Teradyne is a leading global provider of automated test equipment and robotics solutions. Its automated test systems are used to test semiconductors, wireless products, data storage, silicon photonics, and complex electronics systems in industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense. The robotics product offerings consist primarily of collaborative robotic arms and autonomous mobile robots used by global manufacturing, logistics and industrial customers. The market for test products is concentrated with a limited number of significant customers accounting for a substantial portion of purchases of test equipment.

Competitors in the Semiconductor Test segment include Advantest Corporation, SPEA S.p.A., and Cohu, Inc. Competitors in the Robotics segment include manufacturers of traditional industrial robots such as KUKA Robotics Corporation, ABB, FANUC, Staubli and Yaskawa Electric Corporation, companies with emerging collaborative robot offerings such as Techman, Doosan, Jaka, and AUBO Robotics, and manufacturers of autonomous mobile robots such as Omron, Rockwell Automation, Junion, HikRobot, Agilox, and KION. Competitors in the Product Test segment include Keysight Technologies, Test Research, Inc., Rohde & Schwarz GmbH & Co. KG, Anritsu Company, National Instruments Corporation, Welzek and iTest. In each of the years 2025, 2024 and 2023, the five largest direct customers in aggregate accounted for 44% ¹, 36% ², and 32% ³ of consolidated revenues, respectively. In 2025, two specifying customers drove 12% ⁴ and 10% ⁵ of consolidated revenues, and one additional direct customer accounted for 19% ⁶ of consolidated revenues.

The company generates revenue through the sale of automated test equipment and robotics products and related services. Revenues are split into product revenues and service revenues. In 2025, product revenues were $2,660.2 million ⁷ and service revenues were $529.8 million ⁸. The business model involves selling to integrated device manufacturers, fabless companies, foundries, and OSATs for semiconductor test, and to global manufacturing, logistics and industrial customers for robotics. Sales to customers outside the United States were 89% ⁹, 87% ¹⁰, and 84% ¹¹ of consolidated revenues in 2025, 2024 and 2023, respectively.

The Semiconductor Test segment designs, manufactures, sells and supports semiconductor, HDD, and SSD test systems and related services. Test systems are used for wafer level, device package testing, and system level testing for devices used in AI, automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game applications. Products include the FLEX Test Platform, J750 test system, IP750 Image Sensor test system, Magnum platform for memory devices, ETS platform for analog/mixed signal markets, Eagle platform including ETS-88 and ETS-800 for power devices, and Integrated System Test group testers for system level test and HDD/SSD test. In 2025, Semiconductor Test revenues were $2,523.7 million ¹², an increase of $399.8 million ¹³ or 18.8% ¹⁴, driven primarily by higher sales in compute related to AI applications and in Integrated System Test. The segment's strategic shift toward AI-driven semiconductor testing resulted in AI related customer demand driving the majority of revenue in the second half of 2025.

The Robotics segment is comprised of collaborative robotic arms under Universal Robots branding and autonomous mobile robots under Mobile Industrial Robots branding. Since introducing the world's first commercially viable cobot in 2008, Teradyne Robotics has sold over 110,000 ¹⁵ cobots worldwide. Products include the UR8 Long, UR15, UR18, UR20, UR30, UR3e, UR7e, UR12e, and UR16e cobots, and MiR250, MiR600, MiR1350, and MiR1200 Pallet Jack AMRs. Teradyne Robotics has sold over 11,000 ¹⁶ AMRs globally. In 2025, Robotics revenues were $308.3 million ¹⁷, a decrease of $56.5 million ¹⁸ or 15.5% ¹⁹, primarily due to lower sales of collaborative robotic arms and autonomous mobile robots. The Product Test segment consists of test equipment and service offerings for high performance electronic and photonic assemblies, sub-assemblies, modules, and components, including circuit-board test and inspection systems, wireless test systems, PIC test solutions, and defense and aerospace test instrumentation and systems. In 2025, Product Test revenues were $358.0 million ²⁰, an increase of $26.9 million ²¹ or 8.1% ²², primarily due to higher sales of defense and aerospace testing systems.

On January 31, 2025, the company acquired Infineon Technologies AG's automated test equipment technology and associated development team based in Regensburg, Germany for a total purchase price of 17.6 million Euros, equivalent to $18.3 million ²³. On May 31, 2025, the company acquired Quantifi Photonics, a leader in PIC test solutions, for a total purchase price of $127.2 million ²⁴. On January 29, 2026, the company and MultiLane announced an agreement to form a joint venture, MultiLane Test Products, with the company investing approximately $157 million ²⁵ in exchange for 75% ²⁶ ownership. During 2025, the company returned $778.4 million ²⁷ to shareholders through $702.1 million ²⁸ of share buybacks and $76.3 million ²⁹ of dividend payments. The company borrowed a combined $250.0 million ³⁰ under the Credit Facility to support manufacturing ramp-up and capital allocation strategy, and as of year-end $200.0 million ³¹ was outstanding. The company recorded $29.4 million ³² of severance charges in 2025, of which $24.3 million ³³ related to Robotics restructuring impacting approximately 400 ³⁴ employees.

Total revenues for 2025 were $3,190.0 million ³⁵ compared to $2,819.9 million ³⁶ in 2024, an increase of $370.1 million ³⁷. Net income for 2025 was $554.0 million ³⁸ compared to $542.4 million ³⁹ in 2024. Diluted EPS was $3.47 ⁴⁰ in 2025 versus $3.32 ⁴¹ in 2024. Gross profit as a percent of total revenues was 58.2% ⁴² in 2025 compared to 58.5% ⁴³ in 2024. Income from operations was $650.1 million ⁴⁴ in 2025 compared to $593.8 million ⁴⁵ in 2024. Cash provided by operating activities was $674.4 million ⁴⁶ in 2025.

The filing states that looking ahead to 2026, the company expects AI related customer demand to continue to represent the bulk of revenues in the first quarter. The company expects benefits from focused investments in AI applications and VIP customers to continue in 2026. The MultiLane Test Products joint venture is expected to close in the first half of 2026. The company expects all Robotics severance payments to be made prior to the end of the third quarter of 2026.

The company's growth vector in Semiconductor Test is driven by robust demand from AI applications in networking and with vertically integrated producer compute solutions. Memory test revenue remained stable supported by share gains in high bandwidth memory and DRAM final test applications. The strategic shift toward AI-driven semiconductor testing resulted in AI related customer demand driving the majority of revenue in the second half of 2025. The company intends to leverage Quantifi Photonics' engineering expertise and technology to enhance functionality and create additional differentiation in the Semiconductor Test business, specifically with integration into the UltraFlexplus platform.

In the Robotics segment, the fourth quarter of 2025 represented the third consecutive quarter of sequential revenue growth. The company aimed at strategic partnerships with original equipment manufacturers, systems integrators, and large enterprise accounts, concentrating on high-growth verticals such as ecommerce, logistics, semiconductor, and electronics. The company also reduced costs through restructuring activities designed to better position the Robotics organization for future success. The Product Test segment achieved revenue growth in 2025 bolstered primarily by strength in defense and aerospace applications. The MultiLane Test Products joint venture is being created to serve the growing demand from the AI Data Center equipment market by accelerating the development of test solutions for critical high speed data connections.

The company recorded an inventory provision of $25.8 million ⁴⁷ in 2025 included in cost of revenues, primarily due to downward revisions to previously forecasted demand levels for certain products. Of this total, $17.5 million ⁴⁸ was related to Semiconductor Test, $6.0 million ⁴⁹ related to Robotics, and $2.2 million ⁵⁰ related to Product Test. The company scrapped $11.8 million ⁵¹ of inventory in 2025. Gross profit as a percent of total revenues decreased by 0.3 points ⁵² primarily due to product mix. Product revenues gross profit percentage decreased by 0.8 points ⁵³ primarily due to product mix. Service revenues gross profit percentage increased by 2.9 points ⁵⁴ primarily in Semiconductor Test as a result of the sale of the DIS business.

The company's manufacturing activities for test businesses are primarily conducted through subcontractors and outsourced contract manufacturers with significant operations in Malaysia. Manufacturing activities for Robotics businesses are done primarily in production facilities in Denmark and the U.S. In 2025, the company completed the purchase of an approximately 290,000 ⁵⁵ square foot building in Cebu, Philippines for Semiconductor Test production and initiated fit out of a leased 68,000 ⁵⁶ square foot Robotics U.S. manufacturing site in the Metro Detroit area. The company borrowed $250.0 million ⁵⁷ under the Credit Facility to support the ramp-up in manufacturing capabilities for Semiconductor Test.

The company's capital allocation plan will continue to be balanced between investing in organic and inorganic growth and returning cash to shareholders through share repurchases and dividends. In 2025, the company returned $778.4 million ⁵⁸ to shareholders through $702.1 million ⁵⁹ of share buybacks and $76.3 million ⁶⁰ of dividend payments. In January 2023, the Board of Directors approved a repurchase program for up to $2.0 billion ⁶¹ of common stock. Cumulative repurchases as of December 31, 2025 under the 2023 repurchase program were 12.0 million ⁶² shares for $1,297.3 million ⁶³. In January 2026, the Board of Directors declared a quarterly cash dividend of $0.13 ⁶⁴ per share. The company's purchase obligations were approximately $1,473.0 million ⁶⁵, with $1,415.1 million ⁶⁶ expected to be paid within twelve months.

The company is subject to tariffs and restrictions from the dynamically changing global trade environment. Current trade restrictions are limiting the company's ability to be competitive, particularly in certain markets where some competitors are not subjected to the same restrictions. The company continues to monitor developments in international trade policy, including potential changes to tariffs, further export controls, and other regulatory measures that could affect supply chain, cost structure, or market access. Strengthening of the U.S. dollar would negatively affect Robotics revenue in 2026. The company faces risks from the global supply shortage of electrical components and inflationary cost increases.

The company faces intense competition throughout the world in each of its reportable segments. Some competitors may have greater financial and other resources to pursue engineering, manufacturing, marketing, and distribution of their products. The company also faces competition from emerging Asian companies and from internal supply at several customers. The semiconductor industry has experienced significant consolidation over the past several years, which could lead to a changing competitive landscape. The company is subject to U.S. and foreign laws and regulations that limit and restrict the export of some products and services, and compliance with these laws has limited sales and will likely continue to limit sales to certain customers.

Management's message emphasizes that 2025 was a year of considerable growth for the Semiconductor Test segment driven by robust demand from AI applications, with AI related customer demand driving the majority of revenue in the second half of 2025. Management states that looking ahead to 2026, AI related customer demand is expected to continue to represent the bulk of revenues in the first quarter. The strategic priorities emphasized are focused investments in AI applications and VIP customers, with benefits materializing throughout 2025 and expected to continue in 2026. In Robotics, management highlights the third consecutive quarter of sequential revenue growth in the fourth quarter of 2025 and cost reductions through restructuring activities to better position the organization for future success. The corporate strategy is to profitably grow revenue and market share through the introduction of differentiated products targeting expanding markets and customer needs, with a capital allocation plan balanced between investing in organic and inorganic growth and returning cash to shareholders.

Total revenues for 2025 were $3,190.0 million ⁷⁴ compared to $2,819.9 million ⁷⁵ in 2024. Net income was $554.0 million ⁷⁶ in 2025 versus $542.4 million ⁷⁷ in 2024. Diluted EPS was $3.47 ⁷⁸ in 2025 compared to $3.32 ⁷⁹ in 2024. Income from operations was $650.1 million ⁸⁰ in 2025 versus $593.8 million ⁸¹ in 2024. Gross profit as a percent of total revenues was 58.2% ⁸² in 2025 compared to 58.5% ⁸³ in 2024. Cash, cash equivalents and marketable securities totaled $448.3 million ⁸⁴ at December 31, 2025, compared to $723.8 million ⁸⁵ at December 31, 2024. Short-term debt was $200.0 million ⁸⁶ at December 31, 2025 versus $0 ⁸⁷ at December 31, 2024. The effective tax rate was 12.1% ⁸⁸ in 2025 compared to 9.8% ⁸⁹ in 2024. The company recorded a gain on sale of business of $57.1 million ⁹⁰ in 2024. Restructuring and other charges were $38.6 million ⁹¹ in 2025 compared to $15.6 million ⁹² in 2024. Semiconductor Test segment income before income taxes and equity in net earnings of affiliate was $700.7 million ⁹³ in 2025 compared to $558.2 million ⁹⁴ in 2024. Robotics segment loss before income taxes and equity in net earnings of affiliate was $99.4 million ⁹⁵ in 2025 compared to $77.6 million ⁹⁶ in 2024. Product Test segment income before income taxes and equity in net earnings of affiliate was $60.7 million ⁹⁷ in 2025 compared to $65.7 million ⁹⁸ in 2024.

The market for the company's products is concentrated, with the five largest direct customers in aggregate accounting for 44% ⁶⁷ of consolidated revenues in 2025. In 2025, one direct customer accounted for 19% ⁶⁸ of consolidated revenues. The loss of any significant customer could have a material adverse effect. The company is subject to U.S. export control regulations restricting transactions with certain customers in China, and compliance with these laws has limited sales and will likely continue to limit sales. The company faces intense competition from competitors with substantial financial resources, emerging Asian companies, and internal development at customers. The company recorded $29.4 million ⁶⁹ of severance charges in 2025, including $24.3 million ⁷⁰ related to Robotics restructuring impacting approximately 400 ⁷¹ employees. The company has incurred indebtedness, with $200.0 million ⁷² outstanding under its $750.0 million ⁷³ Credit Facility as of December 31, 2025, and may incur additional indebtedness, which could increase vulnerability to adverse economic conditions and limit flexibility.