Teradata (NYSE:TDC) Releases Earnings Results

Teradata (NYSE:TDC) posted its quarterly earnings results on Tuesday. The technology company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.55 by $0.19, Briefing.com reports. Teradata had a net margin of 7.15% and a return on equity of 83.22%. The business had revenue of $421.00 million for the quarter, compared to analysts’ expectations of $399.49 million. During the same period in the previous year, the company posted $0.53 EPS. Teradata’s revenue was up 2.9% on a year-over-year basis. Teradata updated its Q1 2026 guidance to 0.750-0.790 EPS and its FY 2026 guidance to 2.550-2.650 EPS.

Here are the key takeaways from Teradata’s conference call:

• Teradata closed FY2025 with stronger-than-expected results — Q4 revenue $421M (+3% YoY), recurring revenue $367M (+5%), total ARR +3% reported, non-GAAP EPS $0.74, and free cash flow of $285M that exceeded guidance.
• Aggressive AI product push: multiple launches (Enterprise Vector Store, MCP Server, Agent Builder, AI Factory, Enterprise AgentStack) plus partnerships (Unstructured.io, Google Cloud Marketplace) position Teradata to enable Agentic AI across cloud and on‑prem environments.
• Services and go-to-market execution improved materially — consulting gross margin recovered to ~18.9% in Q4, forward‑deployed engineers ran 150+ AI engagements, and AI services are being ramped to offset prior migration-driven services declines.
• 2026 guidance is modestly constructive but mixed: total ARR growth guidance of 2–4% and free cash flow $310–330M with ~100 bps margin expansion, while total revenue is guided to -2% to 0%, and the company expects most growth in H2.
• Near-term variability and seasonality remain risks — Q1 is expected to see ARR erosion and the timing/recognition of on‑prem upfront revenue can create quarter-to-quarter swings, and management did not bake significant ARR from late‑year AI launches into 2026 guidance.

Teradata Price Performance

Shares of NYSE:TDC opened at $29.26 on Wednesday. Teradata has a 52 week low of $18.43 and a 52 week high of $32.03. The firm has a market cap of $2.73 billion, a PE ratio of 23.98, a price-to-earnings-growth ratio of 3.57 and a beta of 0.61. The company has a debt-to-equity ratio of 2.21, a quick ratio of 0.89 and a current ratio of 0.90. The firm’s fifty day moving average is $30.00 and its 200-day moving average is $25.28.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on TDC shares. Morgan Stanley upped their price objective on shares of Teradata from $30.00 to $35.00 and gave the company an “overweight” rating in a research report on Wednesday, December 17th. Royal Bank Of Canada upped their price target on Teradata from $23.00 to $32.00 and gave the company a “sector perform” rating in a report on Monday, January 5th. Citigroup raised their price objective on Teradata from $33.00 to $35.00 and gave the stock a “buy” rating in a research report on Wednesday, February 4th. Weiss Ratings restated a “hold (c)” rating on shares of Teradata in a research report on Monday, December 29th. Finally, Zacks Research raised Teradata from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 20th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $30.30.

Key Headlines Impacting Teradata

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Company raised FY‑2026 and Q1 guidance well above Street expectations (FY EPS guidance 2.55–2.65 vs. consensus ~2.19; Q1 EPS 0.75–0.79 vs. ~0.60; FY and Q1 revenue ranges also above estimates) — a clear forward-looking catalyst for the rally. Teradata soars 16% as guidance impresses following Q4 earnings, revenue beat
• Positive Sentiment: Q4 results showed recurring revenue and ARR growth, a non‑GAAP EPS beat ($0.74) and strong cash generation (FY free cash flow $285M) — supports the upgraded outlook and valuation re‑rating. Teradata Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Board refreshment announced and a cooperation agreement with activist Lynrock Lake — appointment of Melissa Fisher to the board may reassure investors that governance changes and execution focus are underway. Teradata Advances Board Refreshment Program
• Neutral Sentiment: Full earnings call and transcripts provide management detail on demand trends, margin drivers and capital allocation — useful for assessing sustainability of guidance but not an immediate price mover on its own. Teradata Corporation (TDC) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Press and market coverage amplified the move (multiple outlets highlighting the jump), which can extend momentum but also set up short‑term volatility. Teradata (NYSE:TDC) Reports Upbeat Q4 CY2025, Stock Jumps 14.2%
• Negative Sentiment: Some outlets flagged a GAAP/metric divergence (different EPS figures reported across sources and at least one outlet noting an EPS miss on a specific measure), which can create confusion and short‑term selling pressure among investors focusing on GAAP results. Teradata Trading/Earnings Snapshot

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC grew its position in Teradata by 223.7% in the third quarter. CIBC Private Wealth Group LLC now owns 3,593 shares of the technology company’s stock worth $77,000 after acquiring an additional 2,483 shares in the last quarter. New Vernon Capital Holdings II LLC purchased a new position in Teradata during the third quarter valued at $87,000. EverSource Wealth Advisors LLC raised its holdings in shares of Teradata by 8,665.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,295 shares of the technology company’s stock worth $96,000 after acquiring an additional 4,246 shares during the period. Corient Private Wealth LLC purchased a new position in shares of Teradata during the second quarter worth $223,000. Finally, Cetera Investment Advisers raised its holdings in shares of Teradata by 7.2% in the 2nd quarter. Cetera Investment Advisers now owns 10,991 shares of the technology company’s stock valued at $245,000 after buying an additional 736 shares during the period. 90.31% of the stock is currently owned by hedge funds and other institutional investors.

Teradata Company Profile

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata’s product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.