Teradata (NYSE:TDC) Announces Earnings Results, Beats Estimates By $0.12 EPS

by · The Cerbat Gem

Teradata (NYSE:TDC – Get Free Report) released its earnings results on Thursday. The technology company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.12, FiscalAI reports. Teradata had a return on equity of 47.25% and a net margin of 27.08%. The company had revenue of $399.00 million during the quarter, compared to the consensus estimate of $395.66 million. During the same period in the previous year, the company posted $0.72 EPS. Teradata’s revenue was down 4.1% compared to the same quarter last year.

Here are the key takeaways from Teradata’s conference call:

  • Teradata raised its 2026 non-GAAP EPS outlook to $2.86–$2.90 and narrowed revenue guidance to the high end of its prior ranges. It reaffirmed total ARR growth guidance of 2%–4% and adjusted free cash flow guidance, with the midpoint of the latter now at $340 million.
  • Year to date, operating margin improved by 300 basis points and adjusted free cash flow rose 90% to $254 million. Q3 EPS of $0.70 exceeded the top of guidance, while management attributed its stronger full-year profit outlook to cost discipline and operating leverage.
  • Management expects Q4 recurring revenue to decline 2%–4% year over year and total revenue to fall 4%–6%, citing the timing of upfront revenue recognition earlier in the year. Q3 total ARR grew just 1% as reported, though it was up 2% in constant currency.
  • The company highlighted customer interest in its agentic AI, hybrid, and sovereign offerings, including new customer wins and an early-Q4 expansion deal. Executives see these products, along with the Dell partnership and AI services, as potential growth drivers into 2027, but did not provide next-year guidance.

Teradata Stock Performance

Shares of NYSE TDC traded down $0.81 during trading hours on Friday, reaching $31.91. The stock had a trading volume of 4,910,781 shares, compared to its average volume of 2,295,113. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of 6.72, a PEG ratio of 2.57 and a beta of 0.61. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.08. Teradata has a fifty-two week low of $23.86 and a fifty-two week high of $41.78. The firm has a 50-day moving average of $30.51 and a 200-day moving average of $29.99.

Insider Activity at Teradata

In other Teradata news, COO Michael Hutchinson sold 48,077 shares of Teradata stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $30.00, for a total transaction of $1,442,310.00. Following the transaction, the chief operating officer owned 171,927 shares of the company’s stock, valued at $5,157,810. The trade was a 21.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $30.02, for a total value of $300,200.00. Following the completion of the sale, the chief executive officer owned 752,446 shares of the company’s stock, valued at approximately $22,588,428.92. This represents a 1.31% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.96% of the company’s stock.

Wall Street Analyst Weigh In

TDC has been the topic of a number of recent analyst reports. Barclays increased their price objective on shares of Teradata from $27.00 to $28.00 and gave the company an “underweight” rating in a research report on Friday. Morgan Stanley cut shares of Teradata from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $35.00 to $29.00 in a research report on Monday, August 10th. UBS Group decreased their price objective on shares of Teradata from $36.00 to $32.00 and set a “neutral” rating for the company in a research report on Monday, September 21st. Citigroup boosted their target price on shares of Teradata from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, October 30th. Finally, Wall Street Zen lowered Teradata from a “strong-buy” rating to a “hold” rating in a report on Saturday, August 8th. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Teradata has a consensus rating of “Hold” and a consensus price target of $36.12.

Check Out Our Latest Stock Analysis on TDC

Key Stories Impacting Teradata

Here are the key news stories impacting Teradata this week:

  • Positive Sentiment: Q3 non-GAAP EPS was $0.70, ahead of the $0.58 consensus, and revenue of $399 million exceeded estimates of $395.66 million. Teradata also reported $91 million in operating cash flow and $96 million in adjusted free cash flow. Teradata Reports Third Quarter 2026 Financial Results
  • Positive Sentiment: Cloud ARR growth and AI product development supported the outlook. The company reiterated its full-year ARR and adjusted free-cash-flow outlook and narrowed its revenue outlook to the high end of its range; Zacks also reported a raised 2026 earnings outlook. Teradata Q3 Earnings Surpass Estimates, Revenues Decrease Y/Y
  • Negative Sentiment: Revenue was down 4.1% year over year, and EPS was below the $0.72 reported a year earlier, highlighting continued pressure on growth. Barclays raised its price target to $28 from $27 but kept an “underweight” rating, implying downside from the cited $31.91 share price. Barclays stock recommendations

Teradata Company Profile

(Get Free Report)

Teradata Corporation (NYSE: TDC) is a data and analytics technology company that helps organizations collect, manage, analyze and govern large volumes of enterprise data. Its offerings are designed to support business intelligence, advanced analytics, artificial intelligence and machine learning across complex data environments.

The company’s portfolio includes Teradata VantageCloud, a cloud analytics platform available through public-cloud and hybrid deployment models, as well as ClearScape Analytics, which provides tools for developing and deploying advanced analytics and AI workloads.

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