Teradata (NYSE:TDC) Releases FY 2026 Earnings Guidance

Key Points

• Teradata raised FY 2026 EPS guidance to $2.65–$2.73, above the $2.47 analyst consensus, while forecasting revenue of $1.6–$1.7 billion, roughly in line to slightly below the $1.7 billion consensus.
• The company reported a strong quarter, with EPS of $0.69 versus the $0.56 estimate and revenue of $410 million versus $396.1 million expected. Operating cash flow and adjusted free cash flow also increased sharply.
• Near-term revenue expectations remain a concern: Q3 2026 EPS guidance is $0.55–$0.59, and the company’s revenue outlook trails consensus at both the quarterly and full-year midpoint levels. Analysts collectively rate the stock “Hold,” with an average price target of $35.56.

Teradata (NYSE:TDC - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 2.650-2.730 for the period, compared to the consensus estimate of 2.470. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion. Teradata also updated its Q3 2026 guidance to 0.550-0.590 EPS.

Analyst Upgrades and Downgrades

TDC has been the topic of a number of recent research reports. Citizens Jmp reiterated a "market outperform" rating and issued a $49.00 price objective on shares of Teradata in a report on Wednesday, June 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Teradata in a research note on Wednesday, June 24th. Citigroup reissued a "buy" rating on shares of Teradata in a research report on Wednesday, July 29th. Wall Street Zen upgraded shares of Teradata from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 26th. Finally, UBS Group lowered their target price on Teradata from $36.00 to $34.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $35.56.

Teradata Stock Performance

TDC stock traded up $2.39 during trading hours on Tuesday, reaching $34.48. The stock had a trading volume of 5,111,031 shares, compared to its average volume of 2,389,824. The stock has a market capitalization of $3.24 billion, a PE ratio of 7.91, a price-to-earnings-growth ratio of 2.28 and a beta of 0.60. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.30 and a quick ratio of 1.29. The stock has a 50-day simple moving average of $32.51 and a 200 day simple moving average of $30.13. Teradata has a fifty-two week low of $19.96 and a fifty-two week high of $41.78.

Teradata (NYSE:TDC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The technology company reported $0.69 EPS for the quarter, beating analysts' consensus estimates of $0.56 by $0.13. The company had revenue of $410.00 million during the quarter, compared to the consensus estimate of $396.13 million. Teradata had a net margin of 24.93% and a return on equity of 57.44%. Teradata has set its Q3 2026 guidance at 0.550-0.590 EPS and its FY 2026 guidance at 2.650-2.730 EPS. Analysts predict that Teradata will post 1.78 EPS for the current fiscal year.

Insider Activity

In related news, CEO Stephen Mcmillan sold 20,000 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $31.71, for a total value of $634,200.00. Following the sale, the chief executive officer owned 762,446 shares in the company, valued at approximately $24,177,162.66. This represents a 2.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Timothy C. K. Chou sold 5,657 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $33.72, for a total value of $190,754.04. Following the sale, the director directly owned 39,210 shares of the company's stock, valued at $1,322,161.20. This represents a 12.61% 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 sold a total of 77,201 shares of company stock valued at $2,486,235 over the last three months. Insiders own 0.96% of the company's stock.

Trending Headlines about Teradata

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Teradata reported adjusted EPS of $0.69, above the $0.56 analyst consensus, while revenue reached $410 million versus expectations of $396.1 million. Teradata Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash generation improved sharply. Recurring revenue rose 3% to $363 million, GAAP operating margin expanded to 11.7%, and non-GAAP operating margin increased to 21.5%. Operating cash flow surged 147% to $106 million, while adjusted free cash flow jumped 226% to $127 million. Quarterly Financial Results
• Positive Sentiment: Full-year EPS guidance was raised relative to expectations. Teradata forecast fiscal 2026 EPS of $2.65–$2.73, above the $2.47 consensus, supporting the view that cost controls and operating improvements may continue to benefit earnings.
• Positive Sentiment: Teradata expanded its AI and cloud distribution strategy. Its Data Analyst Agent became available through AWS Marketplace, allowing customers to deploy conversational analytics within existing AWS environments without moving data. Teradata Brings Enterprise-Grade Data Analyst Agent to AWS Marketplace
• Neutral Sentiment: Teradata appointed veteran technology executive Bernd Leukert to its board, adding industry experience but creating no immediate change to financial forecasts. Teradata Appoints Bernd Leukert to Board of Directors
• Negative Sentiment: Near-term revenue guidance was below consensus. Third-quarter revenue guidance of $391.0–$399.4 million trails the $403 million consensus, and projected EPS of $0.55–$0.59 is centered slightly below the $0.58 estimate. Full-year revenue guidance of $1.6–$1.7 billion also falls short of the $1.7 billion consensus at the midpoint.

Institutional Trading of Teradata

Hedge funds and other institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC acquired a new position in Teradata in the 4th quarter valued at about $275,000. Invesco Ltd. lifted its position in Teradata by 0.3% during the fourth quarter. Invesco Ltd. now owns 540,609 shares of the technology company's stock worth $16,456,000 after acquiring an additional 1,707 shares during the last quarter. State of Tennessee Department of Treasury boosted its holdings in shares of Teradata by 23.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 50,482 shares of the technology company's stock worth $1,440,000 after acquiring an additional 9,754 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new position in shares of Teradata in the fourth quarter valued at approximately $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 during the last quarter. Institutional investors own 90.31% of the company's stock.

About Teradata

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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