Financial Analysis

D. ACQUISITIONS MultiLane Test Products 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 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 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. Teradynes total allocation of the purchase price was goodwill of$ 131.6 million, whichisnot deductible for tax purposes, acquired intangible assets of$ 46.7 millionwith a weighted average estimated useful life of 4.7 years, and$ 15.3 million of net tangible assets. The goodwill is attributable tocost synergies, assembled workforce and anticipated incremental revenue streams. Teradynes 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 obtai …

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R. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of June 28, 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 million, of which $ 1,558.8 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradynes request in such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for …

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I. DEBT Revolving Credit Facility 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 Teradynes 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 . Terad …

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L. STOCK-BASED COMPENSATION Under Teradynes stock compensation plans, Teradyne grants time-based restricted stock units, performance-based restricted stock units and stock options, and employees are eligible to purchase Teradynes common stock through its Employee Stock Purchase Plan (ESPP). Service-based restricted stock unit awards granted to employees vest in equal annual installments over four years . Restricted stock unit awards granted to non-employee directors vest after a one-year period, with 100 % of the award vesting on the earlier of (a) the first anniversary of the grant date or (b) the date of the following years Annual Meeting of Shareholders. Teradyne expenses the cost of the restricted stock unit awards subject to time-based vesting, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. Performance-based restricted stock units (PRSUs) may have a performance metric based on relative total shareholder return (TSR ). For PRSUs granted beginning in 2026, Teradynes 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 % …

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H. FINANCIAL INSTRUMENTS Cash Equivalents Teradyne considers all highly liquid investments with original maturities of three months or less at the date of acquisition to be cash equivalents. Marketable Securities Teradynes equity and debt mutual funds are classified as Level 1 and available-for-sale debt securities are classified as Level 2. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the three and six months ended June 28, 2026, and June 29, 2025, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. For the Three Months Ended For the Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (in millions) (in millions) Realized gains and losses included in Other (income) expense, net in the condensed consolidated statement of operations Realized gains $ 0.2 $ 0.4 $ 0.9 $ 1.2 Realized losses 0.1 0.1 0.2 1.4 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 8.1 4.1 8.1 4.4 Unrealized losses on equity securities 4.0 3.1 Unrealized gains and losses on available-for-sale debt securities are in …

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N. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Goodwill Goodwill is considered impaired when the carrying value of a reporting unit exceeds its estimated fair value. Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, IntangiblesGoodwill and Other on December 31 of each fiscal year unless there are negative qualitative factors relating to macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant events and changes during an interim period. The presence of such factors could, under certain circumstances, be a triggering event that causes us to perform a goodwill impairment test. The changes in the carrying amount of goodwill by reportable segments for the six months ended June 28, 2026, were as follows: Robotics Semiconductor Test Product Test Total (in thousands) Balance at December 31, 2025 Goodwill $ 416,401 $ 263,598 $ 603,586 $ 1,283,585 Accumulated impairment losses ( 260,540 ) ( 502,026 ) ( 762,566 ) Total Goodwill 416,401 3,058 101,560 521,019 Acquisitions (1) 22,305 131,634 153,939 Foreign currency translation adjustment ( 11,104 ) ( 37 ) ( 11,141 ) Balance at June 28, 2026 Goodwill $ 405,297 $ 285,866 $ 735,220 $ 1,426,383 Accumulated impairment losses ( 260,540 ) ( 502,026 ) ( 762,566 ) Total Goodwill $ 405,297 $ 25,326 $ 233,194 $ 663,817 (1) Goodwill increased due to acquisitions made in the six months ended June 28, 2026, including the acquisition of …

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S. INCOME TAXES The effective tax rate for the three months ended June 28, 2026, and June 29, 2025, was 15.1 % and 12.7 % , respectively. The increase in the effective tax rate from the three months ended June 29, 2025, to the three months ended June 28, 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. The effective tax rate for the six months ended June 28, 2026, and June 29, 2025, was 14.2 % and 12.4 % , respectively. The increase in the effective tax rate from the six months ended June 29, 2025, to the six months ended June 28, 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. 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, 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, …

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Q. RETIREMENT PLANS ASC 715, CompensationRetirement Benefits, requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plans assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all its plans. Defined Benefit Pension Plans 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. Teradynes 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 Retirement Income Security Act (ERISA) and the Internal Revenue Code (the IRC), as well as unfunded qualified foreign plans. In the six months ended June 28, 2026, and June 29, 2025, Teradyne contributed $ 1.8 million and $ 1.6 million, respectively, to the U.S. supplemental executive defined benefit pensi …

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P. RESTRUCTURING AND OTHER During the three months ended June 28, 2026, Teradyne recorded $ 3.0 million of restructuring and other charges, of which $ 1.5 million were related to acquisition and divestiture related expenses and $ 1.4 million were severance charges. 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 six months ended June 28, 2026, Teradyne recorded $ 6.5 million of restructuring and other charges, of which $ 3.2 million were related to acquisition and divestiture related expenses and $ 2.3 million were severance charges . During the six months ended June 29, 2025 , Teradyne recorded $ 13.7 million of severance charges, $ 10.0 million of which is related to the Robotics restructuring which impacted approximately 150 employees, and $ 2.1 million of which 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 to be made prior to the end of our third quarter. Additionally, Teradyne recorded $ 1.6 million of acquisition and divestiture expenses related primarily to the Quantifi acquisition, and $ 1.2 million of cha …

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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 June 28, 2026 Timing of Revenue Recognition Point in Time $ 771,416 $ 199,765 $ 60,562 $ 97,169 $ 90,538 $ 1,219,450 Over Time 71,555 12,568 5,959 2,748 16,710 109,540 Total $ 842,971 $ 212,333 $ 66,521 $ 99,917 $ 107,248 $ 1,328,990 Geographical Market Asia Pacific $ 814,023 $ 210,830 $ 65,578 $ 21,576 $ 46,859 $ 1,158,866 Americas 14,908 941 943 41,751 51,036 109,579 Europe, Middle East and Africa 14,040 562 36,590 9,353 60,545 Total $ 842,971 $ 212,333 $ 66,521 $ 99,917 $ 107,248 $ 1,328,990 For the Three Months Ended June 29, 2025 Timing of Revenue Recognition Point in Time $ 325,588 $ 51,993 $ 28,827 $ 72,724 $ 66,159 $ 545,291 Over Time 71,000 8,950 5,520 2,142 18,894 106,506 Total $ 396,588 $ 60,943 $ 34,347 $ 74,866 $ 85,053 $ 651,797 Geographical Market Asia Pacific $ 364,883 $ 58,467 $ 32,468 $ 15,939 $ 34,901 $ 506,658 Americas 15,920 2,077 1,879 27,160 42,229 89,265 Europe, Middle East and Africa 15,785 399 31,767 7,923 55,874 Total $ 396,588 $ 60,943 $ 34,347 $ 74,866 $ 85,053 $ 651,797 For the Six Months Ended June 28, 2026 Timing of Revenue Recognition Point in Time $ 1,579,520 $ 393,487 $ 79,328 $ 185,929 $ 152,453 $ 2,390,717 Over Time 145,260 21,294 13, …

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T. SEGMENT INFORMATION Teradyne has three reportable segments (Semiconductor Test, Robotics, and Product Test). As of June 28, 2026 , each of Teradynes reportable segments represents an individ ual operating segment. Teradyne s Chief Executive Officer serves as the Chief Operating Decision Maker (CODM) for Teradyne. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services inclusive of storage and system level test products. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms and autonomous mobile robots. The Product Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace test, circuit-board test, wireless test systems, high-speed test and measurement and silicon photonics testing. Each reportable segment has a segment manager who is accountable to and maintains regular contact with Teradynes CODM to discuss operating activities, financial results, forecasts, and plans for the segment. The CODM uses business segment income (loss) before income taxes predominantly in the annual budgeting and forecasting process. The CODM also uses this measure when making decisions about the allocation of operating and capital resources to each segment. The accounting policies of the business segments are the same as those described in Teradynes Annual Report on Fo …

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B. ACCOUNTING POLICIES Basis of Presentation The condensed consolidated interim financial statements include the accounts of Teradyne, its wholly owned subsidiaries, and all other entities in which it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated. These condensed consolidated interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such condensed consolidated interim financial statements. The December 31, 2025, condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by United States of America generally accepted accounting principles (U.S. GAAP) for complete financial statements. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradynes Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 19, 2026, for the year ended December 31, 2025 . Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, includi …

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U. EQUITY Stock Repurchase Program In January 2023, Teradynes Board of Directors cancelled 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 months ended June 28, 2026, Teradyne repurchased 0.2 million shares of common stock for a total cost of $ 74.2 million at an average price of $ 341.89 per share. The cumulative repurchases under the January 2023 repurchase program as of June 28, 2026, were 12.2 million shares of common stock for $ 1,382.9 million at an average price per share of $ 113.52 . During the six months ended June 29, 2025, Teradyne repurchased 3.0 million shares of common stock for a total cost of $ 277.3 million at an average price of $ 93.67 per share. The total cost of shares acquired includes commissions and related excise tax and is recorded as a reduction to retained earnings. Dividend Holders of Teradynes common stock are entitled to receive dividends when they are declared by Teradynes Board of Directors. In January 2026 and May 2026 , Teradynes Board of Directors declared a quarterly cash dividend of $ 0.13 per share. Dividend payments for the three and six months ended June 28, 2026, were $ 20.3 million and $ 40.7 million , respectively. In January 2025 and May 2025 , Teradynes Board of Directors declared a quar …

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