Teradyne, Inc. stock research
FY2025 Q2
Teradyne (TER) Gross Margin — Quarter Ended Jun 29, 2025
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue decreased at a slower pace relative to revenue. This resulted in a lower gross profit and a weakened gross margin versus both periods.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q2
Revenue declined compared to both the prior quarter and the same quarter last year, while cost of revenue decreased at a slower pace relative to revenue. This resulted in a lower gross profit and a weakened gross margin versus both periods.
- The decline in gross margin was driven by the relationship between revenue and cost of revenue: revenue fell more sharply than cost of revenue compared to the prior quarter, compressing profitability.
- Compared to the immediately preceding quarter, gross margin weakened as revenue decreased while cost of revenue rose in absolute terms. Versus the same quarter one year earlier, revenue was lower, cost of revenue was also lower, but gross margin still weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.2%
Gross profit
$373.0M
Revenue
$651.8M
Cost of revenue
$278.8M
Quarter-over-quarter change
-3.3 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| Sep 29, 2024 | $737.3M | $436.5M | $300.8M | 59.2% |
| Dec 31, 2024 | $752.9M | $447.3M | $305.6M | 59.4% |
| Mar 30, 2025 | $685.7M | $415.3M | $270.3M | 60.6% |
| Jun 29, 2025 | $651.8M | $373.0M | $278.8M | 57.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
-3.3 pts
Year-over-year change
Jun 30, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by the relationship between revenue and cost of revenue: revenue fell more sharply than cost of revenue compared to the prior quarter, compressing profitability.
Compared to the immediately preceding quarter, gross margin weakened as revenue decreased while cost of revenue rose in absolute terms. Versus the same quarter one year earlier, revenue was lower, cost of revenue was also lower, but gross margin still weakened slightly.
Monitor the trajectory of revenue relative to cost of revenue, as the current period shows cost of revenue declining more slowly than revenue.