Teradyne, Inc. stock research
FY2024 Q4
Teradyne (TER) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased from the prior quarter, leading to a slight gross margin improvement as gross profit grew more than cost of revenue. Compared to the same quarter a year earlier, gross margin strengthened significantly, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased from the prior quarter, leading to a slight gross margin improvement as gross profit grew more than cost of revenue. Compared to the same quarter a year earlier, gross margin strengthened significantly, driven by a larger increase in gross profit relative to cost of revenue.
- Gross profit grew faster than cost of revenue both sequentially and year-over-year, supporting the gross margin expansion in the current quarter.
- Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved slightly. Relative to the same quarter last year, all key metrics—revenue, gross profit, and gross margin—were higher, with gross margin showing the most notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$447.3M
Revenue
$752.9M
Cost of revenue
$305.6M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $599.8M | $339.3M | $260.5M | 56.6% |
| Jun 30, 2024 | $729.9M | $425.8M | $304.0M | 58.3% |
| Sep 29, 2024 | $737.3M | $436.5M | $300.8M | 59.2% |
| Dec 31, 2024 | $752.9M | $447.3M | $305.6M | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
+0.2 pts
Year-over-year change
Dec 31, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue both sequentially and year-over-year, supporting the gross margin expansion in the current quarter.
Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved slightly. Relative to the same quarter last year, all key metrics—revenue, gross profit, and gross margin—were higher, with gross margin showing the most notable improvement.
Monitor whether the current gross margin level can be sustained if revenue remains stable or declines.