How does Teradyne (TER) make money?

Teradyne (TER) generates revenue primarily from Product, which accounted for 85.6% of total revenue in TTM through Q1 2026. The company reported $3.79B in revenue and converted 22.6% of it into net profit, equivalent to roughly $854.06M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Teradyne (TER)?

Teradyne (TER) reported a gross profit margin of 58.8% in TTM through Q1 2026, equivalent to $2.23B in gross profit on $3.79B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Teradyne (TER)?

Teradyne (TER) reported an operating profit margin of 26.9% in TTM through Q1 2026, equivalent to $1.02B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Teradyne (TER)?

Teradyne (TER) reported a net profit margin of 22.6% in TTM through Q1 2026, equivalent to $854.06M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Teradyne (TER) profitable?

Yes. Teradyne (TER) reported $854.06M in net income for TTM through Q1 2026, with a net profit margin of 22.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Teradyne (TER) invest in research and development?

Teradyne (TER) invested $521.97M in research and development during TTM through Q1 2026, roughly 13.8% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Teradyne (TER) spend on capital expenditures?

Teradyne (TER) spent $224.72M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 5.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Teradyne (TER) generate?

Teradyne (TER) generated $553.18M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 14.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Teradyne (TER)?

Teradyne (TER) had an effective tax rate of 13.4% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Teradyne (TER)?

Teradyne (TER) reports revenue across 2 reportable product segments, led by Product at 85.6% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Teradyne (TER) generate most of its revenue?

Asia Pacific is the largest geographic market for Teradyne (TER), accounting for 79.5% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Teradyne Makes Money: 2026 Visual Revenue Map

Teradyne (TER) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 29, 2026 (reported May 1, 2026).

Teradyne (TER) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Teradyne (TER) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Product	$3.24B	85.6%
Service	$545.63M	14.4%
Total	$3.79B	100%

Product$3.24B
Service$545.63M
Total$3.79B

Teradyne (TER) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Teradyne (TER), TTM through Q1 2026
Region	Revenue (USD)	% of total
Asia Pacific	$2.20B	79.5%
Americas	$302.58M	11%
EMEA	$264.00M	9.6%
Total	$2.76B	100%

Asia Pacific
Americas
EMEA
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Teradyne (TER) reports revenue across 2 operating segments; the largest segment was Product at 85.6%, followed by Service (14.4%). Separately, by end-market geography, Asia Pacific accounted for 79.5% of revenue, followed by Americas (11%) and EMEA (9.6%).

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Teradyne (TER) Key Financials

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