Track market-moving stories before they get noisy

On October 21, 2026, Teradata Corp TDC shares rose 3.1% to $33.45, reflecting a significant increase in the stock's performance over recent weeks. The stock has traded between $20.54 and $41.78 over the past 52 weeks, showcasing both volatility and opportunity.

GF Value™ verdict: TDC is currently priced at $33.45, which is 11.3% above its GF Value™ estimate of $30.05, indicating it is overvalued.GF Score™: With a score of 75/100, TDC is classified as Above Average, suggesting a generally favorable assessment compared to its peers.Notable signal: Insider activity shows that insiders sold $10.1 million worth of shares over the past 12 months without any purchases, which may indicate a lack of confidence among company executives.Is TDC Overvalued or Undervalued?The current price of Teradata Corp at $33.45 stands at an 11.3% premium to the GF Value™ of $30.05, suggesting that the stock is overvalued. The GF Value™ represents GuruFocus' proprietary intrinsic-value estimate, which is based on historical trading multiples, past business growth, and future performance projections. Being overvalued poses risks for investors, particularly if market sentiment shifts or if the company fails to meet growth expectations. The GF Valuation label identifies the stock as Modestly Overvalued, emphasizing caution for potential buyers.

While the stock has shown strong momentum recently, with a year-to-date increase of 9.9% and a remarkable 56.9% rise over the past year, the current valuation raises questions about the sustainability of this growth. The market's enthusiasm may not be justified by the underlying financial fundamentals, especially given the recent insider selling, which could signal a lack of confidence from those closest to the company.

How Does TDC's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)7.0x39.2xForward P/E11.5xN/AComparing Teradata's current P/E ratio of 7.0x to its 5-year median P/E of 39.2x reveals a stark contrast, indicating that the stock is currently trading significantly below its historical valuation. This P/E analysis agrees with the GF Value™ verdict, as it underscores the potential overvaluation of TDC despite its impressive price performance in the short term. The low P/E could suggest either a market mispricing or declining investor expectations for growth relative to past performance.

What Does TDC's GF Score™ Tell Us?The GF Score™ evaluates a company's overall financial health and growth potential based on various metrics. TDC's score of 75/100 indicates an Above Average standing in the market. The strongest sub-ranks are in Financial Strength and Profitability, both rated at 7/10, while the weakest is in Growth, with a rank of 3/10.

MetricRatingGF Score™75Financial Strength7/10Profitability7/10Growth3/10Valuation6/10Momentum9/10Overall, TDC's GF Score™ suggests a company with solid financial strength and profitability, yet facing challenges in growth. The high momentum rank of 9/10 indicates that the stock has been performing well in the short term, but the low growth rating could raise concerns about its long-term sustainability and expansion potential.

What Are Gurus and Insiders Doing with TDC?Currently, 5 gurus hold Teradata Corp shares, with 3 increasing their positions and 3 trimming their holdings in recent quarters. This mixed signal reflects varied perspectives among institutional investors regarding TDC's future prospects. The activity suggests that while some gurus may see value or potential in the stock, others are cautious or reassessing their positions.

Additionally, insider activity has shown that executives have sold $10.1 million worth of shares over the past 12 months with no reported insider purchases. This trend could indicate a lack of confidence in the stock's future trajectory from those within the company, which may be a red flag for potential investors.

What This Means for InvestorsBased on the GF Value™ assessment, Teradata Corp is currently overvalued at $33.45, trading at an 11.3% premium to its intrinsic value of $30.05. While the stock has demonstrated positive momentum, the valuation metrics and insider selling signal caution for prospective investors. For further insights, you can visit the Teradata Corp TDC stock page and explore more details about its valuation on the GF Value™ page.

Frequently Asked QuestionsWhat is TDC's GF Score™?

TDC has a GF Score™ of 75/100, indicating it is rated as Above Average compared to its peers, suggesting a generally favorable assessment.

Is TDC overvalued or undervalued?

According to the GF Value™, TDC is overvalued at its current price of $33.45, which is 11.3% above its intrinsic value estimate of $30.05.

What is TDC's P/E ratio?

TDC's P/E ratio is currently 7.0x, which is significantly lower than its 5-year median of 39.2x, indicating that the stock is trading below its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

New capabilities protect the sensitive data and intelligence behind enterprise AI while keeping mission-critical operations available and recoverable

, /PRNewswire/ -- Teradata (NYSE: TDC) today announced new privacy, security, and resiliency capabilities designed to address one of the defining challenges of enterprise AI: how sensitive data is protected, who and what can access it, and whether it remains available and recoverable when something goes wrong. Teradata addresses all three through an integrated approach that reduces raw identity exposure, enforces protection closer to the data, and keeps the intelligence powering AI available and recoverable. In practice, that means protecting the intelligence behind AI without diminishing what makes it valuable.

Key Capabilities

Poly-Anonymization®: reduces raw identity exposure while preserving the relationships and utility AI and analytics require Format-preserving encryption: protects sensitive values without changing their format or breaking downstream systems Post-quantum security and readiness: strengthens protection against emerging quantum-era threats through Anonomatic PII Vault® and TLS 1.3 hybrid-key exchange for data in transit Immutable backup protection: prevents recovery points from being modified or deleted, strengthening cyber-recovery readiness Database-level high availability: an additional availability layer for mission-critical workloads, distinct from disaster recovery Why It Matters Now
As AI becomes mission-critical, it expands both the value and the vulnerability of enterprise data. Sensitive information now moves among users, applications, models, and agents, making it harder to secure at the boundary alone. AI is designed to combine disparate information to find patterns and make decisions, which means data that isn't individually identifiable can become so when AI brings it together.

Executive Quote
"Privacy, security, and resiliency have historically been treated as separate problems with separate solutions. That approach doesn't hold up when AI is moving sensitive data across users, applications, models, and agents simultaneously. This announcement reflects how we think those capabilities need to work together, and it's the foundation for how we intend to extend that protection as AI environments grow more complex and the actors operating within them multiply."
          -Sumeet Arora, Chief Product Officer, Teradata

Privacy Protection
Access control determines who can see sensitive data. Identity reduction changes how much identifying information needs to be present in the analytical environment in the first place. Teradata combines both, through an OEM partnership with Anonomatic, whose privacy capabilities are natively available to Teradata customers.

Poly-Anonymization replaces PII fields with a stable identifier while holding underlying identity separately within Anonomatic PII Vault, a post-quantum-secure environment built with multiple layers of overlapping security controls designed to protect sensitive identity information. Authorized users can restore identity when a legitimate use case requires it, but everyone else works with data that retains its analytical structure, its relationships, and its utility. The result is an analytical environment where sensitive data can be used for AI, analytics, testing, and approved collaboration without broadly exposing who the data is about.

Unlike approaches that rely solely on mathematically reversible encryption, PII Vault combines identity separation, Poly-Anonymization, access controls, and additional layered protections to reduce identity exposure while retaining the utility required for AI and analytics. Format-preserving encryption extends that protection to situations where a value's structure matters to downstream systems, protecting sensitive data without breaking the applications and workflows built around it.

Testing at large scale demonstrated that Teradata's Anonomatic-powered privacy-preserving controls can support enterprise analytical workloads without the performance tradeoffs organizations typically associate with data privacy. Multi-table join queries on protected data used fewer Teradata resources than equivalent queries on unprotected data, though results will vary by workload and configuration.

Partner Quote
"Enterprise AI creates a fundamentally different privacy challenge. Organizations need to use sensitive, individual-level data to build effective AI, but the traditional tools for protecting that data weren't designed to preserve what AI needs to work. Our partnership with Teradata makes it possible to reduce identity exposure at enterprise scale without forcing organizations to choose between protection and utility."
          -Matt Fleck, Founder and CEO at Anonomatic, a data security software company focused on making PII data privacy secure, simple and cost effective

Native Data Security
Protection that follows the data requires controls enforced at the data layer, not just at the systems surrounding it. Teradata applies classification, policy enforcement, and access controls closer to the data itself. Together, these capabilities provide a governance-led foundation for protecting data and intelligence across users, applications, and workloads.

For data in transit, Teradata introduces post-quantum protection via TLS 1.3 hybrid-key exchange, which combines classical and post-quantum cryptographic algorithms in a single handshake. As quantum computing advances make current encryption standards increasingly vulnerable, organizations that establish cryptographic readiness now will be better positioned for what's ahead.

New native capabilities including dynamic data masking, data classification and tagging, column-level encryption, and global identity extend that protection across the data layer. Through a partnership with Immuta, a data authorization platform between identity and enterprise data, dynamic ABAC brings identity-aware, attribute-driven access control that enforces policy consistently across users and AI workloads without duplicating data or rewriting governance rules.

Teradata's security architecture is designed to extend as AI environments evolve, with ongoing investment in controls that govern how AI agents access and act on enterprise data within policy boundaries.

Enterprise Data Protection
For enterprises running AI at scale, a cyberattack is a threat to the data, context, and operational knowledge that AI depends on to function. Teradata Enterprise Data Protection addresses that reality through a workload-aligned approach that lets organizations match protection levels to business criticality rather than applying the same resiliency architecture to every workload. The objective is not simply to restore data, but to restore the trusted context AI needs to resume mission-critical operations.

Database-level high availability via real-time replication introduces an additional availability layer designed for continuous synchronization and low recovery objectives.

Immutable backup protection strengthens cyber-recovery readiness by ensuring recovery points cannot be modified, encrypted, or deleted, even by privileged administrators. As ransomware increasingly targets backup data specifically, protected recovery points have become as critical as the protection strategies built around them. Teradata's resiliency architecture is designed to extend as cyber threats and recovery requirements evolve.

Additional capabilities including backup and recovery, scheduled data synchronization, and disaster recovery round out a more consistent Enterprise Data Protection experience.

Availability

Privacy capabilities, powered by Anonomatic and delivered by Teradata, are available now for Teradata Cloud on AWS, Azure, and Google Cloud. Native data security capabilities including dynamic data masking, data classification and tagging, and column-level encryption are available on Teradata Cloud across AWS, Azure, and Google Cloud. Dynamic data masking, data classification and tagging are available for Teradata Factory and on-premises deployment options. Teradata Enterprise Data Protection including immutable backup protection is available now on Teradata Cloud across AWS, Azure, and Google Cloud with availability on Teradata Customer Cloud planned in the coming months.  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.

Forward-Looking Statements
This press release contains "forward-looking statements" about the expectations, beliefs, plans, and intentions relating to Teradata's privacy, security, and resiliency capabilities. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata's results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata's financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

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.

Poly-Anonymization and PII Vault are registered trademarks of Anonomatic, Inc.

MEDIA CONTACT
Jennifer Donahue
[email protected]

SOURCE Teradata

Earnings conference call to begin at 1:30 p.m. PT on Thursday, November 5, 2026

, /PRNewswire/ -- Teradata Corporation (NYSE: TDC) today announced that it will release its third quarter 2026 financial results after the market closes on Thursday, November 5, 2026. Teradata will host a conference call and live webcast to discuss its results and provide a business and financial update.

Conference Call Details
The conference call will begin at 1:30 p.m. PT on November 5, 2026. Investors and participants may attend the call by dialing (585) 542-9983 and entering access code 896184734. For investors and participants outside the United States, see global dial-in numbers here, and use access code 896184734.

The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata website at investor.teradata.com. 

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments. Learn more at Teradata.com.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. 

INVESTOR CONTACT
Chad Bennett
[email protected]

MEDIA CONTACT
Jennifer Donahue
[email protected]

SOURCE Teradata Corporation

New distributed Python capability accelerates large-scale AI operations while keeping data and compute within the Teradata platform

, /PRNewswire/ -- Teradata (NYSE: TDC) today announced the general availability of Elastic Python Compute within AI Studio. The capability gives enterprise data science teams a managed, distributed Python environment for scaling AI compute and machine learning workloads through parallel Python execution for data engineering, machine learning, and model development.

Elastic Python Compute is built on Ray, a distributed computing framework, and integrates natively with the Teradata Autonomous Knowledge Platform and AI Studio. Data scientists can parallelize model training, execute custom Python applications at scale, and serve high-scale ML and AI workloads without the overhead of manual cluster setup or managing Ray clusters. Elastic Python Compute supports both single-server and cluster deployments, giving organizations the flexibility to scale from individual workloads to enterprise-scale operations, with faster development cycles, stronger governance controls, and lower infrastructure costs.

Keeping Data and AI Compute Within the Platform
Elastic Python Compute supports local model hosting and governance, with no external API dependencies and no token-based inference costs. AI workloads run entirely within the Teradata platform, including AI Studio, with no data movement required. Elastic Python Compute reads and writes data directly to the Teradata Database, S3 object storage, and Open Table Format catalogs, such as Apache Iceberg and Delta Lake, enabling data science teams to incorporate files and images for model training and scoring. Flexible cluster management, including the ability to run separate clusters for different workloads, allows teams to optimize cost and performance by selecting CPU or GPU compute based on the task at hand. Massive parallel processing supports large-scale AI and data workloads across cloud, on-premises, and hybrid deployments.

The platform also supports Arrow Flight SQL, enabling parallel, columnar data transfer between applications and the Teradata platform at speeds up to 84x faster than traditional row-based transfer methods, based on Teradata benchmark testing. *

Customer Impact
A retail bank had been exporting tens of millions of customer records to local Python environments for credit feature engineering, a practice that created data governance gaps and put the organization at risk of breaching data residency regulations. With AI Studio's in-database analytics, credit scoring pipelines covering payment history, utilization ratios, and delinquency flags now run three times faster while remaining within the governance perimeter. A complete audit trail from raw data through feature engineering to final model output allows regulators to replay any step in the process on demand.

For a major telecommunications provider, the challenge was scale. Its data science team had been exporting billions of call detail records and network telemetry events to external Python clusters, a slow, costly process that created data sovereignty risk. Feature engineering across call drop rates, signal quality indices, and ARPU (average revenue per user) trends now runs directly inside the Teradata platform. The churn prediction model trains entirely within the provider's own infrastructure, satisfying both GDPR obligations and national data residency requirements. Feature engineering runtime fell from four hours to twenty minutes, and model accuracy improved by twelve percent as a result of training on the full dataset rather than a constrained sample.

In the public sector, a government maritime agency needed to track vessels switching off their transponders to obscure their movements. Using Elastic Python Compute, the agency's data science team combined satellite imagery, radar signals, AIS data, and commercial imaging to reconstruct vessel movements that would otherwise go undetected. AI-driven analytics fused these diverse data sources into actionable maritime intelligence, improving visibility and enabling faster, more effective responses to security threats at sea.

Executive Perspective 
"Enterprise data science teams have spent years working around the fundamental constraint of moving data outside their platforms to build and train AI models, accepting the governance risk and cost that comes with it. Elastic Python Compute removes that constraint. Teams can now run distributed AI workloads at scale where their data already lives, and get to production faster without compromising on governance or cost control."
— Sumeet Arora, Chief Product Officer, Teradata

Availability
Elastic Python Compute is generally available within AI Studio on AWS and Microsoft Azure. Availability on Google Cloud is expected in Q4 2026, with on-premises available now with Teradata Factory.

* Performance results may vary. Benchmarks were conducted in a specific test environment and may not reflect results in your infrastructure.

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 Corporation

Enterprise AI customer engagements show how healthcare and life sciences organizations are activating intelligence from their data and institutional knowledge at scale

, /PRNewswire/ -- Teradata (NYSE: TDC) showcased three customer engagements that demonstrate how leading healthcare and life sciences organizations are closing the gap between institutional knowledge and real-world outcomes, advancing disease prediction, improving patient engagement at scale, and navigating high-stakes regulatory initiatives with governed, in-database intelligence. Each engagement demonstrates how AI can move from concept to measurable outcome without compromising the governance, security, and trust that these environments demand.

The urgency is real, and in healthcare the data foundation challenge is more acute than in other industries. According to a Wakefield Research survey of 1,000 senior technology and data leaders commissioned by Teradata, a staggering 90% of healthcare leaders report that 20% or less of their data is sufficiently described and contextualized for AI agents to act on reliably. Healthcare organizations lag noticeably behind every other vertical in agentic AI maturity, with 40% still in the earliest stage, experimenting with activating their intelligence but not leveraging it for advantage. Yet some organizations are pulling ahead, and these engagements illustrate what a purpose-built data foundation for healthcare AI can deliver.

AI case studies —Healthcare & Life Sciences

AI-powered disease prediction that could transform how health systems plan via a leading European research institutionChallenge: Healthcare systems face mounting pressure to plan services more accurately as populations age and costs rise. Traditional demand forecasting cannot predict which services different patient cohorts will need, and when. At the same time, large language model inference costs have historically made enterprise-scale healthcare AI prohibitively expensive for most organizations.

AI solution: Researchers at a leading European molecular biology and oncology institution developed a compact, 2-million-parameter model that repurposes transformer architecture to predict disease onset across patient populations up to 10 years in advance. Rather than processing text, the model encodes patient age timelines in place of positional sequences and is fed longitudinal patient data to forecast future disease onset at cohort scale. Teradata's forward-deployed engineering team used Bring Your Own Model (BYOM) technology to deploy the model directly in-database, and nPath to structure complex patient journey sequence data, all of which was operational within three days.

Outcome: The model delivers 70% accuracy in disease onset prediction a decade ahead, sufficient for aggregate, population-level healthcare demand planning. Running in-database, inference costs are a fraction of what large language model alternatives would require. What began as a research proof-of-concept became a live demonstration of platform agility and a reusable foundation for healthcare AI that health systems can act on today. AI-powered patient engagement and digital care at a large U.S. integrated health systemChallenge: A health system serving more than one million patients across predominantly rural communities has unique challenges. Disengaged patients forgo care, chronic conditions go unmanaged, and underserved populations, including expectant mothers in areas with limited access to obstetric specialists, can fall through the gaps entirely.

AI solution: The Teradata platform provided the data harmonization and machine learning foundation the organization needed to improve care for its dispersed patient population. With a decade of patient data unified in a single governed environment, the health system built a portfolio of digital care programs powered by Python-based ML risk-stratification models running directly in-database, drawing on nearly 150 patient features, to identify, target, and proactively connect with the right patients. The models provide clinicians with real-time decision support as they round on patients and enable an obstetrics remote monitoring program that extends 24/7 digital care to expectant and postpartum mothers in underserved communities.

Outcome: The results were transformative: a 520% increase in patient engagement across digital programs, with patients aligning to their care protocols at dramatically higher rates –- thereby improving patient health. The model also enables dynamic tiering. As patients' chronic conditions improve under remote monitoring, care can be appropriately scaled. Governed in-database AI for a high-priority regulatory initiative at a major U.S. healthcare payerChallenge: In healthcare, regulation often moves faster than the systems built to meet it. New transparency requirements, audit mandates, and compliance initiatives can arrive as executive-level priorities with timelines measured in weeks, not quarters. For a major U.S. healthcare payer facing exactly this scenario, the question was not whether the organization had the data. The question was whether it could reason on it accurately, securely, and at scale.

AI solution: Teradata applied advanced AI directly within the Teradata platform to support the payer's high-priority regulatory initiative. The solution combined large language models, embeddings, and in-database similarity matching to deliver intelligent, governed insights where the data already lives. There was no data movement, no external pipelines, and no compromise on the security model or governance controls the organization required. The approach is designed to scale for enterprise healthcare workloads.

Outcome: What began as a compliance initiative has the potential to become a repeatable blueprint for how healthcare payers tackle regulatory and compliance challenges across the broader market. The engagement demonstrated that governed, in-database AI is not a workaround for high-stakes scenarios, but instead is the architecture purpose-built for them. The Wakefield Research survey found that 43% of healthcare organizations cite governance, security, or access restrictions as a primary barrier to deploying AI agents on enterprise data; this engagement shows what it looks like when that barrier is resolved by building governance into the foundation from day one, rather than attempting to bolt it on after the fact. Executive Perspective 
"Healthcare and life sciences are industries rich in institutional knowledge such as clinical records, claims data, utilization patterns, and decades of patient history. The problem has never been the data. It has been the gap between what these organizations know and what they do with that knowledge. These engagements show what it looks like to close that gap: disease prediction that reshapes how health systems plan for the future, digital care programs that reach patients who would otherwise fall through the cracks, and compliance intelligence that gives payers the confidence to act in days rather than months."
     -     Mike Hutchinson, Chief Operating Officer, Teradata

Teradata AI Services are purpose-built to turn that knowledge into action by combining expert methodology with the Teradata platform in a sprint-based delivery model. For healthcare enterprises, that means a structured, accelerated path from proof of concept to production, without compromising the governance, auditability, and trust their regulators, clinicians, and patients expect.

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 Corporation

On October 01, 2026, Teradata Corp TDC shares rose 3.7% today, bringing the current price to $29.92. This movement falls within a 52-week range of $20.33 to $41.78, highlighting the stock's volatility over the year.

GF Value™ verdict: TDC is currently priced at $29.92, which is 0.7% below the GF Value™ estimate of $30.14, indicating a slight undervaluation.GF Score™ is 78/100, reflecting an above-average performance across various metrics.Most notable signal: TDC has a momentum rank of 9/10, suggesting strong upward price movement in recent months.Is TDC Overvalued or Undervalued?Evaluating Teradata's current price of $29.92 against the GF Value™ of $30.14 shows the stock is slightly undervalued by 0.7%. The GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value based on factors such as historical trading multiples, business growth, and future performance projections. This marginal undervaluation implies there may be a small margin of safety for potential investors, although the opportunity is limited.

Moreover, the GF Valuation label categorizes TDC as fairly valued, suggesting that the stock is reasonably priced based on its fundamentals. However, potential investors should consider that a 0.7% undervaluation does not present a significant margin of safety and could entail risks should market conditions change or if company performance fails to meet expectations.

How Does TDC's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)6.3x40.3xForward P/E10.3xN/ACurrently, Teradata's P/E (TTM) stands at 6.3x, significantly below its 5-year median P/E of 40.3x. This indicates that the stock is trading well below its historical valuation levels, aligning with the GF Value™ assessment that suggests TDC is undervalued. The forward P/E of 10.3x further supports this narrative, as it also remains below historical averages, reinforcing the opportunity for potential growth in valuation.

What Does TDC's GF Score™ Tell Us?The GF Score™ measures a company's financial strength, profitability, growth potential, valuation, and momentum, providing a comprehensive overview of a stock's overall quality. TDC's score of 78/100 indicates a solid performance, with notable strengths in Valuation (9/10) and Momentum (9/10). However, its Growth Rank (3/10) suggests that the company may face challenges in expanding its revenue or earnings at a rapid pace.

MetricRatingGF Score™78/100Financial Strength7/10Profitability7/10Growth3/10Valuation9/10Momentum9/10In summary, TDC's GF Score™ showcases a well-rounded company with robust valuation and momentum ranks. However, the lower growth rank suggests that while Teradata is currently undervalued, investors should remain cautious about its growth prospects moving forward.

What Are Gurus and Insiders Doing with TDC?Currently, five gurus hold positions in Teradata Corp, with three adding to their holdings and three trimming their positions in recent quarters. This mixed signal indicates a divided sentiment among knowledgeable investors regarding TDC's future prospects.

Furthermore, insider activity reveals that insiders have sold $10.1 million worth of shares over the past year, with no buying activity reported. This trend may raise questions about the confidence of insiders in the company's future performance, suggesting that while some gurus are optimistic, insider selling could indicate potential concerns about growth or company direction.

What This Means for InvestorsBased on the analysis of GF Value™, TDC appears to be fairly valued with a slight undervaluation of 0.7%. The strong valuation and momentum ranks coupled with some concerns regarding growth and insider selling present a mixed picture for potential investors. As such, while there may be an opportunity for modest gains, caution is warranted given the overall uncertainty surrounding the company's growth trajectory. For further details on Teradata Corp, visit the Teradata Corp TDC stock page.

Frequently Asked QuestionsWhat is TDC's GF Score™?

TDC's GF Score™ is 78/100, indicating an above-average performance when compared to its peers across multiple financial metrics.

Is TDC overvalued or undervalued?

According to the GF Value™, TDC is slightly undervalued at 0.7% below its estimated intrinsic value, presenting a small opportunity for investors.

What is TDC's P/E ratio?

The current P/E ratio for TDC is 6.3x, which is significantly below its 5-year median of 40.3x, indicating that the stock is trading at a historically low valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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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.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Teradata (TDC - Free Report) Teradata offers an open and connected hybrid cloud analytics and data platform for AI. The hybrid cloud platform, named Teradata Vantage, help enterprises solve business problems with Teradata’s capabilities to provide harmonized data, trusted AI, and faster innovation, at scale.

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

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 5% for the current fiscal year.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $2.71 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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum 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 +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.

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 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.

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.

Momentum investors should take note of this Computer and Technology stock. TDC has a Momentum Style Score of B, and shares are up 6.7% over the past four weeks.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $2.71 per share. TDC boasts an average earnings surprise of +27.5%.

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

Designed specifically for enterprise data work, Tera brings governed business knowledge and intelligent execution to every data role, at lower cost and greater speed

, /PRNewswire/ -- Teradata (NYSE: TDC) today announced a major evolution of Tera, transforming it into an agentic coworker for enterprise data work. Where general-purpose AI assistants generate answers, Tera delivers outcomes. Through natural language and guided execution, everyone from business analysts to platform engineers and database administrators can analyze data, build AI applications, operate infrastructure, and automate complex workflows – all from a single governed environment that reaches enterprise data across platforms, not just within Teradata. Industry expertise and business knowledge are embedded across every interaction, secured by enterprise identity and policy, so no deep Teradata specialization is required.

Tera Tera includes three key capabilities:

*NEW* Tera Context Engine, a vendor-neutral context and orchestration layer that gives AI governed business knowledge; *NEW* Tera Harness, an intelligent execution layer that routes work across the right skills, tools, data, and models; and *NEW* Agent Skills, purpose-built for data engineering, data analysis, and data science. Tera addresses two requirements enterprise AI has lacked: the ability to understand the business and the ability to act on that understanding. Teradata customers gain more reliable AI outcomes, better economics from every model interaction, and faster time to value, supported by Teradata AI Services for organizations that want to accelerate deployment.

Benchmark Results
Tera was purpose-built for enterprise data work, optimizing execution across analytics, vectors, and models. In testing on SWE-bench Pro using the same Opus 5 model, Tera consumed 73% fewer tokens than Claude Code while achieving higher task completion rates, completed work 42% faster, and incurred 58% lower total cost. On data-eng-bench, a benchmark developed by Snowflake Labs and Bespoke Labs for data pipeline engineering, Tera delivered 53% lower cost per reliably solved task than Snowflake Cortex Code using Opus 5, based on their published benchmark data. Across data-eng-bench and ADE-bench, Tera earned benchmark-leading accuracy, achieving the highest Pass3 score on data-eng-bench and tying for the top score on ADE-bench. Full benchmark methodology and results, including materials for independent validation, are available here.

Teradata Executive Quote
"Most enterprises are not starting from scratch with AI. They are dealing with tools that do not work together and a skills gap that makes those tools hard to use at scale. Tera is designed to work across that environment, putting business context, intelligent execution, and pre-built expertise into the hands of every person working with data. And equally important is what enterprises do not give up: control over their models, their data, and where everything runs. The result is AI that actually gets work done, at lower cost, with less overhead."
-Sumeet Arora, CPO, Teradata

Tera Details and Components
Tera is part of the Teradata Autonomous Knowledge Platform and brings together three purpose-built capabilities that can be combined or used independently: Tera Context Engine for governed enterprise knowledge, Tera Harness for intelligent execution, and Tera Agents for specialized expertise. Together, they make Tera an agentic coworker that can understand the business, coordinate the right capabilities, and help drive data work through to an outcome. Organizations retain the ability to choose which models they use, where workloads run, and how enterprise data is accessed, across cloud, on-premises, and sovereign environments.

Tera executes AI natively within the Teradata environment, including the Teradata Console for database admins, running analytic and ML workloads directly on enterprise data without external model calls. This eliminates data movement and latency, and reduces hallucination risk for quantitative tasks like forecasting, regression, and segmentation.

*NEW* Tera Context Engine
Tera Context Engine is an open, neutral context and orchestration layer that operates above and across the data environments enterprises already use. It connects databases, structured and unstructured data platforms, pipeline engines, catalogs, models, and AI agents without moving data, replacing existing technologies, or committing to a single vendor. Importantly, Tera Context Engine is not limited to Teradata-managed data, giving organizations a consistent foundation of trusted knowledge regardless of where their data lives. Native Context Graph: By transforming scattered enterprise data into reusable business knowledge, Tera Context Engine connects metadata, lineage, semantics, and business meaning as relationships rather than flattening them into relational structures. Unlike catalogs or ontologies alone, it keeps that knowledge connected to governance, lineage, and access controls as it moves across systems and agents. It also reads from and writes back to existing systems of record, continuously learning from real enterprise use and improving over time with significantly less human effort to maintain. The result is more complete and explainable context, with AI outputs that carry provenance organizations can understand and defend.

Neurosymbolic Models: The new offering combines autonomous semantic mapping and deterministic retrieval with Industry Knowledge Models, the product of Teradata's human-validated expertise and engagement with some of the world's most complex enterprises. Rather than requiring agents to construct business meaning from scratch, Industry Knowledge Models provide a symbolic knowledge foundation that combines explicit enterprise knowledge with statistical AI, capturing the specific terminology, relationships, policies, and operating conditions that define how an industry works. Enterprises get the benefit of fewer agent errors and faster time to value.

Deterministic Query Economics: Governed semantic context and deterministic retrieval shift work away from expensive probabilistic reasoning toward governed execution paths, so models spend fewer calls on established definitions. This delivers higher accuracy, lower inference costs, and more predictable economics as agentic workloads scale. Critical for regulated industries, AI outputs stay auditable and traceable to source data because lineage, access policies, and compliance controls travel with the knowledge as it moves across systems.

Governed Agentic Automation: Beyond supplying context for AI to consume, Tera Context Engine enables agents to act on governed context, automating data product creation, pipeline specifications, and validation controls while applying enterprise definitions and policies consistently. The result is faster delivery of trusted data products with less manual preparation and governance effort, at enterprise scale.

*NEW* Tera Harness
Unlike general-purpose agents that generate responses and leave users to act on them, Tera Harness turns intent into outcomes. It maintains context across workflows and coordinates the right skills, tools, data, and models at each step without manual routing. Cost-Optimized Loop: Tera Harness limits unproductive iterations before they translate into cost, batching independent work, removing model and tool interactions that do not improve the outcome, and bounding execution based on task progress. Rather than relying on repeated LLM reasoning at every step, Tera applies 84 proven execution patterns pre-inference, so agents start with an execution plan. The result is governed, multi-step work that completes reliably at enterprise scale, without runaway model iterations.

Loop-Embedded Guardrails: Before execution begins, Tera Harness applies pre-inference guardrails, loads relevant memory, and plans the work ahead. Safety, policy controls, and human approvals are embedded directly inside the agent loop, blocking high-risk actions before they execute. Unlike standard agents that rely on self-policing or external filters, Tera enforces governance at the point of execution, protecting against unauthorized actions and destructive operations.

Go-Native Performance Core: Tera Harness is built on a Go-native engine and gRPC to deliver high-concurrency agent execution and low-latency communication. Where standard agent frameworks run each agent as a separate process, driving up infrastructure costs and latency at scale, Tera supported 512 concurrent agents on a single 8-vCPU VM, serving 279 tool calls per minute. That means enterprises can scale agentic workloads without the infrastructure costs and latency spiral that other frameworks introduce with every agent added.

Durable Agentic Execution: As execution unfolds, Teradata Harness monitors progress, recovers from failures rather than abandoning tasks, and provides full observability into how work was completed. State management and checkpointing are built directly into the runtime layer, so agents can run for days or weeks, pause for human approval at zero compute cost, and resume exactly where they left off after infrastructure failures. Unlike most agent frameworks, which require a separate orchestration layer to survive failures while continuing to consume cloud resources during long-running waits, Tera handles durability natively.

For enterprises managing AI at scale, this translates directly into fewer model calls per outcome, lower token costs, better accuracy, and faster completion. 

*NEW* Agent Skills
Agent Skills are reusable, task-specific capabilities that package decades of Teradata knowledge into AI-callable functions. They can be invoked by any agent or harness, and accessed directly by users through natural language, making advanced data and platform work accessible without requiring deep technical specialization. Rather than reasoning from scratch, models receive clear guidance for common data and platform tasks, improving consistency and reducing the risk of going off-track. Skills load automatically based on the task at hand, and Tera routes each to the correct models and tools. MCP connectivity allows organizations to extend Tera further with their own tools and integrations. Tera includes two categories of purpose-built Tera agents that draw on these skills. Platform Agents handle the operational work of managing the Teradata environment, including workload tuning, compute sizing, telemetry, and FinOps. Analytics Agents tackle data work directly, from natural language to SQL and Python to query optimization.

Teradata AI Services
For organizations looking to accelerate deployment, Teradata AI Services is designed to help customers avoid the experimentation trap and move directly toward production outcomes. AI Services helps identify the use cases where governed context will create measurable value, configure Industry Knowledge Models, and get enterprise knowledge into production faster powered by Tera. Teradata's AI Value Engineering methodology ensures AI programs are designed and developed for production-readiness, not experimentation, and pre-developed agents and tooling built for every stage of the AI development lifecycle accelerate time-to-customer-value.

Availability Details
Tera Context Engine, Tera Harness and Agent Skills will be available in Q4 2026.

About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.

Forward-Looking Statements
This press release contains "forward-looking statements" about the expectations, beliefs, plans, and intentions relating to Tera, including Tera Context Engine, Tera Harness, and Agent Skills. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata's results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata's financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.

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 Corporation

Stephen McMillan, President and Chief Executive Officer of Teradata Corporation (TDC +0.34%), executed a sale of 10,000 shares of common stock on September 15, 2026 under a Rule 10b5-1 trading plan. The details of the transaction are documented in a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$300,200Shares sold (direct)10,000Post-transaction shares (directly held)752,446Post-transaction value~$22.11 millionTransaction value based on SEC Form 4 weighted average sale price ($30.02); post-transaction value based on September 15, 2026 market close ($29.39).

Key questionsHow does the Rule 10b5-1 trading plan impact the interpretation of this transaction?
The establishment of the trading plan on May 18, 2026, suggests that the divestment was part of a structured portfolio management strategy. This mechanism ensures that the timing of the sale was determined well in advance of the execution date.What is the current scale of the executive's remaining equity exposure?
Following the sale, the President and CEO retains ~752,000 shares held directly. This position carries a market value of ~$22.11 million based on the September 15, 2026 market close, representing approximately 0.80% of the company's total shares outstanding.What has been the recent performance context for the stock?
As of the transaction date on September 15, 2026, the company's common stock had delivered a one-year total return of 37%. More recently, the shares were priced at $29.17 as of the September 16, 2026 market close.Are there any disclosed indirect or derivative holdings for the executive?
The current filing reports no indirect holdings through trusts or other entities. Furthermore, the disclosure identifies no outstanding derivative securities or other share classes for the executive.Company OverviewMetricValueShare Price (as of market close 2026-09-16)$29.17Market Capitalization$2.8 billionRevenue (TTM)$1.7 billionNet Income (TTM)$458.0 millionCompany SnapshotTeradata Corporation delivers a unified multi-cloud data platform, which enables enterprises to integrate diverse data sources and perform comprehensive analytics across their organizations.The company generates revenue through software licensing, cloud services, and professional services, leveraging its proprietary data analytics platform to serve large-scale enterprise customers requiring robust data management and analytics capabilities.Teradata primarily serves large enterprises and organizations across multiple industries that require sophisticated data integration, analytics, and cloud migration solutions to optimize their data ecosystems.Teradata Corporation is a $2.8 billion market cap software infrastructure provider specializing in enterprise-grade data analytics and multi-cloud platforms. The company has demonstrated strong financial performance with trailing 12-month revenue of $1.7 billion and net income of $458.0 million, reflecting a 26.94% net margin.

Based in San Diego, Teradata maintains a competitive position in the enterprise analytics market through its differentiated platform, which simplifies complex data ecosystems and facilitates cloud migration for large institutional customers.

What this transaction means for investorsTeradata CEO Stephen McMillan's September 15 stock sale at a weighted average price of $30.02 occurred at a time when shares were down from the 52-week high of $41.78. That said, his disposition does not reflect the insider's view on the stock, since it was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan.

In addition, McMillan retains over 752,000 directly held shares post-sale. This is a sizable equity stake, ensuring his continued alignment with shareholder interests.

Teradata stock fell after the company reported its second quarter earnings results on Aug. 4. Q2 revenue was $410 million, a modest increase from the prior year's $408 million. However, Teradata forecasted Q3 sales to fall by 4% to 6% year over year.

The company's management stated that it expects "the majority of our growth will come in Q4." Teradata reaffirmed its full-year outlook for 2026, and in Q2, its net income improved to $46 million compared to $9 million in 2025.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Teradata. The Motley Fool has a disclosure policy.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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:

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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.

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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].

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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%.