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Teradata Corp. (TDC)
NYSE:TDC
Earnings Data
Report Date
Apr 30, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.76Last Year’s EPS
0.66Same Quarter Last Year
Moderate Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized stabilization and clear operational progress: ARR returned to growth, cloud ARR accelerated, margins and free cash flow materially improved, and management announced multiple AI product launches and partnerships that create a credible growth opportunity. However, significant full-year top-line declines, consulting revenue softness, cloud mix pressure on recurring revenue margins, typical Q1 seasonality, and lumpy migration timing introduce near-term variability. Overall, the positive operational momentum, strong free cash flow, margin expansion, and product/AI momentum outweigh the near-term headwinds, positioning the company for measured growth in 2026.Company Guidance
Returned ARR to Growth and Strong Cloud Momentum
Total ARR returned to positive growth: +3% reported ( +1% constant currency) for FY2025. Cloud ARR grew +15% reported ( +13% constant currency) and now represents 46% of total ARR; trailing twelve-month cloud net expansion rate was 100%.
Quarterly Revenue and Recurring Revenue Outperformance
Q4 total revenue was $421 million, up +3% year-over-year ( +1% CC). Q4 recurring revenue was $367 million, up +5% year-over-year ( +3% CC), both above the high end of guidance primarily due to higher upfront term license/subscription recognition.
Strong Free Cash Flow and Balance Sheet Improvement
Generated $151 million of free cash flow in Q4 and $285 million for FY2025, exceeding the high end of outlook; cash and equivalents rose to $493 million from $420 million at year-end 2024.
Operating Leverage and Margin Expansion
Non-GAAP operating margin improved to ~21% for the full year; Q4 operating margin was 22.8% versus 17.6% year-ago. Total gross margin rose to 62% in Q4 (from 60.9% prior year).
Services Margin Recovery
Consulting services gross margin materially improved to 18.9% in Q4 (from 8.5% in Q3 and 9.1% in Q4 2024) following cost actions and operational improvements.
Product and AI Momentum — New Offerings and Customer Engagements
Launched multiple AI-focused innovations (enterprise Vector Store, MCP server, Teradata Agent Builder, Teradata AI Factory, enterprise agent stack) and announced partnerships (e.g., unstructured.io) and a Google Cloud Marketplace agent. Forward-deployed engineers and AI services executed >150 customer engagements and POC activity doubled in 2025.
Shareholder Returns and Capital Allocation
Repurchased ~$38 million in Q4 and ~$140 million for FY2025 (~5.8 million shares). Board authorized a new $500 million buyback starting in 2026 and management plans to target 50% of free cash flow for repurchases.
FY2026 Guidance Indicates Improvement in Growth and Cash Generation
FY2026 outlook: total ARR growth 2%–4% (reported), targeted low-double-digit cloud ARR growth, free cash flow guide $310–330 million, and expected ~100 basis points of operating margin expansion.
TDC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TDC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 10, 2026 | $29.23 | $37.88 | +29.59% |
Nov 04, 2025 | $20.71 | $27.46 | +32.59% |
Aug 05, 2025 | $20.23 | $21.84 | +7.96% |
May 06, 2025 | $21.95 | $22.34 | +1.78% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Teradata Corp. (TDC) report earnings?
Teradata Corp. (TDC) is schdueled to report earning on Apr 30, 2026, After Close (Confirmed).
What is Teradata Corp. (TDC) earnings time?
Teradata Corp. (TDC) earnings time is at Apr 30, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TDC EPS forecast?
TDC EPS forecast for the fiscal quarter 2026 (Q1) is 0.76.
