Teradyne reports $1.31 billion in revenue for Q3 2026

Cover page 2 changes

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For the quarterly period ended June 28, September 27, 2026

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The number of shares outstanding of the registrant s only class of Common Stock as of July 27, October 26, 2026 , was 156,340,750 156,124,751 shar es.

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Financial Statements (Unaudited) 5 changes

Condensed Consolidated Balance Sheets as of June 28, September 27, 2026, and December 31, 2025

Condensed Consolidated Statements of Operations for the Three and Six Nine Months Ended June 28, September 27, 2026, and June 29, September 28, 2025

Condensed Consolidated Statements of Comprehensive Income for the Three and Six Nine Months Ended June 28, September 27, 2026, and June 29, September 28, 2025

Condensed Consolidated Statements of Equity for the Three and Six Nine Months Ended June 28, September 27, 2026, and June 29, September 28, 2025

Condensed Consolidated Statements of Cash Flows for the Six Nine Months Ended June 28, September 27, 2026, and June 29, September 28, 2025

Financial statements 48 changes

4 unchanged paragraphs

Accounts receivable, less allowance for credit losses of $ 2,835 2,773 and $ 2,410 at June 28, September 27, 2026 and December 31, 2025, respectively

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Redeemable noncontrolling interests

Common stock, $ 0.125 par value, 1,000,000 shares authorized; 156,378 156,150 and 156,088 shares issued and outstanding at June 28, September 27, 2026, and December 31, 2025, respectively

3 unchanged paragraphs

Equity attributable to noncontrolling interests

Total liabilities and equity

Total liabilities, redeemable noncontrolling interests, and equity

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Foreign currency translation adjustment, net of tax of $ 0 , $ 0 , $ 0 , and $ 0 , respectively ( 11,444 19 ( 31,377 4,351 ( 31,396

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Defined benefit post-retirement plan:

Unrealized (losses) gains on marketable securities arising during period, net of tax of $( 176 609 ), $ 17 201 , $( 68 677 ), and $ 115 316 , respectively ( 35 5,145 ( 4,918

Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $( 16 2 ), $ 6 0 , $ 12 10 , $ 27 , respectively ( 8 ( 5,153 ( 4,913

Unrealized (losses) gains arising during period, net of tax of $( 0 32 ), $ 51 0 , $( 0 32 ), and $( 109 ), respectively ( 179 114 ( 114 ( 381

Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $ 0 20 , $ 66 0 , $ 0 20 , and $( 100 ), respectively ( 350 ( 45 ( 45 ( 731

Defined benefit postretirement plan:

Amortization of prior service credit, net of tax of $ 0 , $ 0 , $( 1 ), and $( 1 ), respectively ( 1 ( 2 ( 2 ( 3 ( 6

2 unchanged paragraphs

Less: comprehensive income attributable to redeemable noncontrolling interests

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CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY (Unaudited)

1 unchanged paragraph

Redeemable Noncontrolling Interests

2 unchanged paragraphs

Balance, March 29, 2026

For the Three Months Ended June 28, September 27, 2026

Balance, June 28, 2026

Reclassification of opening balance

6 unchanged paragraphs

Acquisition of noncontrolling interest

Balance, June 28, 2026

Balance, March 30, 2025

Accretion of redeemable noncontrolling interests to redemption value ( 7,582 ( 7,582 ( 7,582

Balance, September 27, 2026

For the Three Months Ended June 29, September 28, 2025

Balance, June 29, 2025

5 unchanged paragraphs

Balance, June 29, 2025

Balance, September 28, 2025

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Redeemable Noncontrolling Interests

2 unchanged paragraphs

For the Six Months Ended June 28, 2026

For the Nine Months Ended September 27, 2026

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Cash dividends ($ 0.26 0.39 per share)

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Balance, June 28, 2026

For the Six Months Ended June 29, 2025

Acquisition of redeemable noncontrolling interest

Accretion of redeemable noncontrolling interests to redemption value ( 7,582 ( 7,582 ( 7,582

Balance, September 27, 2026

For the Nine Months Ended September 28, 2025

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Cash dividends ($ 0.24 0.36 per share)

1 unchanged paragraph

Balance, June 29, 2025

Balance, September 28, 2025

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Losses (gains) on investments

1 unchanged paragraph

Losses (gains) on investments

Retirement plan actuarial losses (gains)

18 unchanged paragraphs

Payments related to net settlement of employee stock compensation awards ( 41,113 42,153 ( 14,954 15,254

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Effects of exchange rate changes on cash and cash equivalents ( 3,972 4,328 (Decrease) increase in cash and cash equivalents ( 214,102 280,654

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Note B: ACCOUNTING POLICIES 3 changes

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Teradyne accounts for investments with noncontrolling interests in accordance with Accounting Standards Codification ( ASC ) 810 Consolidation. Noncontrolling interests represent the third-party ownership not attributable, directly or indirectly, to Teradyne, and is presented separately from total Teradyne shareholder s equity on the condensed consolidated financial statements. Net income (loss) of MLTP is allocated between Teradyne and the noncontrolling interests in an amount proportional to each party s ownership share. Net income attributable to noncontrolling interests is presented separately from net income attributable to Teradyne on the condensed consolidated financial statements.

Redeemable Noncontrolling Interests

Teradyne has an agreement with the holder of the 25 % noncontrolling interests in MultiLane Test Products Holding LLC ( MLTP ) that provides Teradyne with the right to purchase, and the noncontrolling interests holder with the right to sell, their remaining minority interests following the expiration of a contractual lock-up period, with the earliest redemption date in 2029, and subject to certain conditions. The purchase price will be determined at the time of exercise based on a contractual formula. As the redemption is contingently redeemable at the option of the noncontrolling interests holder and not solely within Teradyne s control, Teradyne classifies the carrying amount of the redeemable noncontrolling interests as temporary equity, between liabilities and permanent equity, in the consolidated balance sheet. Although the redeemable noncontrolling interests are not currently redeemable, Teradyne has determined that it is probable that the interests will become redeemable. Teradyne applies the accretion method and accretes changes in the redemption value over the period to the earliest redemption date.

Note C: RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS 2 changes

In November 2024, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2024-03 - Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2024-03 - Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of additional expense information on an annual and interim basis, including the amounts of inventory purchases, employee compensation, depreciation, and intangible asset amortization included within each income statement expense caption. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Teradyne is currently evaluating the impact of this new standard .

Note D: ACQUISITIONS 4 changes

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On April 8, 2026 , Teradyne and HTP Holding SAL ( MultiLane ) formed a joint venture, MultiLane Test Products Holding LLP ( MLTP, ), in which Teradyne holds a controlling 75 % ownership interest, with the remaining 25 % attributable to redeemable noncontrolling interests, for a total purchase price of $ 157.8 million, subject to customary post-closing adjustments. MLTP is expected to serve the growing demand from the AI Data Center equipment market by accelerating the development of test solutions for critical high speed data connections. The fair value of the redeemable noncontrolling interests was estimated to be $ 35.8 million based on the noncontrolling interest holders proportionate ownership of MLTP, adjusted to reflect the lack of control and marketability characteristics of the interest. Teradyne s total allocation of the purchase price was goodwill of $ 131.6 million, which is not deductible for tax purposes, acquired intangible assets of $ 46.7 million with a weighted average estimated useful life of 4.7 years, and $ 15.3 million of net tangible assets. The goodwill is attributable to cost synergies, assembled workforce and anticipated incremental revenue streams. Teradyne s estimates, assumptions, and tax impacts used in determining the estimated fair values of certain assets, liabilities, and the noncontrolling interests are subject to change within the measurement period (up to twelve months from the acquisition date) as a result of additional information obtained with regards regard to facts and circumstances that existed as of the acquisition date. The results of MLTP have been included in Teradyne s Product Test segment from the date of acquisition.

7 unchanged paragraphs

Redeemable noncontrolling interests

20 unchanged paragraphs

Trademarks and tradenames

Tradenames and trademarks

5 unchanged paragraphs

Note E: REVENUE 7 changes

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For the Three Months Ended June 28, September 27, 2026

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For the Three Months Ended June 29, September 28, 2025

2 unchanged paragraphs

For the Six Months Ended June 28, 2026

For the Nine Months Ended September 27, 2026

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For the Six Months Ended June 29, 2025

For the Nine Months Ended September 28, 2025

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During the three and six nine months ended June 28, September 27, 2026, Teradyne recognized $ 34.9 34.6 million and $ 103.5 138.1 million, respectively, that were included within the deferred revenue and customer advances balances at the beginning of the period. During the three and six nine months ended June 29, September 28, 2025, Teradyne recognized $ 22.2 14.2 million and $ 47.5 64.8 million, respectively, that were included within the deferred revenue and customer advances balances at the beginning of the period. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of June 28, September 27, 2026, Teradyne had $ 130.2 131.1 million of unsatisfied performance obligations with an original duration of greater than one year, of which 51 57 % is expected to be recognized as revenue within the next twelve months .

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Note F: EQUITY METHOD INVESTMENTS 1 change

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Based on the quoted closing price of Technoprobe stock as of June 28, September 27, 2026, the fair value of the publicly traded investment was $ 2,457.9 2,242.4 million .

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Note G: INVENTORIES 2 changes

Inventories, net consisted of the following at June 28, September 27, 2026, and December 31, 2025:

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Inventory reserves at June 28, September 27, 2026, and December 31, 2025, were $ 155.8 165.6 million and $ 151.8 million, respectively.

Note H: FINANCIAL INSTRUMENTS 38 changes

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During the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.

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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 June 28, September 27, 2026, and December 31, 2025.

1 unchanged paragraph

U.S. Treasury securities

1 unchanged paragraph

Certificates of deposit and time deposits

U.S. Treasury securities

1 unchanged paragraph

Certificates of deposit and time deposits

5 unchanged paragraphs

Other current liabilities

Other accrued liabilities

(1) There were no financial assets or liabilities measured using significant unobservable inputs (Level 3) as of June 28, September 27, 2026 and December 31, 2025.

The carrying values and fair values of Teradyne s financial instruments at June 28, September 27, 2026, and December 31, 2025, were as follows:

3 unchanged paragraphs

U.S. Treasury securities

The fair values of accounts receivable, net, and accounts payable, and borrowings drawn on the revolving credit facility approximate their carrying values. due to the short-term nature of these instruments.

The following table summarizes the composition of available-for-sale marketable securities at June 28, September 27, 2026:

1 unchanged paragraph

Certificates of deposit and time deposits

U.S. Treasury securities

1 unchanged paragraph

Certificates of deposit and time deposits

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As of June 28, September 27, 2026 , the fair market value of investments with unrealized losses less than one year and greater than one year totaled $ 11.3 50.3 million and $ 34.1 32.2 million, respectively. As of December 31, 2025, the fair market value of investments with unrealized losses for less than one year and greater than one year totaled $ 1.1 million and $ 38.8 million, respectively.

Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments at June 28, September 27, 2026, and December 31, 2025, were did not other than temporary. meet the criteria for impairment, and accordingly no allowance for credit losses was recorded.

The contractual maturities of investments in available-for-sale securities held at June 28, September 27, 2026, were as follows:

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Contractual maturities of investments in available-for-sale securities held at June 28, September 27, 2026, exclude debt mutual funds with a fair market value of $ 13.1 13.3 million as they do not have a contractual maturity date.

4 unchanged paragraphs

At June 28, 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:

3 unchanged paragraphs

U.S. dollar/Danish krone

Danish krone/Chinese yuan

6 unchanged paragraphs

The change in the fair value of the outstanding contracts resulted in a net loss of $ 1.2 0.9 million and a net gain of $ 0.2 million at June 28, September 27, 2026, and December 31, 2025, respectively.

1 unchanged paragraph

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

Currency Hedged (Buy/Sell)

U.S. dollar/Japanese yen

The change in fair value of the outstanding cash flow hedge contracts resulted in a loss of $ 0.1 million at September 27, 2026.

The following table summarizes the fair value of derivative instruments as of June 28, September 27, 2026, and December 31, 2025:

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Other current assets

1 unchanged paragraph

Other current liabilities

Other accrued liabilities

Derivatives designated as hedging instruments:

Foreign exchange forward contracts

Other accrued liabilities

The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025:

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(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 six nine months ended June 28, September 27, 2026, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $ 0.7 0.3 million and $ 2.1 2.4 million, respectively. For the three and six nine months ended June 29, September 28, 2025, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $ 1.2 2.8 million and $ 3.4 6.2 million, respectively.

Note I: DEBT 4 changes

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On May 1, 2020, Teradyne entered into a credit agreement (the Credit Agreement ) with Truist Bank, as administrative agent and collateral agent, and the lenders party th ereto. The Credit Agreement provides for a three-year , senior secured revolving credit facility of $ 400.0 million (the Credit Facility ). On December 10, 2021, the Credit Agreement was amended to extend the maturity date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the Credit Facility to $ 750.0 million from $ 400.0 million. On November 7, 2023, the Credit Agreement was further amended to allow for the purchase of the shares of Technoprobe. The Credit Agreement provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders the available incremental amount under the Credit Facility, not to exceed the greater of $ 200.0 million or 15 % of consolidated EBITDA. The interest rate applicable to loans under the Credit Facility are, at Teradyne s option, equal to either a base rate plus a margin ranging from 0.00 % to 0.75 % per annum or SOFR plus a margin ranging from 1.10 % to 1.85 % per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.15 % to 0.25 % per annum, based on the then applicable consolidated leverage ratio . Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary SOFR breakage costs. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne s ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter: a consolidated leverage ratio and an interest coverage ratio. The Credit Facility is guaranteed by certain of Teradyne s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65 % of the capital stock of certain foreign subsidiaries.

On August 7, 2026, Teradyne entered into a credit agreement (the 2026 Credit Agreement ) providing for a five-year , $ 1.0 billion senior secured revolving credit facility (the 2026 Credit Facility ) that matures in August 2031 . The 2026 Credit Agreement replaced Teradyne s prior six-year , $ 750.0 million revolving credit facility entered into in May 2020 (the 2020 Credit Facility and, together with the 2026 Credit Facility, the Credit Facilities ), which, prior to Teradyne s voluntary early termination, was set to expire in December 2026. The 2026 Credit Facility may be used for working capital and general corporate purposes.

The 2026 Credit Agreement contains certain customary affirmative and negative covenants, including covenants restricting Teradyne s and certain of its subsidiaries' ability to incur liens, dispose of assets, make certain investments and restricted payments, and engage in certain mergers, consolidations and other fundamental changes. Borrowings under the credit facility bear interest at variable rates based on SOFR, plus an applicable margin, and may be repaid, in part or in full, at any time without penalty. Teradyne is required to maintain two financial ratios, including a maximum consolidated leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 2.50 to 1.00, subject to certain exceptions and exemptions. The credit facility is guaranteed by certain of Teradyne s wholly-owned domestic subsidiaries and secured by assets of Teradyne and such subsidiaries, including a pledge of 65 % of the capital stock of certain foreign subsidiaries. Teradyne is required to pay commitment fees on the unused portion of the commitments under the credit facility. The applicable margin on borrowings, the commitment fees, and the guarantees and security interests described above are each subject to adjustment or release when Teradyne maintains specified investment grade ratings from at least two of S&P, Moody s and Fitch, with the guarantees and security interests subject to reinstatement if Teradyne is subsequently downgraded below such rating thresholds.

As of June 28, September 27, 2026, , Teradyne did had no t have an outstanding balance borrowings under the 2026 Credit Agreement. Facility. As of December 31, 2025, Teradyne had an outstanding balance borrowings of $ 200 million under the 2020 Credit Agreement. Facility. The weighted-average interest rate on the outstanding borrowings as of December 31, 2025 was 4.86 %. During the six nine months ended June 28, September 27, 2026, , Teradyne paid $ 4.8 million in interest related to its debt from the its Credit Facility. Facilities. As of June 28, September 27, 2026, , Teradyne was in compliance with all covenants under the its credit Agreement. agreements.

Note L: STOCK-BASED COMPENSATION 6 changes

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Performance-based restricted stock units ( PRSUs ) may have a performance metric based on relative total shareholder return ( TSR ). For PRSUs granted beginning in 2026, Teradyne s three - year TSR performance will be measured against all other companies within the S&P 500. PRSUs granted prior to 2026, including those that remain outstanding and unvested, will continue to be measured against the New York Stock Exchange ( NYSE ) Composite Index for their full three -year performance periods. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 0 % to 200 % of the target shares. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant date to the date described in the retirement provisions below.

3 unchanged paragraphs

During the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne granted 0.2 0.3 million and 0.6 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $ 270.22 273.58 and $ 112.40 111.72 , respectively, and less than 0.1 million and less than 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $ 359.26 and $ 76.98 79.78 , respectively.

During the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne granted 0.1 million and 0.1 million of PBIT PRSUs with a weighted average grant date fair value of $ 272.70 and $ 108.34 106.44 , respectively.

During the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne granted 0.1 million and 0.1 million of TSR PRSUs, with a weighted average grant date fair value of $ 449.92 and $ 108.26 107.44 , respectively. The grant date fair value was estimated using the Monte Carlo simulation model with the following assumptions:

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Expected volatility was based on the historical volatility of Teradyne s stock and the companies within the S&P 500 for shares granted in 2026 and the NYSE Composite Index for shares granted prior to 2026 over the most recent three-year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of the applicable grant. Dividend yield was based upon an estimated annual dividend amount of $ 0.52 per share divided by Teradyne s stock price on the grant dates, which have a weighted average grant date stock price of $ 274.13 for the 2026 grants, and an estimated annual dividend amount of $ 0.48 per share divided by Teradyne s stock price on the grant date of $ 109.49 108.67 for the 2025 grants.

During the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne granted 0.1 million and 0.1 million of service-based stock options at a weighted average grant date fair value of $ 104.02 and $ 41.93 , respectively.

5 unchanged paragraphs

Note M: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 18 changes

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Six Months Ended June 28, 2026

Nine Months Ended September 27, 2026

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net of tax of $ 0 , $( 68 677 ), $( 0 32 ), $ 0 , respectively

1 unchanged paragraph

income (loss), net of tax of $ 0 , $ 12 10 , $ 0 20 , $( 1 ), respectively ( 2 3

1 unchanged paragraph

of $ 0 , $( 56 ), $ 0 , $( 1 ), respectively

Six Months Ended June 29, 2025

of $ 0 , $( 667 ), $( 12 ), $( 1 ), respectively

Total balance attributable to Teradyne at June 28, September 27, 2026, net of tax of $ 0 , $( 1,948 2,559 ), $( 0 12 ), $( 1,137 ), respectively ( 6,331 11,484 ( 45

Nine Months Ended September 28, 2025

3 unchanged paragraphs

net of tax of $ 0 , $ 115 316 , $( 109 ), $ 0 , respectively

1 unchanged paragraph

income (loss), net of tax of $ 0 , $ 27 , $( 100 ), $( 1 ), respectively ( 350 ( 3 6 ( 264 267

1 unchanged paragraph

of $ 0 , $ 142 343 , $( 209 ), $( 1 ), respectively

Total balance attributable to Teradyne at June 29, September 28, 2025, net of tax of $ 0 , $( 2,032 1,831 ), $ 0 , $( 1,135 ), respectively ( 7,133 6,394

Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, were as follows:

3 unchanged paragraphs

Unrealized (losses) gains, net of tax of $ 16 ), 2 , 6 $ 0 , $( 12 10 ), $( 27 ), respectively ( 55 ( 15 ( 13 5 ( 89

1 unchanged paragraph

Unrealized (losses) gains, net of tax of $( 0 20 ), $ 66 0 , $( 0 20 ), $ 100 , respectively ( 232 69 ( 69

2 unchanged paragraphs

Total reclassifications, net of tax of $( 16 18 ), $ 72 0 , $( 11 29 ), $ 74 , respectively ( 54 ( 245 60 ( 11 71 (a) The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note Q: Retirement Plans.

As of June 28, September 27, 2026 , there were no components of accumulated other comprehensive income (loss) attributable to noncontrolling interests.

Note N: GOODWILL AND ACQUIRED INTANGIBLE ASSETS 9 changes

1 unchanged paragraph

The changes in the carrying amount of goodwill by reportable segments for the six nine months ended June 28, September 27, 2026, were as follows:

3 unchanged paragraphs

Balance at June 28, 2026

Balance at September 27, 2026

1 unchanged paragraph

(1) Goodwill increased due to acquisitions made in the six nine months ended June 28, September 27, 2026, including the acquisition of a controlling interest in MLTP. See Note D: Acquisitions for more information.

Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. For the six nine months ended June 28, September 27, 2026, the Company Teradyne did not record any intangible asset impairment.

1 unchanged paragraph

Balance at June 28, 2026

Balance at September 27, 2026

9 unchanged paragraphs

(1) In the six nine months ended June 28, September 27, 2026 , $ 42.6 million of a mortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization.

Aggregate intangible asset amortization expense was $ 5.0 5.3 million and $ 7.2 12.4 million , respectively, for the three and six nine months ended June 28, September 27, 2026, and $ 3.7 3.5 million and $ 8.3 11.8 million , respectively, for the three and six nine months ended June 29, September 28, 2025.

1 unchanged paragraph

Note O: EARNINGS PER COMMON SHARE ATTRIBUTABLE TO TERADYNE 1 change

13 unchanged paragraphs

The computation of diluted earnings per common share attributable to Teradyne for the three and six nine months ended June 28, September 27, 2026 , excludes the effect of the potential vesting of less than 0.1 million of restricted stock units because the effect would have been anti-dilutive. The computation of diluted earnings per common share attributable to Teradyne fo r the three and six nine months ended June 29, September 28, 2025, excludes the effect of the potential vesting of 1.4 0.2 million and 1.9 0.7 million, respectively, of restricted stock units because the effect would have been anti-dilutive.

Note P: RESTRUCTURING AND OTHER 6 changes

During the three months ended June 29, 2025 , Teradyne recorded $ 2.3 million of severance charges, $ 0.8 million of which is related to the Robotics restructuring which was initiated during the three months ended March 30, 2025, and impacted approximately 150 employees. During the three months ended June 29, 2025, Teradyne made $ 3.9 million of Robotics severance payments.

During the three months ended June 28, September 27, 2026, Teradyne recorded $ 3.0 2.0 million of restructuring and other charges, of which $ 1.5 million were related to acquisition and divestiture related expenses and $ 1.4 1.2 million were severance charges.

During the three months ended September 28, 2025, Teradyne recorded $ 4.8 million of severance charges, $ 3.6 million of which is related to headcount reductions in Robotics . During the three months ended September 28, 2025 , Teradyne made $ 1.1 million of severance payments related to the Robotics business.

During the six nine months ended June 28, September 27, 2026, Teradyne recorded $ 6.5 8.5 million of restructuring and other charges, of which $ 3.2 4.5 million were related to acquisition and divestiture related expenses and $ 2.3 3.4 million were severance charges. .

During the six nine months ended June 29, September 28, 2025 , Teradyne recorded $ 13.7 18.5 million of severance charges, $ 10.0 13.5 million of which is related to the Robotics restructuring which impacted approximately 150 employees, and $ 2.1 2.2 million of which is related to Product Test. During the six months ended June 29, 2025, Teradyne made $ 8.1 million of Robotics severance payments. Teradyne expects all

Robotics severance payments Product Test and $ 1.4 million of which is related to be Semiconductor Test. During the nine months ended September 28, 2025, Teradyne made prior $ 9.2 million of severance payments related to the end of our third quarter. Robotics business. Additionally, Teradyne recorded $ 1.6 2.0 million of acquisition and divestiture expenses related primarily to the Quantifi acquisition and $ 1.2 1.5 million of charges related to lease terminations.

Note Q: RETIREMENT PLANS 10 changes

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Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees years of service and compensation. Teradyne s funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of the U.S. qualified pension plan consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Employee Retirement Income Security Act ( ERISA ) and the Internal Revenue Code (the IRC ), as well as unfunded qualified foreign plans.

During the three months ended September 27, 2026, Teradyne recognized a non-cash settlement gain of $ 0.1 million related to lump sum distributions paid to retired or terminated employees. The gain is the result of the aggregate of the cumulative lump sum distributions exceeding the total annual service and interest costs. Due to the remeasurement, the reduction in pension benefit obligation and pension assets was $ 4.6 million.

During the three months ended September 28, 2025, Teradyne recognized a non-cash settlement gain of $ 0.8 million related to lump sum distributions paid to retired or terminated employees. The gain is the result of the aggregate of the cumulative lump sum distributions exceeding the total annual service and interest costs. Due to the remeasurement, the reduction in pension benefit obligation and pension assets was $ 4.7 million.

In the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne contributed $ 1.8 2.7 million and $ 1.6 2.4 million, respectively, to the U.S. supplemental executive defined benefit pension plan, and $ 0.8 1.2 million and $ 3.3 3.6 million, respectively, to certain qualified pension plans for non-U.S. subsidiaries.

For the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne s net periodic pension cost was comprised of the following:

3 unchanged paragraphs

Settlement loss (gain)

1 unchanged paragraph

For the Six Nine Months Ended

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Settlement loss (gain)

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In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees survivors and are available to all retirees. Substantially all of Teradyne s current U.S. employees could become eligible for these benefits and the existing benefit obligation relates primarily to those employees. During the six nine months ended June 29, September 28, 2025, Teradyne recorded special termination benefit charges associated with a voluntary early retirement program.

For the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, Teradyne s net periodic postretirement benefit cost was comprised of the following:

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Note R: COMMITMENTS AND CONTINGENCIES 3 changes

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As of June 28, September 27, 2026 , Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $ 1,781.4 2,252.9 million, of which $ 1,558.8 1,906.4 million is for less than one year.

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As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of June 28, September 27, 2026, and December 31, 2025, Teradyne had a product warranty accrual of $ 25.7 27.9 million and $ 19.2 million, respectively, included in other accrued liabilities and revenue deferrals related to extended warranties of $ 78.1 79.6 million and $ 55.9 million, respectively, included in short and long-term deferred revenue and customer advances.

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Based on historical experience and information known as of June 28, September 27, 2026, and December 31, 2025 , except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial.

Note S: INCOME TAXES 9 changes

UTPR. Teradyne continues to monitor the implementation of Qualified Domestic Minimum Top-up Taxes (QDMTTs) in foreign jurisdictions, which remain unaffected by the side-by-side arrangement.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA, P.L. 119-21) was enacted, introducing significant changes to U.S. federal income tax law. Key provisions include a permanent extension of 100% bonus depreciation, immediate expensing of research and experimental expenditures, and modifications to the business interest expense deduction. The OBBBA also reduces deduction rates related to foreign income and export sales income. The key provisions of the OBBBA that became effective in 2026 are not expected to have a material impact on Teradyne s consolidated financial statements for the year ended December 31, 2026.

The effective tax rate for the three months ended June 28, September 27, 2026 and June 29, September 28, 2025 was 15.1 14.8 % and 12.7 15.8 %, , respectively. The increase decrease in the effective tax rate from the three months ended June 29, September 28, 2025 to the three months ended June 28, September 27, 2026 is primarily attributable to lower benefits from tax credits a reduction in U.S. taxation of international income. This reduction was partially offset by increased benefits an increase from equity compensation and a projected shift in the geographic distribution of income.

The effective tax rate for the six nine months ended June 28, September 27, 2026 and June 29, September 28, 2025 was 14.2 14.4 % and 12.4 13.8 %, , respectively. The increase in the effective tax rate from the six nine months ended June 29, September 28, 2025 to the six nine months ended June 28, September 27, 2026 is primarily attributable to lower benefits from tax credits partially offset by increased benefits from equity compensation and a projected shift in the geographic distribution of income. These increases were partially offset by a reduction related to U.S. taxation of international income.

On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of June 28, September 27, 2026, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the condensed consolidated balance sheet. However, should Teradyne believe that it is more-likely-than-not that the deferred tax assets would not be realized, the tax provision would increase in the period in which Teradyne determined that the realizability was not likely. Teradyne considers the probability of future taxable income and historical profitability, among other factors, in assessing the realizability of the deferred tax assets.

As of both June 28, September 27, 2026, and December 31, 2025, Teradyne had $ 6.9 million of reserves for uncertain tax positions.

Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of June 28, September 27, 2026, and December 31, 2025, $ 0.3 million and $ 0.3 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, an expense of less than $ 0.1 million and less than $ 0.1 million, respectively, was recorded for interest and penalties related to income tax items.

Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the six nine months ended June 28, September 27, 2026 and June 29, September 28, 2025, were $ 14.9 16.4 million, or $ 0.09 0.10 per diluted share, and $ 3.6 7.4 million, or $ 0.02 0.05 per diluted share, respectively. In December 2025, Teradyne entered into a new agreement with the Singapore Economic Development Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2025. The new tax holiday is scheduled to expire on December 31, 2035.

On January 5, 2026, the Organisation for Economic Co-operation and Development (OECD/G20) Inclusive Framework released a side-by-side arrangement that if adopted by foreign jurisdictions, will provide provides a safe harbor for U.S.-headquartered multinationals. The arrangement would effectively recognize recognizes the U.S. tax system as complying with operating alongside the Pillar Two GloBE rules for fiscal years beginning on or after January 1, 2026. Under this arrangement, the Company expects its Teradyne s U.S.-parented group and its foreign subsidiaries are expected to be exempt from the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR) in foreign jurisdictions that adopt this the safe harbor. As a result, while The side-by-side arrangement European Union has not yet been formally adopted in any significant confirmed that the safe harbor applies under the existing EU minimum tax directive, and several other jurisdictions in which Teradyne operates in, we do have enacted the safe harbor into local law. Certain other jurisdictions have proposed but not yet enacted legislation adopting the safe harbor with effect from January 1, 2026. Teradyne does not currently expect the IIR or UTPR to have a material impact from on its consolidated financial statements. Teradyne continues to monitor the enactment of the side-by-side arrangement in the remaining jurisdictions and the implementation of Qualified Domestic Minimum Top-up Taxes under (QDMTTs), which are unaffected by the IIR and side-by-side arrangement.

Note T: SEGMENT INFORMATION 10 changes

Teradyne has three reportable segments (Semiconductor Test, Robotics, and Product Test). As of June 28, September 27, 2026 , each of Teradyne s reportable segments represents an individ ual operating segment. Teradyne s Chief Executive Officer serves as the Chief Operating Decision Maker ( CODM ) for Teradyne.

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Segment information for the three and six nine months ended June 28, September 27, 2026, and June 29, September 28, 2025, is as follows:

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Three months ended June 28, 2026

Three months ended September 27, 2026

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Three months ended June 29, 2025

Three months ended September 28, 2025

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Six months ended June 28, 2026

Nine months ended September 27, 2026

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Six months ended June 29, 2025

Nine months ended September 28, 2025

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Note U: EQUITY 6 changes

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In January 2023, Teradyne s Board of Directors cancelled canceled its January 2021 repurchase program and approved a new repurchase program for up to $ 2.0 billion of common stock. As of January 1, 2023, share repurchases in excess of issuances are subject to a 1 % excise tax, which is included as part of the cost basis of the shares acquired.

During the six nine months ended June 28, September 27, 2026, Teradyne repurchased 0.2 0.5 million shares of common stock for a total cost of $ 74.2 173.5 million at an average price of $ 341.89 349.62 per share. The cumulative repurchases under the January 2023 repurchase program as of June 28, September 27, 2026, were 12.2 12.5 million shares of common stock for $ 1,382.9 1,481.8 million at an average price per share of $ 113.52 118.92 .

During the six nine months ended June 29, September 28, 2025, Teradyne repurchased 3.0 5.1 million shares of common stock for a total cost of $ 277.3 523.5 million at an average price of $ 93.67 102.01 per share.

The total cost of shares acquired includes commissions and related excise tax, when applicable, and is recorded as a reduction to retained earnings.

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In January 2026, and May 2026 , and August 2026, Teradyne s Board of Directors declared a quarterly cash dividend of $ 0.13 per share. Dividend payments for the three and six nine months ended June 28, September 27, 2026, were $ 20.3 million and $ 40.7 61.0 million , respectively.

In January 2025, and May 2025 , and August 2025, Teradyne s Board of Directors declared a quarterly cash dividend of $ 0.12 per share. Dividend payments for the three and six nine months ended June 29, September 28, 2025, were $ 19.2 19.0 million and $ 38.6 57.6 million , respectively.

MD&A 48 changes

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For the second consecutive quarter, our Semiconductor Test segment revenue, driven primarily by sustained demand in Artificial Intelligence ( AI ) applications across both compute and memory markets, hit a new record high. Continued investment by hyperscalers, vertically integrated producers, and customers in AI data center infrastructure supported the robust compute market revenue. In memory, revenue exceeded $200 million for the third consecutive quarter, reflecting strong demand for high bandwidth memory ( HBM ) and DRAM test solutions supporting AI compute deployments, as well as renewed demand for NAND final test applications. Strong Robotics revenue of $100 million, marked the fifth consecutive quarter of sequential growth, driven primarily by demand from electronics manufacturing and semiconductor customers, which has become the segment's largest end-market. Within Product Test Group, revenue increased 26% year over year and 33% sequentially, reflecting broad-based growth across multiple markets and applications. The current quarter record performance is the result of prior investments and our current strategy and execution model. Looking ahead, we see significant future opportunities, and we are committed to judicious additional investments today, which we believe are required to continue growing our business in 2027.

Our Semiconductor Test segment revenue exceeded $1.0 billion for the third consecutive quarter and increased 77% year over year, driven primarily by sustained demand in Artificial Intelligence ( AI ) applications across compute, memory and storage markets. In memory, revenue reached a record $301 million, marking the fourth consecutive quarter above $200 million, reflecting strong demand. Within the Product Test Group, revenue was $138 million, up 56% year over year, reflecting broad-based growth tied to AI infrastructure build-outs across board test, optical and high-speed interconnect applications, including the addition of the MultiLane Test Products joint venture. Robotics achieved profitability in the quarter on $96 million of revenue, the highest third quarter revenue in the segment s history. Electronics and semiconductor customers represented Robotics' largest end-market during the quarter. Looking ahead, we see significant future opportunities, and we are committed to reinvesting in the business, particularly in research and development, to enable continued growth in 2027.

On October 6, 2026, we entered into a securities purchase agreement and a collaboration agreement with FormFactor, Inc. ( FormFactor ), a provider of semiconductor test and measurement technologies. Under the securities purchase agreement, we agreed to make a $300.0 million minority, non-controlling equity investment in FormFactor. The transaction is expected to close within the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals. Under the collaboration agreement, we and FormFactor will collaborate on joint solutions that combine our test platforms with FormFactor s probe, contactor, and interface technologies to help semiconductor customers accelerate device validation and bring advanced devices to production, including in silicon photonics, high-performance compute, advanced packaging, and high-bandwidth memory.

On April 8, 2026, we and HTP Holding SAL ( MultiLane ) formed a joint venture, MultiLane Test Products Holding LLP LLC ( MLTP ), to which MultiLane contributed the assets of its test and measurement business. We obtained a controlling 75% ownership interest in MLTP, which is expected to serve the growing demand from the AI Data Center equipment market by accelerating the development of test solutions for critical high speed data connections. The purchase price of MLTP was approximately $157.8 million, subject to customary post-closing adjustments, and the results will be have been included in our Product Test segment.

Our capital allocation plan will continue to be balanced between investing in organic and inorganic growth and returning cash to shareholders through share repurchases and dividends. During the first six nine months of 2026, the aggregate cash consideration paid for acquisitions, net of cash acquired, totaled $165.6 million, primarily due to the acquisition of a controlling interest in MLTP. Additionally, we returned a combined $114.9 $234.5 million to shareholders through $74.2 $173.5 million of share buybacks and $40.7 $61.0 million of dividend payments.

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We are subject to numerous U.S. and foreign laws and regulations, including, without limitation, tariffs, trade sanctions, trade barriers, trade embargoes, regulations relating to import-export control, technology transfer restrictions, and other laws and regulations. However, our trade compliance program may not identify or prevent all potential violations, and gaps in our program could be discovered, possibly resulting in fines, penalties, or other sanctions as a result. Additionally, U.S. and foreign governmental authorities have taken, and may continue to take, administrative, legislative or regulatory action that could impact our operations. We believe that our operations are in material compliance with applicable trade regulations. The costs we incurred in complying with applicable trade regulations for the six nine months ended June 28, September 27, 2026 were not material, however, compliance with these laws has limited our ability to compete in certain regions. It is possible that future developments, including changes in laws and regulations or government policies, could lead to material costs, and such costs may have a material adverse effect on our future business or prospects.

We have paid certain tariffs on imported products under the International Emergency Economic Powers Act ( IEEPA ) since the inception of the IEEPA tariffs in 2025. On April 20, 2026, U.S. Customs and Border Protection ( CBP ) began accepting refund claims related to these tariffs. During the quarter ended June 28, September 27, 2026, we began receiving received refunds, which did not have a material impact to our financial position or results of operations. We continue to monitor the situation, and we do not expect that any further refunds received will have a material impact on our financial position or results of operations.

For information regarding risks associated with import-export control regulations and similar applicable laws and regulations, see Part II I - Item 1A Risk Factors - Risks Related to Legal and Regulatory Compliance included elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

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We have identified the policies which are critical to understanding our business and our results of operations. There have been no significant changes during the six nine months ended June 28, September 27, 2026, to the items disclosed as our critical accounting policies and estimates in Management s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

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Second Third Quarter 2026 Compared to Second Third Quarter 2025

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The increase in Semiconductor Test revenues of $629.9 $466.1 million, or 128.1%, 76.9%, was driven primarily by higher sales in compute and memory and compute related to artificial intelligence applications. The increase in Product Test revenues of $22.1 $49.8 million, or 26.0%, 56.4%, was driven primarily by increased AI-related demand, combined with growth in Wireless and Defense and Aerospace. The increase in Robotics revenues of $25.0 $20.7 million, or 33.4%, 27.6%, was primarily due to higher sales of collaborative robotic arms and autonomous mobile robots.

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Gross profit as a percent of revenue increased by 2.6 0.7 points, primarily due to higher sales and product mix. in Semiconductor Test.

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The increase of $34.7 $29.9 million in selling and administrative expenses was primarily driven by strategic investments in Semiconductor Test and from higher variable compensation across all segments.

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The increase of $37.9 $38.3 million in engineering and development expenses was primarily driven by strategic investments in Semiconductor Test and from higher variable compensation across all segments.

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During the three months ended June 29, 2025, we recorded $2.3 million of severance charges, $0.8 million of which is related to the Robotics restructuring which was initiated during the three months ended March 30, 2025, and impacted approximately 150 employees. During the three months ended June 29, 2025, we made $3.9 million of Robotics severance payments.

During the three months ended June 28, September 27, 2026, we recorded $3.0 $2.0 million of restructuring and other charges, of which $1.5 million were related to acquisition and divestiture related expenses and $1.4 $1.2 million were severance charges.

During the three months ended September 28, 2025, we recorded $4.8 million of severance charges, $3.6 million of which is related to headcount reductions in Robotics. During the three months ended September 28, 2025, we made $1.1 million of severance payments related to the Robotics business.

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Interest expense increased by $2.2 million primarily due to higher debt during a portion of the period.

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The increase in income before income taxes and equity in net earnings of affiliate in Semiconductor Test was driven primarily by higher sales volume in compute and memory and compute related to artificial intelligence applications. The increase in income before income taxes and equity in net earnings of affiliate in Product Test was driven primarily by increased AI-related demand, combined with growth in Wireless and Defense and Aerospace. The increase in income before income taxes and equity in net earnings of affiliate in Robotics was primarily due to higher sales volume, improved product mix, and lower operating expenses primarily as a result of restructuring actions.

The effective tax rate for the three months ended June 28, September 27, 2026 and June 29, September 28, 2025 was 15.1% 14.8% and 12.7%, 15.8%, respectively. The increase decrease in the effective tax rate from the three months ended June 29, September 28, 2025 to the three months ended June 28, September 27, 2026 is primarily attributable to lower benefits from tax credits a reduction in U.S. taxation of international income. This reduction was partially offset by increased benefits an increase from equity compensation and a projected shift in the geographic distribution of income.

Six Nine Months 2026 Compared to Six Nine Months 2025

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The increase in Semiconductor Test revenues of $1,198.2 $1,664.4 million, or 115.8%, 101.5%, was driven primarily by higher sales in compute and memory primarily related to artificial intelligence applications. The increase in Robotics revenues of $47.3 million, or 32.9%, was primarily due to higher sales of collaborative robotic arms. The increase in Product Test revenues of $28.5 $78.3 million, or 17.9%, 31.6%, was driven primarily by increased AI-related demand, improved product mix, combined with growth in Wireless and Defense and Aerospace. The increase in Robotics revenues of $68.1 million, or 31.1%, was primarily due to higher sales of collaborative robotic arms and autonomous mobile robots.

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Gross profit as a percent of revenue increased by 1.4 1.2 points, primarily due to higher sales volume in Semiconductor Test. and improved product mix.

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The increase of $44.3 $74.0 million in selling and administrative expenses was primarily driven by strategic investments in Semiconductor Test and from higher variable compensation across all segments.

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The increase of $55.2 $93.6 million in engineering and development expenses was primarily driven by strategic investments in Semiconductor Test and from higher variable compensation across all segments.

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During the six nine months ended June 28, September 27, 2026, we recorded $6.5 $8.5 million of restructuring and other charges, of which $3.2 $4.5 million were related to acquisition and divestiture related expenses and $2.3 $3.4 million were severance charges.

During the six nine months ended June 29, September 28, 2025, we recorded $13.7 $18.5 million of severance charges, $10.0 $13.5 million of which is related to the Robotics restructuring which impacted approximately 150 employees, and $2.1 $2.2 million of which is related to Product Test and $1.4 million of which is related to Semiconductor Test. During the six nine months ended June 29, September 28, 2025, we made $8.1 $9.2 million of Robotics severance payments We expect all Robotics severance payments to be made prior related to the end of our third quarter. Robotics business. Additionally, we recorded $1.6 $2.0 million of acquisition and divestiture expenses related primarily to the Quantifi Acquisition and $1.2 $1.5 million of charges related to lease terminations.

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Interest expense increased by $4.5 $4.1 million primarily due to outstanding debt balances during portions of 2026.

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The increase in income before income taxes and equity in net earnings of affiliate in Semiconductor Test was driven primarily by higher compute and memory sales volume partially offset by higher selling primarily related to artificial intelligence applications. The increase in income before income taxes and administrative equity in net earnings of affiliate in Product Test was driven primarily by increased AI-related demand, combined with growth in Wireless and engineering Defense and development spending. Aerospace. The increase in income before income taxes and equity in net earnings of affiliate in Robotics was primarily due to higher sales volume, improved product mix, and lower operating expenses primarily as a result of restructuring actions.

The effective tax rate for the six nine months ended June 28, September 27, 2026 and June 29, September 28, 2025 was 14.2% 14.4% and 12.4%, 13.8%, respectively. The increase in the effective tax rate from the six nine months ended June 29, September 28, 2025 to the six nine months ended June 28, September 27, 2026 is primarily attributable to lower benefits from tax credits partially offset by increased benefits from equity compensation and a projected shift in the geographic distribution of income. These increases were partially offset by a reduction related to U.S. taxation of international income.

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Our Third Amended and Restated Revolving Credit Agreement, amended as of November 7, 2023 (the Credit Agreement ) provides a six-year, senior secured revolving credit facility of $750.0 million (the Credit Facility ). As of June 28, 2026, we did not have an outstanding balance under the Credit Agreement. The Credit Agreement is set to expire on December 10, 2026. See Note I: Debt for more information regarding our Credit Agreement. As of June 28, 2026, we were in compliance with all covenants under the Credit Agreement. We intend to extend the Credit Facility later in 2026.

Our cash, cash equivalents and marketable securities balances increased by $68.8 $176.6 million in the six nine months ended June 28, September 27, 2026, to $517.1 $624.9 million. Cash increased primarily as a result of operating cash inflows.

In August 2026, we entered into a credit agreement (the 2026 Credit Agreement ) providing for a five-year, $1.0 billion senior secured revolving credit facility (the 2026 Credit Facility ). The 2026 Credit Agreement replaced Teradyne's prior revolving credit facility, which, prior to our voluntary early termination, was set to expire in December 2026. As of September 27, 2026, we have no borrowings outstanding under the 2026 Credit Facility. The 2026 Credit Agreement is set to expire in August 2031. See Note I: Debt for more information regarding our 2026 Credit Agreement. As of September 27, 2026, we were in compliance with all covenants under the 2026 Credit Agreement.

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Net increase (decrease) in cash and cash equivalents

Effects of exchange rate changes on cash and cash equivalents (4.0 (4.3 (Decrease) increase in cash and cash equivalents (280.7

Net change in operating assets and liabilities, net of businesses acquired (142.1 (203.8 (218.3 (48.6 (169.7

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Operating activities during the six nine months ended June 28, September 27, 2026, provided cash of $734.3 $1,047.9 million. Changes in operating assets and liabilities, net of businesses acquired, used cash of $142.1 $218.3 million due to a $369.6 $706.5 million increase in operating assets and a $227.6 $488.2 million increase in operating liabilities. The increase in operating assets was primarily due to increases in accounts receivable, prepayments and other assets, and inventories of $302.2 $302.7 million, $224.9 million and $178.8 million, respectively. The increase in operating liabilities was primarily due to increases in accounts payable and other liabilities and in deferred revenue and customer advances of $121.8 million and $50.9 $347.6 million. respectively.

Operating activities during the six nine months ended June 29, September 28, 2025, provided cash of $343.7 $392.8 million. Changes in operating assets and liabilities provided used cash of $61.7 $48.6 million due to a $56.7 $169.0 million decrease increase in operating assets and a $5.0 $120.5 million increase in operating liabilities. The decrease increase in operating assets was primarily due to decreases increases in accounts receivable, inventories, and prepayments and other assets of $49.5 $111.8 million, $34.6 million, and $30.9 $22.6 million, respectively. partially offset by a $23.7 million increase in inventories. The increase in operating liabilities was due to increases in accounts payable and other liabilities and in deferred revenue and customer advances of $17.1 $121.4 million and $13.1 $25.7 million, respectively, partially offset by decreases in income taxes and retirement plans of $19.6 $19.7 million and $5.6 $7.0 million, respectively.

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Investing activities during the six nine months ended June 28, September 27, 2026, included $165.6 million used for the acquisition of businesses, $155.4 was primarily driven by $241.8 million used for the purchases of property, plant, and equipment $48.2 million used for the purchases of marketable securities, and $10.0 $165.6 million used for the purchase acquisition of investment in a business, businesses, partially offset by $29.6 $30.6 million in proceeds from sales of marketable securities and $11.0 million in proceeds from maturities of marketable securities.

Investing activities during the six nine months ended June 29, September 28, 2025, used cash of $240.2 $307.7 million due to $161.1 million used for the purchase of property, plant and equipment, $144.4 million used for the acquisition of businesses, $114.4 $27.5 million used for the purchase of property, plant & equipment marketable securities, and $17.2 $25.5 million used for the purchase of marketable securities, investments in businesses, partially offset by $32.6 $41.6 million and $8.5 $9.2 million in proceeds from the maturities and sales of marketable securities, respectively.

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Financing activities during the six nine months ended June 28, September 27, 2026, included $200.0 million in net repayments of borrowings on the revolving our Credit facility, $74.2 Facilities, $173.5 million used for the repurchase of common stock, $41.1 $42.2 million used for payment related to net settlements of employee stock compensation awards, and $40.7 $61.0 million utilized for dividend payments, partially offset by $15.1 $33.7 million from the issuance of common stock under employee stock purchase and stock option plans.

Financing activities during the six nine months ended June 29, September 28, 2025, consumed cash of $313.6 $361.4 million due to $274.9 $518.7 million used for the repurchase of approximately 3.0 5.1 million shares of common stock at an average price of $93.67 $102.01 per share, $38.6 $57.6 million utilized for dividend payments and $15.0 $15.3 million used for payment related to net settlements of employee stock compensation awards, partially offset by $14.8 $200.0 million from borrowings on our revolving credit facility and $30.1 million from the issuance of common stock under employee stock purchase and stock option plans.

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In January 2026, and May 2026, and August 2026, our Board of Directors declared a quarterly cash dividend of $0.13 per share. Dividend payments for the three and six nine months ended June 28, September 27, 2026, were $20.3 million and $40.7 $61.0 million, respectively.

In January 2025, and May 2025, and August 2025, our Board of Directors declared a quarterly cash dividend of $0.12 per share. Dividend payments for the three and six nine months ended June 29, September 28, 2025, were $19.2 $19.0 million and $38.6 $57.6 million, respectively.

In January 2023, our Board of Directors approved a repurchase program for up to $2.0 billion of common stock. During the six nine months ended June 28, September 27, 2026, we repurchased 0.2 0.5 million shares of common stock for $74.2 $173.5 million, which excludes related excise tax, when applicable, at an average price of $341.89 $349.62 per share. The cumulative repurchases under the 2023 repurchase program as of June 28, September 27, 2026, were 12.2 12.5 million shares of common stock for $1,371.5 $1,481.8 million, which excludes includes related excise tax, when applicable, at an average price per share of $113.52. $118.92. During the six nine months ended June 29, September 28, 2025, we repurchased approximately 3.0 5.1 million shares of common stock for $274.9 $518.7 million, which excludes related excise tax, when applicable, at an average price of $93.67 $102.01 per share.

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On October 6, 2026, we entered into a securities purchase agreement and a collaboration agreement with FormFactor, Inc. ( FormFactor ). Under the securities purchase agreement, we agreed to make a $300.0 million minority, non-controlling equity investment in FormFactor. The transaction is expected to close within the fourth quarter of 2026, subject to customary closing conditions and regulatory approvals.

We believe our cash, cash equivalents, marketable securities and senior secured revolving credit facility will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. As of June 28, September 27, 2026, we were in compliance with all covenants under the 2026 Credit Agreement.

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In addition to our 1996 Employee Stock Purchase Program Plan as discussed in Note M: S: Stock-Based Compensation in our 2025 Annual Report on Form 10-K, we have a 2006 Equity and Cash Compensation Incentive Plan (the 2006 Equity Plan ).

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Market risk 1 change

For quantitative and qualitative disclosures about market risk affecting Teradyne, see Part 2 II Item 7A, Quantitative and Qualitative Disclosures about Market Risk, in our Annual Report on Form 10-K filed with the SEC on February 19, 2026. There were no material changes in our exposure to market risk from those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Controls and procedures 1 change

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There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended June 28, September 27, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Unregistered sales of stock 9 changes

In January 2023, Teradyne s Board of Directors cancelled canceled our 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. During the six nine months ended June 28, September 27, 2026, we repurchased 0.2 0.5 million shares of common stock for a total cost of $74.2 $173.5 million at an average price of $341.89 $349.62 per share. We record share repurchases at cost, which includes broker commissions and related excise taxes, when applicable. During the six nine months ended June 29, September 28, 2025, we repurchased 3.0 5.1 million shares of common stock for $277.3 $523.5 million at an average price of $93.67 $102.01 per share.

The following table includes information with respect to repurchases we made of our common stock during the three months ended June 28, September 27, 2026, (in thousands except per share price):

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March 30, 2026 - April 26, 2026

April 27, 2026 - May 24, 2026

May 25, 2026 - June 28, 2026

June 29, 2026 - July 26, 2026

July 27, 2026 - August 23, 2026

August 24, 2026 - September 27, 2026

(1) Includes approximately five three thousand shares at an average price of $343.41 $380.79 withheld from employees for the payment of taxes.

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Other information 3 changes

1 unchanged paragraph

Our officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended (the Exchange Act ) ( Section 16 Officers )) and directors from time to time enter into contracts, instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information. We refer to these contracts, instructions, and written plans as Rule 10b5-1 trading plans and each one as a Rule 10b5-1 trading plan. During our fiscal quarter ended June 28, September 27, 2026 , no the following Section 16 Officers or directors adopted , modified or terminated Rule 10b5-1 trading plans:

Ryan Driscoll, Vice President and General Counsel

Ryan Driscoll , our Vice President and General Counsel , entered into a new Rule 10b5-1 trading plan on September 3, 2026 . The Rule 10b5-1 trading plan provides that Mr. Driscoll, acting through a broker, may sell up to an aggregate of 3,614 shares. Subject to price limits, the first date that sales of any shares are permitted to be made under the trading arrangement is February 5, 2027. Mr. Driscoll s plan is scheduled to terminate on May 7, 2027, subject to earlier termination upon the sale of all shares subject to the plan, upon termination by Mr. Driscoll or the broker, or as otherwise provided in the plan.

Exhibits 4 changes

Credit Agreement, dated August 7, 2026, by and among Teradyne, Inc., as the Borrower, PNC Bank, National Association, as the administrative agent, issuing bank and swingline lender, and the several banks and other financial institutions and lenders from time to time party thereto (incorporated herein by reference to Exhibit 10.1 to Teradyne's Current Report on Form 8-K (File No. 001-06462) filed August 10, 2026).

Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

5 unchanged paragraphs

Management Contract or Compensatory Plan

4 unchanged paragraphs