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

Key Points

• Teradata reported quarterly EPS of $0.70, beating the $0.58 consensus estimate by $0.12; revenue of $399 million also topped expectations. Revenue nevertheless declined 4.1% year over year, and EPS was down from $0.72 a year earlier.
• The company raised its 2026 non-GAAP EPS outlook to $2.86–$2.90 and narrowed revenue guidance toward the high end of its prior range. Year-to-date operating margin improved 300 basis points, while adjusted free cash flow rose 90% to $254 million.
• Management expects Q4 revenue to fall 4%–6% year over year and recurring revenue to decline 2%–4%; Q3 total ARR grew just 1% as reported. Teradata cited revenue timing, while pointing to AI, hybrid and sovereign offerings as potential longer-term growth drivers.

Teradata (NYSE:TDC - Get Free Report) issued its quarterly earnings results on Thursday. The technology company reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.12, FiscalAI reports. Teradata had a net margin of 27.08% and a return on equity of 47.25%. The company had revenue of $399.00 million for the quarter, compared to the consensus estimate of $395.66 million. During the same quarter in the prior year, the company earned $0.72 EPS. Teradata's quarterly revenue was down 4.1% on a year-over-year basis.

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

Teradata stock traded down $1.81 during mid-day trading on Thursday, hitting $32.80. The company had a trading volume of 3,834,346 shares, compared to its average volume of 1,781,874. 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 12-month low of $23.86 and a 12-month high of $41.78. The company's fifty day moving average is $30.51 and its 200-day moving average is $29.99. The company has a market capitalization of $3.05 billion, a price-to-earnings ratio of 6.90, a P/E/G ratio of 2.57 and a beta of 0.61.

Analyst Ratings Changes

Several analysts have recently commented on TDC shares. UBS Group dropped their price objective on shares of Teradata from $36.00 to $32.00 and set a "neutral" rating on the stock in a report on Monday, September 21st. Morgan Stanley cut shares of Teradata from an "overweight" rating to an "equal weight" rating and reduced their target price for the stock from $35.00 to $29.00 in a report on Monday, August 10th. Weiss Ratings reissued a "hold (c)" rating on shares of Teradata in a report on Monday, September 21st. Wall Street Zen downgraded shares of Teradata from a "strong-buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Barclays lowered their price target on shares of Teradata from $28.00 to $27.00 and set an "underweight" rating on the stock in a report on Wednesday, August 5th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $36.00.

Insider Buying and Selling

In related news, COO Michael D. Hutchinson sold 48,077 shares of the business's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $30.00, for a total value of $1,442,310.00. Following the completion of the transaction, the chief operating officer directly owned 171,927 shares in the company, valued at $5,157,810. The trade was a 21.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 on Tuesday, September 15th. The shares were sold at an average price of $30.02, for a total transaction of $300,200.00. Following the completion of the transaction, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.96% of the stock is owned by company insiders.

Teradata Company Profile

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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