Teradyne, Inc.
TER Technology Semiconductor Equipment & Materials
Teradyne, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $3.2 billion, up 13.1% from fiscal 2024. In the quarter to June 2026, revenue grew 103.9%, EPS grew 387.8% and free cash flow grew 187.4%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; dividend growth for ten consecutive years, operating cash flow growth for three.
Follow TER
Teradyne, Inc. (TER) Altman Z-score
Teradyne, Inc.'s Altman Z-score for fiscal 2025 is 15.08, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 15.08 | (0.48) |
| FY2024 | 15.55 | 3.06 |
| FY2023 | 12.50 | 2.10 |
| FY2022 | 10.40 | (5.42) |
| FY2021 | 15.82 | 5.15 |
| FY2020 | 10.67 | 3.50 |
| FY2019 | 7.18 | 2.36 |
| FY2018 | 4.81 | (1.56) |
| FY2017 | 6.37 | 1.85 |
| FY2016 | 4.53 | (1.61) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.20 | — | 0.24 | |
| Retained earnings / total assets | 0.18 | — | 0.25 | |
| EBIT / total assets | 0.16 | — | 0.51 | |
| Market value of equity / total liabilities | 22.19 | — | 13.32 | |
| Sales / total assets | 0.76 | — | 0.76 | |
| Altman Z-score | Safe zone | 15.08 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.05 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LRCX Lam Research Corporation compare | 34.2× |
| KLAC KLA Corporation compare | 23.1× |
| ONTO Onto Innovation Inc. compare | 19.0× |
| FORM FormFactor, Inc. compare | 15.1× |
| TER Teradyne, Inc. | 15.1× |
| NVMI Nova Ltd. compare | 7.6× |
| AMKR Amkor Technology, Inc. compare | 3.4× |
| ENTG Entegris, Inc. compare | 2.7× |
| Q Qnity Electronics, Inc. compare | 2.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on TER
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement