• Earnings per share (EPS) is expected to be $1.36, a 43.2% increase from the previous year.
• Projected revenue of approximately $970.5 million, a 28.7% rise year-over-year, driven by strong demand in AI and memory testing.
• Despite a high P/E ratio of 90.15 and intense competition, Teradyne shows strong financial health with a low debt-to-equity ratio of 0.03 and a current ratio of 1.76.

Teradyne, Inc. (NASDAQ:TER) is a leading supplier of automation equipment for test and industrial applications, known for its semiconductor test systems essential in electronics production. Competing with companies like Advantest and Cohu in the semiconductor testing market, Teradyne is gearing up for its fourth-quarter earnings release on February 2, 2026.

Wall Street estimates earnings per share (EPS) to be $1.36, marking a 43.2% increase from the previous year. Revenue is projected to be around $970.5 million, indicating a 28.7% rise from the same period last year. This growth is primarily driven by strong demand in AI, particularly in memory testing.

Teradyne's revenue guidance for the quarter ranges from $920 million to $1 billion, with non-GAAP EPS expected between $1.20 and $1.46. The Zacks Consensus Estimate aligns with Wall Street's EPS projection of $1.36, highlighting stability in earnings projections which is crucial for investor reactions and stock price movements.

Despite a high price-to-earnings (P/E) ratio of 90.15, Teradyne's shares have surged by 132.2% over the past six months. However, the company faces challenges from margin pressure, intense competition, and a stretched valuation, which could impact future performance despite the current positive momentum.

Teradyne maintains a low debt-to-equity ratio of 0.03, indicating conservative debt use. Its current ratio of 1.76 suggests good liquidity to cover short-term liabilities. The company's price-to-sales ratio is 14.01, and its enterprise value to sales ratio is 13.94, reflecting investor confidence in its sales potential.