Teradyne, Inc. (TER): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how the management team is positioning the business for the next tech cycle, and honestly, the strategy is clear: they are aggressively doubling down on the AI gold rush while cleaning up the factory floor automation side. We see this pivot reflected in the numbers, where Semiconductor Test equipment sales hit $606 million in Q3 2025, even as they poured 25.6% more into R&D in Q1 2025 to stay ahead of the curve on things like chiplets and High Bandwidth Memory (HBM) testing. This Business Model Canvas breaks down precisely how they connect their extensive Intellectual Property, like the Ultra Flex platform, to hyperscalers and top-tier foundries, so you can see the mechanics behind their move to capture that massive AI infrastructure spend.

Teradyne, Inc. (TER) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Teradyne, Inc. relies on to keep its Automated Test Equipment (ATE) and Robotics segments moving forward, especially as chip complexity explodes. These alliances are critical for maintaining market relevance in late 2025.

Strategic collaboration with TSMC on 3DFabric® Testing

Teradyne, Inc. secured the 2025 TSMC Open Innovation Platform® (OIP) Partner of the Year award for TSMC 3DFabric® Testing, announced September 25, 2025. This recognizes joint work pioneering multi-die test methodologies for chiplets and TSMC CoWoS® advanced packaging technology. Teradyne's strategic investments support this, focusing on standards like UCIe (Universal Chiplet Interconnect Express) and streaming scan test solutions. The Semiconductor Test Group, led by Shannon Poulin, President, drives this effort, which is vital for complex 3D ICs used in AI and cloud datacenter applications.

Robotics integration partnerships, such as with Analog Devices (ADI)

Teradyne Robotics, which houses Universal Robots (UR) and Mobile Industrial Robots (MiR), formed a strategic partnership with Analog Devices, Inc. (ADI) in early 2025. This collaboration integrates ADI's silicon and sub-system solutions to enhance AI-driven robotics, particularly for semiconductor fabrication and backend operations. Teradyne Robotics already has a significant footprint, with over 80,000 products deployed globally, representing 34% of the cobot market.

Joint development with EDA companies (Synopsys, Cadence) on test platforms

Collaboration with Electronic Design Automation (EDA) firms remains foundational for test platform development. At CadenceLIVE 2025, Teradyne presented on 'Revolutionizing signal integrity optimization with AI/ML technology for high-speed channel breakout'. This points to ongoing joint work ensuring testability aligns with the latest chip designs.

Long-term supply chain agreements with major chipmakers like Intel and Samsung

While specific long-term agreement financial terms with Intel or Samsung aren't public, the demand driving Teradyne's capacity expansion is directly linked to these major players. Teradyne's Semiconductor Test segment generated $492 million in revenue for the second quarter of 2025. The company is actively supporting capacity expansion driven by demand in Semiconductor Test, as noted during the CFO transition announcement in October 2025.

Alliances with automotive and industrial equipment manufacturers

The robotics division's partnership with ADI is explicitly aimed at advancing robotics in sectors ripe for automation beyond semiconductors. The Robotics segment itself reported revenue of $75 million in the second quarter of 2025.

Here's a quick look at the scale and focus of these key relationships:

Partner Category	Specific Partner/Focus	Key Metric/Achievement (Late 2025)	Relevance to Teradyne Segment
Foundry/Packaging Ecosystem	TSMC (3DFabric® Testing)	Recipient of 2025 TSMC OIP Partner of the Year Award	Semiconductor Test (Enabling CoWoS®/Chiplet Test)
Semiconductor Component Supplier	Analog Devices (ADI)	Strategic partnership announced January/February 2025 for AI/Robotics	Robotics (Enhancing UR/MiR capabilities)
EDA/Design Tools	Cadence	Presentation on AI/ML signal integrity optimization at CadenceLIVE 2025	Semiconductor Test (Design-for-Test integration)
Robotics Market Reach	Universal Robots (UR) / MiR	UR/MiR represent 34% of the cobot market share	Robotics (Market penetration)
Major Chipmakers (Demand Driver)	Intel, Samsung (Implied Demand)	Semiconductor Test revenue was $492 million in Q2 2025	Semiconductor Test (High-volume ATE demand)

The Robotics business, which includes UR and MiR, is a major component of Teradyne's overall revenue structure, reporting $75 million in revenue for the second quarter of 2025.

• Teradyne Robotics' portfolio includes cobots and AMRs (Autonomous Mobile Robots).
• The ADI partnership focuses on integrating edge-based AI and machine learning into robotics products.
• The TSMC collaboration involves innovations like high-speed scan testing over UCIe die-to-die interfaces.
• Teradyne's comprehensive test equipment portfolio supports emerging chip architectures across all test insertions.

Teradyne, Inc. (TER) - Canvas Business Model: Key Activities

You're looking at the core engine of Teradyne, Inc. (TER) right now-the things they absolutely must do well to keep the lights on and, more importantly, to grow. It's a dual focus: keeping the cash cow strong while aggressively building the future.

Designing and manufacturing Automated Test Equipment (ATE)

The primary activity is the design and manufacture of Automated Test Equipment (ATE), which is crucial for ensuring the quality and reliability of semiconductors, especially those powering Artificial Intelligence (AI).

The Semiconductor Test segment is the financial backbone. For the second quarter of 2025 (Q2 2025), this segment generated $492 million in revenue, representing about 75.5% of the total company revenue of $652 million for the quarter. This activity is heavily focused on System-on-a-Chip (SOC) solutions for AI applications. Teradyne projects a long-term Compound Annual Growth Rate (CAGR) for Test Revenue of 12-17% off 2024 levels. The company is also actively working on test solutions for emerging technologies like silicon photonics, which is key for Co-Packaged Optics (CPO) in AI data centers.

Metric	Q2 2025 Amount (USD)	Context/Source
Semiconductor Test Revenue	$492 million	Q2 2025 Segment Revenue
Product Test Revenue	$85 million	Q2 2025 Segment Revenue
Total Company Revenue	$652 million	Q2 2025 Total Revenue
Projected Test Revenue CAGR (Long-Term)	12-17%	Off 2024 levels

Investing heavily in AI compute and silicon photonics R&D

Teradyne, Inc. must continuously invest in Research and Development (R&D) to stay ahead in the rapidly evolving AI chip landscape. This is a non-negotiable activity for maintaining relevance in the ATE space.

For Q2 2025, R&D expenses were reported at $118 million. The company completed the acquisition of Quantifi Photonics for $127.2 million in May 2025, specifically to expand its capabilities in optical networking tests, which directly supports silicon photonics solutions for AI infrastructure. The VIP market for cloud computing and AI testing is projected to double from $400 million in 2024 to $800 million by 2028.

Developing collaborative robots (cobots) and mobile robots (AMRs)

Developing and selling advanced robotics, specifically collaborative robots (cobots) under Universal Robots (UR) and autonomous mobile robots (AMRs) under Mobile Industrial Robots (MiR), is the second major operational pillar.

The Robotics division generated $75 million in revenue in Q2 2025. This was a 17% year-over-year decline but showed a 9% sequential improvement from Q1 2025's $69 million. In 2024, the total robotics revenue was $365 million, with UR contributing $293 million and MiR contributing $72 million. UR remains the dominant contributor, bringing in $63 million, or 84% of the group's Q2 2025 revenue. Teradyne projects a long-term Robotics Revenue CAGR of 18-24% off 2024 levels.

• Universal Robots (UR) Q2 2025 Revenue: $63 million
• Mobile Industrial Robots (MiR) Q2 2025 Revenue: $12 million
• 2024 Total Robotics Revenue: $365 million

Global customer service and technical support for complex systems

Supporting these complex ATE and robotics systems globally requires a dedicated service and support structure. This activity is being streamlined to improve efficiency and coverage.

The structural reorganization in Q1 2025 involved consolidating the customer-facing sales, marketing, and service organizations for UR and MiR into a single customer-service organisation. This move was intended to eliminate overlap, skill up customer service, and expand regional coverage for tech support and repair services under multiyear service contracts. The company is also focused on expanding its service and software opportunities in Robotics, which are expected to be a significant portion of revenue by 2026.

Structural reorganization of the Robotics division for efficiency

A key activity in 2025 was the strategic realignment of the Robotics business to enhance customer experience and drive operational efficiency, especially given market weakness.

This restructuring included laying off approximately 10% of the Robotics Group's global staff, impacting about 150 employees, with a 6% reduction in Denmark. The goal was to reduce the robotics breakeven revenue from $440 million in 2024 down to $365 million in 2025. The Q2 2025 results showed the new organization delivered 9% quarter-on-quarter growth following the Q1 2025 consolidation. Severance charges related to this restructuring totaled $2.3 million in Q2 2025.

• Robotics Breakeven Revenue Target (2025): Reduced to $365 million
• Staff Reduction: Approximately 10% of the global workforce
• Q2 2025 Sequential Growth Post-Reorganization: 9%

Teradyne, Inc. (TER) - Canvas Business Model: Key Resources

You're looking at the core assets Teradyne, Inc. (TER) relies on to drive its business, spanning from deep technical expertise to hard cash reserves. These are the things the company owns or controls that are essential for delivering its value propositions in semiconductor test and industrial automation.

The Intellectual Property (IP) foundation is significant. While you mentioned a specific figure, the latest data indicates Teradyne, Inc. has a total of 3,702 patents globally, with 1,612 of those patents currently active as of early 2025. This portfolio underpins their leadership in automated testing and robotics, representing years of focused R&D investment across more than 30 jurisdictions.

Physical and technological assets include their high-performance test platforms. Key among these are the Ultra Flex and Titan HP systems, which are central to securing revenue in the Semiconductor Test segment, which brought in $543 million in Q1 2025.

The acquired robotics brands, Universal Robots (UR) and Mobile Industrial Robots (MiR), represent a major, albeit currently challenged, resource base in automation. Their combined revenue streams show the current state of this segment:

Metric	Universal Robots (UR) Revenue	Mobile Industrial Robots (MiR) Revenue	Total Robotics Revenue
Q1 2025	Not Separated	Not Separated	$69 million
Q2 2025	$63 million (84% of total)	$12 million	$75 million
Q3 2025	Not Separated	Not Separated	$75 million

The company's human capital is another critical resource. Teradyne, Inc. relies on its specialized engineering talent in semiconductor testing and automation, which drives the development of new products like the UR AI Accelerator and MiR 1200 Pallet Jack. The Robotics group alone had over 1,400+ employees worldwide before a recent restructuring.

Finally, the balance sheet provides operational flexibility. As of the close of the first quarter of 2025, Teradyne, Inc. reported $475.6 million in cash and equivalents. This financial cushion supports ongoing critical investments, even as the company navigates market uncertainties and executes a $1 billion share repurchase program approved in Q1 2025.

Here's a quick look at the scale of the cash position relative to recent operational expenses:

• Cash and Equivalents (Q1 2025): $475.6 million
• Total Operating Expenses (Q1 2025): $294.5 million
• Total Assets (Q1 2025): $3.71 billion
• Shareholders' Equity (Q1 2025): $2.80 billion

Finance: draft 13-week cash view by Friday.

Teradyne, Inc. (TER) - Canvas Business Model: Value Propositions

You're looking at the core value Teradyne, Inc. delivers to its customers right now, based on their late 2025 performance. It's all about enabling the next wave of advanced silicon.

High-quality testing for complex System-on-Chip (SOC) solutions

Teradyne, Inc. provides the necessary validation for increasingly complex chips. For instance, in the third quarter of 2025, Semiconductor Test revenue hit $606 million out of total company revenue of $769 million. The System-on-Chip (SOC) portion of that was $440 million, showing a sequential increase of 11% in that quarter alone. This high-quality testing is critical for the Computing Vertically Integrated Producer (VIP) market, which Teradyne, Inc. projects will double from $400 million in 2024 to $800 million by 2028.

Enabling faster time to revenue for 3D ICs and chiplets

The value here is getting complex, multi-die packages validated quickly. While specific 3D IC revenue isn't broken out, the AI-driven memory test segment saw sales jump 110% sequentially in Q3 2025 to reach $128 million, largely driven by High Bandwidth Memory (HBM) and AI-related LPDDR demand. This rapid growth in memory testing directly supports the faster deployment of advanced packaging solutions like chiplets.

Collaborative automation for flexible, efficient manufacturing

The Robotics segment contributes to automation value, though it's currently navigating market softness. In Q3 2025, Robotics revenue was $75 million, flat quarter-over-quarter. Still, the company is strategically pivoting this segment toward logistics and pharma, and over 8% of its robotics sales in Q3 2025 were for AI-related products, up from 6% in Q2 2025. Plus, the installed base of their robots exceeds 100,000 units, providing a foundation for service revenue which represented 14% of sales in the quarter.

Precision testing for AI accelerators and High Bandwidth Memory (HBM)

This is where the current financial strength is rooted. AI compute and memory testing are the primary growth engines. The non-GAAP gross margin for Teradyne, Inc. stood at a healthy 58.5% in Q3 2025, reflecting the high value captured from these precision tools. The company's non-GAAP operating expenses for Q3 2025 were $293 million, reflecting the necessary investment in R&D to maintain this precision edge in AI testing.

Lowering the overall cost of quality for high-volume production

The value proposition is demonstrated through margin stability despite volume fluctuations. Teradyne, Inc.'s gross margin target range remains stable at 59% to 60%. Furthermore, management is focused on cost control, expecting operational expenses (OPEX) growth to be only half the rate of revenue growth moving into 2026. This efficiency helps customers manage their total cost of quality.

Here's a quick look at the Q3 2025 revenue contribution:

Segment	Q3 2025 Revenue (Millions USD)	Sequential Change from Q2 2025
Semiconductor Test	606	Up 18% (Total Company Sequential Revenue Growth)
Product Test	88	Up 4%
Robotics	75	Flat

The company's financial health supports these value drivers, with a non-GAAP operating profit of 20.4% in Q3 2025.

Teradyne, Inc. (TER) - Canvas Business Model: Customer Relationships

You're looking at how Teradyne, Inc. manages its most valuable asset-its customer base-across its diverse technology segments. The approach isn't one-size-fits-all; it shifts depending on whether you're selling a multi-million dollar piece of automated test equipment (ATE) or a collaborative robot.

Dedicated field application engineering support for complex integration

For the core Semiconductor Test business, which generated 79% of the $769 million total revenue in the third quarter of 2025, the relationship is deeply technical. This requires extensive, dedicated field application engineering support. These engineers work directly with the world's top chip designers to ensure seamless integration of Teradyne's ATE platforms with highly complex, next-generation System-on-a-Chip (SOC) designs, especially those targeting artificial intelligence (AI) compute.

Long-term, high-touch relationships with top-tier semiconductor clients

Teradyne, Inc. maintains relationships with most major chip manufacturers. The company anticipates continued concentration of sales among a limited number of significant customers. This high-touch model is necessary because the equipment is mission-critical and the sales cycles are long. For instance, the Semiconductor Test Group's Q3 2025 SOC revenue hit $440 million, up 12% year-over-year, demonstrating the depth of commitment from these key accounts to AI infrastructure build-out.

The geographic concentration of these relationships is notable, with Taiwan accounting for 28% and China for 19% of total revenues in Q3 2025.

Strategic technology development for next-generation architectures

Customer relationships are cemented by co-development efforts tied to future technology roadmaps. The focus on AI is a prime example; the strong performance in Q3 2025 was driven by AI-related testing demand. The company is leaning into R&D and go-to-market investments for AI opportunities expected to drive revenue in 2026 and beyond. This forward-looking alignment keeps Teradyne, Inc. indispensable to clients planning years ahead.

Merged service and sales teams for Universal Robots and MiR

In the Robotics segment, Teradyne, Inc. made a structural change to streamline customer interaction. You should know that the customer-facing sales, marketing, and service organizations of Universal Robots (UR) and Mobile Industrial Robots (MiR) were consolidated in the first quarter of 2025. This integration is designed to present a unified front to automation buyers. Following this change, the new organization delivered 9% quarter-on-quarter growth in Q2 2025, despite market softness.

Here's a look at the revenue contribution from the combined Robotics group in Q2 2025:

Robotics Sub-Segment	Q2 2025 Revenue (Millions USD)	Percentage of Robotics Revenue
Universal Robots (UR)	$63	84%
Mobile Industrial Robots (MiR)	$12	16%
Total Robotics Revenue	$75	100%

Consultative sales model for high-capital equipment purchases

For both the high-end ATE and the larger Robotics deals, the sales process is inherently consultative. Sales personnel must possess a high level of intellect and the energy to thrive in a dynamic environment, offering in-depth technical product information. This is especially true for Robotics, where Area Sales Managers are responsible for advising on and selling technical products like collaborative robots and Autonomous Mobile Robots (AMRs). The Robotics group is also strategically focused on attracting large customers, having recently secured a plan of record decision from a major company, which is expected to be a significant growth driver later in 2026.

The customer relationship strategy across the company can be summarized by these key operational metrics and actions:

• Restructuring in Robotics to align operations with market conditions, which included laying off approximately 10% of the workforce earlier in 2024.
• The Robotics group is undergoing a strategic refocus in 2025 to streamline operations and redirect resources toward higher-margin opportunities.
• The company is accelerating production capacity growth at factories in multiple geographies to meet accelerated demand in the second half of 2025.
• Management expects to exercise credit lines more frequently in Q4 2025, which will result in a couple million dollars of net interest expense per quarter while utilizing the revolver.

Finance: draft 13-week cash view by Friday.

Teradyne, Inc. (TER) - Canvas Business Model: Channels

You're looking at how Teradyne, Inc. gets its products-from high-precision Automated Test Equipment (ATE) to industrial robots-into the hands of customers. The channel strategy is segmented, reflecting the different needs of the Semiconductor Test and Industrial Automation markets.

Direct global sales force for Automated Test Equipment (ATE)

The core of Teradyne, Inc.'s ATE business, which generated $606 million in revenue for the third quarter of 2025, relies heavily on a direct, technically proficient global sales force. This direct channel is necessary to manage complex, high-value sales cycles with major semiconductor manufacturers, especially for System-on-a-Chip (SOC) solutions driven by AI demand. The overall company revenue for Q3 2025 was $769 million, showing the dominance of this direct-to-customer approach for test equipment.

The combined revenue from Semiconductor Test ($606 million) and Product Test ($88 million) in Q3 2025 highlights the scale managed through these direct technical sales channels.

Direct sales and distributor network for Industrial Automation products

For Industrial Automation, which includes Universal Robots (UR) and Mobile Industrial Robots (MiR), Teradyne, Inc. employs a mix. While there is a consolidated customer-facing sales organization established in the first quarter of 2025, the structure also incorporates a distributor network to reach a broader base of manufacturing and warehouse operations. The Robotics segment brought in $75 million in revenue for Q3 2025, following $69 million in Q1 2025. This segment's channel strategy is evolving, as evidenced by the structural reorganization aimed at improving execution across UR and MiR.

Here's a look at the recent revenue contribution from the two key robotics businesses within this channel:

Robotics Sub-Segment	Q2 2025 Revenue (Millions USD)	Percentage of Total Robotics Revenue (Q2 2025)
Universal Robots (UR)	$63 million	84%
Mobile Industrial Robots (MiR)	$12 million	16%

The total Robotics group revenue for the full year 2024 was $365 million, showing the scale this channel supports.

Regional manufacturing operations for optimal customer service

Teradyne, Inc. supports its global sales and service efforts with regional operational capabilities. While specific manufacturing revenue figures tied directly to regional service optimization aren't public, the company is actively investing in its physical footprint to enhance customer support and supply chain resilience. For instance, a new US facility for Robotics is planned for 2026, intended to serve a major e-commerce customer and support broader reshoring trends, indicating a channel strategy focused on localized service delivery for automation products.

The company has also been actively restructuring its Robotics division, which included layoffs impacting approximately 150 employees for the nine months ended September 28, 2025, as part of aligning operations with market conditions and sharpening strategic focus.

Investor Relations website for financial disclosure and transparency

The Investor Relations website, investors.teradyne.com, serves as a primary channel for financial disclosure and transparency. This channel is critical for communicating forward guidance and historical performance to the investment community. For the Q3 2025 results announcement on October 28, 2025, presentation materials were made available starting at 7:30 a.m. ET on October 29, 2025, via the events-presentations link. A replay of the conference call is also made available on the Teradyne website at investors.teradyne.com.

Key financial data points communicated through this channel include:

• Q3 2025 Revenue: $769 million.
• Q3 2025 GAAP EPS: $0.75 per diluted share.
• Q4 2025 Revenue Guidance Range: $920 million to $1,000 million.
• The company announced an increase in its share repurchase program target to up to $1 billion in 2025, to be completed by the end of 2026.

Online resources and training for robotics end-users

Teradyne, Inc. supports its Industrial Automation end-users through digital channels, which are essential for adoption and ongoing use of collaborative and mobile robots. While specific metrics on training module completion aren't disclosed, the commitment to the robotics ecosystem is clear through the structure of its businesses (UR and MiR) and the consolidation of their customer-facing service organizations.

The channel strategy for robotics involves:

• Direct support for collaborative robots and mobile robots.
• A consolidated sales, marketing, and service organization implemented in Q1 2025.
• Focus on securing 'plan of record' decisions from major customers, which implies deep technical engagement supported by online resources.

The company's TTM (Trailing Twelve Months) revenue as of September 30, 2025, was $2.860 billion, reflecting the overall output channeled through all these avenues.

Teradyne, Inc. (TER) - Canvas Business Model: Customer Segments

You're looking at the core customer groups Teradyne, Inc. serves as of late 2025, based on their latest reported segment performance. It's clear the business model is heavily weighted toward the semiconductor sector right now.

The primary customer base is segmented across their three main reporting groups: Semiconductor Test, Product Test, and Robotics. For the third quarter of 2025, total revenue was $769 million, with Semiconductor Test being the dominant revenue driver. Growth was fueled primarily by System-on-a-Chip (SOC) solutions for artificial intelligence applications and strong performance in memory.

Here's how the Q3 2025 revenue broke down across these groups, which directly reflects the customer segments:

Customer Segment Proxy	Teradyne Segment	Q3 2025 Revenue (Millions USD)	Percentage of Total Revenue (Q3 2025)
Leading Semiconductor Manufacturers, Hyperscalers, Memory Manufacturers	Semiconductor Test	$606 million	78.8%
Automotive, Industrial, Consumer Electronics Companies	Product Test	$88 million	11.4%
Small to large-scale Manufacturing and Logistics Operations	Robotics	$75 million	9.8%

The outlook for the near term, based on Q4 2025 guidance, suggests this concentration continues, with expected revenue between $920 million and $1,000 million, driven by AI-related test demand.

Focusing on the specific groups you mentioned, here is the detail we can pull from the Q3 2025 results:

• Leading Semiconductor Manufacturers (foundries, IDMs, fabless): This group is the core of the $606 million Semiconductor Test revenue.
• Hyperscaler customers for AI compute and cloud datacenter applications: These customers drove the Q3 performance, with AI accelerator, networking, and power device testing being key.
• Automotive, industrial, and consumer electronics companies: These customers fall under the Product Test segment, which generated $88 million in Q3 2025.
• Memory manufacturers (DRAM, Flash, HBM): Q3 memory test sales more than doubled from Q2 to $128 million, with the majority supporting AI applications.
• Small to large-scale manufacturing and logistics operations: These are the customers for the Robotics segment, which posted $75 million in revenue for Q3 2025.

Within the Robotics segment, the customer base is further split between collaborative robots (UR) and mobile robots (MiR). Here's the Q3 2025 split for that segment:

• UR (Collaborative Robots): $62 million in revenue.
• MiR (Mobile Robots): $13 million in revenue.

Honestly, the sheer size of the Semiconductor Test segment at nearly 79% of total revenue shows where Teradyne, Inc.'s current value proposition is most critical.

Finance: draft 13-week cash view by Friday.

Teradyne, Inc. (TER) - Canvas Business Model: Cost Structure

You're looking at the core spending that keeps Teradyne, Inc.'s complex global operations running, especially as they balance high-growth semiconductor testing with a strategic pivot in robotics. The cost structure here is heavily weighted toward engineering talent and maintaining a worldwide manufacturing and service footprint.

Fixed and Variable Cost Drivers

• High fixed costs are inherent in manufacturing sophisticated automated test equipment and maintaining a global footprint for sales and support.
• The company's cost of revenues is a major component, directly tied to the production and delivery of its test solutions and robotics systems.

The financial snapshot from recent quarters shows where the money is going:

Financial Metric	Period	Amount (in millions USD)
Cost of Revenues	Q3 2025	$319.9
Total Operating Expenses	Q1 2025	$294.5
Engineering and Development (R&D)	Q1 2025	$118.188
Restructuring and Other Charges	Q1 2025	$14.5

That $\mathbf{\$294.5}$ million in Q1 2025 operating expenses is a key figure to watch; it includes the necessary spending to support the core business while managing the transition in the Robotics segment. Honestly, you can see the investment pressure in the R&D line item.

Research & Development Investment

Teradyne, Inc. consistently pours capital into R&D to maintain its technological edge in semiconductor testing, which is the engine of the company. This investment is non-negotiable for staying ahead in AI-driven chip solutions. For the first quarter of 2025, the Engineering and development expense was $\mathbf{\$118.188}$ million. What's notable is the intensity of this spending; R&D expenses rose $\mathbf{25.6\%}$ year-over-year for Q1 2025, signaling an acceleration in innovation spending.

To give you context on the Cost of Revenues, Teradyne reported Q3 2025 revenue of $\mathbf{\$769}$ million and a Gross Profit of $\mathbf{\$449.3}$ million. If you subtract the Gross Profit from the Revenue, you get a Cost of Revenues of $\mathbf{\$319.7}$ million, which aligns closely with the reported $\mathbf{\$319.9}$ million figure for that quarter.

Restructuring and Strategic Realignment Costs

The refocusing within the Robotics division definitely hits the cost structure through specific charges. You saw this clearly in Q1 2025, where Teradyne, Inc. recorded $\mathbf{\$14.5}$ million in restructuring and other charges, which the company explicitly tied to reorganizing its Robotics division. This is a direct cost associated with streamlining operations and aligning the segment with new strategic goals, which is a necessary, though painful, expense.

Here's a breakdown of the operating expense components for Q1 2025:

• Selling and administrative expenses were $\mathbf{\$157.257}$ million.
• Engineering and development expenses were $\mathbf{\$118.188}$ million.
• Acquired intangible assets amortization was $\mathbf{\$4.573}$ million.
• Restructuring and other charges totaled $\mathbf{\$14.515}$ million.

Finance: draft a sensitivity analysis on OpEx if the Robotics segment continues to underperform revenue expectations by more than 20% next quarter.

Teradyne, Inc. (TER) - Canvas Business Model: Revenue Streams

You're looking at how Teradyne, Inc. brings in the cash flow as of late 2025. The revenue streams are heavily weighted toward semiconductor testing, which makes sense given the current AI build-out cycle.

For the third quarter of 2025, total revenue hit $769 million. Here's the quick math on how that broke down by the main segments.

Revenue Segment	Q3 2025 Revenue (Millions USD)	Notes
Semiconductor Test equipment sales	$606 million	Primary driver, fueled by AI-related System-on-a-Chip (SOC) solutions.
Product Test equipment sales	$88 million	Includes wireless and system-level testing.
Robotics sales	$75 million	Combined sales from Universal Robots (UR) and MiR.

Drilling down a bit further into the Robotics segment, we see the contribution from the two main brands in Q3 2025: UR brought in $62 million and MiR contributed $13 million.

The revenue mix shows the core business is dominant; Semiconductor Test accounted for nearly 79% of that $769 million total in Q3 2025. That's a big chunk of change.

Beyond the equipment sales, Teradyne, Inc. also generates revenue from its installed base. This stream is critical for stability, even if the exact Q3 2025 figure isn't explicitly itemized in the top-line report.

• Services, software, and spare parts for installed base
• Universal Robots (UR) sales: $62 million in Q3 2025
• MiR sales: $13 million in Q3 2025

Looking ahead, the near-term outlook is strong, definitely suggesting continued high demand, especially in AI-related compute and memory testing.

• Q4 2025 revenue guidance is projected to range from $920 million to $1,000 million.
• This guidance represents a sequential increase of 25% from Q3 2025.

Finance: draft 13-week cash view by Friday.