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Revenue
 9 Months Ended
Sep. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

E. REVENUE

Disaggregation of Revenue

The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.

 

 

 

Semiconductor Test

 

 

Robotics

 

 

Product Test

 

 

Total

 

 

 

System
on-a-Chip

 

 

Memory

 

 

IST

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

For the Three Months Ended September 28, 2025

 

Timing of Revenue Recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Point in Time

 

$

367,404

 

 

$

118,878

 

 

$

33,575

 

 

$

73,213

 

 

$

69,579

 

 

$

662,649

 

Over Time

 

 

72,812

 

 

 

9,184

 

 

 

4,014

 

 

 

1,874

 

 

 

18,677

 

 

 

106,561

 

Total

 

$

440,216

 

 

$

128,062

 

 

$

37,589

 

 

$

75,087

 

 

$

88,256

 

 

$

769,210

 

Geographical Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

$

409,959

 

 

$

126,534

 

 

$

37,298

 

 

$

13,852

 

 

$

25,136

 

 

$

612,779

 

Americas

 

 

14,432

 

 

 

1,029

 

 

 

291

 

 

 

28,455

 

 

 

55,225

 

 

 

99,432

 

Europe, Middle East and Africa

 

 

15,825

 

 

 

499

 

 

 

—

 

 

 

32,780

 

 

 

7,895

 

 

 

56,999

 

Total

 

$

440,216

 

 

$

128,062

 

 

$

37,589

 

 

$

75,087

 

 

$

88,256

 

 

$

769,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 29, 2024

 

Timing of Revenue Recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Point in Time

 

$

323,507

 

 

$

143,581

 

 

$

20,771

 

 

$

86,672

 

 

$

64,305

 

 

$

638,836

 

Over Time

 

 

68,848

 

 

 

6,798

 

 

 

5,013

 

 

 

1,979

 

 

 

15,824

 

 

 

98,462

 

Total

 

$

392,355

 

 

$

150,379

 

 

$

25,784

 

 

$

88,651

 

 

$

80,129

 

 

$

737,298

 

Geographical Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

$

364,476

 

 

$

137,890

 

 

$

23,844

 

 

$

13,833

 

 

$

29,775

 

 

$

569,818

 

Americas

 

 

17,150

 

 

 

1,325

 

 

 

1,940

 

 

 

40,775

 

 

 

43,494

 

 

 

104,684

 

Europe, Middle East and Africa

 

 

10,729

 

 

 

11,164

 

 

 

—

 

 

 

34,043

 

 

 

6,860

 

 

 

62,796

 

Total

 

$

392,355

 

 

$

150,379

 

 

$

25,784

 

 

$

88,651

 

 

$

80,129

 

 

$

737,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 28, 2025

 

Timing of Revenue Recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Point in Time

 

$

1,030,682

 

 

$

272,534

 

 

$

85,294

 

 

$

213,083

 

 

$

192,296

 

 

$

1,793,889

 

Over Time

 

 

212,512

 

 

 

25,879

 

 

 

13,348

 

 

 

5,857

 

 

 

55,202

 

 

 

312,798

 

Total

 

$

1,243,194

 

 

$

298,413

 

 

$

98,642

 

 

$

218,940

 

 

$

247,498

 

 

$

2,106,687

 

Geographical Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

$

1,132,944

 

 

$

292,683

 

 

$

95,782

 

 

$

44,853

 

 

$

85,583

 

 

$

1,651,845

 

Americas

 

 

65,404

 

 

 

4,023

 

 

 

2,860

 

 

 

88,086

 

 

 

138,239

 

 

 

298,612

 

Europe, Middle East and Africa

 

 

44,846

 

 

 

1,707

 

 

 

—

 

 

 

86,001

 

 

 

23,676

 

 

 

156,230

 

Total

 

$

1,243,194

 

 

$

298,413

 

 

$

98,642

 

 

$

218,940

 

 

$

247,498

 

 

$

2,106,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 29, 2024

 

Timing of Revenue Recognition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Point in Time

 

$

896,635

 

 

$

367,679

 

 

$

49,868

 

 

$

260,072

 

 

$

189,987

 

 

$

1,764,241

 

Over Time

 

 

211,612

 

 

 

21,626

 

 

 

15,784

 

 

 

6,480

 

 

 

47,253

 

 

 

302,755

 

Total

 

$

1,108,247

 

 

$

389,305

 

 

$

65,652

 

 

$

266,552

 

 

$

237,240

 

 

$

2,066,996

 

Geographical Market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia Pacific

 

$

1,016,674

 

 

$

357,993

 

 

$

61,014

 

 

$

48,615

 

 

$

86,079

 

 

$

1,570,375

 

Americas

 

 

59,912

 

 

 

13,631

 

 

 

4,638

 

 

 

110,415

 

 

 

116,799

 

 

 

305,395

 

Europe, Middle East and Africa

 

 

31,661

 

 

 

17,681

 

 

 

—

 

 

 

107,522

 

 

 

34,362

 

 

 

191,226

 

Total

 

$

1,108,247

 

 

$

389,305

 

 

$

65,652

 

 

$

266,552

 

 

$

237,240

 

 

$

2,066,996

 

Contract Balances

During the three and nine months ended September 28, 2025, Teradyne recognized $14.2 million and $64.8 million, respectively, that was included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended September 29, 2024, Teradyne recognized $13.4 million and $60.2 million, respectively, that was 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 September 28, 2025, Teradyne had $1,744.4 million of unsatisfied performance obligations. Teradyne expects to recognize approximately 89% of the remaining performance obligations in the next 12 months and the remainder in 1-3 years.

Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet:

 

 

 

September 28,
2025

 

 

December 31,
2024

 

 

 

(in thousands)

 

Maintenance, service and training

 

$

57,606

 

 

$

58,473

 

Customer advances, undelivered elements and other

 

 

68,316

 

 

 

48,118

 

Extended warranty

 

 

51,015

 

 

 

41,624

 

Total deferred revenue and customer advances

 

$

176,937

 

 

$

148,215

 

Accounts Receivable

During the three and nine months ended September 28, 2025, and September 29, 2024, Teradyne sold certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. During the three months ended September 28, 2025, and September 29, 2024, total trade accounts receivable sold under the factoring agreements were $14.4 million and $36.1 million, respectively. During the nine months ended September 28, 2025, and September 29, 2024, total trade accounts receivable sold under the factoring agreements were $37.5 million and $116.8 million, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Teradyne accounted for these transactions as sales of receivables and presented cash proceeds as cash provided by operating activities in the condensed consolidated statements of cash flows.