Filing Flows › Teradyne (TER) › How it makes money
How Teradyne (TER) makes money
Teradyne (TER) made $1.3B of revenue in the third quarter 2026 (Q3 2026), +70% from a year earlier. Product brought in $1.2B (89%); Service brought in $142M (11%). Of every dollar of revenue, 59¢ was left as gross profit, 31¢ was left as operating profit, 26¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Product | $1.2B | 89.1% | -2% | +84% |
| Service | $142M | 10.9% | +3% | +3% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $1.3B | 100.0% |
| Cost of revenue | $535M | 40.9% |
| Gross profit | $771M | 59.1% |
| Operating expenses | $369M | 28.3% |
| Operating profit | $402M | 30.8% |
| Income tax | $59.8M | 4.6% |
| Net earnings | $342M | 26.2% |
| Operating cash flow | $314M | 24.0% |
| Free cash flow | $227M | 17.4% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $1.3B | +70% |
| Q2 2026 | $1.3B | +104% |
| Q1 2026 | $1.3B | +87% |
| Q4 2025 | $1.1B | +44% |
| Q3 2025 | $769M | +4% |
| Q2 2025 | $652M | -11% |
| Q1 2025 | $686M | +14% |
From Teradyne's 10-Q filed Oct 30, 2026 (on EDGAR).
Questions
How does Teradyne make money?
Teradyne (TER) made $1.3B of revenue in the third quarter 2026 (Q3 2026), +70% from a year earlier. Product brought in $1.2B (89%); Service brought in $142M (11%). Of every dollar of revenue, 59¢ was left as gross profit, 31¢ was left as operating profit, 26¢ was left as net earnings.
What is Teradyne's biggest business?
Product: $1.2B in the third quarter 2026, 89% of revenue, +84% from a year earlier.
What is Teradyne's profit margin?
Net earnings were $342M, 26.2% of revenue, in the third quarter 2026; the operating margin was 30.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.