Membership reinforces Teradata's commitment to giving customers the flexibility, interoperability, and neutrally governed infrastructure needed to move agentic AI from pilot to production
, /PRNewswire/ -- Teradata (NYSE: TDC) today announced it has joined the Agentic AI Foundation (AAIF), hosted under the Linux Foundation, as a Silver Member. The membership reflects Teradata's longstanding commitment to open ecosystems and decades of deep engagement with customers operating in complex and regulated industries. Teradata recognizes that organizations can only move fast with agentic AI when the standards underneath it are stable and built for real enterprise conditions, including sovereign and air-gapped environments.
Teradata joins a growing cohort of member organizations that spans enterprise technology, financial services, government, academia, robotics and more. The AAIF was established in December 2025 as the neutral home where the open standard agentic AI stack is being built. Additional projects and standards include the Model Context Protocol (MCP), the universal standard protocol for connecting AI models to tools, data and applications, goose, an open source local-first AI agent framework, AGENTS.md, a universal standard that gives AI coding agents a consistent source of project-specific guidance needed to operate reliably across different repositories and toolchains, and agent gateway, an open source gateway for agentic AI, MCP, and services. Founding Platinum Members include Amazon Web Services, Anthropic, Block, Bloomberg, Cloudflare, Google, Microsoft, and OpenAI.
Why Open Standards Matter Now
Organizations are no longer asking whether to deploy agentic AI. They are asking how to do it without creating fragmented, ungovernable systems that break under production conditions. Moving from isolated pilots to enterprise-wide deployments across multi-agent and hybrid environments requires shared protocols, consistent governance, and infrastructure that can be deployed, monitored, and managed at scale — across cloud and on-premises alike. The organizations with the least tolerance for getting this wrong, such as those in regulated industries, have the most to gain from standards that are built with their requirements in mind from the start.
Where Teradata's Work and the AAIF Connect
Teradata's community open-source projects, Teradata MCP Server and AI agent framework, Teradata Loom, are already doing the work that AAIF standards are designed to enable — giving AI agents governed, secure access to organization data without bypassing existing identity and permissions frameworks.
Participating in the AAIF means Teradata now has a direct role in how MCP and the emerging agentic components evolve — helping to keep the standards grounded in what large, complex enterprise environments actually require. This is particularly relevant for organizations operating in environments where the governance and security requirements for agentic AI are most stringent and least represented in standards development. Regulated industries are an obvious example, but so are organizations whose requirements are shaped less by regulation than by the operational realities of their industry, such as the data complexity of financial services, the precision requirements of manufacturing, or the mission-critical demands of the public sector. These are environments where generic standards rarely go deep enough.
That same grounding shapes Teradata's approach to the recently launched Autonomous Knowledge Platform, designed for organizations whose agentic workflows require both deep domain expertise and the freedom to move across vendors, tools, and environments without friction. The AAIF is where the standards making that portability possible are being built, and Teradata intends to help build them.
Executive Quote
"Teradata has earned the trust of organizations in the most demanding operating environments, and that experience shapes what we believe open standards need to get right. Open standards are what make it possible for enterprises to bring together the best tools, partners, and innovations without rebuilding their foundation every time something new comes along. Joining the AAIF means we're helping shape those standards from the inside. Our customers get more choice, better interoperability, and the confidence that the infrastructure they build on today will hold at scale tomorrow."
- Sumeet Arora, Chief Product Officer at Teradata
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
Membership reinforces Teradata's commitment to giving customers the flexibility, interoperability, and neutrally governed infrastructure needed to move agentic AI from pilot to production
, /PRNewswire/ -- Teradata (NYSE: TDC) today announced it has joined the Agentic AI Foundation (AAIF), hosted under the Linux Foundation, as a Silver Member. The membership reflects Teradata's longstanding commitment to open ecosystems and decades of deep engagement with customers operating in complex and regulated industries. Teradata recognizes that organizations can only move fast with agentic AI when the standards underneath it are stable and built for real enterprise conditions, including sovereign and air-gapped environments.
Teradata joins a growing cohort of member organizations that spans enterprise technology, financial services, government, academia, robotics and more. The AAIF was established in December 2025 as the neutral home where the open standard agentic AI stack is being built. Additional projects and standards include the Model Context Protocol (MCP), the universal standard protocol for connecting AI models to tools, data and applications, goose, an open source local-first AI agent framework, AGENTS.md, a universal standard that gives AI coding agents a consistent source of project-specific guidance needed to operate reliably across different repositories and toolchains, and agent gateway, an open source gateway for agentic AI, MCP, and services. Founding Platinum Members include Amazon Web Services, Anthropic, Block, Bloomberg, Cloudflare, Google, Microsoft, and OpenAI.
Why Open Standards Matter Now
Organizations are no longer asking whether to deploy agentic AI. They are asking how to do it without creating fragmented, ungovernable systems that break under production conditions. Moving from isolated pilots to enterprise-wide deployments across multi-agent and hybrid environments requires shared protocols, consistent governance, and infrastructure that can be deployed, monitored, and managed at scale — across cloud and on-premises alike. The organizations with the least tolerance for getting this wrong, such as those in regulated industries, have the most to gain from standards that are built with their requirements in mind from the start.
Where Teradata's Work and the AAIF Connect
Teradata's community open-source projects, Teradata MCP Server and AI agent framework, Teradata Loom, are already doing the work that AAIF standards are designed to enable — giving AI agents governed, secure access to organization data without bypassing existing identity and permissions frameworks.
Participating in the AAIF means Teradata now has a direct role in how MCP and the emerging agentic components evolve — helping to keep the standards grounded in what large, complex enterprise environments actually require. This is particularly relevant for organizations operating in environments where the governance and security requirements for agentic AI are most stringent and least represented in standards development. Regulated industries are an obvious example, but so are organizations whose requirements are shaped less by regulation than by the operational realities of their industry, such as the data complexity of financial services, the precision requirements of manufacturing, or the mission-critical demands of the public sector. These are environments where generic standards rarely go deep enough.
That same grounding shapes Teradata's approach to the recently launched Autonomous Knowledge Platform, designed for organizations whose agentic workflows require both deep domain expertise and the freedom to move across vendors, tools, and environments without friction. The AAIF is where the standards making that portability possible are being built, and Teradata intends to help build them.
Executive Quote
"Teradata has earned the trust of organizations in the most demanding operating environments, and that experience shapes what we believe open standards need to get right. Open standards are what make it possible for enterprises to bring together the best tools, partners, and innovations without rebuilding their foundation every time something new comes along. Joining the AAIF means we're helping shape those standards from the inside. Our customers get more choice, better interoperability, and the confidence that the infrastructure they build on today will hold at scale tomorrow."
- Sumeet Arora, Chief Product Officer at Teradata
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
View original content:https://www.prnewswire.com/news-releases/teradata-joins-the-agentic-ai-foundation-to-advance-open-standards-for-enterprise-agentic-ai-302830402.html
Key Takeaways Teradata launched its Autonomous Knowledge Platform across cloud, on-premises and hybrid environments. The platform supports agentic AI where data resides while preserving governance, security and compliance. First-quarter recurring revenues rose 12% to $400 million, while public cloud ARR increased 13%. Teradata (TDC - Free Report) has announced the general availability of its Autonomous Knowledge Platform across cloud, on-premises and hybrid environments, expanding its enterprise Artificial Intelligence (AI) portfolio. The platform brings together Teradata Cloud, AI Factory, AI Studio, AI Services and the Tera AI workspace into a unified offering that enables organizations to build, deploy and manage agentic AI where their data resides. It supports both proprietary and open-source foundation models, allowing enterprises to develop AI applications while maintaining governance, security and regulatory compliance across hybrid environments.
The Autonomous Knowledge Platform is designed to help enterprises move AI initiatives from proof-of-concept projects to production by combining trusted enterprise data, analytics and AI capabilities in a single environment. The launch strengthens Teradata's strategy of enabling highly regulated industries, including financial services, healthcare and the public sector, to deploy AI securely while preserving data sovereignty, operational control and deployment flexibility across cloud, on-premises and hybrid infrastructures.
TDC Benefits From Strong Enterprise AI Adoption Teradata shares have gained 42.2% in the trailing 12-month period, outperforming the broader Zacks Computer and Technology sector's 30.6% return. The outperformance can be attributed to the company’s expanding AI portfolio for enterprises. Agentic AI’s always-on query needs are a tailwind, since Teradata manages critical enterprise data and targets high performance across hybrid and cloud deployments.
The company’s announcement of the Autonomous Knowledge Platform helps enterprises move agentic AI from pilot projects to production. AI is becoming part of a growing number of customer engagements, with an increasing share of Teradata's sales pipeline tied to AI initiatives. Enterprise adoption is accelerating as organizations increasingly seek platforms capable of supporting mission-critical AI workloads.
Teradata believes its hybrid architecture is a key differentiator, enabling AI to operate where enterprise data resides while maintaining governance and security. The Autonomous Knowledge Platform combines trusted data, analytics and AI capabilities across cloud, on-premises and hybrid environments, helping customers simplify production AI deployments and capitalize on growing enterprise AI adoption.
Teradata sees a significant opportunity as enterprise AI adoption accelerates. A recent survey sponsored by the company found that 100% of organizations are pursuing agentic AI, but only 17% have moved beyond pilot deployments, while 99% have encountered infrastructure scaling challenges. The platform could help enterprises move AI into production, creating additional annual recurring revenue (ARR) opportunities over time. Early traction is already visible, with first-quarter recurring revenues increasing 12% year over year to $400 million, total ARR rising 3% to $1.49 billion and public cloud ARR growing 13% to $686 million.
Teradata Offers Strong Q2 2026 OutlookTeradata's expanding AI portfolio and growing demand for hybrid AI deployments are expected to drive top-line growth. For the second quarter of 2026, the company expects non-GAAP earnings between 53 cents and 57 cents per share.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $398.39 million, indicating a 2.36% year-over-year decline.
The consensus mark for second-quarter 2026 earnings is pegged at 55 cents per share, unchanged over the past 30 days. The figure implies a year-over-year increase of 17.02%.
Teradata's Zacks Rank & Other Stocks to ConsiderCurrently, Teradata carries a Zacks Rank #2 (Buy).
Digital Turbine (APPS - Free Report) , Dell Technologies (DELL - Free Report) and Analog Devices (ADI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Analog Devices sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 72.6% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 210.9% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of ADI have gained 40.3% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.
A foundation to deploy agentic AI without trading control for capability or performance for cost
, /PRNewswire/ -- Teradata (NYSE: TDC) today announced the Teradata Autonomous Knowledge Platform is now generally available for cloud, on-premises, and hybrid environments.
The Platform is a single enterprise stack that lets organizations run agentic AI where their data already lives, on their terms, at costs that reflect how agents actually work.
What is Autonomous Knowledge?
Autonomous knowledge is the ability of an enterprise software platform to turn structured and unstructured data, operating models, and experience into trusted, governed understanding. Grounded in industry-specific data, semantics, and lineage, it provides the business context for agentic AI to sense, decide, and act reliably and repeatedly across systems and tools — with minimal human intervention — while learning and improving over time.
Why It Matters
Enterprise AI doesn't fail for lack of ambition; it fails for lack of architecture. And scaling it across a business takes more than a capable model. It takes consistency in the data and context that agents act on; cost that scales efficiently alongside realized value from agentic AI rather than traditional consumption based patterns; and sovereignty over where data and intelligence actually live. Most infrastructure was built to deliver one of those at a time. The Teradata Autonomous Knowledge Platform is built to deliver all three at once, on enterprise grade architecture, cloud or on premises. The autonomous knowledge vision fuses AI with enterprise knowledge, enabling knowledge itself to sense, decide, act, and adapt.
Executive Quote
"When AI operates where enterprise data already resides, cloud or on premises, organizations no longer need to assemble separate systems or accept a tradeoff between capability and control. They can run their own models, govern every environment the same way, and ensure costs scale appropriately instead of unpredictably. That's what turns knowledge into action, and it's what we built the Teradata Autonomous Knowledge Platform to do."
— Sumeet Arora, Chief Product Officer, Teradata
Platform Components
Teradata Cloud, available now on Amazon Web Services (AWS), is uniquely built for the agentic era. The reality that AI agents create computing demands unlike anything human users have generated before, shapes both how the platform performs and how it's priced. Active Compute and Elastic Compute give organizations always-on power for mission critical work alongside on-demand capacity for exploration, so infrastructure matches the workload instead of forcing a single approach onto everything. Teradata's new Fixed plus Flex pricing does the same thing for cost: predictable baseline spend paired with automatic scaling for demand spikes, under one unit currency for simpler procurement, budgeting, and expansion.
In addition to addressing today's agentic AI challenges of price for performance, Teradata Cloud includes workload isolation, native open table format support, and identity and access integration in one environment. Customers can innovate faster, control costs, and operate with greater agility and governance.
Teradata Factory, available now, is for organizations where data sovereignty is preferred or required. It brings together analytics, AI, lakehouse capabilities, governance, and agentic workflows in a single, fully integrated hardware and software system that keeps everything within an organization's own walls, deployed on modern, enterprise grade compute, storage, GPU acceleration, and networking. Organizations can run foundation models entirely on premises, choosing the model that fits rather than defaulting to a single provider. The Factory supports Bring Your Own Model along with open source and open weight options, so customers can deploy language models of any scale without the data behind them ever leaving their environment. The result is enterprise data, models, and intelligence, all under enterprise control.
Scale and performance remain fully intact. The Factory delivers enterprise grade execution and the ability to put agents into autonomous action, without compromising on data sovereignty or AI sovereignty.
Teradata AI Studio is available now on AWS and on Teradata Factory, unifying analytics, models, agents, and vector services in one experience, so customers no longer need to source, integrate, and manage those capabilities as separate tools. This consolidation reduces the complexity of building and operating enterprise AI. Teams can develop, operationalize, and govern AI solutions in the same environment, accelerating deployment while improving governance and consistency, whether the use case is a traditional machine learning model or a fully agentic workflow. Trusted enterprise data and built-in governance travel with every project, so organizations can scale AI initiatives with confidence rather than rebuilding their approach at each stage.
Teradata AI Services help organizations identify high value use cases, build agent-driven solutions, and put AI into production to accelerate time to value. The team brings domain expertise and implementation support to help customers move beyond pilots, while reducing risk and maximizing business outcomes from AI investments.
AI Studio is available separately for organizations that want to use it with existing infrastructure, and AI Services are available to support adoption regardless of deployment path.
Availability Details
Teradata AI Studio: available now on AWS and Teradata Factory Teradata AI Services: available now across all deployments Teradata Cloud: available now on AWS Teradata Factory: available now, on-premises About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 12.52. Over the last 12 months, TDC's Forward P/E has been as high as 14.06 and as low as 8.41, with a median of 10.21.
Investors should also recognize that TDC has a P/B ratio of 11.81. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 17.90. Over the past 12 months, TDC's P/B has been as high as 38.89 and as low as 10.80, with a median of 16.48.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TDC has a P/S ratio of 1.75. This compares to its industry's average P/S of 4.09.
These are just a handful of the figures considered in Teradata's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TDC is an impressive value stock right now.
Earnings conference call to begin at 1:30 p.m. PT on Tuesday, August 4, 2026
, /PRNewswire/ -- Teradata Corporation (NYSE: TDC) today announced that it will release its second quarter 2026 financial results after the market closes on Tuesday, August 4, 2026. Teradata will host a conference call and live webcast to discuss its results and provide a business and financial update.
Conference Call Details
The conference call will begin at 1:30 p.m. PT on August 4, 2026. Investors and participants may attend the call by dialing (585) 542-9983 and entering access code 369709903. For investors and participants outside the United States, see global dial-in numbers here, and use access code 369709903.
The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata website at investor.teradata.com.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments. Learn more at Teradata.com.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. TDC has a Momentum Style Score of B, and shares are up 1% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TDC should be on investors' short list.
On July 10, 2026, Teradata Corp TDC shares fell 3.1% to a current price of $33.74. This price is situated within a 52-week range of $19.83 to $41.78, indicating significant volatility over the past year.
GF Value™ verdict: The current price is $33.74, while the GF Value™ estimate is $30.54, indicating the stock is 10.5% overvalued.GF Score™: TDC has a GF Score™ of 74/100, which is classified as above average.Most notable signal: Insiders sold $3.6 million worth of shares in the last three months, with no purchases reported. Is TDC Overvalued or Undervalued? Teradata's current price of $33.74 exceeds the GF Value™ estimate of $30.54, suggesting that the stock is overvalued by approximately 10.5%. This overvaluation raises concerns about the potential risks associated with investing at this price point, particularly in light of the recent insider selling activity. The GF Valuation label classifies the stock as fairly valued, but the current price significantly diverges from the intrinsic value indicated by GF Value™. A margin of safety is not present for potential investors, which may lead to reconsideration of any positions in the stock.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should be cautious when considering the stock at this price, as the risk of a pullback could be substantial if earnings do not meet market expectations.
How Does TDC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 7.7x 43.9x Forward P/E 12.7x N/A The current P/E (TTM) of 7.7x is significantly below its 5-year median P/E of 43.9x, indicating that the stock is trading at a much lower valuation compared to its historical averages. However, the forward P/E of 12.7x suggests some expected growth in earnings, but this remains to be seen. The P/E analysis aligns with the GF Value™ verdict of overvaluation, as the current trading multiples indicate a significant disconnect from historical valuation levels.
What Does TDC's GF Score™ Tell Us? Metric Rating GF Score™ 74/100 Financial Strength 6/10 Profitability 7/10 Growth 3/10 Valuation 6/10 Momentum 9/10 TDC's GF Score™ of 74/100 indicates a relatively strong position overall, particularly in the momentum category where it received a high score of 9/10. This suggests positive recent price performance, supporting the stock's short-term appeal. However, the growth rank of 3/10 is concerning, indicating potential challenges in achieving sustainable long-term growth. The financial strength and profitability ranks of 6/10 and 7/10, respectively, indicate stability and effective management but highlight a need for improvement in growth metrics.
What Are Insiders Doing with TDC Stock? Recent insider activity at Teradata has shown a trend of selling, with insiders offloading $3.6 million worth of shares over the last three months and no reported purchases. This pattern of selling may signal a lack of confidence from those within the company regarding its future performance or current valuation. Insider selling can often indicate that insiders believe the stock is overvalued or that they want to realize gains. Without any buying activity to counterbalance these sales, it raises concerns for potential investors.
What This Means for Investors Based on the GF Value™ assessment, Teradata Corp TDC is currently overvalued, with a current price higher than its estimated fair value. This valuation, combined with recent insider selling and lower growth scores, suggests caution for those considering investment in TDC at this time.
For the complete analysis, visit the Teradata Corp TDC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TDC's GF Score™?
TDC has a GF Score™ of 74/100, indicating an above-average potential for long-term returns based on key financial metrics.
Is TDC overvalued or undervalued?
According to the GF Value™ verdict, TDC is overvalued, as the current price of $33.74 exceeds the estimated fair value of $30.54.
What is TDC's P/E ratio?
TDC has a P/E (TTM) of 7.7x, which is significantly below its 5-year median of 43.9x, indicating that the stock is trading at a much lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Teradata (TDC - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Teradata currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if TDC is a promising momentum pick, let's examine some Momentum Style elements to see if this data management company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For TDC, shares are up 5.21% over the past week while the Zacks Computer- Storage Devices industry is down 4.19% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.19% compares favorably with the industry's 2.48% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Teradata have risen 30.11%, and are up 56.4% in the last year. On the other hand, the S&P 500 has only moved 10.84% and 21.72%, respectively.
Investors should also take note of TDC's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now TDC is averaging 3,429,000 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TDC.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost TDC's consensus estimate, increasing from $2.64 to $2.65 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that TDC is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Teradata on your short list.
Investors interested in stocks from the Computer- Storage Devices sector have probably already heard of Teradata (TDC) and NetApp (NTAP). But which of these two companies is the best option for those looking for undervalued stocks?
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.77; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TDC should be on investors' short list.
Study of 1,000 global senior technology and data leaders uncovers what's blocking enterprises from making the leap from personal AI to organizational AI
, /PRNewswire/ -- Teradata (NYSE: TDC) today released findings from a commissioned Wakefield Research study of 1,000 senior technology and data leaders across six global markets. The report, "Arrested Automation: Why Agentic AI Stalls at the Enterprise Level," finds that while enthusiasm to deploy agentic AI is near-universal, foundational data systems were not built for agents and need rethinking to deliver the ROI organizations expect.
Many of the hurdles outlined in the report (and summarized below) are easier to understand by recognizing the need to move from personal AI — tools like chatbots and writing assistants that help individuals work faster — to organizational AI, which works on behalf of the whole company using shared knowledge, appropriate access levels, and well-designed governance. The returns enterprises are chasing don't happen until AI operates at the organizational level.
The report introduces the Agentic AI Maturity Index to track where organizations stand on that journey and charts a path forward through what it calls Autonomous Knowledge — enterprise data with enough context, lineage, and governance for AI agents to act on it reliably at scale.
The Agentic AI Maturity Index: Where Enterprises Actually Stand
This four-stage framework maps where organizations stand: Experimenting, Developing, Building, and Operationalizing, which is where AI is executing multi-step workflows with measurable business impact. Currently, only 7% of the global enterprises have reached the final stage where tangible outcomes occur. The majority (68%) remain in Experimenting or Developing, where context fragmentation — when data exists but carries no usable meaning for agents — is a major limiting factor.
Notably, 69% of C-suite executives say their organization is already operating with agentic AI, while only 57% of VPs say the same.
Report Breadth: Industry and Country Comparisons
The report breaks down findings across industries including healthcare, financial services, IT, manufacturing, and retail, and across six markets: the United States, United Kingdom, France, Germany, Japan, and Saudi Arabia. The agentic AI challenge is a global phenomenon, but not a uniform one. The research points to several barriers.
The ROI Gap
Nine in ten (90%)senior technology leaders expect to increase their agentic AI investments over the next 12 months; yet nearly two-thirds (63%)report they have seen no more than a small or emerging positive return on those investments to date. The gap between investment and returns is not a lack of ambition, but a data foundation that was built for human users, not autonomous AI agents.
"Individual productivity gains — faster code, better drafts, quicker research — are real benefits, but they don't show up on the P&L in a way that justifies significant infrastructure investment. The ROI executives expect requires agents operating at the organizational level: automating decisions, executing workflows, driving measurable business outcomes. Most organizations are measuring enterprise AI ROI against personal AI infrastructure — and wondering why the numbers don't add up."
-Louis Landry, Chief Technology Officer at Teradata
Context Fragmentation
At the core of the agentic AI stall is context fragmentation: enterprise data that lacks the meaning, lineage, and governance AI agents need to act reliably across an organization. According to the report, 77% of executives report that 20% or less of their enterprise data is sufficiently described and contextualized for agents to use. And 78% find it challenging to unify data and knowledge across business functions so agents can reason across the full enterprise.
The top two barriers leaders cite — data lacking the necessary metadata, context, and relationships (43%) and data fragmented across systems that cannot be connected in real time (42%) — point to the same root problem. The challenge isn't how much data organizations have, but whether that data carries enough meaning to be trusted when agents use it. When it cannot, the pilot does not make it to production.40% of tech leaders report that more than 40% of their AI pilot projects fail to reach production because infrastructure systems were never built for autonomous use. Only 15% of organizations are successfully getting 80% or more of their AI pilots into production.
"The goal of contextualizing your entire data estate is likely the wrong goalpost, and chasing it is part of why organizations stall. Instead, identify the highest-value portion of your data, structured and/or unstructured, and focus on getting that portion fully described, governed, and agent-ready. If most of the data is unusable, the answer isn't to fix all of it at once. It's to be ruthlessly selective about where you start."
- Josh Fecteau, Chief Data and AI Officer & Chief Information Officer at Teradata
The Action Bridge
Even when organizations make progress on context fragmentation, implementing autonomous action is still hard. 60% of leaders report decision paralysis on durable infrastructure decisions. The hesitation may not be about technology selection (though 30% are worried about vendor lock-in) but instead a lack of trust in what's being deployed. Until organizations trust the data their agents are operating on, they won't let those agents act autonomously. 51% of leaders cite accuracy and reliability of outputs as a significant deployment barrier.
There is also a location problem. AI output currently lives outside the systems where consequential work actually happens. When intelligence is surfaced inside a tool or app where someone is already working, action follows. When it lives in a separate dashboard, it usually does not. Both problems stem from the same deficit: data that lacks enough context, lineage, and meaning to be trusted.
The Path Forward: Autonomous Knowledge
The report identifies Autonomous Knowledge as what organizations need to move from personal AI to organizational AI. It outlines a phased approach: audit and contextualize the highest-value portions of the data estate, embed governance directly into the data layer, and build for architectural portability. Organizations that have done this are already seeing returns. Those that have not are still waiting for their pilots to reach production.
About the Research
Arrested Automation: Why Agentic AI Stalls at the Enterprise Level was conducted by Wakefield Research on behalf of Teradata. The study surveyed 1,000 senior technology and data leaders at the vice president level or above, at companies with a minimum of 500 employees, across the United States (500), United Kingdom (100), France (100), Germany (100), Japan (100), and Saudi Arabia (100). Fieldwork was conducted between March 23 and April 5, 2026.
To download the full report, visit: https://www.teradata.com/insights/white-papers/why-agentic-ai-stalls-enterprise
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
On July 06, 2026, Teradata Corp (TDC) shares rose 5.4% to $36.44, reflecting a positive shift in market sentiment. The stock has shown notable resilience over t
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TDC has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.7% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TDC should be on investors' short list.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 17.11. TDC's Forward P/E has been as high as 14.06 and as low as 8.41, with a median of 10.21, all within the past year.
Investors should also recognize that TDC has a P/B ratio of 11.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TDC's current P/B looks attractive when compared to its industry's average P/B of 23.56. Over the past year, TDC's P/B has been as high as 38.89 and as low as 10.80, with a median of 16.48.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TDC has a P/S ratio of 1.72. This compares to its industry's average P/S of 4.06.
These are only a few of the key metrics included in Teradata's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TDC looks like an impressive value stock at the moment.
Teradata (TDC - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Teradata basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Teradata imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for TeradataFor the fiscal year ending December 2026, this data management company is expected to earn $2.65 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Teradata. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Teradata to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Teradata (TDC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TDC has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.7% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $2.65 per share. TDC also boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TDC should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.99; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TDC should be on investors' short list.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TDC has a Growth Style Score of B, forecasting year-over-year earnings growth of 1.9% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $2.63 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TDC should be on investors' short list.
Teradata gets its prior buy rating reaffirmed again after considering 7 rating categories across fundamental and technical topics. Key upside can come from continued demand for AI-related platform solutions, and global competitive position, along with a favorable balance sheet risk profile. Although not a dividend payer, Teradata has demonstrated convincing operating cash flow and a commitment to share buybacks.
Company earns top ranking in Analytic Data Platforms, demonstrating leadership across the full spectrum of AI and data innovation
, /PRNewswire/ -- Teradata (NYSE: TDC) today announced it has been recognized as Exemplary — the highest designation — across seven evaluated categories in the 2026 ISG Buyers Guides™ for AI and Data Platforms, a comprehensive independent research study led by ISG analysts Dave Menninger and Matt Aslett. Teradata earned its strongest ranking in the Analytic Data Platforms Buyers Guide, underscoring the company's continued leadership in delivering enterprise-grade analytics at scale.
What This Recognition Means
Being classified as Exemplary — the top tier — across all seven evaluated categories reflects Teradata's depth of capability and consistent execution across the AI and data platform landscape. The recognition highlights the company's ability to meet evolving enterprise requirements spanning performance, governance, scalability, and real-world AI deployment.
How ISG Evaluates AI and Data Platform Vendors
The ISG Buyers Guides™ evaluate technology providers on their ability to satisfy current and future requirements across three core dimensions: product capabilities, customer experience, and market impact. The research is designed to help organizations make informed technology decisions based on independent, analyst-led evaluation.
Where Teradata Ranked as 'Exemplary'
Teradata received the Exemplary designation in the following ISG Buyers Guides™:
Analytic Data Platforms AI and Data Platforms Sovereign AI and Data AI Agents Agentic and Generative AI AI Platforms AI Governance and Operations Analyst Commentary
"Teradata has demonstrated broad strength across the AI and data platform landscape. Their top-ranking performance in Analytic Data Platforms, combined with Exemplary-level recognition across six additional categories, reflects a mature, enterprise-ready approach to helping organizations harness the full value of their data."
— Dave Menninger, Executive Director and Distinguished Analyst, ISG Research
Executive Commentary
"What we're hearing consistently from customers and partners is that organizations need and recognize Teradata's mature, enterprise-ready approach to AI and data — and this recognition from ISG reflects that. Being named Exemplary across seven categories, with our strongest performance in Analytic Data Platforms, is a testament to the hard work of our teams and the trust our customers place in us. As enterprises accelerate their AI and data strategies, as an ISG Exemplary designee, we believe Teradata is uniquely positioned to help them scale secure, governed AI and advanced analytics across hybrid, cloud, and on-premises environments."
— Richard Petley, Chief Revenue Officer, Teradata
Why This Matters for Enterprise AI and Data Strategies
Teradata's recognition spans the full breadth of modern AI and data priorities — from foundational analytic platforms and cloud-scale AI infrastructure to agentic AI, governance, and sovereign data requirements — reflecting the company's commitment to meeting enterprises wherever they are in their data journey.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.74, while its industry has an average P/E of 12.92. Over the past 52 weeks, TDC's Forward P/E has been as high as 14.06 and as low as 8.41, with a median of 10.21.
Another notable valuation metric for TDC is its P/B ratio of 11.81. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 16.10. TDC's P/B has been as high as 38.89 and as low as 10.80, with a median of 16.48, over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Teradata is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TDC feels like a great value stock at the moment.
On May 13, 2026, Teradata Corp (TDC) shares rose 3.0% to $32.70. This increase is notable within the broader context of the stock's price performance, as it has
Investors interested in stocks from the Computer- Storage Devices sector have probably already heard of Teradata (TDC - Free Report) and NetApp (NTAP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Teradata is sporting a Zacks Rank of #2 (Buy), while NetApp has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TDC is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TDC currently has a forward P/E ratio of 12.82, while NTAP has a forward P/E of 13.90. We also note that TDC has a PEG ratio of 1.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NTAP currently has a PEG ratio of 2.79.
Another notable valuation metric for TDC is its P/B ratio of 5.71. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NTAP has a P/B of 20.44.
Based on these metrics and many more, TDC holds a Value grade of B, while NTAP has a Value grade of C.
TDC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TDC is likely the superior value option right now.
The on-premises deployment of the Teradata Autonomous Knowledge Platform — private AI and enterprise-grade performance across hybrid environments
, /PRNewswire/ -- Hybrid is the operating reality for many enterprises running AI at scale. The trade-offs that come with it are not.
Teradata (NYSE: TDC) today announced the Teradata Factory, extending the Teradata Autonomous Knowledge Platform with a fully integrated on-premises foundation for enterprises running AI and analytics in hybrid environments. Built on Dell Technologies enterprise compute and storage, it unifies the complete Teradata software stack — including AI Studio — within a single management plane, supporting EDW, Lakehouse, and advanced AI workloads with enterprise-grade performance, private AI, and hybrid/multi-cloud flexibility built in.
What is Autonomous Knowledge?
Autonomous Knowledge is the ability of an enterprise software platform to turn structured and unstructured data, operating models and experience into trusted, governed understanding, decisions and actions. Grounded in industry-specific data, semantics, and lineage, it provides the business context for agentic AI to sense, decide, and act reliably and repeatedly across systems and tools — with minimal human intervention — while learning and improving over time.
Teradata Autonomous Knowledge Platform: On-Premises Deployment Highlights
The Factory runs EDW, Lakehouse, and advanced AI workloads on a single, integrated system. It includes the complete Teradata software suite introduced with the Teradata Autonomous Knowledge Platform — including AI Studio — ensuring consistent capabilities, governance, and management across cloud and on-premises deployments. Key elements include:
On-premises foundation for an AI-native, agentic enterprise Integrated and ready to run with CPUs and GPUs Modular scale with predictable economics Workload management between mission-critical and experimental Open and hybrid by default with OTF support Dell Technologies is a strategic collaborator for this on-premises deployment. Teradata integrates with the Dell AI Factory and Dell AI Data Platform — enabling the underlying data management foundation to ensure enterprise data is AI-ready: curated, governed, and accessible at the speed AI demands.
Teradata delivers the fully integrated software stack, management plane, and customer experience as a complete Teradata product — the on-premises element that complements cloud deployments and extends Teradata's trusted analytics footprint into the AI era.
Why It Matters
As AI and agentic workloads move into production, the infrastructure calculus is changing — GPU consumption, continuous inference, and data-intensive analytics are exposing the limits of public cloud economics in ways that traditional workloads never did. For regulated industries and the public sector, the pressure is even greater — hybrid and private AI are becoming requirements as organizations balance local control and data residency with multi-cloud flexibility. And as agentic AI moves from pilot to production, the real challenge is operationalizing it within the constraints that matter — governance, reliability, and cost control.
Why Teradata
Most on-premises AI infrastructure approaches shift cost and complexity rather than eliminate it — requiring enterprises to assemble, integrate, and maintain separate components across compute, storage, GPUs, database engines, AI tooling, and orchestration, each with its own pricing model and integration risk. The on-premises deployment of the Teradata Autonomous Knowledge Platform takes a different approach: one pre-engineered system, one management plane, and a fully integrated software and hardware stack delivered as a Teradata product — with the open architecture, performance, and cost control that AI at scale demands.
Executive Quotes
"The data platform and the AI platform are converging — yet most enterprises are still running AI far from their most critical data. The Teradata Factory brings EDW reliability, Lakehouse flexibility, and AI horsepower together in a single on-premises system — so enterprises get the full performance of the Teradata Autonomous Knowledge Platform wherever their data, regulations, and agents require."
— Sumeet Arora, Chief Product Officer, Teradata
"Data sovereignty is evolving beyond just a compliance requirement. It is becoming a core architectural decision as AI moves from pilot to production. Enterprises are realizing that where AI runs can be as important as how it runs. This on-premises deployment of the Teradata Autonomous Knowledge Platform can give enterprises a more direct path to run private AI on-premises, keeping it close to the data and under their governance, while maintaining the control, consistency, and performance needed at scale."
— Robert B. Kramer, Managing Partner, KramerERP
Platform Capabilities: On-Premises
On-premises foundation for an AI-native, agentic enterprise: This deployment is designed to deliver on-premises AI without compromise — the private AI controls, governance, and hybrid deployment model that make agents possible in regulated, mission-critical environments. Central to that is AI Studio, pre-integrated and ready to run on day one — bringing the full AI lifecycle on-premises, from data to models to agents to applications, with no data movement required. AI that runs where the data lives delivers fundamentally different performance, governance, and context than AI operating at a distance from it. As part of the Teradata Autonomous Knowledge Platform, this deployment provides a clear modernization path to an AI-native infrastructure foundation — ensuring enterprises have consistent governance, connected data, and agentic UX across cloud and on-premises environments as they scale.
Integrated and Ready to Run with GPUs: The on-premises deployment of the Teradata Autonomous Knowledge Platform delivers Dell enterprise compute and storage, AI Studio, and the complete Teradata software suite as a single pre-engineered system — running GenAI, LLMs, ML/DL, and classic analytics side-by-side, on-premises, ready from day one across EDW, Lakehouse, and advanced AI workloads. Customers don't source, integrate, or validate these components independently, reducing setup time and eliminating dependency sprawl while delivering a high-performing foundation for analytics and AI operations.
Modular Scale with Predictable Economics: A new management cluster and converged Ethernet fabric unify compute, storage, GPU, and networking under a single management plane, supporting modular expansion from pilot to production on the enterprise's timeline. Fixed infrastructure economics eliminate per-query, per-GPU, and data movement fees — designed specifically for analytics and AI at scale.
Autonomous Platform Management with Tera Agents: The Teradata Autonomous Knowledge Platform includes Tera — a set of pre-built platform agents that perform infrastructure and operational tasks autonomously, continuously and without manual intervention. Tera agents monitor and manage compute resources, optimize query execution, process telemetry, and control cloud and on-premises spend, reducing IT operational burden while keeping performance and cost on target.
Workload Management Between Mission-Critical and Experimental: Active System Management automatically maintains performance and SLAs for vital analytics while AI teams run exploratory or resource-intensive tasks — no resource contention, no trade-offs. The result is the control and compliance of private AI with enterprise-grade performance — keeping revenue-critical operations protected and compliant.
Open and Hybrid by Default: Support for Apache Iceberg, Delta Lake, and S3-compatible object storage reduces lock-in, protects existing investments, and links to the Connected Data Foundation and the Teradata Cloud — ensuring data is stored once and accessed consistently across cloud and on-premises environments.
Availability
The Teradata Factory is expected to be available in Q3 2026.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.38; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $2.64 per share. TDC also boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TDC should be on investors' short list.
Teradata (TDC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Teradata is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Teradata, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for TeradataThis data management company is expected to earn $2.65 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Teradata. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Teradata to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 13.36. TDC's Forward P/E has been as high as 14.06 and as low as 8.41, with a median of 10.21, all within the past year.
Investors should also recognize that TDC has a P/B ratio of 11.81. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 17.00. Over the past year, TDC's P/B has been as high as 38.89 and as low as 10.80, with a median of 16.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TDC has a P/S ratio of 1.8. This compares to its industry's average P/S of 4.2.
These are just a handful of the figures considered in Teradata's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TDC is an impressive value stock right now.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. TDC has a Momentum Style Score of B, and shares are up 22.7% over the past four weeks.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TDC should be on investors' short list.
On May 29, 2026, Teradata Corp (TDC) shares rose 7.7% to a current price of $34.05. This price move comes amid a notable increase in the stock's performance, wi
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.
TDC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TDC has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.7% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $2.65 per share. TDC boasts an average earnings surprise of +24.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TDC should be on investors' short list.
, /PRNewswire/ -- Teradata (NYSE: TDC) today announced that Josh Fecteau has assumed the combined role of Chief Data and AI Officer & Chief Information Officer (CDAO & CIO), effective immediately. In addition to his existing responsibility leading Teradata's enterprise Data & AI organization — a role he has held since November 2025 — Fecteau will now also oversee the company's Technology Services function.
By unifying these functions under a single leader, Teradata is accelerating the modernization of its internal data ecosystem and creating a more integrated foundation for enterprise-wide AI and technology execution. The expanded mandate positions Teradata to move faster, make decisions with an enterprise-wide lens, and continue its transformation to win in the AI era.
A Proven Leader in Data and AI
Fecteau brings more than two decades of experience in data architecture, enterprise transformation, and AI enablement. Since joining Teradata in 2019, he has led the modernization of the company's internal data ecosystem and spearheaded the deployment of flagship scalable agentic AI capabilities — establishing Teradata as "customer zero" for its own data and AI offerings. In his tenure as CDAO, Fecteau has driven measurable progress across enterprise data strategy and AI adoption, reinforcing Teradata's position as the autonomous AI and knowledge platform of choice for global enterprises.
Expanded Responsibilities
In his combined CDAO and CIO role, Fecteau will be responsible for:
Leading unified decision-making across Teradata's enterprise data, AI, and technology functions to drive cohesive, company-wide transformation. Accelerating the modernization of Teradata's internal technology ecosystem to enable agentic AI-powered decision-making across the business. Guiding the Technology Services organization — comprising the company's infrastructure, enterprise applications, and technology operations — and integrating it with the Data & AI function for stronger execution. Continuing to champion the "Teradata on Teradata" initiative, leveraging Teradata's own platform to build scalable AI solutions that strengthen operations and inspire customers. Executive Commentary
"Bringing our technology and Data & AI organizations together under one roof creates an incredible opportunity to remove friction and move decisively. Technology Services is not just a support function — it is a strategic enabler. By bringing them together, we can deploy AI agents that make faster, smarter decisions across every part of the business — and set an example for how AI-first organizations actually operate. I'm energized by what we'll accomplish."
- Josh Fecteau, Chief Data and AI Officer & Chief Information Officer at Teradata
"Josh is a proven leader driving transformative change at Teradata, and his expanded role reflects both the impact he has delivered and the confidence we have in his vision. Consolidating our IT and Data & AI organizations is more than a structural change — it is a foundational move toward building a truly autonomous enterprise, where data, AI, and technology operate as one integrated force."
- Mike Hutchinson, Chief Operating Officer at Teradata
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
Investors with an interest in Computer- Storage Devices stocks have likely encountered both Teradata (TDC - Free Report) and NetApp (NTAP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Teradata is sporting a Zacks Rank of #2 (Buy), while NetApp has a Zacks Rank of #4 (Sell). This means that TDC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TDC currently has a forward P/E ratio of 13.79, while NTAP has a forward P/E of 20.16. We also note that TDC has a PEG ratio of 1.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NTAP currently has a PEG ratio of 2.64.
Another notable valuation metric for TDC is its P/B ratio of 6.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NTAP has a P/B of 25.65.
These metrics, and several others, help TDC earn a Value grade of B, while NTAP has been given a Value grade of D.
TDC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TDC is likely the superior value option right now.
On June 03, 2026, Teradata Corp (TDC) shares fell 4.2% today, closing at $34.97. Over the past year, the stock has experienced significant volatility, trading b
Companies are scrambling to find funds to invest heavily in AI, and some employees' benefits and pay are on the chopping block. EschCollection/Getty Images AI isn't just coming for your job. It's coming for your pay.
As companies look for cash to fund their AI transformations, some are finding it by shrinking employee benefits and compensation packages.
Teradata, a global cloud software company, told its 5,100 employees in January not to expect an annual salary raise this year as it reallocates the budget toward AI investments, according to an internal memo seen by Business Insider and not previously reported.
Teradata's focus for 2026 is to "win in the market with AI," CEO Steve McMillan said in the memo, and to help achieve that, the company will be increasing investment in AI talent and expertise.
"We will fund this AI investment by reallocating the budget from 2026 annual salary adjustments," said McMillan.
Teradata did not comment on the budget decision. A spokesperson told Business Insider that the company is actively investing in AI to innovate its products and services.
Two US-based Teradata employees, both of whom have been at the company for over 10 years, told Business Insider they generally received annual salary increases of 2% to 4%, though they said the increases were not guaranteed each year.
Employees may still receive performance-based bonuses and equity shares as part of their compensation, the memo said. The decision applies to employees in countries where regulators do not require market-aligned salary adjustments.
Teradata is the second company that Business Insider has reported is openly telling staff it is pursuing AI spending over workforce investment.
TTEC, a midsize technology and services firm, recently paused 401(k) matches for its US employees through the end of 2026, saying in internal communications that the benefits retreat would help fund the tools, training, and capabilities necessary for the company's AI future.
The candor with which leaders are naming AI as the reason for cuts marks a new rhetorical shift, said Jennifer Moss, a workplace strategist and the author of "Why Are We Here? Creating a Work Culture Everyone Wants."
"Whether that's more honest or more cynical depends on your read, but it does mark a real shift in what leaders are willing to say in public," Moss said. "And what becomes sayable tends to become more doable."
Financing an AI transformationTTEC and Teradata are technology services companies operating in an industry where failure to adapt to AI is seen as a particularly existential risk. Across industries, businesses are increasing their AI spending.
A recent CIO survey from RBC Capital polled 117 IT professionals at companies with annual revenues from under $250 million to more than $25 billion. It found that 90% of those surveyed planned to increase AI spending in 2026.
AI spending can range from tens of thousands of dollars for small pilots or basic integrations to millions of dollars for enterprise-scale AI transformations. Those costs are hitting as many companies are already operating with tighter budgets, driven by inflation, tariffs, and supply chain disruptions.
Teradata and TTEC have both faced financial difficulty in recent years, with global revenue declining 5% and 3.2%, respectively, in each company's latest financial year.
While AI costs may be rising, cutting worker compensation is a choice, not an inevitability, Moss told Business Insider.
Transformations can be financed through measures like taking on debt, reallocating nonessential spending, adjusting executive compensation, making acquisitions, phasing investments over time, or accepting lower margins for a defined period, she added.
Alphabet, for example, announced this week that it plans to sell $80 billion in stock to fund its investments in AI infrastructure.
"The reason workforce compensation ends up being the source is that it's the largest controllable expense line at most companies and the one with the least organized resistance," said Moss.
The actual cost of AI investment for most companies is relatively small compared to total compensation expense, she added.
According to BCG's 2026 AI Radar, a survey of 2,360 global companies that was released in January, companies only expect to spend about 1.7% of revenue on AI in 2026.
Jan-Emmanuel De Neve, an economist and director of Oxford University's Wellbeing Research Center, told Business Insider he expects more companies to make similar trade-offs as they pursue AI, saying it is indicative of a "short-term mindset."
"When leaders openly cut human compensation to fund AI, they are trying to project decisive, tech-forward management. However, the actual message traveling to the workforce is that they do not have a secure future in the organization," De Neve said.
Employees are losing powerCuts to benefits and salary adjustments sit at the gentler end of the spectrum. Others have tied AI adoption to layoffs and fewer hiring opportunities.
Meta, for example, laid off 10% of its workforce in May, a move it linked to a push for efficiency and the need to fund investments.
Meta's stock price has surged in recent years, and in January, the company said its capital spending for the year would range from $115 billion to $135 billion.
Other firms, including Snap, Cisco, and Salesforce, have also announced staff cuts, citing AI efficiencies as a rationale; and Uber CEO Dara Khosrowshahi said in May that he'll cover the cost of increasing AI investment by hiring fewer people.
Teradata's head count has fallen by over 21% since December 2023, a drop of 1,400 people that the company said was made to support its growth strategy, company filings show.
Ellen Raim, an employment attorney with 30 years of corporate HR leadership experience, told Business Insider that many companies are leaner and under increasing organizational pressure to show productivity gains and stronger head count ROI.
"AI is being positioned as a way to do that quickly," she said.
Bill Winters used the phrase "lower-value human capital" to refer to employees he was planning to lay off. Bloomberg/Getty Images Many workers have struggled with a perception that AI could lead to their well-being being sidelined, something recently reinforced when Standard Chartered CEO Bill Winters described some roles as "lower value, human capital." Winters later apologized. Alongside the growing tide of layoffs and examples of AI-focused compensation cuts at TTEC and Teradata, the power balance is shifting against workers as companies prioritize their AI futures.
Comments like Winters' reflect a broader trend of executives talking about people primarily as costs or capacity, Raim said. "That may make sense on a spreadsheet, but it can be corrosive inside an organization."
The risk, Raim said, is that companies underinvest in employees and undermine trust, at the very time they ask them to embrace these new tools and help figure out where AI can meaningfully improve the business.
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It has been about a month since the last earnings report for Teradata (TDC - Free Report) . Shares have added about 15.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Teradata due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Teradata Corporation before we dive into how investors and analysts have reacted as of late.
Teradata Q1 Earnings Surpass Estimates, Revenues Increase Y/YTeradata Corporation delivered solid first-quarter 2026 results, with non-GAAP earnings of 88 cents per share, beating the Zacks Consensus Estimate by 14.29%. The metric rose 33.3% year over year.
Revenues of $444 million surpassed the consensus mark by 4.13% and increased 6.2% from the year-ago quarter. Public cloud ARR climbed 13% year over year and 12% in constant currency to $686 million, highlighting continued traction for the company’s cloud offerings.
TDC Posts Solid ARR Gains and Cloud MomentumTeradata ended the quarter with total ARR of $1.492 billion, up 3% as reported and 2% in constant currency. The public cloud portion continued to do the heavy lifting, with cloud ARR rising at a double-digit rate year over year.
Management tied the momentum to customer demand for hybrid deployments, particularly for regulated and security-sensitive AI workloads. The company also pointed to rising interest in sovereign AI use cases, where enterprises prioritize governed data and infrastructure flexibility.
TDC Q1 Top Line in DetailRecurring revenue reached $400 million, increasing 12% as reported and 9% in constant currency, and represented 90% of total revenue. Product sales increased 9% year over year, supported by strength in term-based subscription activity.
Perpetual software license and hardware revenues (0.2% of total revenues) dropped 90% year over year (down 88% at constant currency) to $1 million.
Consulting services’ revenues (9.7% of revenues) fell 14% year over year (down 15% at constant currency) to $43 million.
TDC Operating DetailsNon-GAAP gross margin expanded to 63.7% from 60.3% in the year-ago quarter. The improvement reflected both a larger scale in the recurring base and better consulting margin performance versus the prior year.
Selling, general & administrative (SG&A) expenses increased 106.9% year over year to $240 million. Research & development (R&D) expenses were $72 million, up 9.1% year over year.
Non-GAAP operating margin also improved to 27.3% from 21.8%.
TDC’s Balance Sheet Remains StrongAs of March 31, 2026, Teradata had cash and cash equivalents of $816 million compared with $493 million as of Dec. 31, 2025.
Teradata generated $401 million in cash flow from operations and $390 million in free cash flow during the quarter, a sharp increase from the year-ago period. The reported cash flow performance included a pre-tax net benefit of $359 million tied to a settlement with SAP, which also lifted cash and cash equivalents to $816 million at the quarter-end.
To better reflect underlying performance, the company introduced adjusted free cash flow, which came in at $31 million for the quarter after excluding the settlement’s gross proceeds and including related litigation costs.
TDC Reaffirms Core 2026 TargetsFor the second quarter of 2026, Teradata expects non-GAAP earnings between 53 cents and 57 cents per share, with total revenue expected to decline in the range of 4%-2% year over year and recurring revenue expected to range from down 2% to flat. The company also highlighted potential headwinds from reduced upfront recurring revenue and currency impacts in the near term.
For 2026, Teradata reaffirmed its non-GAAP earnings outlook in the range of $2.55-$2.65 per share, along with total ARR growth of 2%-4% year over year. The company expects total revenues to range from down 2% to flat year over year in constant currency. It increased its cash flow from operations outlook to $642-$662 million (including the settlement benefit) and raised its adjusted free cash flow outlook to $320-$340 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.71% due to these changes.
VGM ScoresCurrently, Teradata has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Teradata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTeradata belongs to the Zacks Computer- Storage Devices industry. Another stock from the same industry, Sandisk Corporation (SNDK - Free Report) , has gained 29.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Sandisk Corporation reported revenues of $5.95 billion in the last reported quarter, representing a year-over-year change of +251%. EPS of $23.41 for the same period compares with -$0.30 a year ago.
For the current quarter, Sandisk Corporation is expected to post earnings of $32.40 per share, indicating a change of +11072.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Sandisk Corporation. Also, the stock has a VGM Score of F.
Richard J. Petley, Chief Revenue Officer of Teradata (TDC 0.43%), reported the sale of 17,227 shares of common stock in open-market transactions on June 1, 2026, as disclosed in an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)17,227Transaction value~$603,000Post-transaction shares (direct)188,571Post-transaction value (direct ownership)~$6.95 millionTransaction value based on SEC Form 4 weighted average purchase price ($35.00); post-transaction value based on June 1, 2026 market close ($36.83).
Key questionsHow does this sale compare to Petley's recent trading activity?
Since May of this year, Petley has executed two open-market sales totaling 51,544 shares, with the current transaction reflecting a decrease in trade size that is consistent with the reduction in his available share inventory.What proportion of Petley's direct holdings was affected by this transaction?
The sale accounted for 8.4% of his direct ownership, moving his direct holdings from 205,798 shares to 188,571 shares.Were any indirect holdings or derivative securities involved?
The transaction exclusively involved direct ownership; no indirect entities or derivative securities, such as options, were part of the reported sale.What are the implications for Petley's ongoing ownership and selling capacity?
Following this sale, Petley retains a direct stake valued at approximately ~$6.95 million as of June 1, 2026, with remaining capacity for future transactions now limited by a lower share count.Company overviewMetricValuePrice (as of market close 2026-06-01)$36.83Revenue (TTM)$1.69 billionNet income (TTM)$421.00 million1-year price change52.01%* 1-year performance calculated using June 1st, 2026 as the reference date.
Company snapshotTeradata Vantage is the core product, providing a multi-cloud data analytics platform; services include consulting, support, and maintenance.The company generates revenue through software subscriptions, cloud-based analytics solutions, and professional services aimed at enterprise clients.Primary customers include organizations in financial services, government, healthcare, manufacturing, retail, telecommunications, and transportation sectors globally.Teradata operates at scale as a leading provider of enterprise analytics platforms, serving a diverse global client base. The company's strategy centers on enabling organizations to manage and analyze complex data across multi-cloud environments, supporting digital transformation and ecosystem simplification.
With a focus on mission-critical analytics and robust consulting services, Teradata maintains a competitive edge in the evolving data infrastructure market.
What this transaction means for investorsThe June 1 sale of Teradata stock by Chief Revenue Officer Richard Petley came at a time when shares experienced a rising price in 2026. The stock reached a 52-week high of $41.78 in February, and was still well above the low of $19.83 when Petley executed his sale.
That said, his transaction is not necessarily a cause for investor concern, given its non-discretionary nature. The disposition was implemented as part of a prearranged Rule 10b5-1 trading plan, adopted in December of 2025. Such plans are often implemented by insiders to avoid accusations of trading based on insider information.
Moreover, Petley retained over 188,000 shares post-transaction, indicating his equity stake remains robust. Holding on to the stock looks like a good strategy given Teradata’s business is performing well.
The rise of artificial intelligence created increased demand for the company’s data capabilities. This contributed to first-quarter sales of $444 million, up 6% from the previous year’s $418 million. Moreover, its recurring revenue of $400 million represented a 12% year-over-year increase, and bodes well for Teradata’s ability to maintain sales.
