Teradata (NYSE:TDC) Posts Earnings Results, Beats Estimates By $0.11 EPS

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

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

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

Teradata Trading Up 0.6%

Shares of Teradata stock traded up $0.17 on Wednesday, reaching $30.25. 5,182,797 shares of the company were exchanged, compared to its average volume of 1,959,112. The stock has a fifty day moving average price of $27.10 and a 200-day moving average price of $27.98. The firm has a market capitalization of $2.86 billion, a price-to-earnings ratio of 22.57, a price-to-earnings-growth ratio of 3.38 and a beta of 0.51. The company has a current ratio of 0.92, a quick ratio of 0.90 and a debt-to-equity ratio of 2.07. Teradata has a fifty-two week low of $19.83 and a fifty-two week high of $41.78.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Citigroup lowered their price target on Teradata from $42.00 to $38.00 and set a “buy” rating on the stock in a research report on Thursday, April 30th. Barclays decreased their target price on Teradata from $29.00 to $28.00 and set an “underweight” rating for the company in a research note on Wednesday. Royal Bank Of Canada lifted their target price on Teradata from $32.00 to $35.00 and gave the stock a “sector perform” rating in a report on Wednesday, February 11th. Citizens Jmp boosted their price target on shares of Teradata from $42.00 to $49.00 and gave the stock a “market outperform” rating in a research report on Wednesday, February 11th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Teradata in a research report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $35.60.

Insiders Place Their Bets

In other Teradata news, major shareholder Lake Lp Lynrock sold 61,990 shares of the business’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $40.29, for a total transaction of $2,497,577.10. Following the sale, the insider owned 9,354,676 shares in the company, valued at approximately $376,899,896.04. The trade was a 0.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael P. Gianoni sold 25,000 shares of the company’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $29.96, for a total transaction of $749,000.00. Following the sale, the director directly owned 31,523 shares of the company’s stock, valued at $944,429.08. This represents a 44.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On Teradata

A number of large investors have recently made changes to their positions in TDC. Corient Private Wealth LLC purchased a new stake in shares of Teradata in the 4th quarter valued at approximately $275,000. Invesco Ltd. grew its position in Teradata by 0.3% during the 4th quarter. Invesco Ltd. now owns 540,609 shares of the technology company’s stock worth $16,456,000 after purchasing an additional 1,707 shares in the last quarter. State of Tennessee Department of Treasury raised its stake in Teradata by 23.9% during the 4th quarter. State of Tennessee Department of Treasury now owns 50,482 shares of the technology company’s stock valued at $1,440,000 after purchasing an additional 9,754 shares during the period. Fuller & Thaler Asset Management Inc. acquired a new stake in Teradata during the 4th quarter valued at $67,125,000. Finally, NewEdge Advisors LLC lifted its holdings in shares of Teradata by 29.8% in the fourth quarter. NewEdge Advisors LLC now owns 19,441 shares of the technology company’s stock valued at $592,000 after purchasing an additional 4,468 shares in the last quarter. Institutional investors and hedge funds own 90.31% of the company’s stock.

Trending Headlines about Teradata

Here are the key news stories impacting Teradata this week:

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

Teradata Company Profile

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

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