

%

 

 

 

 

ERP related expenses (2)

 

1.1

 

 

 

0.2

%

 

 

 

 

 

 

0.7

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

 

0.3

 

 

 

0.0

%

 

 

 

 

 

 

0.2

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss (gain) on sale of business (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(57.5

)

 

 

-7.9

%

 

 

 

 

Income from operations - non-GAAP

$

98.2

 

 

 

15.1

%

 

 

 

 

 

$

140.8

 

 

 

20.5

%

 

 

 

 

 

$

159.6

 

 

 

21.9

%

 

 

 

 

 

 

 

 

 

 

 

Net Income

per Common Share

 

 

 

 

 

 

 

 

Net Income

per Common Share

 

 

 

 

 

 

 

 

Net Income

per Common Share

 

 

June 29,

2025

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

March 30,

2025

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

June 30,

2024

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

Net income - GAAP

$

78.4

 

 

 

12.0

%

 

$

0.49

 

 

$

0.49

 

 

$

98.9

 

 

 

14.4

%

 

$

0.61

 

 

$

0.61

 

 

$

186.3

 

 

 

25.5

%

 

$

1.18

 

 

$

1.14

 

Amortization of equity method investment

 

7.4

 

 

 

1.1

%

 

 

0.05

 

 

 

0.05

 

 

 

7.4

 

 

 

1.1

%

 

 

0.05

 

 

 

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired intangible assets amortization

 

3.7

 

 

 

0.6

%

 

 

0.02

 

 

 

0.02

 

 

 

4.6

 

 

 

0.7

%

 

 

0.03

 

 

 

0.03

 

 

 

4.7

 

 

 

0.6

%

 

 

0.03

 

 

 

0.03

 

Restructuring and other (1)

 

2.4

 

 

 

0.4

%

 

 

0.02

 

 

 

0.01

 

 

 

14.5

 

 

 

2.1

%

 

 

0.09

 

 

 

0.09

 

 

 

2.0

 

 

 

0.3

%

 

 

0.01

 

 

 

0.01

 

ERP related expenses (2)

 

1.1

 

 

 

0.2

%

 

 

0.01

 

 

 

0.01

 

 

 

0.7

 

 

 

0.1

%

 

 

0.00

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

 

0.3

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

0.2

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension mark-to-market adjustment (4)

 

0.1

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

0.0

%

 

 

(0.00

)

 

 

(0.00

)

Loss (gain) on sale of business (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(57.5

)

 

 

-7.9

%

 

 

(0.36

)

 

 

(0.35

)

Loss (gain) on foreign exchange contract

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.6

)

 

 

-0.1

%

 

 

(0.00

)

 

 

(0.00

)

 

 

(4.2

)

 

 

-0.6

%

 

 

(0.03

)

 

 

(0.03

)

Exclude discrete tax adjustments

 

0.0

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

0.9

 

 

 

0.1

%

 

 

0.01

 

 

 

0.01

 

 

 

10.5

 

 

 

1.4

%

 

 

0.07

 

 

 

0.06

 

Non-GAAP tax adjustments

 

(1.8

)

 

 

-0.3

%

 

 

(0.01

)

 

 

(0.01

)

 

 

(5.1

)

 

 

-0.7

%

 

 

(0.03

)

 

 

(0.03

)

 

 

(1.5

)

 

 

-0.2

%

 

 

(0.01

)

 

 

(0.01

)

Net income - non-GAAP

$

91.6

 

 

 

14.1

%

 

$

0.57

 

 

$

0.57

 

 

$

121.5

 

 

 

17.7

%

 

$

0.75

 

 

$

0.75

 

 

$

140.0

 

 

 

19.2

%

 

$

0.89

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted average common shares - basic

 

160.0

 

 

 

 

 

 

 

 

 

 

 

 

161.5

 

 

 

 

 

 

 

 

 

 

 

 

157.8

 

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted average common shares - diluted (5)

 

160.1

 

 

 

 

 

 

 

 

 

 

 

 

162.0

 

 

 

 

 

 

 

 

 

 

 

 

163.5

 

 

 

 

 

 

 

 

 

 

(1)

Restructuring and other consists of:

 

Quarter Ended

 

 

 

 

 

 

 

 

June 29,

2025

 

 

 

 

 

 

 

 

March 30,

2025

 

 

 

 

 

 

 

 

June 30,

2024

 

 

 

 

 

 

 

Employee severance (a)

$

2.3

 

 

 

 

 

 

 

 

$

11.4

 

 

 

 

 

 

 

 

$

2.0

 

 

 

 

 

 

 

Lease terminations

 

0.1

 

 

 

 

 

 

 

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and divestiture related expenses

 

(0.4

)

 

 

 

 

 

 

 

 

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.4

 

 

 

 

 

 

 

 

$

14.5

 

 

 

 

 

 

 

 

$

2.0

 

 

 

 

 

 

 

(a)

For the quarter ended March 30, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees.

(2)

For the quarters ended June 29, 2025, and March 30, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.

 

(3)

On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

 

(4)

For the quarters ended June 29, 2025, and June 30, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

 

(5)

For the quarters ended June 30, 2024, non-GAAP weighted average diluted common shares included 4.9 million shares from the convertible note hedge transaction.

 

Six Months Ended

 

 

 

 

 

 

June 29,

2025

 

 

% of Net Revenues

 

 

 

 

 

 

June 30,

2024

 

 

% of Net Revenues

 

 

 

 

 

Net Revenues

$

1,337.5

 

 

 

 

 

 

 

 

 

$

1,329.7

 

 

 

 

 

 

 

 

Gross profit GAAP

 

788.3

 

 

 

58.9

%

 

 

 

 

 

 

765.1

 

 

 

57.5

%

 

 

 

 

Inventory step-up

 

0.6

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit non-GAAP

 

788.9

 

 

 

59.0

%

 

 

 

 

 

 

765.1

 

 

 

57.5

%

 

 

 

 

Income from operations - GAAP

 

211.5

 

 

 

15.8

%

 

 

 

 

 

 

288.1

 

 

 

21.7

%

 

 

 

 

Restructuring and other (1)

 

16.9

 

 

 

1.3

%

 

 

 

 

 

 

6.4

 

 

 

0.5

%

 

 

 

 

Acquired intangible assets amortization

 

8.3

 

 

 

0.6

%

 

 

 

 

 

 

9.4

 

 

 

0.7

%

 

 

 

 

ERP related expenses (2)

 

1.8

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

 

0.6

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity modification charge (3)

 

 

 

 

 

 

 

 

 

 

 

1.7

 

 

 

0.1

%

 

 

 

 

Loss (gain) on sale of business (4)

 

 

 

 

 

 

 

 

 

 

 

(57.5

)

 

 

-4.3

%

 

 

 

 

Income from operations - non-GAAP

$

239.1

 

 

 

17.9

%

 

 

 

 

 

$

248.1

 

 

 

18.7

%

 

 

 

 

 

 

 

 

 

 

 

Net Income

per Common Share

 

 

 

 

 

 

 

 

Net Income

per Common Share

 

 

June 29,

2025

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

 

June 30,

2024

 

 

% of Net Revenues

 

 

Basic

 

 

Diluted

 

Net income - GAAP

$

177.3

 

 

 

13.3

%

 

$

1.10

 

 

$

1.10

 

 

$

250.5

 

 

 

18.8

%

 

$

1.61

 

 

$

1.54

 

Restructuring and other (1)

 

16.9

 

 

 

1.3

%

 

 

0.11

 

 

 

0.10

 

 

 

6.4

 

 

 

0.5

%

 

 

0.04

 

 

 

0.04

 

Amortization of equity method investment

 

14.8

 

 

 

1.1

%

 

 

0.09

 

 

 

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired intangible assets amortization

 

8.3

 

 

 

0.6

%

 

 

0.05

 

 

 

0.05

 

 

 

9.4

 

 

 

0.7

%

 

 

0.06

 

 

 

0.06

 

ERP related expenses (2)

 

1.8

 

 

 

0.1

%

 

 

0.01

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory step-up

 

0.6

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension mark-to-market adjustment (5)

 

0.1

 

 

 

0.0

%

 

 

0.00

 

 

 

0.00

 

 

 

(0.3

)

 

 

0.0

%

 

 

(0.00

)

 

 

(0.00

)

Loss (gain) on foreign exchange contract

 

(0.6

)

 

 

0.0

%

 

 

(0.00

)

 

 

(0.00

)

 

 

9.8

 

 

 

0.7

%

 

 

0.06

 

 

 

0.06

 

Equity modification charge (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

1.7

 

 

 

0.1

%

 

 

0.01

 

 

 

0.01

 

Loss (gain) on sale of business (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

(57.5

)

 

 

-4.3

%

 

 

(0.37

)

 

 

(0.35

)

Exclude discrete tax adjustments

 

0.9

 

 

 

0.1

%

 

 

0.01

 

 

 

0.01

 

 

 

8.2

 

 

 

0.6

%

 

 

0.05

 

 

 

0.05

 

Non-GAAP tax adjustments

 

(6.9

)

 

 

-0.5

%

 

 

(0.04

)

 

 

(0.04

)

 

 

(5.7

)

 

 

-0.4

%

 

 

(0.04

)

 

 

(0.03

)

Net income - non-GAAP

$

213.2

 

 

 

15.9

%

 

$

1.33

 

 

$

1.32

 

 

$

222.6

 

 

 

16.7

%

 

$

1.43

 

 

$

1.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP and non-GAAP weighted average common shares - basic

 

160.7

 

 

 

 

 

 

 

 

 

 

 

 

155.4

 

 

 

 

 

 

 

 

 

 

GAAP weighted average common shares - diluted (6)

 

161.1

 

 

 

 

 

 

 

 

 

 

 

 

162.9

 

 

 

 

 

 

 

 

 

 

(1)

Restructuring and other consists of:

 

Six Months Ended

 

 

 

 

 

 

 

 

June 29,

2025

 

 

 

 

 

 

 

 

June 30,

2024

 

 

 

 

 

 

 

Employee severance (a)

$

13.7

 

 

 

 

 

 

 

 

$

4.0

 

 

 

 

 

 

 

Acquisition and divestiture related expenses

 

1.6

 

 

 

 

 

 

 

 

 

2.2

 

 

 

 

 

 

 

Lease terminations

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

0.4

 

 

 

 

 

 

 

 

 

0.2

 

 

 

 

 

 

 

 

$

16.9

 

 

 

 

 

 

 

 

$

6.4

 

 

 

 

 

 

 

(a)

For the six months ended June 29, 2025, employee severance relates primarily to Robotics restructuring which impacted approximately 150 employees.

(2)

For the six months ended June 29, 2025, selling and administrative expenses included costs directly related to a planned ERP system implementation.

 

(3)

For the six months ended June 30, 2024, selling and administrative expenses included an equity charge of $1.7 million for the modification of Teradyne’s executives' retirement agreements.

 

(4)

On May 27, 2024, Teradyne sold DIS, a component of the Semiconductor Test segment, to Technoprobe, for $85.0 million, net of cash and cash equivalents sold and a working capital adjustment.

 

(5)

For the six months ended June 29, 2025, and June 30, 2024, adjustments to exclude actuarial gains and losses, respectively, recognized under GAAP in accordance with Teradyne’s mark-to-market pension accounting.

 

(6)

For the six months ended June 30, 2024, non-GAAP weighted average diluted common shares included 6.9 million shares from the convertible note hedge transaction.

GAAP to Non-GAAP Reconciliation of Third Quarter 2025 guidance:

GAAP and non-GAAP third quarter revenue guidance:

 

 

$710 million

 

to

$770 million

 

 

 

 

 

 

 

GAAP net income per diluted share

 

 

$

0.62

 

 

$

0.80

 

 

 

 

 

 

 

Exclude acquired intangible assets amortization

 

 

 

0.03

 

 

$

0.03

 

 

 

 

 

 

 

Exclude equity method investment amortization

 

 

 

0.05

 

 

$

0.05

 

 

 

 

 

 

 

Non-GAAP tax adjustments

 

 

 

(0.01

)

 

$

(0.01

)

 

 

 

 

 

 

Non-GAAP net income per diluted share

 

 

$

0.69

 

 

$

0.87

 

 

 

 

 

 

 

For press releases and other information of interest to investors, please visit Teradyne’s homepage at http://www.teradyne.com.

Contacts

Teradyne, Inc.

Traci Tsuchiguchi 978-370-2444

Vice President of Corporate Relations