Teradata (NYSE:TDC) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Teradata (NYSE:TDC) announced its quarterly earnings data on Tuesday. The technology company reported $0.74 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.19, Briefing.com reports. The firm had revenue of $421.00 million for the quarter, compared to the consensus estimate of $399.49 million. Teradata had a return on equity of 86.86% and a net margin of 7.82%.The firm’s revenue was up 2.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.53 earnings per share. 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 Trading Down 9.2%

Shares of NYSE:TDC traded down $3.50 during mid-day trading on Thursday, reaching $34.38. 1,681,736 shares of the company were exchanged, compared to its average volume of 1,722,280. Teradata has a 1 year low of $18.43 and a 1 year high of $41.78. The company has a debt-to-equity ratio of 2.21, a current ratio of 0.90 and a quick ratio of 0.89. The firm’s 50-day simple moving average is $30.15 and its 200 day simple moving average is $25.37. The firm has a market cap of $3.20 billion, a price-to-earnings ratio of 25.71, a P/E/G ratio of 3.69 and a beta of 0.61.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada raised its position in Teradata by 76.0% in the 1st quarter. Royal Bank of Canada now owns 330,801 shares of the technology company’s stock valued at $7,436,000 after purchasing an additional 142,813 shares in the last quarter. Millennium Management LLC raised its holdings in Teradata by 89.4% in the first quarter. Millennium Management LLC now owns 202,864 shares of the technology company’s stock valued at $4,560,000 after acquiring an additional 95,777 shares in the last quarter. NewEdge Advisors LLC lifted its stake in Teradata by 22.6% in the first quarter. NewEdge Advisors LLC now owns 11,090 shares of the technology company’s stock worth $249,000 after acquiring an additional 2,048 shares during the last quarter. Creative Planning grew its holdings in Teradata by 52.8% during the 2nd quarter. Creative Planning now owns 18,274 shares of the technology company’s stock worth $408,000 after acquiring an additional 6,314 shares in the last quarter. 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 purchasing an additional 736 shares in the last quarter. 90.31% of the stock is currently owned by hedge funds and other institutional investors.

Teradata News Roundup

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Q4 beat and raised guidance — Teradata reported Q4 non‑GAAP EPS $0.74 vs $0.55 est and revenue $421M vs $399M est; management raised FY‑2026 EPS guidance to $2.55–2.65 and Q1 guidance to $0.75–0.79, signaling stronger-than-expected growth and margin outlook. Teradata Reports Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Shares surged to a 52‑week high after the results and guidance; unusually large call buying (3,759 calls) suggests short‑term bullish positioning. Momentum and options flow amplified the rally. Teradata (TDC) soars to 52-week high as 2 analysts hike PT
• Positive Sentiment: Analyst upgrades/price‑target lifts — Multiple firms raised targets (e.g., Citizens JMP to $49, RBC to $35), reflecting the stronger beat and improved outlook; these upgrades support further upside sentiment. Teradata price target raises and analyst notes
• Neutral Sentiment: Board refresh/cooperation agreement — Teradata entered a cooperation agreement with investor Lynrock Lake and expects to add Melissa Fisher to the board, a governance update that could change strategy execution but is not an immediate revenue driver. Teradata Advances Board Refreshment Program
• Neutral Sentiment: Earnings‑call tone — Management emphasized an AI‑led turnaround and cloud ARR growth, but commentary included cautious notes on some cloud trends; this frames a multi‑quarter recovery rather than a one‑off beat. Teradata Earnings Call Highlights AI-Led Turnaround
• Negative Sentiment: Mixed analyst views and valuation concerns — Some analysts (e.g., Barclays) keep defensive ratings or note the stock is fully valued; TD Cowen maintained a Hold citing soft cloud trends and stretched valuation, which could cap upside if execution slips. Teradata: Hybrid Strength and AI Upside Offset by Soft Cloud Trends and Full Valuation
• Negative Sentiment: Valuation check — Commentaries questioning DCF/valuation after the rebound suggest the stock may need sustained execution (cloud ARR acceleration, margin expansion) to justify higher levels. Is Teradata (TDC) Pricing Reflect Its DCF Estimate After Recent Share Price Rebound

Wall Street Analysts Forecast Growth

Several research firms have recently commented on TDC. Citizens Jmp lifted their price target on Teradata from $42.00 to $49.00 and gave the stock a “market outperform” rating in a report on Wednesday. Morgan Stanley raised their price objective on shares of Teradata from $30.00 to $35.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 17th. Zacks Research upgraded shares of Teradata from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 20th. Royal Bank Of Canada increased their price target on shares of Teradata from $32.00 to $35.00 and gave the company a “sector perform” rating in a research note on Wednesday. Finally, UBS Group restated a “neutral” rating and set a $36.00 price target on shares of Teradata in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $35.09.

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.