Teradata (NYSE:TDC) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded Teradata from “strong-buy” to “hold”, even as it raised some longer-term earnings estimates for fiscal 2026 through 2028. The firm’s near-term outlook was more mixed, with several quarterly estimates trimmed.
• Teradata shares were down 1.2% and opened at $32.71, giving the company a market value of about $3.08 billion. The stock currently trades below its 12-month high of $41.78 but above its 12-month low of $19.83.
• Recent fundamentals were solid: Teradata beat quarterly EPS and revenue expectations, and revenue rose 6.2% year over year. The company also gave FY2026 EPS guidance of 2.55 to 2.65, while analysts overall maintain a consensus Hold rating and target price of $35.67.

Teradata (NYSE:TDC - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Teradata's Q2 2026 earnings at $0.33 EPS, Q3 2026 earnings at $0.38 EPS, Q4 2026 earnings at $0.38 EPS, FY2026 earnings at $1.76 EPS, Q1 2027 earnings at $0.48 EPS, Q3 2027 earnings at $0.44 EPS, Q4 2027 earnings at $0.53 EPS, FY2027 earnings at $1.90 EPS and FY2028 earnings at $1.97 EPS.

A number of other research analysts also recently issued reports on the company. Northland Securities set a $37.00 price target on Teradata in a report on Wednesday, February 11th. Wall Street Zen raised shares of Teradata from a "buy" rating to a "strong-buy" rating in a report on Sunday, May 17th. Barclays decreased their target price on shares of Teradata from $29.00 to $28.00 and set an "underweight" rating for the company in a research note on Wednesday, May 6th. UBS Group cut their price objective on shares of Teradata from $36.00 to $34.00 and set a "neutral" rating for the company in a report on Wednesday, May 6th. Finally, Citizens Jmp increased their target price on shares of Teradata from $42.00 to $49.00 and gave the stock a "market outperform" rating in a research note on Wednesday, February 11th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $35.67.

Teradata Stock Down 1.2%

TDC stock opened at $32.71 on Wednesday. The company has a market capitalization of $3.08 billion, a P/E ratio of 7.50, a price-to-earnings-growth ratio of 2.52 and a beta of 0.51. Teradata has a 12 month low of $19.83 and a 12 month high of $41.78. The firm's fifty day simple moving average is $27.74 and its 200-day simple moving average is $28.92. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.30 and a quick ratio of 1.29.

Teradata (NYSE:TDC - Get Free Report) last posted its earnings results on Tuesday, May 5th. The technology company reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.77 by $0.11. The company had revenue of $444.00 million during the quarter, compared to the consensus estimate of $430.10 million. Teradata had a net margin of 24.93% and a return on equity of 57.44%. The firm's quarterly revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.66 earnings per share. Teradata has set its FY 2026 guidance at 2.550-2.650 EPS and its Q2 2026 guidance at 0.530-0.570 EPS. As a group, equities research analysts forecast that Teradata will post 1.72 earnings per share for the current year.

Insider Activity at Teradata

In related news, Director Michael P. Gianoni sold 25,000 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $29.96, for a total value of $749,000.00. Following the completion of the sale, the director owned 31,523 shares of the company's stock, valued at approximately $944,429.08. The trade was a 44.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Stephen Mcmillan sold 20,000 shares of the company's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $31.71, for a total transaction of $634,200.00. Following the transaction, the chief executive officer owned 762,446 shares of the company's stock, valued at $24,177,162.66. This represents a 2.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 79,317 shares of company stock valued at $2,441,536. 0.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TDC. Sound Income Strategies LLC grew its holdings in shares of Teradata by 1,162.8% during the fourth quarter. Sound Income Strategies LLC now owns 985 shares of the technology company's stock worth $29,000 after buying an additional 907 shares in the last quarter. Parallel Advisors LLC boosted its position in Teradata by 197.5% during the fourth quarter. Parallel Advisors LLC now owns 1,529 shares of the technology company's stock worth $47,000 after acquiring an additional 1,015 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new stake in Teradata during the 3rd quarter valued at about $37,000. SJS Investment Consulting Inc. raised its holdings in Teradata by 25,800.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company's stock valued at $46,000 after acquiring an additional 1,806 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC lifted its stake in Teradata by 52.8% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 1,883 shares of the technology company's stock worth $57,000 after purchasing an additional 651 shares in the last quarter. Hedge funds and other institutional investors own 90.31% of the company's stock.

Teradata News Roundup

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Zacks Research raised its FY2026, FY2027, FY2028, Q1 2027, and Q4 2027 earnings estimates for Teradata, signaling improving longer-term profit expectations. Teradata also continues to carry a “Strong-Buy” rating from the firm.
• Positive Sentiment: Teradata launched Teradata Factory, an on-prem foundation for the “agentic enterprise,” which may support its AI/data platform strategy and help reinforce customer demand. Article Title
• Neutral Sentiment: Zacks also modestly lifted or left unchanged several forward estimates, suggesting the business outlook is not deteriorating broadly, even with some quarter-to-quarter adjustments.
• Negative Sentiment: Near-term estimates were cut for Q2 2026, Q3 2026, and Q4 2026, with Q3 2027 also trimmed slightly, which can pressure sentiment on the stock in the short run.

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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