Teradata (TDC) AI Stock Analysis

• Market Cap: $2.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.88
• Revenue Growth: -8.18%
• EPS Growth: 46.26%
• Country: US
• Employees: 5,700
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.72
• Shares Outstanding: 93,200,000
• 10 Day Avg. Volume: 1,682,209
• 30 Day Avg. Volume: 1,839,289
• PEG Ratio: 0.29
• Price to Book (P/B): 22.58
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 10.84
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 2.28
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $27.00
• Price Target Upside: -13.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.2
• Revenue Forecast (FY): $1.64B

• Rating: 68 Neutral
• Price Target: $34.00 ▲(8.63% Upside)

Teradata's overall stock score reflects a balanced outlook. The company's strong technical momentum and strategic focus on AI and cloud initiatives are promising. However, financial concerns such as revenue decline and high leverage, along with valuation constraints, temper the optimism. Continued focus on executing strategic shifts and managing financial risks will be crucial for future performance.

Positive Factors

AI and Cloud Initiatives

The launch of AI services positions Teradata as a leader in data analytics, enhancing its competitive edge and driving long-term growth.

Cash Flow Management

Strong free cash flow growth indicates effective cash management, supporting liquidity and enabling strategic investments.

Strategic Partnerships

Partnerships with cloud providers expand Teradata's market reach, integrating its offerings and driving sustainable revenue growth.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in maintaining growth, potentially impacting long-term financial performance.

High Leverage

High leverage can strain financial flexibility, posing risks to stability and limiting investment capacity.

Cloud ARR Growth Below Expectations

Slower cloud ARR growth may hinder Teradata's ability to capitalize on cloud market opportunities, affecting future revenue.

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, as well as connects various sources of data to drive ecosystem simplification and support customers on their journey to the cloud through an integrated migration. Its business consulting services include support services for organizations to establish a data and analytic vision, and identify and operationalize analytical opportunities, as well as enable a multi-cloud ecosystem architecture and ensure the analytical infrastructure delivers value. In addition, it offers support and maintenance services. The company serves clients in financial services, government, healthcare, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

How the Company Makes Money

Teradata generates revenue primarily through the sale of its technology solutions and services. Key revenue streams include software licensing, cloud subscriptions, and professional services. The company offers various pricing models, such as one-time license fees for on-premises software and recurring fees for cloud services. Additionally, Teradata earns revenue from consulting services that help customers implement and optimize their data analytics solutions. Strategic partnerships with major cloud providers and technology firms also enhance its market reach and contribute to revenue growth by integrating Teradata's offerings with complementary products and services.

Teradata Financial Statement Overview

Summary

Teradata's financial performance is mixed. While profitability metrics like net profit margin and cash flow are improving, revenue decline and high leverage are concerns. The company shows strong cash flow management, which supports liquidity, but needs to focus on revenue growth and reducing leverage.

Income Statement

Teradata's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin of 58.99% is healthy, though slightly lower than previous years. The net profit margin has improved to 7.15% in the TTM, indicating better cost management. However, revenue has declined by 1.43% in the TTM, which is a concern. EBIT and EBITDA margins have also decreased slightly, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.62 in the TTM, which poses a financial risk. Return on equity is strong at 68.80%, indicating effective use of equity to generate profits. However, the equity ratio is low, reflecting a reliance on debt financing, which could impact financial stability if not managed carefully.

Cash Flow

Cash flow analysis shows positive trends with a free cash flow growth rate of 4.27% in the TTM. The operating cash flow to net income ratio is 0.33, suggesting adequate cash generation relative to net income. The free cash flow to net income ratio is high at 0.97, indicating strong cash conversion, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.75B	1.83B	1.79B	1.92B	1.84B
Gross Profit	976.00M	1.06B	1.11B	1.08B	1.19B	1.02B
EBITDA	271.00M	293.00M	263.00M	225.00M	367.00M	175.00M
Net Income	118.00M	114.00M	62.00M	33.00M	147.00M	129.00M
Balance Sheet
Total Assets	1.76B	1.70B	1.87B	2.02B	2.17B	2.19B
Cash, Cash Equivalents and Short-Term Investments	406.00M	420.00M	486.00M	569.00M	592.00M	529.00M
Total Debt	573.00M	576.00M	640.00M	637.00M	572.00M	643.00M
Total Liabilities	1.54B	1.57B	1.74B	1.76B	1.71B	1.79B
Stockholders Equity	219.00M	133.00M	135.00M	258.00M	460.00M	400.00M
Cash Flow
Free Cash Flow	293.00M	277.00M	355.00M	403.00M	432.00M	216.00M
Operating Cash Flow	301.00M	303.00M	375.00M	419.00M	463.00M	267.00M
Investing Cash Flow	-21.00M	-32.00M	-49.00M	-18.00M	-31.00M	-51.00M
Financing Cash Flow	-221.00M	-306.00M	-383.00M	-381.00M	-356.00M	-186.00M

Teradata Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDC, the sentiment is Positive. The current price of 31.3 is above the 20-day moving average (MA) of 29.06, above the 50-day MA of 25.32, and above the 200-day MA of 22.72, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDC.

Teradata Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOST	73 Outperform	$20.74B	80.92	15.96%	―	25.76%	―
AKAM	73 Outperform	$12.36B	25.18	10.64%	―	4.21%	-0.63%
FOUR	69 Neutral	$6.09B	32.27	15.52%	―	23.16%	27.38%
TDC	68 Neutral	$2.92B	25.63	68.60%	―	-8.18%	46.26%
DBX	62 Neutral	$7.09B	16.05	―	―	-0.44%	2.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INFA	54 Neutral	―	―	0.43%	―	1.32%	-84.56%

Teradata Corporate Events

Teradata Announces New $500M Stock Buyback Program

On November 17, 2025, Teradata Corporation’s Board of Directors approved a new stock repurchase program, authorizing up to $500 million in buybacks, effective January 1, 2026. This program replaces the existing one expiring on December 31, 2025, and allows for flexible repurchase methods, reflecting Teradata’s strategic focus on managing its capital structure and potentially enhancing shareholder value.