Track market-moving stories before they get noisy

Teradata Corporation (TDC) Citi's 2026 Global TMT Conference September 9, 2026 12:35 PM EDT

Company Participants

Stephen McMillan - President, CEO & Director

Conference Call Participants

Yitchuin Wong - Citigroup Inc., Research Division

Presentation

Yitchuin Wong
Citigroup Inc., Research Division

Thanks for joining us for day 2 of the Citi Global TMT Conference here. Today, my name is YC Wong. I'm part of the software analyst team at Citi. We are excited to have Teradata CEO, Steve McMillan. Steve, welcome back. I know you've been a couple of years since you joined us.

Stephen McMillan
President, CEO & Director

It's great to be here, YC. Looking forward to the discussion and telling you everything that's been going on at Teradata.

Question-and-Answer Session

Yitchuin Wong
Citigroup Inc., Research Division

No, that's awesome. I mean this year, definitely a lot have happened since the beginning of the year. Maybe you can just start off with the back -- your background, what have you been doing and the company?

Stephen McMillan
President, CEO & Director

Yes. I joined Teradata in June of 2020, really with a mission to look at how do we modernize the company and make it relevant in the cloud space. And so really taking Teradata's fantastic on-premise technology and making it available to customers in the cloud as they modernize their data estates and started using cloud technologies to really support their data platform. And so when I joined Teradata, I said, look, at our core, we're a technology company.

We've been doing a lot of services up until that point. But we had -- we've got so much intellectual property in our Teradata software and the platform that we have that I think that exploiting that for the benefit of our customers is really the core for us. And over that period

It has been about a month since the last earnings report for Teradata (TDC - Free Report) . Shares have added about 7.7% 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 the latest earnings report in order to get a better handle on the recent drivers for Teradata Corporation before we dive into how investors and analysts have reacted as of late.

Teradata Q2 Earnings Surpass Estimates, Revenues Increase Y/YTeradata Corporation reported second-quarter 2026 non-GAAP earnings of 69 cents per share, up 46.8% year over year. The figure surpassed the Zacks Consensus Estimate by 25.46%.

Revenues of $410 million increased 0.5% from the year-ago quarter and beat the consensus by 2.91%. Total annual recurring revenues (ARR) increased 1% as reported and 2% in constant currency to $1.509 billion.

TDC Builds Cloud & Subscription MomentumPublic cloud ARR advanced 8% year over year as reported and 9% in constant currency to $686 million. Cloud represented 45% of total ARR at quarter-end compared with 43% in the year-ago period.

Subscription ARR reached $750 million, down from $756 million a year earlier but above $729 million in the first quarter. Maintenance and software upgrade rights ARR declined to $73 million from $99 million.

TDC Q2 Top Line in DetailRecurring revenues reached $363 million, up 3% as reported and 2% in constant currency and represented 89% of total revenues. Product sales rose 4% year over year and 3% in constant currency to $371 million.

 Perpetual software license, hardware and other revenues, accounting for 2% of total revenues, surged 167% year over year and 313% in constant currency to $8 million.

Consulting services revenues, representing 9.5% of total revenues, fell 24% year over year and 23% in constant currency to $39 million.

TDC's Operating DetailsNon-GAAP gross margin expanded 220 basis points year over year to 60.5%, helped by a higher recurring-revenue mix. Recurring revenue gross margin improved 30 basis points to 67.8%, partly reflecting continued progress in cloud gross margin.

Non-GAAP selling, general and administrative expenses declined 8.4% year over year to $98 million. Research and development expenses fell 3.1% to $62 million.

 Non-GAAP operating margin improved to 21.5% from 16.4%, reflecting higher gross margin and a more optimized cost structure.

Teradata Pushes Deeper Into Agentic AIThe company launched the Teradata Autonomous Knowledge Platform during the quarter and brought major components, including AI Studio, to general availability early in the third quarter. The platform combines cloud, on-premise and hybrid deployment options with governed data, AI tools and agent capabilities.

Teradata also introduced Teradata Factory, a Dell-built on-premise system with integrated CPUs and GPUs for private AI workloads. Management highlighted early customer orders and interest, particularly among regulated organizations and customers with data sovereignty requirements. The partnership gives TDC access to Dell’s technology and go-to-market reach.

TDC’s Balance Sheet Remains StrongAs of June 30, 2026, Teradata had cash and cash equivalents of $414 million compared with $493 million as of Dec. 31, 2025. The company ended the quarter with net cash of $323 million after paying off the $450 million balance on its term loan.

Teradata generated $106 million in cash flow from operations during the quarter, up from $43 million in the year-ago period. Free cash flow increased to $105 million from $39 million, while adjusted free cash flow rose to $127 million from $39 million.

The company also repurchased approximately 1.3 million shares for $40 million during the quarter. Management continues to target the return of at least 50% of adjusted free cash flow through share repurchases.

TDC Provides Q3 & 2026 OutlookFor the third quarter of 2026, Teradata expects non-GAAP earnings of 55-59 cents per share. Total revenues are projected to decline 6% to 4% year over year, while recurring revenues are expected to decrease 4% to 2%. Management attributed the second-half revenue pattern to the timing of upfront revenue recognition from on-premises subscriptions during the first half.

For 2026, Teradata guided its non-GAAP earnings outlook to $2.65-$2.73 per share and adjusted free cash flow forecast to $330-$350 million. Cash flow from operations is expected to be between $665 million and $685 million, including an after-tax net benefit of $315 million from the SAP settlement.

The company reaffirmed its forecast for total ARR growth of 2-4% year over year, recurring revenue growth of flat to 2%, and total revenue performance ranging from a 2% decline to flat.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -13.49% due to these changes.

VGM ScoresCurrently, Teradata has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.

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 these revisions indicates a downward shift. Interestingly, Teradata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

BlackRock Inc. purchased a new position in shares of Teradata Corporation (NYSE:TDC – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 16,392,455 shares of the technology company’s stock, valued at approximately $567,999,000. BlackRock Inc. owned about 17.42% of Teradata at the end of the most recent quarter.

Several other large investors have also made changes to their positions in TDC. Financial Management Professionals Inc. acquired a new stake in Teradata during the second quarter worth about $36,000. Elevation Wealth Partners LLC lifted its holdings in Teradata by 587.2% in the second quarter. Elevation Wealth Partners LLC now owns 1,182 shares of the technology company’s stock valued at $41,000 after acquiring an additional 1,010 shares during the period. SJS Investment Consulting Inc. lifted its holdings in Teradata by 25,800.0% in the first quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company’s stock valued at $46,000 after acquiring an additional 1,806 shares during the period. Global Retirement Partners LLC purchased a new stake in Teradata in the 2nd quarter worth approximately $46,000. Finally, Parallel Advisors LLC boosted its position in Teradata by 197.5% in the 4th quarter. Parallel Advisors LLC now owns 1,529 shares of the technology company’s stock worth $47,000 after purchasing an additional 1,015 shares in the last quarter. 90.31% of the stock is owned by hedge funds and other institutional investors.

Teradata Stock Down 0.6% TDC opened at $27.52 on Tuesday. The company has a market cap of $2.56 billion, a PE ratio of 5.79, a price-to-earnings-growth ratio of 2.07 and a beta of 0.60. Teradata Corporation has a twelve month low of $20.25 and a twelve month high of $41.78. The company has a 50-day moving average price of $30.72 and a 200 day moving average price of $29.98. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.08.

Teradata (NYSE:TDC – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The technology company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.13. Teradata had a return on equity of 47.25% and a net margin of 27.08%.The firm had revenue of $410.00 million for the quarter, compared to analyst estimates of $396.13 million. During the same period in the previous year, the company posted $0.47 earnings per share. The business’s revenue was up .5% on a year-over-year basis. Teradata has set its Q3 2026 guidance at 0.550-0.590 EPS and its FY 2026 guidance at 2.650-2.730 EPS. Sell-side analysts expect that Teradata Corporation will post 1.78 earnings per share for the current fiscal year. Wall Street Analyst Weigh In Several equities analysts have recently weighed in on TDC shares. Zacks Research lowered shares of Teradata from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 20th. Morgan Stanley restated an “equal weight” rating and set a $29.00 price target (down from $35.00) on shares of Teradata in a research report on Monday, August 10th. UBS Group lifted their price objective on shares of Teradata from $34.00 to $36.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Citigroup decreased their price objective on shares of Teradata from $39.00 to $36.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and set a $34.00 target price on shares of Teradata in a research note on Thursday, July 16th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $34.78.

Get Our Latest Stock Analysis on TDC

Insider Transactions at Teradata In other Teradata news, Director Timothy C. K. Chou sold 5,657 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $33.72, for a total value of $190,754.04. Following the completion of the sale, the director owned 39,210 shares in the company, valued at approximately $1,322,161.20. This represents a 12.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Richard J. Petley sold 17,227 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $35.00, for a total transaction of $602,945.00. Following the completion of the transaction, the executive directly owned 188,571 shares in the company, valued at $6,599,985. This trade represents a 8.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.96% of the company’s stock.

Teradata Company Profile (Free Report)

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata’s product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

Featured Articles Five stocks we like better than Teradata Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here

Receive News & Ratings for Teradata Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teradata and related companies with MarketBeat.com's FREE daily email newsletter.

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? 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 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 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 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, 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.

#1 (Strong Buy) stocks have produced an unmatched +23.8% 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.

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 4.3% for the current fiscal year.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $2.69 per share. TDC boasts an average earnings surprise of +27.5%.

With a solid Zacks Rank and top-tier Growth 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 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? 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 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 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 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.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

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 #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 10.24; value investors should take notice.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $2.69 per share. TDC also boasts an average earnings surprise of +27.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, TDC should be on investors' short list.

Posted by Defense World Staff on Aug 15th, 2026

Bank of America Corp DE grew its stake in Teradata Corporation (NYSE:TDC – Free Report) by 21.7% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,320,653 shares of the technology company’s stock after buying an additional 235,116 shares during the quarter. Bank of America Corp DE owned 1.40% of Teradata worth $33,848,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. SJS Investment Consulting Inc. lifted its holdings in Teradata by 25,800.0% in the first quarter. SJS Investment Consulting Inc. now owns 1,813 shares of the technology company’s stock valued at $46,000 after acquiring an additional 1,806 shares during the period. Parallel Advisors LLC boosted its holdings in Teradata by 197.5% during the fourth quarter. Parallel Advisors LLC now owns 1,529 shares of the technology company’s stock worth $47,000 after buying an additional 1,015 shares in the last quarter. Steward Partners Investment Advisory LLC grew its position in Teradata by 52.8% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 1,883 shares of the technology company’s stock valued at $57,000 after buying an additional 651 shares during the period. Rockefeller Capital Management L.P. grew its position in Teradata by 129.2% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,090 shares of the technology company’s stock valued at $64,000 after buying an additional 1,178 shares during the period. Finally, CIBC Private Wealth Group LLC increased its holdings in Teradata by 223.7% in the third quarter. CIBC Private Wealth Group LLC now owns 3,593 shares of the technology company’s stock valued at $77,000 after buying an additional 2,483 shares in the last quarter. Hedge funds and other institutional investors own 90.31% of the company’s stock.

Insider Buying and Selling at Teradata In other Teradata news, Director Timothy C. K. Chou sold 5,657 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $33.72, for a total value of $190,754.04. Following the sale, the director owned 39,210 shares of the company’s stock, valued at $1,322,161.20. This trade represents a 12.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Richard J. Petley sold 17,227 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $35.00, for a total transaction of $602,945.00. Following the completion of the sale, the executive directly owned 188,571 shares in the company, valued at approximately $6,599,985. This trade represents a 8.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.96% of the company’s stock.

Teradata Stock Performance NYSE:TDC opened at $27.58 on Friday. Teradata Corporation has a fifty-two week low of $20.17 and a fifty-two week high of $41.78. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.91 and a current ratio of 0.91. The company has a 50 day moving average price of $31.38 and a 200 day moving average price of $30.01. The stock has a market capitalization of $2.57 billion, a P/E ratio of 5.81, a PEG ratio of 2.06 and a beta of 0.60.

Teradata (NYSE:TDC – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The technology company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.13. The business had revenue of $410.00 million during the quarter, compared to analysts’ expectations of $396.13 million. Teradata had a return on equity of 47.25% and a net margin of 27.08%.The company’s revenue was up .5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.47 earnings per share. Teradata has set its Q3 2026 guidance at 0.550-0.590 EPS and its FY 2026 guidance at 2.650-2.730 EPS. Equities research analysts forecast that Teradata Corporation will post 1.78 EPS for the current year.

Wall Street Analyst Weigh In Several equities analysts recently weighed in on TDC shares. Citigroup cut their price target on Teradata from $39.00 to $36.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $34.00 price target on shares of Teradata in a research report on Thursday, July 16th. UBS Group boosted their price objective on Teradata from $34.00 to $36.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Morgan Stanley reaffirmed an “equal weight” rating and set a $29.00 target price (down from $35.00) on shares of Teradata in a research note on Monday. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $49.00 target price on shares of Teradata in a research report on Wednesday, June 10th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $34.78.

Check Out Our Latest Stock Analysis on TDC

About Teradata (Free Report)

Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata’s product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

Further Reading Five stocks we like better than Teradata Sony and TSMC’s $4.7 Billion Venture Is About More Than Camera Sensors Quantum Leaps: Debt-Free as AI Storage Demand Accelerates NVIDIA’s $500 Billion GPU Financing Deal Fuels Path Toward $270 Sandisk’s Margins Look Like Software. Can They Last?

Receive News & Ratings for Teradata Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teradata and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEBank of America Corp DE Lowers Position in Coca-Cola Consolidated, Inc. $COKE

NEXT HEADLINE »Bank of America Corp DE Has $34.10 Million Stock Holdings in TELUS Corporation $TU

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is Teradata (TDC - Free Report) . TDC is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also recognize that TDC has a 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 stock's P/B looks solid versus its industry's average P/B of 14.14. 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.

Finally, investors should note that TDC has a P/CF ratio of 10.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.35. Within the past 12 months, TDC's P/CF has been as high as 17.19 and as low as 8.10, with a median of 10.68.

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.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Goldman Sachs analyst Aron Adamski downgraded Interparfums Inc (NASDAQ:IPAR) from Buy to Neutral and raised the price target from $110 to $129. Interparfums closed at $122.97 on Friday. See how other analysts view this stock. JP Morgan analyst Jeffrey Zekauskas downgraded Compass Minerals International, Inc. (NYSE:CMP) from Neutral to Underweight and cut the price target from $30 to $27. Compass Minerals shares closed at $27.35 on Friday. See how other analysts view this stock. Piper Sandler analyst James Fish downgraded Samsara Inc (NYSE:IOT) from Overweight to Neutral and maintained the price target of $40. Samsara closed at $40.88 on Friday. See how other analysts view this stock. Morgan Stanley analyst Erik Woodring downgraded Teradata Corp (NYSE:TDC) from Overweight to Equal-Weight and cut the price target from $35 to $29. Teradata shares closed at $27.39 on Friday. See how other analysts view this stock. Raymond James analyst Bobby Griffin downgraded Arko Corp. (NASDAQ:ARKO) from Strong Buy to Outperform and slashed the price target from $8 to $7. ARKO closed at $5.66 on Friday. See how other analysts view this stock. Considering buying TDC stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Snowflake Boosts Growth by Doubling Down on AITeradata NYSE: TDC reported second-quarter results marked by growth in recurring revenue, expanded operating margins and higher free cash flow, while reaffirming its full-year outlook for total annual recurring revenue, total revenue and recurring revenue. The company raised its full-year non-GAAP earnings-per-share guidance and adjusted free-cash-flow forecast.

President and Chief Executive Officer Steve McMillan said the company’s first-half performance reflected demand for its hybrid data platform as enterprises work to move artificial intelligence initiatives into production. “Our hybrid capabilities and our on-prem strength in particular, continue to resonate with customers running the most demanding and regulated workloads,” McMillan said.

Get Teradata alerts:

Second-Quarter Financial Results Teradata Corporation Stock is a Turnaround PlayChief Financial Officer John Ederer said total ARR rose 1% year over year as reported, or 2% in constant currency. Cloud ARR increased 8% as reported and 9% in constant currency. Ederer said Teradata remains focused on total ARR growth, noting that the mix between cloud and on-premise subscriptions can vary by quarter.

Total revenue was $410 million, flat year over year, exceeding the high end of company guidance by two percentage points. Recurring revenue rose 3% as reported to $363 million, or 2% in constant currency, and exceeded the high end of guidance by three percentage points. Consulting services revenue fell 24% year over year to $39 million, although the company said bookings improved and project backlog increased. Non-GAAP operating margin expanded to 21.5% from 16.4% a year earlier. Non-GAAP diluted EPS was $0.69, exceeding the top end of Teradata’s outlook by $0.12. Adjusted free cash flow was $127 million for the quarter. Ederer attributed the revenue outperformance primarily to the timing of revenue recognition in the on-premise business. Total gross margin increased 220 basis points year over year to 60.5%, aided by a greater mix of recurring revenue. Recurring revenue gross margin rose 30 basis points to 67.8%.

Teradata ended the quarter with a net cash position of $323 million, an increase of $528 million from a year earlier. The company repurchased approximately $40 million of stock, or about 1.3 million shares, during the quarter and paid off the remaining $450 million balance on its term loan.

AI Platform Rollout and Customer Activity McMillan highlighted the company’s May launch of the Teradata Autonomous Knowledge Platform, which is intended to support enterprise agentic AI deployments across cloud, on-premise and hybrid environments. He said the platform, including its AI Studio component, reached general availability in early in the third quarter.

The platform includes Teradata Cloud capabilities designed to support always-on and elastic compute needs; Teradata Factory, an on-premise offering developed with Dell Technologies that combines CPUs and GPUs; Teradata AI Studio; and Tera, a natural-language interface for data analysis, coding and multi-agent orchestration.

McMillan said enterprises are contending with production challenges in AI. Citing a company survey of 1,000 senior technology and data leaders, he said 90% expect to increase agentic AI investment over the next year, while nearly two-thirds have seen only small or emerging positive returns so far. He said 40% of surveyed technology leaders reported that more than 40% of their AI pilots had not reached production because their infrastructure was not designed to support them.

The company also made its data analyst agent available through AWS Marketplace and expanded support for native open table formats. Teradata has joined the Agentic AI Foundation and said its Enterprise Model Context Protocol server is already in use with customers.

McMillan cited several early customer engagements, including a South Asian telecommunications company that selected Teradata Factory for an AI modernization project; a Japanese banking group implementing Teradata Cloud, AI Studio and AI Services; and an expansion with a North American financial institution using AI Studio. He also said a U.S. healthcare company expanded its on-premise production system to support government regulations.

Gartner named Teradata a “visionary” in its 2026 Magic Quadrant for AI platforms for data science and machine learning, according to McMillan.

Outlook and Revenue Timing Teradata reaffirmed its full-year outlook ranges for total ARR, total revenue and recurring revenue. It increased its full-year non-GAAP diluted EPS outlook to $2.65 to $2.73 and raised adjusted free cash flow guidance to $330 million to $350 million.

For the third quarter, the company expects recurring revenue to decline 4% to 2% year over year and total revenue to decline 6% to 4%. Teradata forecast non-GAAP diluted EPS of $0.55 to $0.59 for the quarter.

Ederer said the anticipated second-half revenue declines reflect the accounting timing of on-premise subscriptions under ASC 606 rather than a change to the company’s annual expectations. More revenue from on-premise subscriptions was recognized upfront during the first half, leaving less revenue to recognize in the third and fourth quarters.

Management said it expects modest sequential dollar growth in ARR from the second to third quarter and continues to anticipate that most of its annual ARR growth will occur in the fourth quarter. McMillan said the company has not included substantial upside from its newly launched products in its current guidance.

Capital Allocation and Hardware Costs Ederer said Teradata’s current capital-allocation priorities are organic research and development, followed by share repurchases and strategic mergers and acquisitions. The company continues to target 50% of adjusted free cash flow for buybacks, excluding the benefit from the SAP settlement.

On hardware availability and pricing, Ederer said Teradata has sufficient inventory for its existing platform through 2026. He said potential supply-chain and pricing pressure could affect the newer Teradata AI Factory offering, but the company is focused on pricing the product to protect margins. McMillan added that the Dell partnership provides access to Dell’s purchasing capabilities and has helped expedite deliveries for some early AI Factory orders.

About Teradata (NYSE:TDC)Teradata Corporation is a global provider of enterprise analytics and data management solutions designed to help organizations unlock value from their data assets. The company offers both cloud-based and on-premises platforms that support data warehousing, big data analytics, and machine learning. Through its flagship analytics ecosystem, Teradata enables businesses to integrate, analyze, and manage large volumes of structured and unstructured data at scale.

Central to Teradata's product suite is the Teradata Vantage analytics platform, which unifies diverse data types across multiple environments—including public and private clouds—into a single, coherent architecture.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Teradata Right Now?Before you consider Teradata, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Teradata wasn't on the list.

While Teradata currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

Get This Free Report

Key Takeaways Teradata raised 2026 EPS guidance to $2.65-$2.73 and adjusted free cash flow to $330M-$350M.Teradata's Autonomous Knowledge Platform is now available, uniting cloud, on-premises AI and Tera.TDC says second-half revenue declines mainly reflect ASC 606 timing, not a change to its full-year outlook. Teradata Corporation (TDC - Free Report) used its second-quarter call to pair operating progress with a broader pitch for its agentic artificial intelligence (AI) strategy. Management highlighted improving recurring revenues, expanding margins and stronger cash generation.

The call also focused on why second-half revenue growth will soften despite positive product momentum, with executives attributing the pattern mainly to revenue-recognition timing.

TDC Raises Profit and Cash Flow OutlookPresident and chief executive officer Steve McMillan reaffirmed Teradata’s 2026 outlook for total annual recurring revenues, recurring revenues and total revenues. The company still expects total ARR growth of 2% to 4%, recurring revenue growth of flat to 2%, and total revenues ranging from a 2% decline to flat.

Management raised its non-GAAP earnings outlook to $2.65-$2.73 per share and adjusted free cash flow guidance to $330-$350 million. Chief financial officer John Ederer tied the increase to the strong first half, recurring-revenue timing and lower interest expense after debt repayment.

For the third quarter, Teradata expects recurring revenues to decline 2% to 4%, total revenues to fall 4% to 6%, and non-GAAP earnings of $0.55-$0.59 per share.

Teradata Pitches Agentic AI PlatformMcMillan positioned the Autonomous Knowledge Platform as the centerpiece of “Teradata 3.0.” It combines Teradata Cloud, the on-premises Teradata Factory system, AI Studio and Tera, an agentic coworker offering natural-language access to enterprise data.

Management said the platform reached general availability early in the third quarter, months after its May introduction. Teradata emphasized governance, hybrid deployment and running AI workloads close to customers’ existing data.

McMillan cited early adoption across telecommunications, banking, government and health care. Wins included new logos, workload expansions and deployments in cloud and on-premises environments.

TDC Explains the Second-Half Revenue ShapeA Morgan Stanley analyst questioned why first-half growth gives way to expected declines while new artificial intelligence (AI) products enter the market. Ederer said more on-premises subscription revenue was recognized upfront under ASC 606 during the first half.

That timing shifted revenue recognition away from the third and fourth quarters without changing the full-year outlook. McMillan added that guidance includes little upside from the new product launches.

Second-quarter recurring revenues rose 3% to $363 million, while total revenues were flat at $410 million. Revenues topped the Zacks Consensus Estimate of $398.4 million. The company reported non-GAAP earnings of $0.69 per share, which surpassed the $0.55 consensus estimate.

Teradata Defends Hybrid and On-Prem AIA UBS analyst asked how Teradata Factory could affect competition and retention. McMillan said its built-in GPU architecture and Dell partnership let customers run AI workloads beside regulated or sovereign data without relying exclusively on public cloud infrastructure.

Citi pressed management on cloud ARR growth and AI monetization. Ederer said total ARR, rather than quarterly cloud mix, remains the central measure because customers can choose cloud or on-premises deployments.

McMillan acknowledged that monetization may lag because customers initially use capacity they already purchased. He said higher utilization can support later growth while helping customers control agentic-workload costs.

TDC Expands Margins and Capital FlexibilityNon-GAAP operating margin reached 21.5%, up from 16.4% a year earlier. Ederer attributed the improvement to recurring-revenue growth, a richer mix and an optimized cost structure.

Adjusted free cash flow reached $127 million. Teradata also repaid the remaining $450 million term loan and ended the quarter with a $323 million net cash position.

In response to a UBS question, Ederer ranked organic research and development first among capital priorities, followed by share repurchases and strategic acquisitions. Teradata continues targeting 50% of adjusted free cash flow for buybacks.

Teradata Keeps Execution at the CenterManagement’s tone was confident about product differentiation but measured on the pace of financial impact. Priorities include customer retention, fourth-quarter selling execution and converting early platform interest into broader usage.

The call left Teradata balancing AI investment with operating leverage. Management expects hybrid deployment, on-premises strength and improving retention to support its full-year objectives without immediate material revenue from the new platform.

Zacks Signals Favor Growth and ValueTDC carries a Zacks Rank #3 (Hold), a neutral near-term indicator based on earnings-estimate revisions. Its Growth Score of A, Value Score of B and VGM Score of A provide favorable style characteristics, while the Momentum Score of C is less supportive.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination points to stronger growth and value attributes than near-term momentum. The Zacks Rank can change as analysts update estimates after the latest results, so the current signal should not be viewed as permanent.

Teradata (TDC - Free Report) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +25.46%. A quarter ago, it was expected that this data management company would post earnings of $0.77 per share when it actually produced earnings of $0.88, delivering a surprise of +14.29%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Teradata, which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $410 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $408 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Teradata shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 11%.

What's Next for Teradata?While Teradata has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Teradata was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.63 on $400.96 million in revenues for the coming quarter and $2.65 on $1.65 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer- Storage Devices is currently in the top 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Sandisk Corporation (SNDK - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This company is expected to post quarterly earnings of $34.24 per share in its upcoming report, which represents a year-over-year change of +11706.9%. The consensus EPS estimate for the quarter has been revised 5.2% higher over the last 30 days to the current level.

Sandisk Corporation's revenues are expected to be $8.3 billion, up 336.6% from the year-ago quarter.

Recurring revenue of $363 million, an increase of 3% as reported and 2% in constant currency(1) GAAP Operating Margin of 11.7%, up 580 basis points from the prior year period Non-GAAP Operating Margin of 21.5%, up 510 basis points from the prior year period(2) Cash flow from operations of $106 million, up 147% from the prior year period Adjusted free cash flow of $127 million, up 226% from the prior year period(3) , /PRNewswire/ -- Teradata (NYSE: TDC) today announced its second quarter 2026 financial results.

"Teradata again delivered a solid quarter, growing total ARR, recurring revenue, and meaningful free cash flow," said Steve McMillan, president and CEO of Teradata. "We are pleased with our strong product innovation this quarter, highlighted by the launch of our Autonomous Knowledge Platform, bringing a powerful set of capabilities to help enterprises deploy agentic AI. With our differentiated hybrid platform, positive customer reaction, and tangible operating leverage, we remain confident in our future, and are increasing our outlook for non-GAAP EPS and Adjusted Free Cash Flow."

Second Quarter 2026 Financial Highlights Compared to Second Quarter 2025

Total ARR increased to $1.509 billion from $1.489 billion, an increase of 1% as reported and 2% in constant currency(1) Public cloud ARR increased to $686 million from $634 million, an increase of 8% as reported and 9% in constant currency(1) Total revenue was $410 million versus $408 million, flat as reported and in constant currency(1) Recurring revenue was $363 million versus $354 million, an increase of 3% as reported and 2% in constant currency(1) Recurring revenue was 89% of total revenue versus 87% GAAP gross margin was 59.3% versus 56.4% Non-GAAP gross margin was 60.5% versus 58.3%(2) GAAP operating margin was 11.7% versus 5.9%  Non-GAAP operating margin was 21.5% versus 16.4%(2) GAAP diluted EPS was $0.48 versus $0.09 per share Non-GAAP diluted EPS was $0.69 versus $0.47 per share(2) Cash flow from operations was $106 million compared to $43 million Free cash flow was $105 million compared to $39 million(3) Adjusted free cash flow was $127 million compared to $39 million(3) Outlook

For the third quarter of 2026:

Recurring revenue in the range of -4% to -2% year-over-year Total revenue in the range of -6% to -4% year-over-year GAAP diluted EPS is expected to be in the range of $0.27 to $0.31 per share Non-GAAP diluted EPS is expected to be in the range of $0.55 to $0.59 per share(2)  For the full year 2026, Teradata increases the following ranges:

GAAP diluted EPS is now expected to be in the range of $4.43 to $4.51 Non-GAAP diluted EPS in the range of $2.65 to $2.73 per share(2) Cash flow from operations of $665 million to $685 million, which includes an after-tax net benefit of $315 million related to a settlement with SAP Adjusted free cash flow of $330 million to $350 million(3) For the full year 2026, Teradata reaffirms the following ranges:

Total ARR growth of 2% to 4% year-over-year Recurring revenue in the range of flat to 2% year-over-year Total revenue range in the range of -2% to flat year-over-year Earnings Conference Call

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. 

Supplemental Financial Information                               
Additional information regarding Teradata's operating results is provided below as well as on Teradata's website at investor.teradata.com.

1.

The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency ("CC") basis, on the Investor Relations page of the Company's website at investor.teradata.com.

Revenue

(in millions)

For the Three Months ended June 30

2026

2025

% Change as
Reported

% Change in CC

Recurring revenue

$363

$354

3 %

2 %

Perpetual software licenses, hardware and other

8

3

167 %

313 %

Consulting services

39

51

(24 %)

(23 %)

  Total revenue

$410

$408

0 %

0 %

Product Sales

$371

$357

4 %

3 %

Consulting Services

39

51

(24 %)

(23 %)

  Total revenue

$410

$408

0 %

0 %

Revenue

(in millions)

For the Six Months ended June 30

2026

2025

% Change as
Reported

% Change in CC

Recurring revenue

$763

$712

7 %

5 %

Perpetual software licenses, hardware and other

9

13

(31 %)

(26 %)

Consulting services

82

101

(19 %)

(19 %)

  Total revenue

$854

$826

3 %

2 %

Product Sales

$772

$725

6 %

5 %

Consulting Services

82

101

(19 %)

(19 %)

  Total revenue

$854

$826

3 %

2 %

As of June 30

2026

2025

% Change as
Reported

% Change in CC

Annual recurring revenue*

$1,509

$1,489

1 %

2 %

      Public cloud ARR**

$686

$634

8 %

9 %

The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates.

*Total Annual Recurring Revenue ("Total ARR") is defined as the annual contract value for all active and contractually binding term-based contracts at the end of the period, including cloud, recurring AI services, subscriptions, hardware rental, maintenance, and software upgrade rights. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

**Public cloud ARR is defined as the annual contract value for all active and contractually binding term-based contracts at the end of a period that are operated in a public cloud environment. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

2.

Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, adjusted free cash flow, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata's definition may differ from other companies' definitions of these measures.The following tables reconcile Teradata's actual and projected results and EPS under GAAP to the Company's actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company's operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

For the

Three Months

For the

Six Months

(in millions, except per share data)

ended June 30

ended June 30

Gross Profit:

2026

2025

% Chg.

2026

2025

% Chg.

GAAP Gross Profit

$243

$230

6 %

$519

$478

9 %

   % of Revenue

59.3 %

56.4 %

60.8 %

57.9 %

 Excluding:

  Stock-based compensation expense

4

5

8

9

   Reorganization and other costs

1

3

4

3

Non-GAAP Gross Profit   

$248

$238

4 %

$531

$490

8 %

  % of Revenue

60.5 %

58.3 %

62.2 %

59.3 %

Operating Income

GAAP Operating Income

$48

$24

100 %

$12

$90

(87 %)

   % of Revenue

11.7 %

5.9 %

1.4 %

10.9 %

Excluding:

  Stock-based compensation expense

33

31

62

53

    Reorganization and other costs

7

12

14

15

    SAP settlement costs

-

-

121

-

Non-GAAP Operating Income   

$88

$67

31 %

$209

$158

32 %

  % of Revenue

21.5 %

16.4 %

24.5 %

19.1 %

Net Income

GAAP Net Income

$46

$9

411 %

$381

$53

619 %

   % of Revenue

11.2 %

2.2 %

44.6 %

6.4 %

Excluding:

  Stock-based compensation expense

33

31

62

53

  Reorganization and other costs

6

12

13

15

  SAP settlement

-

-

(359)

-

  Income tax adjustments(i)

(19)

(7)

54

(12)

  Non-GAAP Net Income   

$66

$45

47 %

$151

$109

39 %

% of Revenue

16.1 %

11.0 %

17.7 %

13.2 %

For the Three Months

ended June 30

For the Six Months

ended June 30

2026 Outlook

Earnings Per Share:

2026

2025

2026

2025

Q3

FY

GAAP Earnings Per Share

$0.48

$0.09

$3.95

$0.55

$0.27 - $0.31

$4.43 - $4.51

Excluding:

  Stock-based compensation expense

0.34

0.32

0.64

0.54

0.31

1.27

  Reorganization and other costs

0.06

0.13

0.14

0.15

0.02

0.24

  SAP settlement

-

-

(3.72)

-

-

(3.72)

  Income tax adjustments(i)

(0.19)

(0.07)

0.56

(0.12)

(0.05)

0.43

Non-GAAP Diluted Earnings Per Share

$0.69

$0.47

$1.57

$1.12

$0.55 - $0.59

$2.65 - $2.73

i.

Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item, including the $67 million discrete income tax effect of the SAP settlement recorded in the first half of 2026. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company's ongoing operations. As a result of these adjustments, the Company's GAAP effective tax rate and non-GAAP effective tax rate for the three months ended June 30, 2026, was 2.1% and 23.3%, respectively, and June 30, 2025, was 30.8% and 19.6%, respectively. For the six months ended June 30, 2026, the Company's GAAP effective tax rate and non-GAAP effective tax rate was 21.3% and 24.5%, respectively and June 30, 2025, was 25.4% and 21.6%, respectively.

3.

As described below, the Company believes that free cash flow and adjusted free cash flow are useful non-GAAP measures for investors. Free cash flow and adjusted free cash flow do not have a uniform definition under GAAP in the United States and therefore, Teradata's definitions may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less total capital expenditures and adjusted free cash flow as free cash flow less the gross proceeds from the SAP settlement, plus the non-recurring legal and other expenses incurred in connection with the SAP litigation and resulting settlement, and taxes paid specific to the settlement agreement. Teradata's management uses free cash flow and adjusted free cash flow to assess the financial performance of the Company and believes they are useful for investors because they relate the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repay the Company's debt obligations and adjusted free cash flow adjusts the impact of the SAP settlement. Neither free cash flow or adjusted free cash flow represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from these measures. These non-GAAP measures should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.

(in millions)

For the
Three Months

For the
Six Months

ended June 30

ended June 30

Outlook

2026

2025

2026

2025

2026

Cash provided by operating activities (GAAP)

$106

$43

$507

$51

$665 to $685

           Less total capital expenditures

(1)

(4)

(12)

(5)

(~20)

Free Cash Flow (non-GAAP measure)

$105

$39

$495

$46

$645 to $665

           Less SAP gross settlement proceeds

-

-

(480)

-

(480)

           Plus legal and other expenses

-

-

121

-

121

           Plus taxes specific to the settlement

22

-

22

-

44

Adjusted Free Cash Flow (non-GAAP Measure)

$127

$39

$158

$46

$330 to $350

Note to Investors
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as "expect," "strive," "looking ahead," "outlook," "guidance," "forecast," "anticipate," "continue," "plan," "estimate," "believe," "focus," "see," "commit," "should," "project," "will," "would," "likely," "intend," "potential," or similar expressions. Forward-looking statements in this release include our 2026 third quarter and 2026 full year financial outlook and product innovation and demand. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: our strategy and ongoing business transformation, significant execution risk for our cloud, hybrid, on-premises, Artificial Intelligence ("AI") and Machine Learning ("ML") offerings, operational disruptions and unforeseen circumstances, impact of unanticipated delays or acceleration in our sales cycles to make accurate estimates impacting quarterly operating results, financial guidance and forecasts, the global economic environment and business conditions in general, including inflation, tariffs, and/or recessionary conditions; impact of price increase on our net sales, profit margins and earnings, the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including restructuring actions; risks inherent in operating in foreign countries, export controls and trade compliance, including sanctions, tariffs, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, IP-enforcement actions, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for our artificial intelligence, cloud, on-prem and hybrid offerings, tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradata's filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata's annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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. See how 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. 

INVESTOR CONTACT
Chad Bennett
[email protected]

MEDIA CONTACT
Jennifer Donahue
[email protected]

Schedule A

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts - unaudited)

For the Period Ended June 30

Three Months

Six Months

2026

2025

% Chg

2026

2025

% Chg

Revenue

Recurring 

$       363

$        354

3 %

$                763

$   712

7 %

Perpetual software licenses, hardware and other

8

3

167 %

9

13

(31 %)

Consulting services

39

51

(24 %)

82

101

(19 %)

Total revenue

410

408

0 %

854

826

3 %

Gross profit

Recurring

243

235

520

485

% of Revenue

66.9 %

66.4 %

68.2 %

68.1 %

Perpetual software licenses, hardware and other

2

-

3

1

% of Revenue

25.0 %

0.0 %

33.3 %

7.7 %

Consulting services

(2)

(5)

(4)

(8)

% of Revenue

(5.1 %)

(9.8 %)

(4.9 %)

(7.9 %)

Total gross profit

243

230

519

478

% of Revenue

59.3 %

56.4 %

60.8 %

57.9 %

Selling, general and administrative expenses

120

135

360

251

Research and development expenses

75

71

147

137

Income from operations

48

24

12

90

% of Revenue

11.7 %

5.9 %

1.4 %

10.9 %

Other (expense) income, net

(1)

(11)

472

(19)

Income before income taxes

47

13

484

71

% of Revenue

11.5 %

3.2 %

56.7 %

8.6 %

Income tax expense

1

4

103

18

% Tax rate

2.1 %

30.8 %

21.3 %

25.4 %

Net income 

$         46

$            9

$                381

$     53

% of Revenue

11.2 %

2.2 %

44.6 %

6.4 %

Net income per common share

Basic 

$       0.49

$        0.09

$               4.07

$  0.56

Diluted

$       0.48

$        0.09

$               3.95

$  0.55

Weighted average common shares outstanding

Basic

93.9

95.3

93.5

95.2

Diluted

96.2

96.0

96.4

97.0

Schedule B

TERADATA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions -  unaudited)

June 30,

 December 31, 

June 30,

2026

2025

2025

Assets

Current assets

Cash and cash equivalents

$               414

$               493

$               369

Accounts receivable, net

256

251

293

Inventories

5

13

5

Other current assets

98

80

90

Total current assets

773

837

757

Property and equipment, net

191

198

205

Right of use assets - operating lease, net

8

7

9

Goodwill

397

399

400

Capitalized contract costs, net

39

42

37

Deferred income taxes

166

209

231

Other assets

84

87

98

Total assets

$             1,658

$            1,779

$             1,737

Liabilities and stockholders' equity

Current liabilities

Current portion of long-term debt

$                    -

$                 25

$                 25

Current portion of finance lease liability

46

50

60

Current portion of operating lease liability

2

2

4

Accounts payable

55

96

115

Payroll and benefits liabilities

91

120

84

Deferred revenue

560

533

521

Other current liabilities

91

88

89

Total current liabilities

845

914

898

Long-term debt

-

431

443

Finance lease liability

45

45

46

Operating lease liability

6

4

5

Pension and other postemployment plan liabilities

111

114

108

Long-term deferred revenue

12

11

12

Deferred tax liabilities

12

12

10

Other liabilities

34

18

39

Total liabilities

1,065

1,549

1,561

Stockholders' equity

Common stock

1

1

1

Paid-in capital

2,361

2,305

2,244

Accumulated deficit

(1,617)

(1,923)

(1,932)

Accumulated other comprehensive loss

(152)

(153)

(137)

Total stockholders' equity

593

230

176

Total liabilities and stockholders' equity

$             1,658

$            1,779

$             1,737

Schedule C

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions - unaudited)

For the Period Ended June 30

Three Months

Six Months

2026

2025

2026

2025

Operating activities

Net income 

$                  46

$                    9

$                 381

$                  53

Adjustments to reconcile net income to net cash provided

  by operating activities:

Depreciation and amortization

23

23

48

43

Stock-based compensation expense

33

31

62

53

Deferred income taxes

4

(6)

40

4

Loss on Blue Chip Swap

1

-

1

-

Changes in assets and liabilities:

Receivables

66

14

(5)

(59)

Inventories

-

8

8

13

Current payables and accrued expenses

(32)

(24)

(47)

(54)

Deferred revenue

(43)

(28)

28

11

Other assets and liabilities

8

16

(9)

(13)

Net cash provided by operating activities

106

43

507

51

Investing activities

Expenditures for property and equipment

(1)

(4)

(11)

(5)

Additions to capitalized software

-

-

(1)

-

Business acquisitions and other investing activities, including loss on Blue Chip Swap

(1)

(1)

(1)

(1)

Net cash used in investing activities

(2)

(5)

(13)

(6)

Financing activities

Repurchases of common stock

(40)

(28)

(74)

(72)

Repayments of long-term borrowings

(450)

(6)

(456)

(12)

Payments of finance leases

(15)

(17)

(32)

(33)

Other financing activities, net

(2)

-

(7)

(2)

Net cash used in financing activities

(507)

(51)

(569)

(119)

Effect of exchange rate changes on cash and cash equivalents

2

14

(4)

23

(Decrease) increase in cash, cash equivalents and restricted cash

(401)

1

(79)

(51)

Cash, cash equivalents and restricted cash at beginning of period

816

369

494

421

Cash, cash equivalents and restricted cash at end of period

$                 415

$                 370

$                 415

$                 370

Supplemental cash flow disclosure:

Non-cash investing and financing activities:

Assets acquired by finance leases

$                    8

$                  19

$                  28

$                  52

Assets acquired by operating leases

$                    2

$                    1

$                    3

$                    2

Schedule D

TERADATA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions - unaudited)

For the Three Months Ended June 30

For the Six Months Ended June 30

2026

2025

% Change
As Reported

% Change
Constant
Currency (2)

2026

2025

% Change
As Reported

% Change
Constant
Currency (2)

Segment Revenue

Product Sales

$           371

$           357

4 %

3 %

$           772

$           725

6 %

5 %

Consulting Services

39

51

(24 %)

(23 %)

82

101

(19 %)

(19 %)

Total segment revenue

410

408

0 %

0 %

854

826

3 %

2 %

Segment gross profit

Product Sales

248

239

529

492

% of Revenue

66.8 %

66.9 %

68.5 %

67.9 %

Consulting Services

-

(1)

2

(2)

% of Revenue

0.0 %

(2.0 %)

2.4 %

(2.0 %)

Total segment gross profit

248

238

531

490

% of Revenue

60.5 %

58.3 %

62.2 %

59.3 %

Reconciling items(1)

(5)

(8)

(12)

(12)

Total gross profit

$           243

$           230

$           519

$           478

% of Revenue

59.3 %

56.4 %

60.8 %

57.9 %

(1) 

Reconciling items include stock-based compensation, amortization of acquisition-related
intangible assets and acquisition, integration and reorganization-related items

(2) 

The impact of currency is determined by calculating the prior period results using the current-year
monthly average currency rates.

SOURCE Teradata

Organizations can now purchase advanced conversational analytics solutions directly within Amazon Web Services (AWS), drawing on existing data without costly movement or integration complexity

, /PRNewswire/ -- Teradata (NYSE: TDC) today announced the availability of its enterprise-grade Data Analyst Agent in AWS Marketplace, bringing AI-assisted, conversational analytics directly into existing AWS environments. Teradata customers can now quickly deploy the Teradata Data Analyst Agent within AWS, accelerating time-to-value and expanding access to advanced analytics across the business.

About the Teradata Data Analyst Agent
The Teradata Data Analyst Agent enables advanced, multi-step analytics by orchestrating SQL queries on the Teradata platform and performing iterative statistical analysis using Python within AWS. True agency is achieved as the agent seeks to understand the intent of each analysis request, then autonomously iterates across what data it pulls and summarizes to produce a business-user-ready answer.

The agent supports secure pushdown processing to ensure compliance, adapts to existing data models without custom training, and maintains conversational context for progressive exploration. Integrated with Amazon Bedrock AgentCore for memory and session management, it delivers real-time insights without requiring data movement.

Key benefits of the Teradata Data Analyst Agent in AWS Marketplace

Seamless integration: Works effortlessly with existing Teradata platform environments and AWS, eliminating data movement complexity and minimizing integration challenges. Enterprise-grade reliability: Secure pushdown processing and built-in governance ensure compliance and security at scale. Faster time-to-value: Prebuilt agentic workflows accelerate deployment and deliver insights rapidly, shortening development cycles. Cost efficiency: Reduce upfront investment and leverage shared innovation for a lower total cost of ownership, available directly through AWS Marketplace procurement. Customizable AI services: Expert guidance provided by Teradata AI Services to align with enterprise architecture, governance standards, and business requirements. Executive quote
"Enterprises are looking for AI that delivers results on the data and infrastructure they already have, not solutions that require them to start over. Bringing our Data Analyst Agent to AWS Marketplace means customers can activate the intelligence their enterprise has been building for years, delivering real-time outcomes with the governance and security their business demands."

- Sumeet Arora, Chief Product Officer at Teradata

Availability
The Data Analyst Agent for AWS is available now in AWS Marketplace through Teradata AI Services.

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. 

MEDIA CONTACT
January Machold
[email protected]

SOURCE Teradata

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. 

MEDIA CONTACT
Jennifer Donahue
[email protected]

SOURCE Teradata

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%.

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.

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.

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.

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.

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

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) 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.

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.

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.

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.