PM Portfolio Manager Reports

From Portfolio Manager reports

Security report / TER

TER Operating Console

Teradyne has a real AI semiconductor-test inflection after Q1 revenue rose 87% and Semiconductor Test supplied almost all segment profit. The proof burden is narrow: Q2 revenue, gross margin, second-half AI order visibility, merchant GPU and custom ASIC repeat demand, MLTP/TestInsight economics, Robotics profitability, and the December 2026 credit-facility extension.

Metadata Knowledge Lane Fallback Chart
Ticker TER
Knowledge reviewed 2026-06-01
Links checked 2026-06-21
Chart source Local API
Module 01 / Price

Selected-Security Chart

API required

Loading TER daily chart from the local report API.

Loading TER chart...

Module 02 / Proof window

Current Company View

Q2 AI-test proof
Next read Q2 must show that Q1 was the start of repeat AI test demand, not a one-quarter customer-program surge.
Measured base

Q1 2026 revenue was $1.2825B, up 87%, with Semiconductor Test at $1.1108B or 86.6% of revenue.

Main proof issue

Q2 guidance calls for $1.15B-$1.25B of revenue, 58%-59% gross margin, and $1.86-$2.15 of non-GAAP EPS.

Quality caveat

Q1 cash generation was positive, but working capital used $195.5M and accounts receivable rose $322.0M.

Next evidence

Merchant GPU, custom ASIC, high-bandwidth memory, and known-good-die order conversion through Q2 and second-half commentary.

Q1 revenue $1.2825B +87% year over year
Semi Test mix 86.6% $1.1108B of revenue
AI-related demand Nearly 70% Management Q1 commentary
Gross margin 60.9% Q1 2026
Operating cash flow $265.1M Q1 2026
Cash / facility $394M / $750M No revolver borrowings
Exposure Map

Business Profile, Segments, And Exposure

Teradyne sells automated test equipment and robotics products. The investable evidence is concentrated in Semiconductor Test, where AI accelerators and data-center silicon are driving the current revenue step-up.

Business model

Semiconductor test equipment with smaller product-test and robotics lanes

Demand follows customer device ramps, test-intensity growth, and capacity timing in AI accelerators, custom ASICs, memory, mobility, industrial, and collaborative robots.

Disclosure map

Semiconductor Test is the earnings engine

The Q1 source lane shows Semi Test at $468.1M of pre-tax income, while Robotics lost $1.0M and Product Test stayed small.

Semiconductor Test

Revenue and profit center.

Q1 revenue was $1.1108B and pre-tax income was $468.1M, with AI demand the main driver.

More useful evidence

Repeat merchant GPU, custom ASIC, high-bandwidth memory, and advanced-packaging test orders.

Product Test

Small stabilizer, not the main thesis.

Q1 Product Test revenue was $80.4M, so this segment cannot carry the valuation case by itself.

More useful evidence

Defense, storage, photonics, and industrial program timing that broadens profit beyond AI compute.

Robotics

Optionality still needs operating profit.

Robotics had a $1.0M pre-tax loss in Q1, so the page treats automation and robotics as future evidence, not current earnings proof.

More useful evidence

Sustained sales growth, channel traction, and segment profit without using Semi Test to subsidize losses.

Known-good-die workflow

June product route extends AI packaging exposure.

Teradyne and Tokyo Electron introduced an UltraFLEXplus and Prexa SDP screening route for AI and data-center 2.5D/3D devices.

More useful evidence

Customer adoption, attach rate, and follow-on revenue from the integrated workflow.

Value Driver Board

Relative Value And Value Drivers

TER is priced around an AI-test growth path. The useful driver checks are customer-program repeatability, margin normalization, cash conversion, and whether software acquisitions widen the test workflow.

AI test conversion
Nearly 70% Q1 AI demand

The current setup needs AI-linked demand to repeat across more than one program window.

Next: merchant GPU, custom ASIC, HBM, and data-center customer commentary.
Margin quality
60.9% Q1 GM

High gross margin supports the mix case, but Q2 guidance implies a lower 58%-59% range.

Next: volume, mix, price, customer-program timing, and acquisition amortization.
Cash conversion
$265.1M OCF

Operating cash flow was strong, but receivables and working capital absorbed cash in Q1.

Next: receivable collection, inventory, deferred revenue, and capex.
Software workflow
$166.7M cash outlay

The MLTP and TestInsight acquisitions can help if design-to-test software becomes attachable revenue.

Next: integration milestones, revenue contribution, and margin disclosure.
Guidance Tests

Guidance Path And What Changed

The April 28, 2026 Q1 release set the next operating check around Q2 revenue of $1.15B-$1.25B, gross margin of 58%-59%, and non-GAAP EPS of $1.86-$2.15.

Question
Can Q2 hold the AI test step-up?

Confirm Q2 revenue lands inside the guide with explicit AI accelerator, custom ASIC, HBM, or data-center test demand.

Warn if management describes a pause, pushout, or narrower customer concentration.

Question
Does gross margin remain above pre-inflection levels?

Confirm the Q2 gross margin range holds and mix remains favorable despite lower guide margin than Q1.

Warn if volume mix, pricing, components, or customer qualification costs pull margin below the guide.

Question
Can cash quality keep up?

Confirm receivables and working capital improve after the Q1 revenue surge.

Warn if cash flow lags because AI program growth is trapped in receivables or inventory.

Operating Evidence

Operating Evidence And KPIs

These tiles summarize the filed source evidence. Use the lane and raw outputs for the full claim map.

Revenue step-up
$1.2825B

Q1 revenue rose 87%, led by Semiconductor Test and AI-linked demand.

Segment earnings
$468.1M

Semiconductor Test generated almost all Q1 segment profit.

Working capital
-$195.5M

Working capital used cash in Q1 while accounts receivable rose with the revenue surge.

Robotics proof
-$1.0M

Robotics pre-tax loss means the operating case cannot lean on robotics profit yet.

Capital Ledger

Financial Quality And Capital Allocation

The balance sheet is not the main constraint today. The near-term check is whether cash generation, receivables, and the credit-facility extension remain clean while Teradyne invests in AI-test software.

Liquidity

$394.0M of cash and marketable securities

At March 29, 2026, Teradyne had no revolver borrowings under a $750M facility that expires December 10, 2026. Management said it intends to extend the facility.

Capital allocation

MLTP and TestInsight acquired for $166.7M of cash

The acquisitions add design-to-test software. The evidence needed is revenue attach, integration progress, and margin contribution rather than headline fit.

Position Board

Competitive Position

Teradyne has credible AI-test exposure and platform breadth. The filed lane does not prove durable share gains or broad robotics earnings power yet.

What TER has

AI test demand

Q1 revenue and management commentary show immediate demand from AI-related semiconductor programs.

Advanced packaging route

The Tokyo Electron collaboration adds a production workflow for known-good-die screening in 2.5D and 3D AI packages.

Software extension

MLTP and TestInsight can deepen design-to-test workflow coverage if adoption shows up in customer usage and revenue.

What is not proven

Sustained share gain

The source pass does not establish lasting AI-test share gain versus peers.

Robotics profit

Robotics remained loss-making in Q1, so it is a future catalyst rather than current earnings support.

Customer breadth

The lane still needs more evidence that demand is broad across merchant GPU, custom ASIC, memory, and outsourced test channels.

Street View

Ownership, Flows, Valuation, And Street Views

Official filings and Teradyne IR carry the operating evidence. Outside market-data items are dated context and should be refreshed before trading-sensitive use.

Official source set

IR and Q1 package checked 2026-06-21

Teradyne's IR pages route to the Q1 2026 result package, latest 10-Q, annual filings, event calendar, and June 2026 product release.

Dashboard use: source routing and current filing freshness. Teradyne investor relations
Valuation frame

Lane value was below current outside-view tape

The filed lane used a May 29 close of $374.31 and market value near $58.6B; outside-view data checked later showed a materially higher June 18 close.

Dashboard use: proof burden and data freshness, not a live quote. Knowledge lane valuation section
Outside-view market data

StockAnalysis snapshot checked 2026-06-21

StockAnalysis showed a June 18, 2026 close of $437.92, market cap of $68.55B, EV/sales of 18.02, short interest of 6.88M shares, and short interest at 4.40% of shares outstanding.

Dashboard use: dated outside-view context; local chart API remains the report chart source. StockAnalysis TER statistics
Consensus context

Target price below the checked tape

The same outside-view pass showed analyst consensus target price of $374.82, below the June 18 close.

Dashboard use: expectation risk marker only. StockAnalysis TER forecast
Scenario Board

Scenario Assessment And Sensitivities

The central setup is lumpy but real AI-test growth. The upside path needs broader conversion; the downside path starts with program delays, customer concentration, or margin normalization.

Base

AI-related Semiconductor Test demand stays elevated but lumpy. Q2 lands inside the guide, gross margin normalizes below Q1 but remains healthy, and cash flow improves as receivables convert.

Upside

Merchant GPU, custom ASIC, HBM, and advanced-packaging customers broaden order flow, MLTP/TestInsight becomes attachable software, and Robotics moves toward sustained profitability.

Downside

A large customer program pauses, Q2 or second-half demand slips, gross margin falls below guide, receivables stay elevated, and the credit facility extension becomes a visible financing issue.

Trigger Stack

Monitoring Triggers

These are business evidence checks. Chart overlays remain in the shared overlay rules, outside this page.

Q2 guide

$1.15B-$1.25B revenue and 58%-59% gross margin

Confirm Q2 lands in the guided range with clear AI test demand and margin quality.

Warn if revenue, gross margin, or non-GAAP EPS misses the guide.

Customer breadth

Merchant GPU and custom ASIC repeat demand

Confirm multiple AI customer lanes remain active into second-half orders.

Warn if demand is described as one large program, one customer, or pulled-forward timing.

Margin quality

Gross margin bridge after Q1

Confirm volume, mix, and pricing keep margin near the guided range.

Warn if customer costs, mix normalization, or component pressure pull margin lower.

Software attach

MLTP and TestInsight disclosure

Confirm acquisition integration, customer adoption, and revenue contribution.

Warn if the assets remain strategic language without measurable operating contribution.

Robotics

Profitability path

Confirm Robotics revenue growth and margin progress without relying on Semi Test strength.

Warn if losses widen or order commentary weakens.

Balance sheet

Working capital and revolver extension

Confirm receivables convert and the $750M credit facility is extended on routine terms.

Warn if working capital stays negative or facility extension timing becomes uncertain.

Risk Punch Cards

Risks, Invalidations, And Quality Flags

The main risks are customer concentration, program timing, valuation fragility, margin normalization, policy/supply-chain exposure, and acquisition integration.

Customer program concentration
Basis

Q1 AI demand was large enough to reshape the company mix.

Warning

Revenue depends on a narrow set of AI accelerator or custom silicon ramps.

Reduce concern

Follow-on demand appears across merchant GPU, custom ASIC, HBM, and package-test customers.

Program timing
Basis

Semiconductor test demand can shift with customer qualification, capacity additions, and node transitions.

Warning

Second-half orders slip or Q2 demand is described as pulled forward.

Reduce concern

Order timing stays consistent with management's Q2 and second-half commentary.

Valuation fragility
Basis

Outside-view market data showed the stock above the filed lane's May 29 valuation reference.

Warning

Good but lumpy demand does not support a higher AI-test multiple.

Reduce concern

Revenue, margin, cash, and customer breadth all improve together.

Margin normalization
Basis

Q1 gross margin was 60.9%, while Q2 guidance is 58%-59%.

Warning

Mix, pricing, or customer support costs pull gross margin below the guide.

Reduce concern

High-value AI test mix offsets normalization in other programs.

Policy and supply chain
Basis

AI semiconductor equipment demand is exposed to export rules, customer location, component availability, and data-center capex timing.

Warning

Trade restrictions or component shortages delay shipments or qualification.

Reduce concern

Bookings and shipments remain diversified across allowed customer programs.

Source gaps
Basis

The filed lane flags incomplete peer filing and transcript review.

Warning

Relative-share or peer-multiple claims are made without a refreshed peer pass.

Reduce concern

Future source work compares TER with peer test-equipment margins, orders, and customer exposure.

Diagnostics

Diagnostics, Freshness, And Known Unknowns

This report is a projection of the filed TER lane with dated official web checks. It does not refresh canonical research.

Freshness

Lane source run generated 2026-06-01
Source run

Latest paired TER profile and research projections were generated 2026-06-01T05:06:27Z.

Market data

Lane valuation used May 29 market data; outside-view market data checked later showed a higher June 18 close.

Web check

Official IR, Q1 release, Q1 10-Q, annual filings, event calendar, and June 8 product release were checked 2026-06-21.

Known unknowns

Proof still needed
Peer coverage

Peer filings, peer calls, and share-gain evidence were not fully refreshed in the source pass.

Transcript depth

The page still needs more call-level detail on AI customer breadth and second-half order quality.

Investor deck extraction

The source pass flags incomplete investor-slide extraction and outside credit commentary.

Categories