Segment Information

6 Months Ended

Jun. 29, 2025

Segment Reporting [Abstract]

Segment Information

U. SEGMENT INFORMATION

As of December 31, 2024, Teradyne had two reportable segments (Semiconductor Test and Robotics) and four operating segments (Semiconductor Test, System Test, Wireless Test, and Robotics). Effective March 2025, Teradyne's Chief Operating Decision Maker ("CODM") (Teradyne's Chief Executive Officer) placed Regan Mills as President, Product Test, which as of that date included Production Board Test, Defense/Aerospace, and Wireless Test. As noted in 'Note D. Acquisitions' and based on the underlying business activities and established reporting structure, PIC Testing (acquired during the period) was aggregated into Product Test for the period ended June 29, 2025, and will be for all future periods. As a result, Teradyne has three reportable segments (Semiconductor Test, Robotics, and Product Test). As of June 29, 2025, each of Teradyne's reportable segments represents an individual operating segment. All prior period disclosures have been recast to conform to the current segment structure and presentation requirements.

The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, and silicon photonics testing. Each reportable segment has a segment manager who is accountable to and maintains regular contact with Teradyne’s CODM to discuss operating activities, financial results, forecasts, and plans for the segment.

The CODM uses business segment income (loss) before income taxes predominantly in the annual budgeting and forecasting process. The CODM also uses this measure when making decisions about the allocation of operating and capital resources to each segment. The accounting policies of the business segments are the same as those described in Teradyne’s Annual Report on Form 10-K in Note B: “Accounting Policies.”

Segment information for the three and six months ended June 29, 2025, and June 30, 2024, is as follows:

	Semiconductor Test		Robotics			Product Test		Total Reportable Segments		Corporate and Eliminations			Consolidated
	(in thousands)
Three months ended June 29, 2025
Revenues	$	491,878	$	74,866		$	85,053	$	651,797	$	—		$	651,797
Less:
Cost of revenues		207,201		34,155			33,090		274,446		—			274,446
Engineering and development		82,126		14,069			12,674		108,869		—			108,869
Selling and marketing		52,590		24,241			11,663		88,494		—			88,494
General and administrative		26,132		9,879			5,696		41,707		919			42,626
Other segment items (1)(2)		28,066		11,055			6,378		45,499		(4,696	)		40,803
Income (loss) before taxes (2)		95,763		(18,533	)		15,552		92,782		3,777			96,559
Total assets (3)		1,349,429		745,839			358,829		2,454,097		1,307,765			3,761,862
Property additions		43,593		3,528			3,287		50,408		—			50,408
Depreciation and amortization expense		23,395		6,068			1,926		31,389		—			31,389
Three months ended June 30, 2024
Revenues	$	559,916	$	90,247		$	79,716	$	729,879	$	—		$	729,879
Less:
Cost of revenues		230,904		37,409			28,649		296,962		—			296,962
Engineering and development		70,961		16,187			10,889		98,037		—			98,037
Selling and marketing		47,113		28,580			12,021		87,714		—			87,714
General and administrative		21,524		12,429			5,248		39,201		(18	)		39,183
Other segment items (1)(2)		32,207		13,558			6,638		52,403		(63,823	)		(11,420	)
Income (loss) before taxes (2)		157,207		(17,916	)		16,271		155,562		63,841			219,403
Total assets (3)		1,353,880		731,264			211,339		2,296,483		1,335,223			3,631,706
Property additions		35,685		7,607			1,554		44,846		—			44,846
Depreciation and amortization expense		21,394		7,127			1,715		30,236		(32	)		30,204
Six months ended June 29, 2025
Revenues	$	1,034,382	$	143,853		$	159,242	$	1,337,477	$	—		$	1,337,477
Less:
Cost of revenues		409,948		66,447			63,125		539,520		—			539,520
Engineering and development		162,337		29,924			24,213		216,474		—			216,474
Selling and marketing		104,287		48,755			23,400		176,442		—			176,442
General and administrative		52,684		19,744			10,665		83,093		2,681			85,774
Other segment items (1)(2)		53,561		34,693			13,651		101,905		1,778			103,683
Income (loss) before taxes (2)		251,565		(55,710	)		24,188		220,043		(4,459	)		215,584
Total assets (3)		1,349,429		745,839			358,829		2,454,097		1,307,765			3,761,862
Property additions		103,325		6,204			6,065		115,594		—			115,594
Depreciation and amortization expense		46,260		12,009			3,432		61,701		(10	)		61,691
Six months ended June 30, 2024
Revenues	$	994,686	$	177,901		$	157,111	$	1,329,698	$	—		$	1,329,698
Less:
Cost of revenues		423,797		71,862			56,927		552,586		—			552,586
Engineering and development		136,609		31,974			22,689		191,272		—			191,272
Selling and marketing		92,100		53,401			24,202		169,703		—			169,703
General and administrative		42,586		25,646			10,364		78,596		1,754			80,350
Other segment items (1)(2)		58,992		26,910			13,142		99,044		(55,562	)		43,482
Income (loss) before taxes (2)		240,602		(31,892	)		29,787		238,497		53,808			292,305
Total assets (3)		1,353,880		731,264			211,339		2,296,483		1,335,223			3,631,706
Property additions		72,239		13,319			3,311		88,869		—			88,869
Depreciation and amortization expense		41,264		13,558			3,465		58,287		37			58,324

(1)For each reportable segment, the other segment items category includes equity and variable compensation, acquired intangible assets amortization, inventory step-up, and restructuring and other charges.

(2)Included in Corporate and Eliminations are interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, severance charges, pension and postretirement plan actuarial gains (losses), acquisition and divestiture related expenses, ERP implementation related costs, and an expense for the modification of outstanding equity awards.

(3)Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets.