<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PICTURETEL'S
BALANCE SHEET AND INCOME STATEMENT FOR THE QUARTER ENDED SEPTEMBER 30, 1995 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH SEPTEMBER 30, 1995 10-Q
FILING.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
<S>                             <C>                     <C>
<PERIOD-TYPE>                   9-MOS                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1995             DEC-31-1994
<PERIOD-START>                             JAN-01-1995             JAN-01-1994
<PERIOD-END>                               SEP-30-1995             OCT-01-1994
<EXCHANGE-RATE>                                      1                       1
<CASH>                                          41,667                  15,050
<SECURITIES>                                    44,764                  51,985
<RECEIVABLES>                                   95,642                  65,522
<ALLOWANCES>                                   (1,804)                   (973)
<INVENTORY>                                     42,627                  29,355
<CURRENT-ASSETS>                                14,303                   7,586
<PP&E>                                          63,960                  49,054
<DEPRECIATION>                                (42,272)                (28,986)
<TOTAL-ASSETS>                                 272,529                 204,319
<CURRENT-LIABILITIES>                           87,234                  50,796
<BONDS>                                              0                       0
<COMMON>                                           323                     153
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<OTHER-SE>                                     183,893                 149,525
<TOTAL-LIABILITY-AND-EQUITY>                   272,529                 204,319
<SALES>                                        244,743                 181,073
<TOTAL-REVENUES>                               244,743                 181,073
<CGS>                                          121,571                  91,480
<TOTAL-COSTS>                                  121,571                  91,480
<OTHER-EXPENSES>                               107,933                  87,815
<LOSS-PROVISION>                                     0                       0
<INTEREST-EXPENSE>                                   0                       0
<INCOME-PRETAX>                                 17,456                   3,303
<INCOME-TAX>                                     4,990                   1,156
<INCOME-CONTINUING>                             12,466                   2,147
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                    12,466                   2,147
<EPS-PRIMARY>                                     0.36                    0.14
<EPS-DILUTED>                                     0.36                    0.14
        

</TABLE>