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Teradyne, Inc. TER Free cash flow margin

Free cash flow margin at other companies

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NordsonNDSN
24.6%+7.6pp
Rockwell Automation logo
Rockwell AutomationROK
15.2%+1.8pp
Teledyne Technologies logo
Teledyne TechnologiesTDY
16.9%-1.4pp
Keysight Technologies logo
Keysight TechnologiesKEYS
22.3%-4.1pp
KLA Corporation logo
KLA CorporationKLAC
30.7%+0.2pp
Synopsys logo
SynopsysSNPS
30.3%+13.2pp

Other financials

Income statement

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Revenue$1.3B+87.0%
Gross profit$780.9M+88.0%
Operating income$473.0M+292%
Net income$398.9M+303%
EPS (diluted)$2.53+315%

Balance sheet

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Cash & equivalents$241.9M-49.1%
Total debt$82.4M+19.8%
Total equity$3.1B+12.4%
Total assets$4.4B+19.6%

Cash flow

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Operating cash flow$265.1M+64.0%
CapEx$64.7M+1.1%
Free cash flow$200.4M+105%

Valuation

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Market cap$63.96B+249%
Enterprise value$63.8B+259%
P/E74.9×+43.2×
P/S16.9×+10.6×

Profitability

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Gross margin58.7%-0.7pp
Operating margin26.5%+4.6pp
Net margin22.6%+2.7pp

Returns & leverage

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Return on equity28.7%+7.2pp
Debt / equity0.0×
Current ratio2.1×-0.6×

Where this comes from

Calculated from Teradyne, Inc.’s reported figures.

Based on trailing twelve months.

The official record: Teradyne, Inc.’s 10-Q, filed May 1, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Teradyne, Inc.'s free cash flow margin?
Teradyne, Inc. (TER) reported free cash flow margin of 14.6% in Q1 2026.
How has Teradyne, Inc.'s free cash flow margin changed year-over-year?
Teradyne, Inc.'s free cash flow margin decreased by 30.2% year-over-year, from 20.9% to 14.6%.
What is the long-term trend for Teradyne, Inc.'s free cash flow margin?
Over 4 years (2021 to 2025), Teradyne, Inc.'s free cash flow margin has grown at a -6.1% compound annual growth rate (CAGR), from 91.5% to 71.2%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.