Key Stats for Teradyne Stock
- Current Price: $471.96
- Target Price (Mid): ~$1,025
- Street Target: ~$390
- Potential Total Return: ~117%
- Annualized IRR: ~19% / year
- Last Earnings Reaction: -19.41% (April 28, 2026)
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What Happened?
Teradyne (TER) closed at a record $471.96 on June 25, 2026, up 10.48% in a single session, and the catalyst was not its own news. The move followed a blowout quarter from Micron, a major memory-test customer, which investors read as a positive signal for Teradyne. That is the setup for Teradyne’s Q2 2026 earnings on July 28.
The tension is unresolved. The stock sits at a record, yet Teradyne’s own guidance points to a sequential revenue decline from Q1. Bulls see a memory, and the AI testing cycle the company has barely started to capture. Bears see a stock trading above the Street’s price target on demand that has not yet shown up in the order book. The July 28 print lets the data answer.
Why the Micron Read-Through Matters
Memory is where Teradyne’s test intensity is rising fastest. High-bandwidth memory (HBM), which stacks DRAM chips into one high-value package, needs far more testing than standard memory. So when Micron reported a record quarter and guided next-quarter revenue sharply higher, the market assumed Teradyne’s test-equipment orders would follow.
Teradyne’s CEO made the link explicit at the BofA 2026 Global Technology Conference. Gregory Smith said that for a DRAM going into HBM, “the test intensity for that is much higher because of the stacking and the quality requirements downstream.” That is why a Micron boom is supposed to become a Teradyne tailwind.
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What Teradyne Actually Guided For Q2
Here is what the rally has been quiet about. Teradyne guided Q2 revenue to $1,150 million to $1,250 million, with non-GAAP EPS of $1.86 to $2.15. Q1 revenue was $1,282 million with non-GAAP EPS of $2.56. The Q2 midpoint of $1,200 million sits below the Q1 actual. That is a sequential step down.
This is why the preview is not a simple bull case. Revenue is front-half weighted this year, and management has flagged limited visibility into the back half. The stock already reacted to that lumpiness: despite a record Q1 beat, TER fell 19.41% the day after its April 28, 2026, report as investors questioned a premium valuation. A repeat is the central risk on July 28.
So the report becomes a referee. The Micron read-through pulls the order book up. The guided dip and back-half uncertainty pull expectations down. Whether management raises its full-year forecast of around $6 billion in revenue signals which force is winning.
The Valuation Gap Nobody Can Ignore
One number does not fit the others. Teradyne trades at $471.96, but the Street’s mean target is around $390, below the current price. Even after Baird raised its target to $446, the average analyst still sees the stock past consensus fair value. The board is split: 11 Buys, 1 Outperform, 5 Holds, 2 No Opinions, 1 Underperform, and 1 Sell.
The premium shows in the multiples. Teradyne trades near 50x NTM EV/EBITDA, against roughly 36x for closest test rival Advantest, 39x for Applied Materials, and 46x for Lam Research. The premium is defensible because Teradyne has the highest exposure to the AI and HBM testing story. The question is whether a sequential-dip quarter is the moment to pay the group’s highest multiple.
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TIKR Advanced Model Analysis
- Current Price: $471.96
- Target Price (Mid): ~$1,025
- Potential Total Return: ~117%
- Annualized IRR: ~19% / year
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This uses the TIKR mid-case scenario, which targets around $1,025, implying about 117% total return and roughly 19% per year. The spread is the story: the model’s multi-year target sits well above the price, while the Street’s 12-month target of around $390 sits below it. They answer different questions, and that gap is the debate around this stock.
The mid case rests on two growth engines: rising test intensity in AI compute, and the expansion of memory and HBM testing. The margin driver is the Semiconductor Test mix, with richer AI and memory work supporting net income margins the model puts near 27%. The main risk is customer concentration, since a small base of large buyers means one capex pause can swing a quarter.
Upside: if Q2 confirms the memory cycle is reaching orders, the growth assumptions look conservative.
Downside: if Q2 delivers the guided dip with no raise, a record-high stock is priced for perfection.
Conclusion
Watch the full-year framing on July 28. Good looks like Teradyne holding or raising its full-year targets while confirming memory and HBM orders are building. Bad looks like in-line results, no raise, and more cautious back-half language. The report lands after market close on July 28, 2026, and given the 19% drop after the last beat, the reaction may matter more than the headline.
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Should You Invest in Teradyne?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Teradyne, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Teradyne alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
