Teradyne, Inc. stock research
FY2025 Q4
Teradyne (TER) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit were higher than both the prior quarter and the same quarter one year earlier. Gross margin weakened slightly, as cost of revenue increased at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit were higher than both the prior quarter and the same quarter one year earlier. Gross margin weakened slightly, as cost of revenue increased at a faster pace than revenue.
- The strongest observable driver is the relationship between cost of revenue and revenue: gross margin decreased because cost of revenue rose more rapidly than revenue relative to the prior periods.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, with gross margin again lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.2%
Gross profit
$619.7M
Revenue
$1.1B
Cost of revenue
$463.6M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-2.2 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 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% |
| Dec 31, 2025 | $1.1B | $619.7M | $463.6M | 57.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
-1.2 pts
Year-over-year change
Dec 31, 2024
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue: gross margin decreased because cost of revenue rose more rapidly than revenue relative to the prior periods.
Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, with gross margin again lower.
Monitor the proportion of cost of revenue to revenue, as its increase relative to prior periods is the primary factor behind the margin weakening.