Financial Instruments (Tables)
|
9 Months Ended |
Sep. 27, 2026 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Realized and Unrealized Gains and Loss |
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For the Three Months
Ended |
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|
For the Nine Months
Ended |
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|
September 27,
2026 |
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|
September 28,
2025 |
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|
September 27,
2026 |
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|
September 28,
2025 |
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|
|
(in millions) |
|
|
(in millions) |
|
Realized gains and losses included in ‘Other (income) expense, net’ in the condensed consolidated statement of operations |
|
Realized gains |
|
$ |
0.6 |
|
|
$ |
0.7 |
|
|
$ |
1.5 |
|
|
$ |
1.8 |
|
Realized losses |
|
|
0.0 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
1.3 |
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|
|
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|
|
|
|
|
Unrealized gains and losses on equity securities included in ‘Other (income) expense, net’ in the condensed consolidated statement of operations |
|
Unrealized gains on equity securities |
|
|
1.9 |
|
|
|
3.1 |
|
|
|
10.0 |
|
|
|
7.4 |
|
Unrealized losses on equity securities |
|
|
0.3 |
|
|
|
0.1 |
|
|
|
4.3 |
|
|
|
3.2 |
|
|
| Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis |
The following tables set forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of September 27, 2026, and December 31, 2025.
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September 27, 2026 |
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|
December 31, 2025 |
|
|
|
Quoted Prices
in Active
Markets for
Identical
Instruments
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Total (1) |
|
|
Quoted Prices
in Active
Markets for
Identical
Instruments
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Total (1) |
|
|
|
(in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
222,532 |
|
|
$ |
— |
|
|
$ |
222,532 |
|
|
$ |
214,712 |
|
|
$ |
— |
|
|
|
214,712 |
|
Cash equivalents |
|
|
238,210 |
|
|
|
— |
|
|
|
238,210 |
|
|
|
78,068 |
|
|
|
971 |
|
|
|
79,039 |
|
Available-for-sale securities: |
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|
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|
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|
|
|
|
|
|
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|
|
|
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Corporate debt securities |
|
|
— |
|
|
|
54,916 |
|
|
|
54,916 |
|
|
|
— |
|
|
|
36,384 |
|
|
|
36,384 |
|
Debt mutual funds |
|
|
13,271 |
|
|
|
— |
|
|
|
13,271 |
|
|
|
14,331 |
|
|
|
— |
|
|
|
14,331 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
13,260 |
|
|
|
13,260 |
|
|
|
— |
|
|
|
44,143 |
|
|
|
44,143 |
|
Non-U.S. government securities |
|
|
— |
|
|
|
13,108 |
|
|
|
13,108 |
|
|
|
— |
|
|
|
924 |
|
|
|
924 |
|
Certificates of deposit and time deposits |
|
|
— |
|
|
|
1,134 |
|
|
|
1,134 |
|
|
|
— |
|
|
|
1,354 |
|
|
|
1,354 |
|
Equity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual funds |
|
|
68,434 |
|
|
|
— |
|
|
|
68,434 |
|
|
|
57,367 |
|
|
|
— |
|
|
|
57,367 |
|
|
|
$ |
542,447 |
|
|
$ |
82,418 |
|
|
$ |
624,865 |
|
|
$ |
364,478 |
|
|
$ |
83,776 |
|
|
$ |
448,254 |
|
Derivative assets |
|
|
— |
|
|
|
724 |
|
|
|
724 |
|
|
|
— |
|
|
|
1,175 |
|
|
|
1,175 |
|
Total |
|
$ |
542,447 |
|
|
$ |
83,142 |
|
|
$ |
625,589 |
|
|
$ |
364,478 |
|
|
$ |
84,951 |
|
|
$ |
449,429 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
— |
|
|
|
1,732 |
|
|
|
1,732 |
|
|
|
— |
|
|
|
928 |
|
|
|
928 |
|
Total |
|
$ |
— |
|
|
$ |
1,732 |
|
|
$ |
1,732 |
|
|
$ |
— |
|
|
$ |
928 |
|
|
$ |
928 |
|
|
|
|
|
|
|
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|
|
|
|
|
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Reported as follows: |
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|
|
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|
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|
(Level 1) |
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|
(Level 2) |
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|
Total (1) |
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|
(Level 1) |
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|
(Level 2) |
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|
Total (1) |
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|
|
(in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
460,742 |
|
|
$ |
— |
|
|
$ |
460,742 |
|
|
$ |
292,780 |
|
|
$ |
971 |
|
|
$ |
293,751 |
|
Long-term marketable securities |
|
|
81,705 |
|
|
|
76,571 |
|
|
|
158,276 |
|
|
|
71,698 |
|
|
|
54,558 |
|
|
|
126,256 |
|
Marketable securities |
|
|
— |
|
|
|
5,847 |
|
|
|
5,847 |
|
|
|
— |
|
|
|
28,247 |
|
|
|
28,247 |
|
Prepayments |
|
|
— |
|
|
|
724 |
|
|
|
724 |
|
|
|
— |
|
|
|
1,175 |
|
|
|
1,175 |
|
Total |
|
$ |
542,447 |
|
|
$ |
83,142 |
|
|
$ |
625,589 |
|
|
$ |
364,478 |
|
|
$ |
84,951 |
|
|
$ |
449,429 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accrued liabilities |
|
$ |
— |
|
|
$ |
1,732 |
|
|
$ |
1,732 |
|
|
$ |
— |
|
|
$ |
928 |
|
|
$ |
928 |
|
Total |
|
$ |
— |
|
|
$ |
1,732 |
|
|
$ |
1,732 |
|
|
$ |
— |
|
|
$ |
928 |
|
|
$ |
928 |
|
(1)There were no financial assets or liabilities measured using significant unobservable inputs (Level 3) as of September 27, 2026 and December 31, 2025.
|
| Schedule of Carrying Values and Fair Values of Financial Instruments |
The carrying values and fair values of Teradyne’s financial instruments at September 27, 2026, and December 31, 2025, were as follows:
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September 27, 2026 |
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|
December 31, 2025 |
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Carrying Value |
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|
Fair Value |
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|
Carrying Value |
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|
Fair Value |
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|
(in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
460,742 |
|
|
$ |
460,742 |
|
|
$ |
293,751 |
|
|
$ |
293,751 |
|
Marketable securities |
|
|
164,123 |
|
|
|
164,123 |
|
|
|
154,503 |
|
|
|
154,503 |
|
Derivative assets |
|
|
724 |
|
|
|
724 |
|
|
|
1,175 |
|
|
|
1,175 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Derivative liabilities |
|
|
1,732 |
|
|
|
1,732 |
|
|
|
928 |
|
|
|
928 |
|
|
| Schedule of Available-for-Sale Marketable Securities |
The following table summarizes the composition of available-for-sale marketable securities at September 27, 2026:
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|
September 27, 2026 |
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|
|
Available-for-Sale |
|
|
|
Cost |
|
|
Unrealized
Gain |
|
|
Unrealized
(Loss) |
|
|
Fair
Market
Value |
|
|
Fair Market
Value of
Investments
with Unrealized
Losses |
|
|
|
(in thousands) |
|
Corporate debt securities |
|
$ |
62,028 |
|
|
$ |
7 |
|
|
$ |
(7,119 |
) |
|
$ |
54,916 |
|
|
$ |
53,587 |
|
U.S. Treasury securities |
|
|
18,785 |
|
|
|
— |
|
|
|
(5,525 |
) |
|
|
13,260 |
|
|
|
13,260 |
|
Non-U.S. government securities |
|
|
14,206 |
|
|
|
— |
|
|
|
(1,098 |
) |
|
|
13,108 |
|
|
|
12,237 |
|
Debt mutual funds |
|
|
13,573 |
|
|
|
— |
|
|
|
(302 |
) |
|
|
13,271 |
|
|
|
3,469 |
|
Certificates of deposit and time deposits |
|
|
1,134 |
|
|
|
— |
|
|
|
— |
|
|
|
1,134 |
|
|
|
— |
|
|
|
$ |
109,726 |
|
|
$ |
7 |
|
|
$ |
(14,044 |
) |
|
$ |
95,689 |
|
|
$ |
82,553 |
|
Reported as follows:
|
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|
|
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|
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|
|
|
|
|
|
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|
|
Cost |
|
|
Unrealized
Gain |
|
|
Unrealized
(Loss) |
|
|
Fair
Market
Value |
|
|
Fair Market
Value of
Investments
with Unrealized
Losses |
|
|
|
(in thousands) |
|
Marketable securities |
|
$ |
5,873 |
|
|
$ |
— |
|
|
$ |
(26 |
) |
|
$ |
5,847 |
|
|
$ |
4,713 |
|
Long-term marketable securities |
|
|
103,853 |
|
|
|
7 |
|
|
|
(14,018 |
) |
|
|
89,842 |
|
|
|
77,840 |
|
|
|
$ |
109,726 |
|
|
$ |
7 |
|
|
$ |
(14,044 |
) |
|
$ |
95,689 |
|
|
$ |
82,553 |
|
The following table summarizes the composition of available-for-sale marketable securities at December 31, 2025:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Available-for-Sale |
|
|
|
Cost |
|
|
Unrealized
Gain |
|
|
Unrealized
(Loss) |
|
|
Fair
Market
Value |
|
|
Fair Market
Value of
Investments
with Unrealized
Losses |
|
|
|
(in thousands) |
|
U.S. Treasury securities |
|
$ |
48,723 |
|
|
$ |
90 |
|
|
$ |
(4,670 |
) |
|
$ |
44,143 |
|
|
$ |
13,891 |
|
Corporate debt securities |
|
|
40,090 |
|
|
|
293 |
|
|
|
(3,999 |
) |
|
|
36,384 |
|
|
|
22,941 |
|
Debt mutual funds |
|
|
14,508 |
|
|
|
— |
|
|
|
(177 |
) |
|
|
14,331 |
|
|
|
3,020 |
|
Certificates of deposit and time deposits |
|
|
1,354 |
|
|
|
— |
|
|
|
— |
|
|
|
1,354 |
|
|
|
— |
|
Non-U.S. government securities |
|
|
924 |
|
|
|
— |
|
|
|
— |
|
|
|
924 |
|
|
|
— |
|
|
|
$ |
105,599 |
|
|
$ |
383 |
|
|
$ |
(8,846 |
) |
|
$ |
97,136 |
|
|
$ |
39,852 |
|
Reported as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
Unrealized
Gain |
|
|
Unrealized
(Loss) |
|
|
Fair
Market
Value |
|
|
Fair Market
Value of
Investments
with Unrealized
Losses |
|
|
|
(in thousands) |
|
Marketable securities |
|
$ |
28,213 |
|
|
$ |
41 |
|
|
$ |
(7 |
) |
|
$ |
28,247 |
|
|
$ |
2,293 |
|
Long-term marketable securities |
|
|
77,386 |
|
|
|
342 |
|
|
|
(8,839 |
) |
|
|
68,889 |
|
|
|
37,559 |
|
|
|
$ |
105,599 |
|
|
$ |
383 |
|
|
$ |
(8,846 |
) |
|
$ |
97,136 |
|
|
$ |
39,852 |
|
|
| Contractual Maturities of Investments Held |
The contractual maturities of investments in available-for-sale securities held at September 27, 2026, were as follows:
|
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|
|
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|
|
|
|
|
September 27, 2026 |
|
|
|
Cost |
|
|
Fair Market
Value |
|
|
|
(in thousands) |
|
Due within one year |
|
$ |
5,873 |
|
|
$ |
5,847 |
|
Due after 1 year through 5 years |
|
|
8,341 |
|
|
|
8,023 |
|
Due after 5 years through 10 years |
|
|
17,815 |
|
|
|
17,039 |
|
Due after 10 years |
|
|
64,124 |
|
|
|
51,509 |
|
Total |
|
$ |
96,153 |
|
|
$ |
82,418 |
|
|
| Schedule of Notional Amount of Derivatives |
At September 27, 2026, and December 31, 2025, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts:
|
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|
|
|
|
|
|
|
|
|
Gross Notional Value |
|
|
|
September 27,
2026 |
|
|
December 31,
2025 |
|
|
|
(in millions) |
|
Currency Hedged (Buy/Sell) |
|
|
|
|
|
|
U.S. dollar/Taiwan dollar |
|
|
28.1 |
|
|
|
27.0 |
|
U.S. dollar/Danish krone |
|
|
15.3 |
|
|
|
— |
|
Danish krone/Chinese yuan |
|
|
8.2 |
|
|
|
— |
|
U.S. dollar/Japanese yen |
|
|
8.2 |
|
|
|
16.9 |
|
U.S. dollar/Euro |
|
|
5.1 |
|
|
|
— |
|
U.S. dollar/Korean won |
|
|
3.3 |
|
|
|
7.7 |
|
U.S. dollar/British pound sterling |
|
|
0.9 |
|
|
|
1.9 |
|
Singapore dollar/U.S. dollar |
|
|
117.0 |
|
|
|
62.6 |
|
Philippine peso/U.S. dollar |
|
|
1.7 |
|
|
|
1.8 |
|
Chinese yuan/U.S. dollar |
|
|
0.4 |
|
|
|
0.7 |
|
Euro/U.S. dollar |
|
|
— |
|
|
|
20.4 |
|
Total |
|
$ |
188.2 |
|
|
$ |
139.0 |
|
|
| Schedule of Foreign Currency Cash Flow Hedges |
At September 27, 2026, and December 31, 2025, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. currencies for U.S. dollars with the following notional amounts:
|
|
|
|
|
|
|
|
|
|
|
Gross Notional Value |
|
|
|
September 27,
2026 |
|
|
December 31,
2025 |
|
|
|
(in millions) |
|
Currency Hedged (Buy/Sell) |
|
|
|
|
|
|
U.S. dollar/Japanese yen |
|
$ |
4.7 |
|
|
$ |
— |
|
Total |
|
$ |
4.7 |
|
|
$ |
— |
|
|
| Schedule of Derivative Instruments in Statement of Financial Position at Fair Value |
The following table summarizes the fair value of derivative instruments as of September 27, 2026, and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Location |
|
September 27,
2026 |
|
|
December 31,
2025 |
|
|
|
|
|
(in thousands) |
|
Derivatives not designated as hedging instruments: |
|
Foreign exchange forward contracts |
|
Prepayments |
|
|
724 |
|
|
|
1,175 |
|
Foreign exchange forward contracts |
|
Other accrued liabilities |
|
|
(1,674 |
) |
|
|
(928 |
) |
Derivatives designated as hedging instruments: |
|
Foreign exchange forward contracts |
|
Other accrued liabilities |
|
|
(58 |
) |
|
|
— |
|
Total derivatives |
|
|
|
$ |
(1,008 |
) |
|
$ |
247 |
|
|
| Schedule of Effect of Derivative Instruments on Statement of Operations Recognized |
The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended September 27, 2026, and September 28, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
|
For the Nine Months
Ended |
|
|
|
Location of (Gains) Losses
Recognized in Statement
of Operations |
|
September 27,
2026 |
|
|
September 28,
2025 |
|
|
September 27,
2026 |
|
|
September 28,
2025 |
|
|
|
|
|
(in thousands) |
|
|
(in thousands) |
|
Derivatives not designated as hedging instruments: |
|
Foreign exchange forward contracts (1) |
|
Other (income) expense, net |
|
$ |
1,379 |
|
|
$ |
218 |
|
|
$ |
3,987 |
|
|
$ |
174 |
|
Derivatives designated as hedging instruments: |
|
Foreign exchange forward and option contracts |
|
Revenue |
|
|
88 |
|
|
|
— |
|
|
|
88 |
|
|
|
(449 |
) |
Total Derivatives |
|
|
|
$ |
1,467 |
|
|
$ |
218 |
|
|
$ |
4,075 |
|
|
$ |
(275 |
) |
(1)The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and nine months ended September 27, 2026, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.3 million and $2.4 million, respectively. For the three and nine months ended September 28, 2025, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.8 million and $6.2 million, respectively.
|