North Reading, Massachusetts-based Teradyne, Inc. (TER) is a global supplier of automated test equipment and robotics solutions. With a market cap of $12.4 billion, the company operates through Semiconductor Test, Robotics, and Other segments.

Shares of the TER have significantly lagged behind the broader market over the past 52 weeks. TER stock has dropped 32.4% over this period, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, shares of TER are down 34% on a YTD basis, underperforming SPX’s marginal dip during the same time frame.

Looking closer, TER has also underperformed the Technology Select Sector SPDR Fund’s (XLK) 10.8% rise over the past 52 weeks and 2.1% decline on a YTD basis.

Despite deliver strong financials, Teradyne’s stock prices fell 2.5% in the trading session following the release of its Q1 results on Apr. 28. The company reported revenue of $685.7 million, up 14.3% year over year, driven by solid performance in Semiconductor Test, particularly in System on a Chip (SoC) for mobile, and surpassed the street's topline estimate of $683.9 million. Adjusted EPS came in at $0.75, marking a 47.1% increase from the prior year quarter and beating analysts’ estimate by nearly 23%.

For Q2 2025, the company expects revenue between $610 million and $680 million, with adjusted EPS projected in the range of $0.41 to $0.64. However, the stock declined due to the company’s decision not to reaffirm expectations beyond the second quarter.

Meanwhile, for the current fiscal year, ending in December 2025, analysts expect TER's adjusted EPS to decline 1.2% year-over-year to $3.18. However, it has a solid earnings surprise history. TER surpassed the Street's bottom-line estimates for each of the quarters in fiscal 2024.

Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, three “Holds,” one “Moderate Sell,” and one “Strong Sell.”

This configuration is slightly less bullish than three months ago, with 12 “Strong Buy” ratings on the stock.

On Apr. 30, Susquehanna analyst Mehdi Hosseini lowered TER’s price target to $133 but maintained a “Positive” rating on the stock.

As of writing, Teradyne’s mean price target of $99.50 implies a 19.8% premium to current price levels, while the Street-high target of $137 suggests a staggering 64.9% upside potential.