Teradata (NYSE:TDC) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Teradata (NYSE:TDC) issued its quarterly earnings results on Tuesday. The technology company reported $0.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.77 by $0.11, Briefing.com reports. The company had revenue of $444.00 million for the quarter, compared to analyst estimates of $430.10 million. Teradata had a net margin of 7.82% and a return on equity of 81.80%. The business’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.66 earnings per share. Teradata updated its FY 2026 guidance to 2.550-2.650 EPS and its Q2 2026 guidance to 0.530-0.570 EPS.

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

• Strong Q1 beat: Recurring revenue grew 12% YoY, total revenue was up 6% and non-GAAP EPS was $0.88 (over 30% higher YoY), driven by higher recurring and upfront term?license revenue.
• SAP settlement boosted liquidity: Teradata received $480M gross ($359M pre?tax net), yielding a $302M after?tax benefit to FY26 free cash flow, raising cash to $816M and returning the company to a $269M net cash position.
• AI and product momentum: New offerings (MCP Server, AgentStack, Enterprise Vector Store enhancements), marketplace and air?gapped partnerships position Teradata as a hybrid/sovereign AI platform to help customers move agentic AI from pilot to production.
• Near?term softness in guidance: Q2 recurring revenue is guided to -2% to flat and total revenue to -4% to -2% YoY, with upfront revenue recognition and FX cited as headwinds to sequential growth.
• Cost pressure risk ahead: Management flagged rising memory/hardware prices as a potential margin challenge starting in FY2027, which could require pricing or product actions to protect profitability.

Teradata Stock Up 0.6%

NYSE TDC traded up $0.17 on Wednesday, hitting $30.25. 5,182,838 shares of the stock were exchanged, compared to its average volume of 1,959,145. The company has a quick ratio of 0.90, a current ratio of 0.92 and a debt-to-equity ratio of 2.07. Teradata has a fifty-two week low of $19.83 and a fifty-two week high of $41.78. The company has a market cap of $2.86 billion, a PE ratio of 22.57, a PEG ratio of 3.38 and a beta of 0.51. The company has a 50-day moving average price of $27.10 and a 200-day moving average price of $27.98.

Analyst Upgrades and Downgrades

TDC has been the topic of a number of recent research reports. Barclays cut their price target on shares of Teradata from $29.00 to $28.00 and set an “underweight” rating on the stock in a research note on Wednesday. Evercore reiterated an “outperform” rating and set a $40.00 price target on shares of Teradata in a research note on Wednesday, February 11th. Citizens Jmp boosted their price target 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. Weiss Ratings reiterated a “hold (c)” rating on shares of Teradata in a research note on Friday, March 27th. Finally, Royal Bank Of Canada boosted their price target on shares of Teradata from $32.00 to $35.00 and gave the stock a “sector perform” rating in a research note on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Teradata currently has a consensus rating of “Moderate Buy” and an average target price of $35.60.

Key Teradata News

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Q1 beat — Teradata reported $0.88 EPS vs. $0.77 expected and $444M revenue (up 6.2% Y/Y). Cloud ARR and recurring revenue grew, supporting better-than-expected profitability metrics that are driving positive sentiment. Teradata Q1 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Strong cash flow and one-time benefit — Q1 cash flow from operations was $401M and free cash flow $390M, which included a $359M pre-tax settlement benefit with SAP, bolstering the balance sheet and near-term liquidity. Teradata Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Raised EPS guidance but mixed revenue outlook — Teradata raised FY26 EPS to $2.55–2.65 (above consensus) and Q2 EPS to $0.53–0.57, yet issued Q2 and full?year revenue ranges slightly below Street revenue estimates, creating a mixed forward view. Guidance Update
• Neutral Sentiment: Call details and execution commentary — the earnings call transcript provides management’s color on hybrid AI demand, cloud momentum and go-to-market execution; useful for judging sustainability of recurring revenue growth. Teradata Corporation (TDC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Softness in services/licenses — consulting and license revenues declined in the quarter, which could limit upside if product licensing and professional services don’t recover alongside cloud ARR. Teradata (TDC) Reports Q1 Earnings: What Key Metrics Have to Say

Insider Buying and Selling

In related news, Director Michael P. Gianoni sold 25,000 shares of the company’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 of the company’s stock, valued at $944,429.08. This represents a 44.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, major shareholder Lake Lp Lynrock sold 61,990 shares of the company’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 directly owned 9,354,676 shares of the company’s stock, valued at $376,899,896.04. This trade represents a 0.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Teradata

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Parallel Advisors LLC boosted its holdings in Teradata by 197.5% in the fourth quarter. Parallel Advisors LLC now owns 1,529 shares of the technology company’s stock valued at $47,000 after purchasing an additional 1,015 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Teradata by 52.8% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 1,883 shares of the technology company’s stock valued at $57,000 after purchasing an additional 651 shares in the last quarter. CIBC Private Wealth Group LLC boosted its holdings in Teradata by 223.7% in the third quarter. CIBC Private Wealth Group LLC now owns 3,593 shares of the technology company’s stock valued at $77,000 after purchasing an additional 2,483 shares in the last quarter. New Vernon Capital Holdings II LLC acquired a new position in Teradata in the third quarter valued at approximately $87,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in Teradata by 8,665.3% in the second quarter. EverSource Wealth Advisors LLC now owns 4,295 shares of the technology company’s stock valued at $96,000 after purchasing an additional 4,246 shares in the last quarter. 90.31% of the stock is owned by institutional investors and hedge funds.

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.