Teradata (NYSE:TDC) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Teradata (NYSE:TDC) announced its quarterly earnings results on Thursday. The technology company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.12, FiscalAI reports. The firm had revenue of $399.00 million during the quarter, compared to analyst estimates of $395.66 million. Teradata had a return on equity of 47.25% and a net margin of 27.08%. Teradata’s revenue for the quarter was down 4.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.72 EPS.

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

• Teradata raised its 2026 non-GAAP EPS outlook to $2.86–$2.90 and narrowed revenue guidance to the high end of its prior ranges. It reaffirmed total ARR growth guidance of 2%–4% and adjusted free cash flow guidance, with the midpoint of the latter now at $340 million.
• Year to date, operating margin improved by 300 basis points and adjusted free cash flow rose 90% to $254 million. Q3 EPS of $0.70 exceeded the top of guidance, while management attributed its stronger full-year profit outlook to cost discipline and operating leverage.
• Management expects Q4 recurring revenue to decline 2%–4% year over year and total revenue to fall 4%–6%, citing the timing of upfront revenue recognition earlier in the year. Q3 total ARR grew just 1% as reported, though it was up 2% in constant currency.
• The company highlighted customer interest in its agentic AI, hybrid, and sovereign offerings, including new customer wins and an early-Q4 expansion deal. Executives see these products, along with the Dell partnership and AI services, as potential growth drivers into 2027, but did not provide next-year guidance.

Teradata Price Performance

TDC stock traded down $1.81 during trading on Thursday, hitting $32.80. The stock had a trading volume of 3,834,346 shares, compared to its average volume of 1,781,874. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.91 and a quick ratio of 0.91. Teradata has a twelve month low of $23.86 and a twelve month high of $41.78. The stock has a market capitalization of $3.05 billion, a P/E ratio of 6.90, a PEG ratio of 2.57 and a beta of 0.61. The company’s 50-day moving average price is $30.51 and its two-hundred day moving average price is $29.99.

Insider Activity at Teradata

In other news, COO Michael D. Hutchinson sold 48,077 shares of Teradata stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $30.00, for a total value of $1,442,310.00. Following the sale, the chief operating officer directly owned 171,927 shares of the company’s stock, valued at $5,157,810. The trade was a 21.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 10,000 shares of Teradata stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $30.02, for a total value of $300,200.00. Following the completion of the sale, the chief executive officer directly owned 752,446 shares in the company, valued at $22,588,428.92. This represents a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.96% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. UBS Group lowered their price target on Teradata from $36.00 to $32.00 and set a “neutral” rating on the stock in a research report on Monday, September 21st. Morgan Stanley cut Teradata from an “overweight” rating to an “equal weight” rating and cut their price objective for the company from $35.00 to $29.00 in a research report on Monday, August 10th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $34.00 target price on shares of Teradata in a research note on Thursday, July 16th. Citigroup increased their target price on Teradata from $36.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 30th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Teradata in a research note on Monday, September 21st. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $36.00.

Teradata Company Profile

Teradata Corporation (NYSE: TDC) is a data and analytics technology company that helps organizations collect, manage, analyze and govern large volumes of enterprise data. Its offerings are designed to support business intelligence, advanced analytics, artificial intelligence and machine learning across complex data environments.

The company’s portfolio includes Teradata VantageCloud, a cloud analytics platform available through public-cloud and hybrid deployment models, as well as ClearScape Analytics, which provides tools for developing and deploying advanced analytics and AI workloads.