Teradata (NYSE:TDC) Shares Gap Down - Here's Why

Key Points

• Shares gapped down—Teradata opened at $27.20 after a $30.08 close as investors reacted to light Q2 and FY revenue guidance, which offset other positives and pressured the stock.
• Operational beat: Q1 EPS was $0.88 vs. $0.77 expected and revenue was $444M vs. $430M, and management raised FY2026 EPS guidance to $2.55–$2.65.
• The company shows subscription and cloud momentum with total ARR of $1.492B (+3% YoY) and public cloud ARR up ~13%, but operating and free cash flow were materially boosted by a one‑time $359M pre‑tax SAP settlement.

Teradata Corporation (NYSE:TDC - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $30.08, but opened at $27.20. Teradata shares last traded at $28.7980, with a volume of 495,160 shares trading hands.

Key Stories Impacting Teradata

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Q1 beat on profit and sales — Teradata reported $0.88 EPS vs. $0.77 consensus and revenue of $444M vs. $430M expected; revenue rose ~6% year-over-year, signaling continued top-line recovery. Teradata (TDC) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Raised FY EPS view — management set FY2026 EPS guidance at $2.550–$2.650, above consensus (~$2.46), which supports better full-year profitability expectations. Teradata Reports First Quarter 2026 Financial Results
• Positive Sentiment: Subscription and cloud momentum — Total ARR reached $1.492B (+3% YoY) and public cloud ARR rose ~13%; recurring revenue grew ~12%, supporting a shift toward higher-margin, recurring streams. Teradata Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Large cash inflow but one-time — Operating cash flow of $401M and free cash flow $390M were helped by a $359M pre-tax benefit from an SAP settlement; boosts liquidity but is non-recurring. Teradata Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Management tone and roadmap — The earnings call highlights a shift in data-analytics momentum and execution focus on cloud and recurring revenue; encourages investors on strategy but will require execution to sustain growth. Teradata Corporation (TDC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Revenue guidance came in light — Q2 revenue guidance ($391.7M–$399.8M) and FY revenue range ($1.6B–$1.7B) are at or below Street expectations, raising near-term growth concerns and offsetting some of the EPS upside. Teradata Reports First Quarter 2026 Financial Results

Wall Street Analyst Weigh In

Several brokerages have issued reports on TDC. Northland Securities set a $37.00 price objective on Teradata in a research report on Wednesday, February 11th. Barclays cut their price objective on Teradata from $29.00 to $28.00 and set an "underweight" rating for the company in a research report on Wednesday. Weiss Ratings reiterated a "hold (c)" rating on shares of Teradata in a research report on Friday, March 27th. UBS Group set a $34.00 price objective on Teradata in a research report on Wednesday. Finally, Citizens Jmp lifted their price objective on Teradata from $42.00 to $49.00 and gave the company a "market outperform" rating in a research report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Teradata currently has a consensus rating of "Moderate Buy" and a consensus price target of $35.60.

Teradata Trading Up 0.6%

The company has a market cap of $2.86 billion, a P/E ratio of 22.57, a P/E/G ratio of 3.38 and a beta of 0.51. The company has a quick ratio of 0.90, a current ratio of 0.92 and a debt-to-equity ratio of 2.07. The business has a 50-day moving average price of $27.10 and a two-hundred day moving average price of $27.98.

Teradata (NYSE:TDC - Get Free Report) last released its earnings results on Tuesday, May 5th. The technology company reported $0.88 earnings per share for the quarter, topping analysts' consensus estimates of $0.77 by $0.11. Teradata had a return on equity of 81.80% and a net margin of 7.82%.The company had revenue of $444.00 million during the quarter, compared to the consensus estimate of $430.10 million. During the same quarter in the previous year, the company posted $0.66 earnings per share. The firm's quarterly revenue was up 6.2% on a year-over-year basis. Teradata has set its FY 2026 guidance at 2.550-2.650 EPS and its Q2 2026 guidance at 0.530-0.570 EPS. On average, analysts predict that Teradata Corporation will post 1.75 EPS for the current year.

Insider Transactions at Teradata

In related news, Director Michael P. Gianoni sold 25,000 shares of the business's stock in a transaction that occurred 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Lake Lp Lynrock sold 61,990 shares of the business's stock in a transaction that occurred 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 $376,899,896.04. This represents a 0.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Teradata

Institutional investors and hedge funds have recently modified their holdings of the business. Quent Capital LLC acquired a new position in shares of Teradata in the 3rd quarter valued at approximately $25,000. Sound Income Strategies LLC boosted its position 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 during the period. Abich Financial Wealth Management LLC acquired a new position in shares of Teradata during the third quarter worth about $37,000. SJS Investment Consulting Inc. boosted its position in shares of Teradata by 25,800.0% during the first quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company's stock worth $46,000 after buying an additional 1,806 shares during the period. Finally, Parallel Advisors LLC boosted its position in shares of 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 buying an additional 1,015 shares during the period. 90.31% of the stock is currently owned by institutional investors and hedge funds.

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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