Zacks Research Issues Negative Outlook for Teradata Earnings

Key Points

• Zacks Research has downgraded its earnings estimates for Teradata, projecting Q2 2026 earnings per share will be $0.28, down from $0.29, and maintains a "Strong Sell" rating on the stock.
• Teradata reported a net revenue decline of 6.4% year-over-year in its last quarter, despite exceeding analyst consensus estimates for earnings per share.
• Analysts have varied opinions on Teradata, with three rating the stock as a "Buy," five as "Hold," and three as "Sell," while the average target price remains at $26.86.

Teradata Corporation (NYSE:TDC - Free Report) - Equities research analysts at Zacks Research cut their Q2 2026 earnings estimates for Teradata in a report released on Wednesday, October 8th. Zacks Research analyst Team now expects that the technology company will post earnings per share of $0.28 for the quarter, down from their previous forecast of $0.29. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Teradata's current full-year earnings is $1.31 per share. Zacks Research also issued estimates for Teradata's FY2026 earnings at $1.35 EPS and Q1 2027 earnings at $0.38 EPS.

Teradata (NYSE:TDC - Get Free Report) last posted its earnings results on Tuesday, August 5th. The technology company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.06. Teradata had a return on equity of 96.29% and a net margin of 6.57%.The company had revenue of $408.00 million during the quarter, compared to analyst estimates of $399.73 million. During the same quarter in the prior year, the business earned $0.64 earnings per share. Teradata's revenue was down 6.4% on a year-over-year basis. Teradata has set its Q3 2025 guidance at 0.510-0.55 EPS. FY 2025 guidance at 2.170-2.25 EPS.

A number of other equities analysts also recently commented on TDC. UBS Group reduced their target price on shares of Teradata from $24.00 to $23.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Wall Street Zen upgraded shares of Teradata from a "hold" rating to a "buy" rating in a research note on Saturday, September 13th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Teradata in a research note on Wednesday. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $26.86.

Teradata Trading Down 2.0%

Shares of NYSE TDC opened at $21.73 on Friday. Teradata has a 1-year low of $18.43 and a 1-year high of $33.69. The business has a fifty day moving average price of $21.33 and a 200 day moving average price of $21.70. The stock has a market capitalization of $2.05 billion, a P/E ratio of 19.23, a price-to-earnings-growth ratio of 5.62 and a beta of 0.77. The company has a debt-to-equity ratio of 2.78, a current ratio of 0.84 and a quick ratio of 0.84.

Hedge Funds Weigh In On Teradata

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in Teradata by 5.6% during the 1st quarter. Vanguard Group Inc. now owns 13,774,843 shares of the technology company's stock worth $309,658,000 after acquiring an additional 728,333 shares during the period. Lynrock Lake LP raised its stake in shares of Teradata by 37.6% in the first quarter. Lynrock Lake LP now owns 9,416,666 shares of the technology company's stock worth $211,687,000 after purchasing an additional 2,572,320 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Teradata by 175.3% during the second quarter. AQR Capital Management LLC now owns 3,913,277 shares of the technology company's stock worth $86,914,000 after purchasing an additional 2,491,938 shares during the period. Boston Trust Walden Corp boosted its position in Teradata by 21.6% in the second quarter. Boston Trust Walden Corp now owns 1,966,309 shares of the technology company's stock valued at $43,868,000 after buying an additional 349,439 shares during the last quarter. Finally, LSV Asset Management boosted its position in Teradata by 21.4% in the second quarter. LSV Asset Management now owns 1,929,495 shares of the technology company's stock valued at $43,047,000 after buying an additional 340,496 shares during the last quarter. 90.31% of the stock is owned by institutional investors and hedge funds.

Teradata Company Profile

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value.

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