Filing Flows › Teradyne (TER) › Q1 2025
Teradyne (TER) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 2, 2025
Teradyne (TER) reported revenue of $686M for the first quarter 2025 (Q1 2025), +14% from a year earlier and -9% from the quarter before. Operating margin was 17.6%, net earnings $98.9M (14.4% of revenue).
Teradyne, Q1 2025: revenue $686M (+14% year over year), operating margin 17.6%, net earnings $98.9M, operating cash flow $162M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $686M | -9% | +14% |
| Gross profit | $415M | -7% | +22% |
| Operating profit | $121M | -21% | +55% |
| Net earnings | $98.9M | -32% | +54% |
| Operating cash flow | $162M | -43% | 22× |
| Free cash flow | $97.6M | -57% | — |
What changed
Revenue was $685.7M in Q1 2025, up 14% year over year and down 9% from the previous quarter. Product was the largest line at 82% of revenue. Product added $103.5M year over year (up 23%), 121% of the total change. Service declined 12%.
Gross margin was 60.6%, up 4.0 points from a year earlier. Operating profit was $120.8M, a 17.6% margin (up 4.7 points year over year). Of the extra revenue versus a year earlier, 50% reached operating profit, above the 13% margin then. Operating expenses grew 13% against revenue growth of 14%. The fastest-growing cost line was Other operating costs (+109%). Net earnings were $98.9M, up 54% year over year. The effective tax rate was 12.8%.
Operating cash flow was $161.6M (up 2121% year over year), 163% of net earnings. Non-cash charges added back $30.3M of depreciation and amortization and $15.2M of share-based compensation. Working capital and other items added $17.2M. Capital expenditures of $64.0M left free cash flow of $97.6M.
Questions
What was Teradyne's revenue in the first quarter 2025?
Teradyne (TER) reported revenue of $686M for the first quarter 2025 (Q1 2025), +14% from a year earlier and -9% from the quarter before.
Was Teradyne profitable in the first quarter 2025?
Operating profit was $121M (17.6% of revenue) and net earnings $98.9M.
Source: Teradyne 10-Q on SEC EDGAR.