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10-Q – 2025-10-30 – ter-20250928.htm

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Cost of services

 

 

6

 

 

 

6

 

 

 

7

 

 

 

8

 

Total cost of revenues (exclusive of acquired intangible
   assets amortization shown separately below)

 

 

42

 

 

 

41

 

 

 

41

 

 

 

42

 

Gross profit

 

 

58

 

 

 

59

 

 

 

59

 

 

 

58

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

 

22

 

 

 

21

 

 

 

23

 

 

 

22

 

Engineering and development

 

 

16

 

 

 

16

 

 

 

17

 

 

 

16

 

Acquired intangible assets amortization

 

 

—

 

 

 

1

 

 

 

1

 

 

 

1

 

Restructuring and other

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Gain on sale of business

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3

)

Total operating expenses

 

 

40

 

 

 

39

 

 

 

42

 

 

 

37

 

Income from operations

 

 

19

 

 

 

21

 

 

 

17

 

 

 

21

 

Non-operating (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

(1

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other (income) expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Income before income taxes and equity in net earnings of affiliate

 

 

19

 

 

 

22

 

 

 

17

 

 

 

22

 

Income tax provision

 

 

3

 

 

 

2

 

 

 

2

 

 

 

3

 

Income before equity in net earnings of affiliate

 

 

16

 

 

 

20

 

 

 

15

 

 

 

19

 

Equity in net earnings of affiliate

 

 

(1

)

 

 

(0

)

 

 

(1

)

 

 

(0

)

Net income

 

 

16

%

 

 

20

%

 

 

14

%

 

 

19

%

 

33

Results of Operations
Third Quarter 2025 Compared to Third Quarter 2024
Revenues
Revenues by our reportable segments were as follows:
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Semiconductor Test

 

$

605.9

 

 

$

568.5

 

 

$

37.4

 

Product Test

 

 

88.3

 

 

 

80.1

 

 

 

8.2

 

Robotics

 

 

75.1

 

 

 

88.7

 

 

 

(13.6

)

 

$

769.2

 

 

$

737.3

 

 

$

31.9

 

 
The increase in Semiconductor Test revenues of $37.4 million, or 6.6%, was driven primarily by higher sales in compute related to artificial intelligence applications. The increase in Product Test revenues of $8.2 million, or 10.2%, was driven by higher Defense/Aerospace sales. The decrease in Robotics revenues of $13.6 million, or 15.3%, was primarily due to lower sales of collaborative robotic arms.
Revenues by country as a percentage of total revenues were as follows (1):
 

 

 

For the Three Months
 Ended

 

 

 

September 28,
2025

 

 

September 29,
2024

 

Taiwan

 

 

37

%

 

 

26

%

China

 

 

17

 

 

 

13

 

United States

 

 

12

 

 

 

12

 

Korea

 

 

12

 

 

 

26

 

Europe

 

 

7

 

 

 

8

 

Malaysia

 

 

5

 

 

 

2

 

Philippines

 

 

3

 

 

 

2

 

Thailand

 

 

3

 

 

 

2

 

Japan

 

 

1

 

 

 

2

 

Singapore

 

 

1

 

 

 

2

 

Rest of World

 

 

2

 

 

 

5

 

 

 

 

100

%

 

 

100

%

 
(1) Revenues attributable to a country are based on location of customer site.

Gross Profit
Our gross profit was as follows:
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar/Point
Change

 

 

 

(in millions)

 

Gross profit

 

$

449.3

 

 

$

436.5

 

 

$

12.8

 

Percent of total revenues

 

 

58.4

%

 

 

59.2

%

 

 

(0.8

)

 
Gross profit as a percent of revenue decreased by 0.8 points, primarily due to product mix in Semiconductor Test.

34

Selling and Administrative
Selling and administrative expenses were as follows:
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Selling and administrative

 

$

169.1

 

 

$

157.6

 

 

$

11.5

 

Percent of total revenues

 

 

22.0

%

 

 

21.4

%

 

 

 

 
The increase of $11.5 million in selling and administrative expenses was primarily driven by strategic investments in Semiconductor Test.
Engineering and Development
Engineering and development expenses were as follows:
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Engineering and development

 

$

124.8

 

 

$

117.5

 

 

$

7.3

 

Percent of total revenues

 

 

16.2

%

 

 

15.9

%

 

 

 

 
The increase of $7.3 million in engineering and development expenses was primarily driven by strategic investments in Semiconductor Test.
Restructuring and Other
During the three months ended September 28, 2025, we recorded $4.8 million of severance charges, $3.6 million of which is related to headcount reductions in Robotics. During the three months ended September 28, 2025, we made $1.1 million of Robotics severance payments. We expect all Robotics severance payments to be made prior to the end of the third quarter of 2026.
During the three months ended September 29, 2024, we recorded restructuring and other charges primarily related to $1.3 million of severance charges related to headcount reductions principally in Robotics.
Interest and Other
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Interest income

 

$

(3.2

)

 

$

(5.1

)

 

$

1.9

 

Interest expense

 

 

1.3

 

 

 

0.8

 

 

$

0.5

 

Other (income) expense, net

 

 

(0.9

)

 

 

(2.7

)

 

$

1.8

 

 
The decrease in interest income was driven primarily by lower cash balances in the current period.

35

Income (Loss) Before Income Taxes and Equity in Net Earnings of Affiliate
 

 

 

For the Three Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Semiconductor Test

 

$

150.8

 

 

$

167.4

 

 

$

(16.6

)

Product Test

 

 

15.9

 

 

 

13.2

 

 

 

2.7

 

Robotics

 

 

(17.6

)

 

 

(24.2

)

 

 

6.6

 

Corporate and Eliminations (1)

 

 

(1.1

)

 

 

2.6

 

 

 

(3.7

)

 

$

148.1

 

 

$

159.0

 

 

$

(10.9

)

 
(1) Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension and postretirement plan actuarial gains (losses), acquisition and divestiture related expenses, and gain on sale of business.

The decrease in income before income taxes and equity in net earnings of affiliate in Semiconductor Test was driven primarily by product mix and investments in strategic projects partially offset by higher volume. The increase in income before income taxes and equity in net earnings of affiliate in Robotics was primarily due to lower operating expenses primarily as a result of restructuring actions.
Income Taxes
The effective tax rate for the three months ended September 28, 2025, and September 29, 2024, was 15.8% and 7.8%, respectively. The increase in the effective tax rate from the three months ended September 29, 2024, to the three months ended September 28, 2025, is primarily attributable to decreases in benefits related to reserves for uncertain tax positions, tax credits and the international provision of the U.S. Tax Cuts and Jobs Act of 2017. These were partially offset by an increase in benefit from a projected shift in the geographic distribution of income.
Nine Months 2025 Compared to Nine Months 2024
Revenues
Revenues by our reportable segments were as follows:
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Semiconductor Test

 

$

1,640.2

 

 

$

1,563.2

 

 

$

77.0

 

Product Test

 

 

247.5

 

 

 

237.2

 

 

 

10.3

 

Robotics

 

 

218.9

 

 

 

266.6

 

 

 

(47.7

)

 

$

2,106.7

 

 

$

2,067.0

 

 

$

39.7

 

 
The increase in Semiconductor Test revenues of $77.0 million, or 4.9%, was driven primarily by higher sales in mobility and compute related to artificial intelligence applications. The decrease in Robotics revenues of $47.7 million, or 17.9%, was primarily due to lower sales of collaborative robotic arms. The increase in Product Test revenues of $10.3 million, or 4.3%, was primarily due to higher sales in Wireless Test.

36

Revenues by country as a percentage of total revenues were as follows (1):
 

 

 

For the Nine Months
 Ended

 

 

 

September 28,
2025

 

 

September 29,
2024

 

Taiwan

 

 

33

%

 

 

20

%

China

 

 

17

 

 

 

11

 

United States

 

 

12

 

 

 

13

 

Korea

 

 

10

 

 

 

28

 

Europe

 

 

7

 

 

 

9

 

Malaysia

 

 

4

 

 

 

2

 

Philippines

 

 

4

 

 

 

2

 

Singapore

 

 

4

 

 

 

2

 

Japan

 

 

2

 

 

 

7

 

Thailand

 

 

2

 

 

 

2

 

Rest of World

 

 

5

 

 

 

4

 

 

 

100

%

 

 

100

%

 
(1) Revenues attributable to a country are based on location of customer site.

Gross Profit
Our gross profit was as follows:
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar/Point
Change

 

 

 

(in millions)

 

Gross profit

 

$

1,237.7

 

 

$

1,201.6

 

 

$

36.1

 

Percent of total revenues

 

 

58.7

%

 

 

58.1

%

 

 

0.6

 

 
Gross profit as a percent of revenue increased by 0.6 points, primarily due to product mix in Semiconductor Test.
Selling and Administrative
Selling and administrative expenses were as follows:
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Selling and administrative

 

$

484.2

 

 

$

461.3

 

 

$

22.9

 

Percent of total revenues

 

 

23.0

%

 

 

22.3

%

 

 

 

 
The increase of $22.9 million in selling and administrative expenses was primarily due to higher spending in Semiconductor Test partially offset by lower spending in Robotics.
Engineering and Development
Engineering and development expenses were as follows:
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Engineering and development

 

$

361.3

 

 

$

332.5

 

 

$

28.8

 

Percent of total revenues

 

 

17.2

%

 

 

16.1

%

 

 

 

 

37

The increase of $28.8 million in engineering and development expenses was primarily due to higher spending in Semiconductor Test partially offset by lower spending in Robotics.
Restructuring and Other
During the nine months ended September 28, 2025, we recorded $18.5 million of severance charges, $13.5 million of which is related to the Robotics restructuring which impacted approximately 150 employees, $2.2 million of which is related to Product Test and $1.4 million of which is related to Semiconductor Test. During the nine months ended September 28, 2025, we made $9.2 million of Robotics severance payments. We expect all Robotics severance payments to be made prior to the end of the third quarter of 2026. Additionally, we recorded $2.0 million of acquisition and divestiture expenses related primarily to the Quantifi Acquisition and $1.5 million of charges related to lease terminations.
During the nine months ended September 29, 2024, we recorded restructuring and other charges primarily related to $5.3
million of severance and other charges, related to headcount reductions of 87 people primarily in Robotics and Semiconductor Test,
which included charges related to a voluntary early retirement program for employees meeting certain conditions, and $2.2 million of
acquisition and divestiture expenses related to the Technoprobe transactions.
Gain on Sale of Business
During the nine months ended September 29, 2024, we recorded a gain of $57.5 million associated with the sale of DIS to Technoprobe.
Interest and Other
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Interest income

 

$

(12.6

)

 

$

(19.7

)

 

$

7.1

 

Interest expense

 

 

2.9

 

 

 

3.0

 

 

 

(0.1

)

Other (income) expense, net

 

 

2.9

 

 

 

5.6

 

 

 

(2.7

)

 
Interest income decreased by $7.1 million primarily due to lower cash balances. In the period ended September 29, 2024, other (income) expense, net included the change in value of our call option purchased in connection with the acquisition of Technoprobe. The call option expired on May 23, 2024.
Income (Loss) Before Income Taxes and Equity in Net Earnings of Affiliate
 

 

 

For the Nine Months
 Ended

 

 

 

 

 

 

September 28,
2025

 

 

September 29,
2024

 

 

Dollar
Change

 

 

 

(in millions)

 

Semiconductor Test

 

$

402.4

 

 

$

408.0

 

 

$

(5.6

)

Product Test

 

 

40.1

 

 

 

42.9

 

 

 

(2.8

)

Robotics

 

 

(73.3

)

 

 

(56.1

)

 

 

(17.2

)

Corporate and Eliminations (1)

 

 

(5.5

)

 

 

56.4

 

 

 

(61.9

)

 

$

363.7

 

 

$

451.3

 

 

$

(87.6

)

 
(1) Included in Corporate and Eliminations are gain on sale of business, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension and postretirement plan actuarial gains (losses), acquisition and divestiture related expenses, and gain on sale of business.

The decrease in income before income taxes and equity in net earnings of affiliate in Semiconductor Test was driven primarily by higher spending in selling and administrative and engineering and development, partially offset by higher sales in mobility and compute for artificial intelligence applications. The decrease in income before income taxes and equity in net earnings of affiliate in Robotics was primarily due to lower sales of collaborative robotic arms, partially offset by lower operating expenses. The decrease in income before income taxes and equity in net earnings of affiliate in Product Test was primarily due to strategic investments.

38

Income Taxes
The effective tax rate for the nine months ended September 28, 2025, and September 29, 2024, was 13.8% and 12.0%, respectively. The increase in the effective tax rate from the nine months ended September 29, 2024, to the nine months ended September 28, 2025, is primarily attributable to decreases in benefits related to reserves for uncertain tax positions and tax credits partially offset by an increase in benefit from a projected shift in the geographic distribution of income.
Contractual Obligations
There have been no changes outside of the ordinary course of business to our contractual obligations as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Liquidity and Capital Resources
Our cash, cash equivalents and marketable securities balances decreased by $296.4 million in the nine months ended September 28, 2025, to $427.4 million.
Operating activities during the nine months ended September 28, 2025, provided cash of $392.8 million. Changes in operating assets and liabilities used cash of $48.6 million due to a $169.0 million increase in operating assets and a $120.5 million increase in operating liabilities.
The increase in operating assets was primarily due to increases in accounts receivable, inventories, and prepayments and other assets of $111.8 million, $34.6 million, and $22.6 million, respectively.
The increase in operating liabilities was due to increases in accounts payable and other liabilities and in deferred revenue and customer advances of $121.4 million and $25.7 million, respectively, partially offset by decreases in income taxes and retirement plans of $19.7 million and $7.0 million, respectively.
Investing activities during the nine months ended September 28, 2025, used cash of $307.7 million due to $161.1 million used for the purchase of property, plant & equipment, $144.4 million used for the acquisition of businesses, $27.5 million used for the purchase of marketable securities, and $25.5 million used for the purchase of investments in businesses, partially offset by $41.6 million and $9.2 million in proceeds from the maturities and sales of marketable securities, respectively.
Financing activities during the nine months ended September 28, 2025, consumed cash of $361.4 million due to $518.7 million used for the repurchase of 5.1 million shares of common stock at an average price of $102.01 per share, $57.6 million utilized for dividend payments and $15.3 million used for payment related to net settlements of employee stock compensation awards, partially offset by $200.0 million from borrowings on our revolving credit facility and $30.1 million from the issuance of common stock under employee stock purchase and stock option plans.
Operating activities during the nine months ended September 29, 2024, provided cash of $389.6 million. Changes in operating assets and liabilities used cash of $75.8 million due to a $7.3 million decrease in operating assets and a $83.1 million decrease in operating liabilities.
The decrease in operating assets was primarily due to decreases in other assets and inventory of $61.4 million and $11.1 million,
respectively, partially offset by a $65.3 million increase in accounts receivable, driven by higher sales in the third quarter.
The decrease in operating liabilities was due to a $32.3 million decrease in accrued employee compensation, $25.9 million
decrease in accounts payable, $18.9 million decrease in income taxes, $4.2 million decrease in retirement plans, and $5.5 million
decrease in accrued other, partially offset by a $3.6 million increase in deferred revenue and customer advances.
Investing activities during the nine months ended September 29, 2024, used cash of $554.9 million due to $527.1 million used
for the purchases of investment, $140.7 million used for the purchase of property, plant and equipment, $35.1 million used for the
purchase of marketable securities, partially offset by $90.3 million in proceeds from the sale of a business, $23.6 million and $33.2
million in proceeds from the sales and maturities and marketable securities, respectively, and $0.9 million in proceeds from life
insurance.
Financing activities during the nine months ended September 29, 2024, used cash of $88.6 million due to $185.0 million used
for proceeds from borrowings on revolving credit facility of which $185.0 million in payments were paid back in full during the
quarter, $56.9 million used for dividend payment, $55.1 million used for the repurchase of 0.5 million shares of common stock at an
 

39

average price of $111.32 per share and $13.8 million used for payment related to net settlements of employee stock compensation
awards, partially offset by $37.3 million from the issuance of common stock under employee stock purchase and stock option plans.
In January 2025, May 2025 and August 2025, our Board of Directors declared a quarterly cash dividend of $0.12 per share. Dividend payments for the three and nine months ended September 28, 2025, were $19.0 million and $57.6 million, respectively.
In January 2024, May 2024, and August 2024, our Board of Directors declared a quarterly cash dividend of $0.12 per share. Dividend payments for the three and nine months ended September 29, 2024, were $19.6 million and $57.0 million, respectively.
During the nine months ended September 28, 2025, we repurchased 5.1 million shares of common stock for $518.7 million, which excludes related excise tax, at an average price of $102.01 per share. We intend to repurchase up to $1.0 billion of common stock in 2025 and 2026, subject to market conditions. The cumulative repurchases under the 2023 repurchase program as of September 28, 2025, were 10.8 million shares of common stock for $1,113.8 million, which excludes related excise tax, at an average price per share of $104.21. During the nine months ended September 29, 2024, we repurchased 0.5 million shares of common stock for $55.1 million, which excludes related excise tax, at an average price of $111.32 per share.
While we have previously declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition.
On May 1, 2020, we entered into a credit agreement (the "Credit Agreement") providing a three-year, senior secured revolving credit facility of $400.0 million. On December 10, 2021, the Credit Agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. On November 7, 2023, the Credit Agreement was amended to allow for the purchase of the shares of Technoprobe. On September 4, 2025, and September 19, 2025, we borrowed a combined $200.0 million under the Credit Agreement to fund out capital allocation strategy. As of October 30, 2025, there is $250.0 million outstanding from the Credit Facility.
We believe our cash, cash equivalents, marketable securities and senior secured revolving credit facility will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. As of September 28, 2025, we were in compliance with all covenants under the Credit Agreement.
Equity Compensation Plans
In addition to our 1996 Employee Stock Purchase Program as discussed in Note M: “Stock-Based Compensation” in our 2024 Annual Report on Form 10-K, we have a 2006 Equity and Cash Compensation Incentive Plan (the “2006 Equity Plan”).
The purpose of the 1996 Employee Stock Purchase Plan is to encourage stock ownership by all eligible employees of Teradyne. The purpose of the 2006 Equity Plan is to provide equity ownership and compensation opportunities in Teradyne to our employees, officers and directors. Both plans were approved by our shareholders.
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09 – “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” , which requires expanded disclosures relating to the tax rate reconciliation, income taxes paid, income (loss) before income tax expense (benefit) and income tax expense (benefit), requiring a greater disaggregation of information for each. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. We will apply the amendments in this update on a prospective basis. This ASU will have no impact on results of operations, cash flows or financial condition.
In November 2024, the FASB issued ASU 2024-03- "Income Statement - Reporting Comprehensive Income -Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" , which requires disclosure of additional expense information on an annual and interim basis, including the amounts of inventory purchases, employee compensation, depreciation and intangible amortization included within each income statement expense caption. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments in this update should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the impact of this new standard.

40

In July 2025, the FASB issued ASU 2025-05 - "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets" , which introduces a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The practical expedient permits all entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. This standard is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The amendments in this update should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the impact of this new standard and do not expect a material impact on the financial statements and related disclosures.
Item 3: Quantitative and Qualitative Disclosures about Market Risks
For “Quantitative and Qualitative Disclosures about Market Risk” affecting Teradyne, see Part 2 Item 7A, “Quantitative and Qualitative Disclosures about Market Risks,” in our Annual Report on Form 10-K filed with the SEC on February 20, 2025. There were no material changes in our exposure to market risk from those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
 
Item 4: Controls and Procedures
As of the end of the period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) or Rule 15d-15(f) promulgated under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 28, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION
Item 1: Legal Proceedings
We are subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations.
Item 1A: Risk Factors
In addition to other information set forth in this Form 10-Q, including the risk discussed below, you should carefully consider the factors discussed in Part I, “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, remain applicable to our business.
The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

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Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
In January 2023, Teradyne’s Board of Directors cancelled our 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. During the nine months ended September 28, 2025, we repurchased 5.1 million shares of common stock for a total cost of $523.5 million at an average price of $102.01 per share. We record share repurchases at cost, which includes broker commissions and related excise taxes. During the nine months ended September 29, 2024, we repurchased 0.5 million shares of common stock for $55.1 million at an average price of $111.32 per share.
The following table includes information with respect to repurchases we made of our common stock during the three months ended September 28, 2025, (in thousands except per share price):
 

Period

 

Total
Number of
Shares
(or Units)
Purchased

 

 

 

Average
Price Paid per
Share (or Unit)

 

 

 

Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs

 

 

Maximum Number
(or Approximate Dollar
Value) of Shares (or
Units) that may Yet Be
Purchased Under the
Plans or Programs (2)

 

June 30, 2025 - July 27, 2025

 

 

368

 

 

 

$

93.99

 

 

 

 

367

 

 

$

1,088,262

 

July 28, 2025 - August 24, 2025

 

 

344

 

 

 

$

106.17

 

 

 

 

342

 

 

$

1,052,245

 

August 25, 2025 - September 28, 2025

 

 

1,463

 

 

 

$

119.91

 

 

 

 

1,463

 

 

$

876,589

 

 

 

2,175

 

(1)

 

 

113.35

 

(1)

 

 

2,172

 

 

 

 

(1) Includes approximately three thousand shares at an average price of $104.76 withheld from employees for the payment of taxes.

(2) As of January 1, 2023, share repurchases net of share issuances are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is included as part of the cost basis of shares repurchased in the Condensed Consolidated Statements of Convertible Common Shares and Stockholders’ Equity.

We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due.
Item 4: Mine Safety Disclosures
Not Applicable

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Item 5: Other Information
10b 5-1 Trading Plans
Our officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (“Section 16 Officers”) and directors from time to time enter into contracts, instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information. We refer to these contracts, instructions, and written plans as “Rule 10b5-1 trading plans” and each one as a “Rule 10b5-1 trading plan.” During our fiscal quarter ended September 28, 2025, no Section 16 Officers or directors adopted , modified or terminated Rule 10b5-1 trading plans .

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Item 6: Exhibits
 

Exhibit
Number

 

Description

 

 

 

 

 

 

 

10.1

 

Separation and Release of Claims Agreement, dated as of August 28, 2025, by and between Ujjwal Kumar and Teradyne, Inc. (filed herewith) *

 

 

 

31.1

 

Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

 

31.2

 

Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

 

32.1

 

Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

 

32.2

 

Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

 

101.INS

 

Inline XBRL Instance Document

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents

 

104

 

Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101)

 

 

 

*

 

Management Contract or Compensatory Plan

 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 

 

TERADYNE, INC.

 

Registrant

 

 

/s/ S ANJAY  M EHTA

 

Sanjay Mehta
Vice President,
Chief Financial Officer and Treasurer
(Duly Authorized Officer
and Principal Financial Officer)
October 30, 2025

 

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