Teradata (NYSE:TDC) Issues Earnings Results

Teradata (NYSE:TDC) announced its quarterly earnings data on Tuesday. The technology company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.13, FiscalAI reports. Teradata had a return on equity of 57.44% and a net margin of 24.93%.The company had revenue of $410.00 million for the quarter, compared to analyst estimates of $396.13 million. Teradata updated its Q3 2026 guidance to 0.550-0.590 EPS and its FY 2026 guidance to 2.650-2.730 EPS.

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

• Teradata raised its full-year outlook for non-GAAP EPS to $2.65–$2.73 and adjusted free cash flow to $330–$350 million, while reaffirming total ARR, revenue, and recurring-revenue guidance.
• Q2 recurring revenue grew 3% year over year, total ARR increased 1% as reported, and cloud ARR rose 8%; operating margin expanded to 21.5% from 16.4% a year earlier, supported by higher recurring revenue and cost discipline.
• The company launched its Autonomous Knowledge Platform and AI Studio, with early wins for its hybrid cloud and on-premise AI offerings. Teradata says demand is particularly strong among regulated and international customers seeking data sovereignty and production-ready agentic AI.
• Strong cash generation increased net cash to $323 million, enabled repayment of the remaining $450 million term loan, and leaves capital available for R&D, share repurchases, and strategic M&A.
• The company expects recurring revenue to decline 2%–4% year over year and total revenue to decline 4%–6% in Q3, largely because more on-premise revenue was recognized upfront in the first half. Consulting-services revenue also fell 24% in Q2, while new AI products have yet to make a material contribution to ARR.

Teradata Trading Up 7.5%

Shares of NYSE TDC traded up $2.39 during trading on Tuesday, hitting $34.48. 5,193,896 shares of the company were exchanged, compared to its average volume of 2,390,667. The company has a fifty day moving average price of $32.51 and a 200-day moving average price of $30.13. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.29 and a current ratio of 1.30. The firm has a market capitalization of $3.24 billion, a PE ratio of 7.91, a P/E/G ratio of 2.28 and a beta of 0.60. Teradata has a 12-month low of $19.96 and a 12-month high of $41.78.

Teradata News Roundup

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Teradata reported adjusted EPS of $0.69, above the $0.56 analyst consensus, while revenue reached $410 million versus expectations of $396.1 million. Teradata Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash generation improved sharply. Recurring revenue rose 3% to $363 million, GAAP operating margin expanded to 11.7%, and non-GAAP operating margin increased to 21.5%. Operating cash flow surged 147% to $106 million, while adjusted free cash flow jumped 226% to $127 million. Quarterly Financial Results
• Positive Sentiment: Full-year EPS guidance was raised relative to expectations. Teradata forecast fiscal 2026 EPS of $2.65–$2.73, above the $2.47 consensus, supporting the view that cost controls and operating improvements may continue to benefit earnings.
• Positive Sentiment: Teradata expanded its AI and cloud distribution strategy. Its Data Analyst Agent became available through AWS Marketplace, allowing customers to deploy conversational analytics within existing AWS environments without moving data. Teradata Brings Enterprise-Grade Data Analyst Agent to AWS Marketplace
• Neutral Sentiment: Teradata appointed veteran technology executive Bernd Leukert to its board, adding industry experience but creating no immediate change to financial forecasts. Teradata Appoints Bernd Leukert to Board of Directors
• Negative Sentiment: Near-term revenue guidance was below consensus. Third-quarter revenue guidance of $391.0–$399.4 million trails the $403 million consensus, and projected EPS of $0.55–$0.59 is centered slightly below the $0.58 estimate. Full-year revenue guidance of $1.6–$1.7 billion also falls short of the $1.7 billion consensus at the midpoint.

Insider Activity at Teradata

In other Teradata news, Director Timothy C. K. Chou sold 5,657 shares of Teradata stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $33.72, for a total transaction of $190,754.04. Following the transaction, the director directly owned 39,210 shares of the company’s stock, valued at $1,322,161.20. The trade was a 12.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Richard J. Petley sold 17,227 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $35.00, for a total transaction of $602,945.00. Following the completion of the transaction, the executive owned 188,571 shares in the company, valued at $6,599,985. The trade was a 8.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 77,201 shares of company stock valued at $2,486,235. 0.96% of the stock is owned by company insiders.

Institutional Trading of Teradata

Several institutional investors have recently made changes to their positions in the company. Panagora Asset Management Inc. purchased a new stake in Teradata in the 4th quarter valued at about $240,000. Kestra Advisory Services LLC purchased a new position in Teradata during the fourth quarter worth about $221,000. Commonwealth Equity Services LLC purchased a new position in Teradata during the fourth quarter worth about $240,000. Tocqueville Asset Management L.P. acquired a new stake in shares of Teradata during the fourth quarter valued at about $226,000. Finally, Corient Private Wealth LLC purchased a new stake in shares of Teradata in the 2nd quarter valued at approximately $223,000. Hedge funds and other institutional investors own 90.31% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Zacks Research downgraded shares of Teradata from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 20th. Citigroup reaffirmed a “buy” rating on shares of Teradata in a research note on Wednesday, July 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Teradata in a report on Wednesday, June 24th. UBS Group decreased their target price on shares of Teradata from $36.00 to $34.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. Finally, Wall Street Zen upgraded Teradata from a “buy” rating to a “strong-buy” rating in a report on Sunday, July 26th. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $35.56.

About Teradata

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.