Teradata (NYSE:TDC) Announces Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Teradata reported Q1 non‑GAAP EPS of $0.88 versus $0.77 expected and revenue of $444M (up 6.2% YoY), beating estimates and raising FY26 EPS guidance to $2.55–$2.65 with Q2 EPS guided to $0.53–$0.57.
• A one‑time SAP settlement provided $480M gross ($359M pre‑tax), delivering a $302M after‑tax boost to FY26 free cash flow and shifting Teradata to a $269M net cash position with $816M in cash.
• Management emphasized growing hybrid/sovereign AI and product momentum (MCP Server, AgentStack, Enterprise Vector Store) to scale agentic AI, but warned of near‑term revenue softness (Q2 recurring revenue guided -2% to flat) and potential margin pressure from rising memory/hardware costs starting in FY2027.

Teradata (NYSE:TDC - Get Free Report) issued its quarterly earnings results on Tuesday. The technology company reported $0.88 EPS for the quarter, topping analysts' consensus estimates of $0.77 by $0.11, Briefing.com reports. The business had revenue of $444.00 million for the quarter, compared to analyst estimates of $430.10 million. Teradata had a return on equity of 81.80% and a net margin of 7.82%.Teradata's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the company posted $0.66 earnings per share. Teradata updated its FY 2026 guidance to 2.550-2.650 EPS and its Q2 2026 guidance to 0.530-0.570 EPS.

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

• Strong Q1 beat: Recurring revenue grew 12% YoY, total revenue was up 6% and non-GAAP EPS was $0.88 (over 30% higher YoY), driven by higher recurring and upfront term‑license revenue.
• SAP settlement boosted liquidity: Teradata received $480M gross ($359M pre‑tax net), yielding a $302M after‑tax benefit to FY26 free cash flow, raising cash to $816M and returning the company to a $269M net cash position.
• AI and product momentum: New offerings (MCP Server, AgentStack, Enterprise Vector Store enhancements), marketplace and air‑gapped partnerships position Teradata as a hybrid/sovereign AI platform to help customers move agentic AI from pilot to production.
• Near‑term softness in guidance: Q2 recurring revenue is guided to -2% to flat and total revenue to -4% to -2% YoY, with upfront revenue recognition and FX cited as headwinds to sequential growth.
• Cost pressure risk ahead: Management flagged rising memory/hardware prices as a potential margin challenge starting in FY2027, which could require pricing or product actions to protect profitability.

Teradata Stock Performance

Shares of TDC traded up $0.17 during mid-day trading on Wednesday, hitting $30.25. The stock had a trading volume of 5,182,307 shares, compared to its average volume of 1,959,112. The firm has a market cap of $2.86 billion, a P/E ratio of 22.57, a PEG ratio of 3.38 and a beta of 0.51. The business has a fifty day moving average price of $27.10 and a 200-day moving average price of $27.98. The company has a debt-to-equity ratio of 2.07, a current ratio of 0.92 and a quick ratio of 0.90. Teradata has a 52 week low of $19.83 and a 52 week high of $41.78.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Citizens Jmp lifted their price target on Teradata from $42.00 to $49.00 and gave the stock a "market outperform" rating in a report on Wednesday, February 11th. UBS Group set a $34.00 price target on Teradata in a report on Wednesday. Citigroup dropped their price target on Teradata from $42.00 to $38.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Teradata in a report on Friday, March 27th. Finally, Northland Securities set a $37.00 price target on Teradata in a report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Teradata currently has a consensus rating of "Moderate Buy" and an average price target of $35.60.

Insider Buying and Selling at Teradata

In other news, Director Michael P. Gianoni sold 25,000 shares of Teradata stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $29.96, for a total value of $749,000.00. Following the completion of the transaction, the director directly owned 31,523 shares in the company, valued at approximately $944,429.08. The trade was a 44.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Lake Lp Lynrock sold 61,990 shares of Teradata stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $40.29, for a total value of $2,497,577.10. Following the completion of the transaction, the insider owned 9,354,676 shares of the company's stock, valued at approximately $376,899,896.04. This trade represents a 0.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Teradata

Several hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LLC purchased a new position in shares of Teradata in the fourth quarter valued at $275,000. Invesco Ltd. grew its position in shares of Teradata by 0.3% in the fourth quarter. Invesco Ltd. now owns 540,609 shares of the technology company's stock valued at $16,456,000 after purchasing an additional 1,707 shares in the last quarter. State of Tennessee Department of Treasury grew its position in shares of Teradata by 23.9% in the fourth quarter. State of Tennessee Department of Treasury now owns 50,482 shares of the technology company's stock valued at $1,440,000 after purchasing an additional 9,754 shares in the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in shares of Teradata in the fourth quarter valued at $67,125,000. Finally, NewEdge Advisors LLC grew its position in shares of Teradata by 29.8% in the fourth quarter. NewEdge Advisors LLC now owns 19,441 shares of the technology company's stock valued at $592,000 after purchasing an additional 4,468 shares in the last quarter. 90.31% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Teradata

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Q1 beat — Teradata reported $0.88 EPS vs. $0.77 expected and $444M revenue (up 6.2% Y/Y). Cloud ARR and recurring revenue grew, supporting better-than-expected profitability metrics that are driving positive sentiment. Teradata Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Strong cash flow and one-time benefit — Q1 cash flow from operations was $401M and free cash flow $390M, which included a $359M pre-tax settlement benefit with SAP, bolstering the balance sheet and near-term liquidity. Teradata Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Raised EPS guidance but mixed revenue outlook — Teradata raised FY26 EPS to $2.55–2.65 (above consensus) and Q2 EPS to $0.53–0.57, yet issued Q2 and full‑year revenue ranges slightly below Street revenue estimates, creating a mixed forward view. Guidance Update
• Neutral Sentiment: Call details and execution commentary — the earnings call transcript provides management’s color on hybrid AI demand, cloud momentum and go-to-market execution; useful for judging sustainability of recurring revenue growth. Teradata Corporation (TDC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Softness in services/licenses — consulting and license revenues declined in the quarter, which could limit upside if product licensing and professional services don’t recover alongside cloud ARR. Teradata (TDC) Reports Q1 Earnings: What Key Metrics Have to Say

Teradata Company Profile

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata's product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

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