How Teradyne Stock Gained 60%
Between November 2025 and February 2026, Teradyne (TER)’s stock soared 65%, fueled not by sales growth but by a surge in investor optimism. A winning earnings beat, bullish AI demand, and glowing analyst takes rewrote the stock’s story—let’s unpack the forces behind this sharp rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 11082025 | 2062026 | Change | |
|---|---|---|---|
| Stock Price ($) | 182.1 | 300.1 | 64.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,859.6 | 2,859.6 | 0.0% |
| Net Income Margin (%) | 15.5% | 15.5% | 0.0% |
| P/E Multiple | 65.2 | 107.4 | 64.8% |
| Shares Outstanding (Mil) | 158.6 | 158.6 | 0.0% |
| Cumulative Contribution | 64.8% |
So what is happening here? The stock price surged 65%, driven entirely by a 65% jump in the P/E multiple, while revenue and net margin held steady. Let’s dive into the news and moves behind this boost.
Here Is Why Teradyne Stock Moved
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- Q4 2025 Earnings Beat: EPS of $1.80 beat consensus by $0.44; revenue of $1.08B beat by $112.9M.
- Strong Q1 2026 Guidance: Q1 2026 revenue guidance $1.15-1.25B (vs. $925.9M consensus); EPS up to $2.25.
- AI-Driven Demand: AI-related demand in compute, networking, and memory drove Q4 growth and the 2026 outlook.
- Positive Analyst Views: Multiple analyst upgrades and price target increases, reflecting strong performance.
- Q3 2025 Strength: Q3 2025 revenue and EPS near the high end of guidance, driven by AI and memory.
Our Current Assessment of TER Stock
Opinion: We currently find TER stock unattractive. Why so? Have a look at the full story. Read Buy or Sell TER Stock to see what drives our current opinion.
Risk: A good way to gauge risk for TER stock is to check how deep its drops have been in past market sell-offs. It tumbled over 82% during the Dot-Com bubble burst and nearly 84% in the Global Financial Crisis. More recent shocks like the inflation surge knocked it down about 58%. Even less severe pullbacks—like the 2018 correction and the Covid crash—still saw drops around 40%. So, no matter the positives, TER hasn’t been immune when the broader market takes a hit.
TER stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index—less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.