Slides
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Financial Results for Q4 2025 and Full Year 2025 February 3, 2026
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Safe Harbor This presentation contains forward-looking statements including statements regarding T eradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “goal” or other comparable terms. Forward-looking statements in this presentation address various matters, including statements regarding Teradyne’s financial guidance, future business prospects, results of operations, market size and conditions, earnings per share, mid-term earnings model, sales mix, customer product development, customer demand and sales expectations,the payment of a quarterly dividend, and the repurchase of T eradyne common stock pursuant to a share repurchase program. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors. Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the markets in which T eradyne operates; decreased or delayed product demand from one or more significant customers; a slowdown or inability in the development, delivery and acceptance of new products; the ability to grow the Robotics business; the impact of increased research and development spending; the impact of epidemics or pandemics such as COVID-19; the impact of a supply shortage on our supply chain and contract manufacturers; the consummation and success of any mergers or acquisitions; unexpected cash needs; the business judgment of the board of directors that a declaration of a dividend or the repurchase of common stock is not in T eradyne’s best interests; changes to U.S. or global tax regulations or guidance; the impact of any tariffs or export controls imposed by the U.S. or other countries; the impact of U.S. Department of Commerce or other government agency regulations relating to Huawei, HiSilicon and other customers or potential customers; the impact of U.S. Department of Commerce export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China; the impact of the Israel-Hamas conflict; the impact of regulations published by the U.S. Department of Commerce relating to semiconductors and semiconductor manufacturing equipment destined for certain end uses in China; and the impact of trade regulations and restrictions that impact our ability to deliver certain products to and support certain customers. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with T eradyne, please refer to T eradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Many of these factors are macroeconomic in nature and are, therefore, beyond T eradyne’s control. We caution readers not to place undue reliance on any forward-looking statements included in this presentation which speak only as of the date of this presentation. T eradyne specifically disclaims any obligation to update any forward-looking information contained in this presentation or with respect to the announcements described herein. 2
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Business Update and Outlook Greg Smith, President and CEO 3
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Delivered Strong Q4’25 Results Group PerformanceRevenue EPS 41% sequential and 44% YoY growth, above high guidance Over 100% growth sequentially and 89%YoY , above high guidance Double digit sequential growth across Semiconductor Test, Product Test, and Robotics 4
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Verticalization Artificial Intelligence Trends Driving Growth Electrification 5 Revenue Driven by AI(1) AI Revenue Drivers • Networking • XPU / CPU • SiPho • System Level Test • Compute • Board Test • Robotics (1) Approximate percentages
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Full Year 2025 Recap RoboticsSemiconductor Test Product Test • Grew revenue 19% YoY (SOC up 23%, Memory up slightly, and IST up over 50%) • Grew revenue 8% YoY driven by Defense and Aerospace • Three consecutive quarters of growth • Opportunities in Physical AI and advanced robotics 6
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SoC Product Revenue Shift 2023 Compute Mobile Auto/Ind 2025 Compute Mobile Auto/Ind 2023 Compute Product Revenue $109M 2025 Compute Product Revenue $753M 7
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Memory Revenue Shift 2021 DRAM Flash 2025 DRAM Flash 2021 DRAM Revenue $80M 2025 DRAM Revenue $350M 8
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Teradyne Enables Scaling the AI Data Center Partnering with verticalized customers to maximize yield and quality at each stage of the process 9 Wafer Die Substrate PCB Tray Rack AI Data CenterPackage ATE Based Test Integrated System Test Optical Test High Speed Interconnect Test Robot Assisted Test Robot Assisted Assembly Robot Assisted Operations Production Board Test MultiLane Test Products - JV
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Fourth Quarter and Full Year 2025 Financial Results, First Quarter 2026 Guidance and New Target Earnings Model Michelle Turner, Vice President and Chief Financial Officer 10
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Q4’25 Non-GAAP Results 11 $ in millions, except EPS Q4’24 Actual(1) Q3’25 Actual(1) Q4’25 Actual(1) Sales (2) 100% $753M 100% $769M 100% $1,083M Semiconductor Test 75% $561M 79% $606M 82% $883M Product Test 12% $94M 11% $88M 10% $110M Robotics 13% $98M 10% $75M 8% $89M Gross Margin 59.4% $447M 58.5% $450M 57.2% $620M R&D 17.1% $128M 16.2% $125M 13.2% $143M SG&A 20.7% $156M 21.8% $168M 15.0% $163M OPEX 37.8% $284M 38.1% $293M 28.2% $306M Operating Profit 21.7% $163M 20.4% $157M 29.0% $314M Income Taxes (& effective tax rate) 7.6% $13M 16.0% $26M 10.6% $33M EPS $0.95 $0.85 $1.80 Diluted Shares 163M 159M 158M (1) See GAAP to non-GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link (2) Product vs Service Revenue Detail: Q4’25: Total Company - Product $943M / Service $140M; SemiTest – Product $781M / Service $102M Q3’25: Total Company - Product $632M / Service $137M; SemiTest – Product $505M / Service $101M Q4’24: Total Company - Product $627M / Service $126M; SemiTest – Product $466M / Service $95M
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Balance Sheet & Capital Allocation 12 $ in millions Q4’24 Actual Q3’25 Actual Q4’25 Actual Cash and Marketable Securities $724M $427M $448M Inventory $298M $367M $380M DSO 58 days 70 days 67 days Capital Additions $57M $47M $63M Depreciation and Amortization(1) $46M $46M $52M Free Cash Flow(2) $225M $2M $219M Capital Return Buybacks(3) $144M $246M $185M Dividends $19M $19M $19M (1) Includes depreciation, stock-based compensation, amortization of acquired intangible assets (2) Teradyne calculates free cash flow as: GAAP Cash flow from operations, excluding discontinued operations, less property, plant and equipment additions; see GAAP to non–GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. (3) Inclusive of excise taxes, as applicable
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Annual Non-GAAP Results 13 $ in millions, except EPS 2024 Actual(1) 2025 Actual(1) Sales (2) 100% $2,820M 100% $3,190M Semiconductor Test 75% $2,124M 79% $2,524M Product Test 12% $331M 11% $358M Robotics 13% $365M 10% $308M Gross Margin 58.6% $1,653M 58.3% $1,859M R&D 16.3% $461M 15.8% $505M SG&A 21.8% $615M 20.2% $644M OPEX 38.2% $1,076M 36.0% $1,149M Operating Profit 20.4% $576M 22.3% $710M Income Taxes (& effective tax rate) 12.6% $75M 12.8% $91M EPS $3.22 $3.96 Diluted Shares 163M 160M (1) See GAAP to non -GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link (2) Product vs Service Revenue Detail: 2025: Total Company - Product $2,660M / Service $530M; SemiTest – Product $2,129M / Service $394M 2024: Total Company - Product $2,295M / Service $525M; SemiTest – Product $1,712M / Service $412M
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Q1’26 Non-GAAP Guidance 14 $ in millions, except EPS Q4’25 Actual(1) Q1’26 Guidance(1) Sales $1,083M $1,150M - $1,250M Gross Margin 57.2% 58.5% - 59.5% OPEX 28.2% 28.0% - 26.0% Operating Profit 29.0% 30.5% - 33.5% Income Taxes (& effective tax rate) 10.6% 15.5% EPS $1.80 $1.89 - $2.25 Diluted Shares 158M 158M (1) See GAAP to non-GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link
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0% 5% 10% 15% 20% 25% 30% 35% 40% Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 Q1'25 Q2'20 Q2'21 Q2'22 Q2'23 Q2'24 Q2'25 Q3'20 Q3'21 Q3'22 Q3'23 Q3'24 Q3'25 Q4'20 Q4'21 Q4'22 Q4'23 Q4'24 Q4'25 2025 – A Year that Broke the Pattern 15 Q2/Q3 "Lumpy" History 2020 – 2024: ~53% 2025: ~45% Q4 Largest Quarter in 2025 Quarterly Revenue % of Full Year
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Teradyne Non-GAAP Target Earnings Model Target Earnings Model(1) 2025 Target Model ATE TAM ~$9.0B $12-14B TER Revenue $3.2B ~$6.0B Gross Margin % 58.3% ~59% - 61% OPEX % 36.0% ~29% - 27% Operating Profit 22.3% ~30% - 34% Non-GAAP EPS $3.96 ~$9.50 - $11.00 Growth Drivers SemiT est: AI – Compute and Memory growth, recovery in Mobility and Auto/Ind markets, IST growth tied to System Level T est and Hard Disk Drive Product T est: Compute, Optical Transceiver and Photonics market growth with demand pull from high-speed internet and data centers Robotics: Physical AI expanding addressable market and reducing implementation complexity. Realign to Ecommerce, Logistics, Semi and Electronics verticals. 1 Target Earnings Model Updated as of 2/3/2026 See GAAP to non-GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link 2025 Target Model SemiTest Product Test Robotics Segment Revenue $3.2B ~$6.0B~15-25% CAGR off FY25 Market Dynamics SemiT est: AI advancements lead to more test complexity and longer test times, and new power architectures for data centers Product T est: rapid growth of AI accelerated computing including photonics and high-performance interconnect Robotics: Higher growth driven by skilled labor shortages, reshoring and rapid build-out of data center equipment 16
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The $6B Model Q1’26 Outlook(1) The Big Picture: Earnings Recap Q4’25 Full Year 2025 • 41% sequential revenue growth • All groups delivered double digit sequential growth • Largest revenue quarter in 2025, second largest ever • Over 60% AI-driven revenue • 13% YoY revenue growth • 23% Non-GAAP EPS growth • Semiconductor Test increased to ~80% of portfolio • Compute product revenue grew ~90% YoY • A year that broke the historical quarterly sales pattern • Revenue of $1.2B, will be a new quarterly high revenue, up 11% sequentially and 75% YoY • Non-GAAP EPS $2.07 and up 176% YoY • Compute portfolio growth will continue to drive lumpy and unpredictable revenue patterns • 2026 sales expected to be the inverse profile of 2025 sales • Over 70% AI-driven revenue • Assumes ATE TAM of ~$12B - $14B • ~$6B revenue and ~$9.50 -$11.00 Non-GAAP EPS • Driven by all things AI See GAAP to non-GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link (1) At the midpoint 17
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Supplemental Information 19
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History of Capital Allocation Since 2015, 86M shares repurchased at an average price of ~$55 per share 20 $ in millions 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cumulative Buybacks(1) $300 $146 $200 $823 $500 $88 $600 $752 $401 $199 $709 $4,718 Dividends $51 $49 $55 $67 $61 $66 $66 $70 $68 $76 $76 $706 Acquisitions/ Investments (2) $283 $15 $1 $194 $115 $9 $12 - - $442 $170 $1,241 Total $633 $210 $257 $1,085 $676 $163 $678 $822 $468 $717 $955 $6,665 Free Cash Flow (3) $323 $370 $521 $370 $444 $684 $966 $415 $426 $474 $450 $5,444 % of FCF Returned(4) 109% 53% 49% 240% 126% 23% 69% 198% 110% 58% 174% 100% 19% 10% 71% Acquisitions/Earn-out Payments Dividends Buybacks (1) Inclusive of excise taxes, as applicable (2) Net acquisitions includes acquisitions, minority investments and divestitures (3) Teradyne calculates free cash flow as: GAAP Cash flow from operations, excluding discontinued operations, less property, plant and equipment additions net of gov’t subsidies; see GAAP to non–GAAP reconciliations contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. (4) Teradyne calculates % of FCF returned as Buybacks plus Dividends divided by Free Cash Flow Cumulative Capital Allocation Breakdown 2015 – 2025
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GAAP to Non-GAAP Reconciliation In addition to disclosing results that are determined in accordance with GAAP , T eradyne also discloses in this presentation and on the earnings call non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP . These non-GAAP performance measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with the Company’s business plan, historical operating results and the operating results of the Company’s competitors. Management believes each of these non-GAAP performance measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of the Company’s financial and operational performance, as well as facilitating meaningful comparisons of the Company’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this presentation is contained on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. The non-GAAP performance measures discussed in this presentation may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP . 21