How Teradyne (TER) Makes Money: A Visual Guide
Teradyne (TER) generated $3.19B in revenue (TTM through Q4 2025), earning $554.05M in net profit (17.4% margin). Its largest revenue source is Product (83.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Teradyne (TER) Income Statement Flow
Frequently asked questions
How does Teradyne (TER) make money?
- Teradyne (TER) primarily makes money through Product, which accounts for 83.4% of total revenue. For TTM through Q4 2025, Teradyne generated $3.19B in total revenue with a net profit margin of 17.4%.
What is Teradyne (TER) gross profit margin?
- Teradyne (TER) reported a gross profit margin of 58.3% for TTM through Q4 2025, equivalent to $1.86B in gross profit. This means Teradyne retains 58.3% of each revenue unit after direct costs of production.
What is Teradyne (TER) operating profit margin?
- Teradyne (TER) reported an operating profit margin of 20.9% for TTM through Q4 2025, equivalent to $667.03M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Teradyne (TER) net profit margin?
- Teradyne (TER) reported a net profit margin of 17.4% for TTM through Q4 2025, equivalent to $554.05M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Teradyne (TER) invest in R&D?
- Teradyne (TER) invested $504.60M in research and development in TTM through Q4 2025 (15.8% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Teradyne (TER) spend on capital expenditures?
- Teradyne (TER) spent $224.01M on capital expenditures in TTM through Q4 2025 (7.0% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Teradyne (TER) free cash flow?
- Teradyne (TER) generated $450.40M in free cash flow for TTM through Q4 2025 (14.1% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Teradyne (TER) effective tax rate?
- Teradyne (TER) had an effective tax rate of 13.3% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.