Teradyne, Inc. stock research
FY2025 Q3
Teradyne (TER) Gross Margin — Quarter Ended Sep 28, 2025
Revenue rose while cost of revenue also increased, leading to a larger gross profit. Gross margin improved from the prior quarter but weakened compared with the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2025 Q3
Revenue rose while cost of revenue also increased, leading to a larger gross profit. Gross margin improved from the prior quarter but weakened compared with the same quarter one year earlier.
- The increase in gross profit outpaced the increase in cost of revenue, supporting the sequential gross margin improvement. The year-over-year comparison shows that cost of revenue grew faster than revenue, resulting in a lower gross margin.
- Compared with the prior quarter, gross margin improved as revenue growth exceeded cost of revenue growth. Compared with the same quarter one year ago, gross margin weakened because cost of revenue grew proportionally more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.4%
Gross profit
$449.3M
Revenue
$769.2M
Cost of revenue
$319.9M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2025 | $769.2M | $449.3M | $319.9M | 58.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+1.2 pts
Year-over-year change
Sep 29, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in gross profit outpaced the increase in cost of revenue, supporting the sequential gross margin improvement. The year-over-year comparison shows that cost of revenue grew faster than revenue, resulting in a lower gross margin.
Compared with the prior quarter, gross margin improved as revenue growth exceeded cost of revenue growth. Compared with the same quarter one year ago, gross margin weakened because cost of revenue grew proportionally more than revenue.
Monitor changes in accounts receivable and inventories, as the filing notes significant increases in these operating assets.