Teradata (NYSE:TDC) Announces Earnings Results

Teradata (NYSE:TDC) announced its quarterly earnings results on Tuesday. The technology company reported $0.69 EPS for the quarter, topping the consensus estimate of $0.56 by $0.13, FiscalAI reports. Teradata had a return on equity of 56.32% and a net margin of 27.08%.The business had revenue of $410.00 million for the quarter, compared to analyst estimates of $396.13 million. During the same quarter in the previous year, the company earned $0.47 EPS. The company’s quarterly revenue was up .5% on a year-over-year basis. Teradata updated its Q3 2026 guidance to 0.550-0.590 EPS and its FY 2026 guidance to 2.650-2.730 EPS.

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

• Teradata raised its full-year outlook for non-GAAP EPS to $2.65–$2.73 and adjusted free cash flow to $330–$350 million, while reaffirming total ARR, revenue, and recurring-revenue guidance.
• Q2 recurring revenue grew 3% year over year, total ARR increased 1% as reported, and cloud ARR rose 8%; operating margin expanded to 21.5% from 16.4% a year earlier, supported by higher recurring revenue and cost discipline.
• The company launched its Autonomous Knowledge Platform and AI Studio, with early wins for its hybrid cloud and on-premise AI offerings. Teradata says demand is particularly strong among regulated and international customers seeking data sovereignty and production-ready agentic AI.
• Strong cash generation increased net cash to $323 million, enabled repayment of the remaining $450 million term loan, and leaves capital available for R&D, share repurchases, and strategic M&A.
• The company expects recurring revenue to decline 2%–4% year over year and total revenue to decline 4%–6% in Q3, largely because more on-premise revenue was recognized upfront in the first half. Consulting-services revenue also fell 24% in Q2, while new AI products have yet to make a material contribution to ARR.

Teradata Stock Up 1.7%

Shares of TDC traded up $0.44 during midday trading on Thursday, reaching $26.67. 446,630 shares of the company were exchanged, compared to its average volume of 2,432,747. The company has a market cap of $2.51 billion, a price-to-earnings ratio of 5.63, a P/E/G ratio of 2.53 and a beta of 0.60. The company has a current ratio of 1.30, a quick ratio of 1.29 and a debt-to-equity ratio of 0.85. Teradata has a 1-year low of $19.96 and a 1-year high of $41.78. The stock has a 50-day moving average price of $32.41 and a 200-day moving average price of $30.13.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on TDC shares. Wall Street Zen raised Teradata from a “buy” rating to a “strong-buy” rating in a research note on Sunday, July 26th. Morgan Stanley reaffirmed an “overweight” rating on shares of Teradata in a research note on Wednesday. Weiss Ratings reiterated a “hold (c)” rating on shares of Teradata in a research report on Wednesday, June 24th. UBS Group lifted their price target on Teradata from $34.00 to $36.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Citigroup reiterated a “buy” rating on shares of Teradata in a report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $35.67.

Key Headlines Impacting 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 versus the roughly $0.56 consensus estimate, while revenue reached $410 million versus expectations of $396 million. EPS increased from $0.47 a year earlier, and revenue was broadly stable year over year. Teradata Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash generation improved materially. Recurring revenue rose 3% to $363 million, non-GAAP operating margin expanded to 21.5%, operating cash flow increased 147% to $106 million, and adjusted free cash flow jumped 226% to $127 million. Management indicated a full-year adjusted free-cash-flow range of $330 million to $350 million. Teradata Signals Free Cash Flow Range and Launches Agentic Platform
• Positive Sentiment: Teradata raised its full-year EPS outlook to $2.65-$2.73, above the approximately $2.47 analyst consensus, and launched its Teradata 3.0 agentic AI platform, including new AI tools on Amazon Web Services. These initiatives could support future cloud and recurring-revenue growth. Teradata Raises EPS Outlook and Launches AI Tools
• Neutral Sentiment: Analyst valuation views remain mixed. Recent targets have a median of $38, but Barclays lowered its target from $28 to $27 and reiterated an “underweight” rating, reflecting concerns about the pace of growth. Barclays Lowers Teradata Price Target
• Negative Sentiment: Third-quarter guidance disappointed. Teradata projected revenue of $391 million-$399.4 million, below the $403 million consensus, with recurring revenue expected to decline 4%-2% year over year and total revenue down 6%-4%. Q3 EPS guidance of $0.55-$0.59 was also centered slightly below expectations. Full-year revenue guidance remains down 2% to flat, while consulting revenue declined sharply, increasing investor concerns about delayed growth and the need for ARR acceleration. Teradata Declines on Weaker Guidance

Insider Transactions at Teradata

In other news, CEO Stephen Mcmillan sold 20,000 shares of Teradata stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $31.71, for a total transaction of $634,200.00. Following the sale, the chief executive officer directly owned 762,446 shares of the company’s stock, valued at approximately $24,177,162.66. The trade was a 2.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Timothy C. K. Chou sold 5,657 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $33.72, for a total value of $190,754.04. Following the completion of the transaction, the director owned 39,210 shares in the company, valued at approximately $1,322,161.20. This trade represents a 12.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 42,884 shares of company stock valued at $1,427,899. Corporate insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On Teradata

Hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its position in shares of Teradata by 76.0% during the first quarter. Royal Bank of Canada now owns 330,801 shares of the technology company’s stock worth $7,436,000 after buying an additional 142,813 shares in the last quarter. Millennium Management LLC boosted its stake in Teradata by 89.4% during the 1st quarter. Millennium Management LLC now owns 202,864 shares of the technology company’s stock valued at $4,560,000 after acquiring an additional 95,777 shares during the last quarter. NewEdge Advisors LLC grew its holdings in Teradata by 22.6% during the 1st quarter. NewEdge Advisors LLC now owns 11,090 shares of the technology company’s stock worth $249,000 after acquiring an additional 2,048 shares in the last quarter. Creative Planning increased its position in shares of Teradata by 52.8% in the 2nd quarter. Creative Planning now owns 18,274 shares of the technology company’s stock worth $408,000 after purchasing an additional 6,314 shares during the last quarter. Finally, Cetera Investment Advisers raised its stake in shares of Teradata by 7.2% in the 2nd quarter. Cetera Investment Advisers now owns 10,991 shares of the technology company’s stock valued at $245,000 after purchasing an additional 736 shares in the last quarter. 90.31% of the stock is currently owned by hedge funds and other institutional investors.

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.