Teradata Corp. (TDC)
NYSE:TDC
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Teradata
(NYSE:TDC)
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Rating:63Neutral
Price Target:
$28.00
▲(8.86% Upside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by solid cash flow generation and improving margins, partially offset by leverage risk and uneven/declining revenue trends. Technicals support an uptrend, while guidance suggests measured improvement but with near-term variability. Valuation is mid-range, and corporate events add a positive balance-sheet catalyst via the SAP settlement.
Positive Factors
Recurring revenue & cloud ARR growth
A rising share of cloud ARR (46% of ARR) and cloud ARR growth of +15% indicate a durable shift toward subscription and consumption models. This improves revenue stickiness, expands upsell potential via net expansion, and positions sales to monetize AI/analytics over multi-year deployments.
Negative Factors
Uneven/declining revenue trend
Top-line weakness has been persistent across recent years with FY2025 down -5% and recurring revenue modestly negative. Structural revenue weakness reduces visibility into sustainable ARR momentum and constrains organic growth prospects despite product and cloud progress.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & cloud ARR growth
A rising share of cloud ARR (46% of ARR) and cloud ARR growth of +15% indicate a durable shift toward subscription and consumption models. This improves revenue stickiness, expands upsell potential via net expansion, and positions sales to monetize AI/analytics over multi-year deployments.
Read all positive factors
Teradata (TDC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.40B
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)22.1
Beta (1Y)0.75
Revenue Growth-8.18%
EPS Growth46.26%
CountryUS
Employees5,700
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.74
Shares Outstanding92,200,000
10 Day Avg. Volume1,578,703
30 Day Avg. Volume1,859,390
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)12.49
Price to Sales (P/S)1.73
P/FCF Ratio10.05
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda8.47
Forecast
1Y Price Target
$36.50Price Target Upside41.91% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.62
Revenue Forecast (FY)$1.65B
Teradata Business Overview & Revenue Model
Company Description
Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, a data platform that allows companies to leverage their data across an enterprise, ...
How the Company Makes Money
Teradata primarily makes money by selling subscriptions and related support for its analytics/data platform and by providing associated services. The company’s core revenue stream is recurring subscription revenue for access to its software capabi...
Teradata Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Teradata is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Teradata is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyTeradata Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
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.Positive Updates
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%.
Negative Updates
Full-Year Top-Line Contraction
FY2025 total revenue declined -5% (reported and constant currency) to $1.663 billion. Full-year recurring revenue declined -2% reported ( -3% CC) to $1.445 billion, indicating ongoing top-line pressure despite Q4 improvement.
Read all updates
Q4-2025 Updates
Positive
Negative
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%.
Read all positive updates
Company Guidance
Teradata's FY2026 guidance calls for total ARR growth of 2–4% (reported) with cloud ARR targeted to grow in the low double‑digits; recurring revenue is guided to 0–2% and total revenue to be roughly flat to down (‑2% to 0%). Management expects non‑GAAP diluted EPS of $2.55–$2.65, about +100 basis points of operating‑margin expansion, and free cash flow of $310–$330 million (Q1 FCF expected slightly negative; majority of ARR expansion back‑loaded, with stronger performance later in the year). Modeling assumptions include Q1 non‑GAAP tax ~25% and FY tax ~24%, weighted average shares of ~96.1M in Q1 and ~97M for FY, an anticipated >2‑point boost to Q1 recurring growth from upfront revenue (but ~1 point headwind to FY recurring), a modest currency tailwind, and approximately $38M of other expenses; the company also reauthorized a $500M buyback and expects to deploy ~50% of FCF to repurchases.Teradata Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
44
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.66B | 1.75B | 1.83B | 1.79B | 1.92B |
| Gross Profit | 993.00M | 1.06B | 1.11B | 1.08B | 1.19B |
| EBITDA | 268.00M | 293.00M | 263.00M | 225.00M | 367.00M |
| Net Income | 130.00M | 114.00M | 62.00M | 33.00M | 147.00M |
Balance Sheet | |||||
| Total Assets | 1.78B | 1.70B | 1.87B | 2.02B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 493.00M | 420.00M | 486.00M | 569.00M | 592.00M |
| Total Debt | 561.00M | 576.00M | 640.00M | 637.00M | 572.00M |
| Total Liabilities | 1.55B | 1.57B | 1.74B | 1.76B | 1.71B |
| Stockholders Equity | 230.00M | 133.00M | 135.00M | 258.00M | 460.00M |
Cash Flow | |||||
| Free Cash Flow | 286.00M | 277.00M | 355.00M | 403.00M | 432.00M |
| Operating Cash Flow | 305.00M | 303.00M | 375.00M | 419.00M | 463.00M |
| Investing Cash Flow | -21.00M | -32.00M | -49.00M | -18.00M | -31.00M |
| Financing Cash Flow | -233.00M | -306.00M | -383.00M | -381.00M | -356.00M |
Teradata Technical Analysis
Neutral
25.72
Price Trends
28.12
Negative
29.03
Negative
25.53
Positive
Market Momentum
-0.75
Negative
44.84
Neutral
46.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDC, the sentiment is Neutral. The current price of 25.72 is below the 20-day moving average (MA) of 25.92, below the 50-day MA of 28.12, and above the 200-day MA of 25.53, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 46.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TDC.
Teradata Risk Analysis
Teradata disclosed 26 risk factors in its most recent earnings report. Teradata reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Teradata Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $15.99B | 60.43 | 17.93% | ― | 25.76% | ― | |
63 Neutral | $2.40B | 22.10 | 66.41% | ― | -8.18% | 46.26% | |
62 Neutral | $13.77B | 28.07 | 9.64% | ― | 4.21% | -0.63% | |
62 Neutral | $4.65B | 42.45 | 7.54% | ― | 23.16% | 27.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $5.42B | 14.67 | -35.62% | ― | -0.44% | 2.47% |
* Technology Sector Average
TDC
Teradata
25.72
5.19
25.28%
AKAM
Akamai
88.84
14.33
19.23%
DBX
Dropbox
22.70
-4.23
-15.71%
FOUR
Shift4 Payments
46.78
-31.29
-40.08%
TOST
Toast Inc
27.10
-7.75
-22.24%
Teradata Corporate Events
Business Operations and StrategyExecutive/Board Changes
Teradata Expands Board and Appoints New Independent Director
Positive
Mar 2, 2026
On February 27, 2026, Teradata’s board approved the expansion of its board from nine to ten directors, effective March 1, 2026, and elected Melissa Fisher as a Class I director with a term expiring at the 2026 annual meeting. Fisher, deemed ...
Business Operations and StrategyLegal Proceedings
Teradata Reaches Major Litigation Settlement with SAP SE
Positive
Feb 23, 2026
On February 19, 2026, Teradata entered into a settlement agreement with SAP SE and its U.S. affiliates to resolve all past and pending litigation between the parties, with mutual releases of all claims and liabilities tied to the disputes. Under t...
Business Operations and StrategyExecutive/Board Changes
Teradata enters cooperation agreement in governance-focused board refresh
Positive
Feb 11, 2026
On February 10, 2026, Teradata entered into a cooperation agreement with investor Lynrock Lake and related parties that will expand its board from nine to ten directors and is expected to add veteran finance and technology executive Melissa Fisher...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.