Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Teradyne, Inc. (TER) Halal?

PASS

Teradyne, Inc. · NASDAQ: TER · Technology

The short answer

Teradyne passes all three Shariah gates: it operates a permissible industrial business (automated semiconductor test equipment and robotics), carries $0 of interest-bearing debt against its ~$65.35 billion market cap, and interest income of about 0.49% of revenue is far under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Teradyne, Inc., founded in 1960 and headquartered in North Reading, Massachusetts, is a leading global provider of automated test equipment and robotics solutions (FY2025 Form 10-K, Item 1: Business). Its automated test systems test semiconductors, wireless products, data storage, silicon photonics, and complex electronics for customers in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense. Robotics offerings consist primarily of collaborative robotic arms and autonomous mobile robots used by manufacturing, logistics, and industrial customers. Effective March 2025 the company reports three segments — Semiconductor Test ($2,523.7 million of FY2025 revenue, 79%), Product Test ($358.0 million, 11%), and Robotics ($308.3 million, 10%).

The company is not an interest-based lender and is not involved in tobacco, alcohol, gambling, or pork. The Product Test segment includes defense and aerospace test instrumentation and systems (higher sales of defense and aerospace testing systems drove the segment's 8.1% growth in 2025). This is measurement and test equipment sold into defense and aerospace applications, not weapons manufacturing. It is disclosed here for transparency; the business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (0.00%, ceiling 33%). Per Teradyne's Q2 2026 condensed consolidated balance sheet (June 28, 2026, published with its July 29, 2026 earnings release), short-term debt was $0. The company borrowed a combined $250 million under its $750 million senior secured revolving credit facility during 2025 to fund its capital allocation strategy, with $200 million outstanding at December 31, 2025 — but the entire draw was repaid, and both the Q1 2026 (March 29, 2026) and Q2 2026 10-Qs report zero short-term borrowings. No long-term debt is reported in any recent filing. Operating lease liabilities are excluded — they are not interest-bearing debt.

$0 of interest-bearing debt against a market capitalization of about $65.35 billion (stockanalysis.com, October 1, 2026; Finnhub ~$62.65 billion) is 0.00%, well under the 33% ceiling. Cash and cash equivalents were $349.5 million at June 28, 2026, plus about $100.7 million of marketable securities — roughly $450 million of liquid assets, or about 0.7% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.49%, ceiling 5%). Teradyne's FY2025 Form 10-K separately discloses interest income as its own line item on the consolidated statements of operations: $15,696 thousand in FY2025 ($24,772 thousand in FY2024, $27,348 thousand in FY2023). FY2025 interest income of $15,696 thousand against FY2025 total revenues of $3,190,024 thousand is about 0.49%, far under the 5% ceiling.

The latest 10-Q confirms the same picture: interest income of $5,604 thousand against $2,611,484 thousand of total revenue for the six months ended June 28, 2026 is about 0.21%. No separately-disclosed non-compliant income beyond this interest income appears in the filings.

Key figures used

Frequently asked questions

What does Teradyne do?

Teradyne, Inc. (NASDAQ: TER) was founded in 1960 and is headquartered in North Reading, Massachusetts. Per its FY2025 Form 10-K, it is a leading global provider of automated test equipment and robotics solutions. Its automated test systems test semiconductors, wireless products, data storage, silicon photonics, and complex electronics used in consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Its robotics offerings are primarily collaborative robotic arms and autonomous mobile robots for manufacturing, logistics, and industrial customers. In March 2025 it created a third segment, Product Test, combining its production board test, defense and aerospace, and wireless test businesses.

Is Teradyne's business Shariah compliant?

Teradyne runs an industrial business-to-business operation - it designs, manufactures, and sells test equipment and robotics - and it is not an interest-based lender. It is not involved in tobacco, alcohol, gambling, or pork. Its Product Test segment includes defense and aerospace test instrumentation and systems, which drove the segment's 2025 growth; this is measurement and test equipment sold into defense applications, not weapons manufacturing, and is disclosed here for transparency. Assessed against this screener's gates, the business passes gate 1.

How much interest-bearing debt does Teradyne have?

Teradyne carries essentially no interest-bearing debt. Per its Q2 2026 condensed consolidated balance sheet (June 28, 2026, published with its July 29, 2026 earnings release), short-term debt was zero: the $200 million draw on its $750 million senior secured revolving credit facility outstanding at December 31, 2025 was fully repaid by the end of Q1 2026 (both the Q1 and Q2 2026 10-Qs report zero short-term borrowings). The company reports no long-term debt in any recent filing. $0 of interest-bearing debt against a market capitalization of about $65.35 billion is 0.00%, well under the 33% ceiling. Cash and cash equivalents were $349.5 million at June 28, 2026, plus about $100.7 million of marketable securities.

How much interest income does Teradyne earn?

Teradyne's FY2025 Form 10-K separately discloses interest income as its own line on the consolidated statements of operations: $15,696 thousand in FY2025 (versus $24,772 thousand in FY2024 and $27,348 thousand in FY2023). FY2025 interest income of $15,696 thousand against FY2025 total revenues of $3,190,024 thousand is about 0.49% - far under the 5% non-compliant income ceiling. The latest quarter confirms the same picture: interest income of $5,604 thousand against $2,611,484 thousand of revenue in the first half of 2026 is about 0.21%.

What do third-party Shariah screeners say about Teradyne?

Musaffa publishes a Teradyne (TER) page and currently classifies the stock as halal under its AAOIFI methodology (checked October 2026). Zoya also publishes a TER page; its auto-generated FAQ text is internally contradictory - the page template leaves the assessment dates blank and shows both a compliant and a non-compliant reading side by side, and its interest-income FAQ gives both $15,696,000 (0.49% of revenue, matching the 10-K) and no separate disclosure - so no clean assessment could be read from Zoya's public page text. I could not verify a ShariaPortfolio rating page for TER from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).