Teradata (TDC) AI Stock Analysis

• Market Cap: $2.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 22.3
• 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: 1,648,308
• 30 Day Avg. Volume: 1,683,285
• 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: 0.88
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 2.28
• Enterprise Value/Ebitda: 8.20
• 1Y Price Target: $26.67
• Price Target Upside: -1.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $30.00 ▲(10.29% Upside)

Teradata's overall stock score reflects a mixed financial performance with strong cash flow management but concerns over revenue decline and high leverage. Technical analysis shows bullish momentum, though overbought conditions suggest caution. Valuation is moderate, and the earnings call provides a balanced outlook with optimism for future growth driven by AI and strategic partnerships.

Positive Factors

Free Cash Flow Growth

The significant increase in free cash flow indicates strong cash generation and liquidity, providing Teradata with the ability to reinvest in growth opportunities and strengthen its financial position.

AI and Knowledge Platform Leadership

Being recognized as a leader in data management for analytics platforms underscores Teradata's competitive advantage and strengthens its market position in the growing field of data analytics.

AI Services Launch

The launch of AI services positions Teradata to capitalize on the increasing demand for AI solutions, potentially driving future revenue growth and enhancing its service offerings.

Negative Factors

Declining Revenue Growth

The decline in total revenue suggests challenges in maintaining sales momentum, which could impact long-term growth prospects and market competitiveness.

High Leverage

Significant reliance on debt financing increases financial risk and limits flexibility, potentially affecting Teradata's ability to invest in growth and weather economic downturns.

Cloud ARR Growth Below Expectations

Cloud ARR growth below expectations indicates potential challenges in expanding cloud services, which are crucial for future revenue streams and market positioning in the cloud analytics sector.

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 through a combination of software licensing, cloud services, and consulting services. The primary revenue streams include software sales, which encompass both on-premises licenses and cloud subscriptions, as well as maintenance and support services for its products. Consulting services represent another significant revenue source, as the company assists clients in implementing and optimizing their data analytics solutions. Additionally, Teradata has formed strategic partnerships with major cloud providers, enabling the company to expand its cloud offerings and reach a broader customer base, further enhancing its revenue potential.

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: 27.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.2 is above the 20-day moving average (MA) of 25.13, above the 50-day MA of 23.05, and above the 200-day MA of 22.41, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 64.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.89 is Neutral, 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
AKAM	74 Outperform	$12.81B	26.10	10.64%	―	4.21%	-0.63%
FOUR	74 Outperform	$6.12B	32.40	15.52%	―	23.16%	27.38%
TOST	69 Neutral	$19.96B	77.87	15.96%	―	25.76%	―
TDC	67 Neutral	$2.54B	22.28	68.60%	―	-8.18%	46.26%
DBX	65 Neutral	$7.43B	16.81	―	―	-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 Corp’s Earnings Call: Mixed Sentiment with Growth and Challenges

The recent earnings call of Teradata Corp reflected a mixed sentiment, highlighting both achievements and challenges. While the company demonstrated solid execution in revenue and ARR growth, surpassing expectations, these positives were tempered by a decline in total revenue and cloud ARR growth falling short of targets. This resulted in a balanced outlook for the company.

Teradata Corp Reports Steady Q3 2025 Financials

Teradata Corp, a leader in the cloud analytics and data platform sector, specializes in providing solutions for AI workloads, offering both cloud and on-premise options for its clients. In its third quarter of 2025, Teradata reported a total annual recurring revenue (ARR) of $1.490 billion, marking a slight increase from the previous year. The company also achieved a cash flow from operations of $94 million and a free cash flow of $88 million, alongside a GAAP diluted EPS of $0.42 and a non-GAAP diluted EPS of $0.72.

Teradata Corp’s Earnings Call: Mixed Signals Amid Growth and Challenges

Teradata Corp’s recent earnings call revealed a mixed sentiment, highlighting both significant achievements and ongoing challenges. The company showcased impressive growth in Annual Recurring Revenue (ARR) and advancements in artificial intelligence (AI), yet faced hurdles with declining revenue and margin pressures. While the strategic focus on cloud growth and AI capabilities presents promising future opportunities, near-term challenges with revenue and profitability remain evident.

Teradata’s Q2 2025: Cloud Growth Amid Revenue Challenges

Teradata Corporation is a leading provider of cloud analytics and data platforms, specializing in AI-driven solutions for data management and analytics across hybrid environments. In its second quarter of 2025 financial results, Teradata reported a modest increase in total annual recurring revenue (ARR) to $1.489 billion, with a significant 17% growth in public cloud ARR. However, the company faced declines in total revenue and recurring revenue, which decreased by 6% and 4% respectively, compared to the same period last year.