v3.25.2
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.