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

Teradata (NYSE:TDC) posted 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 business had revenue of $444.00 million during 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 revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the business 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 Price Performance

Shares of TDC traded up $0.17 during midday trading on Wednesday, reaching $30.25. The stock had a trading volume of 5,182,307 shares, compared to its average volume of 1,959,112. The company’s 50-day moving average is $27.10 and its 200 day moving average is $27.98. Teradata has a 12-month low of $19.83 and a 12-month high of $41.78. The company has a current ratio of 0.92, a quick ratio of 0.90 and a debt-to-equity ratio of 2.07. The company 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.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the company. Citigroup dropped their price target on Teradata from $42.00 to $38.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Evercore reissued an “outperform” rating and set a $40.00 price objective on shares of Teradata in a report on Wednesday, February 11th. Citizens Jmp boosted their price objective on Teradata from $42.00 to $49.00 and gave the stock a “market outperform” rating in a report on Wednesday, February 11th. Zacks Research raised Teradata from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 21st. Finally, Northland Securities set a $37.00 price objective on Teradata in a report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Teradata has an average rating of “Moderate Buy” and an average target price of $35.60.

Insider Transactions at Teradata

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

Hedge Funds Weigh In On Teradata

A number of hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC boosted its holdings in shares of Teradata by 175.3% in the 2nd quarter. AQR Capital Management LLC now owns 3,913,277 shares of the technology company’s stock worth $86,914,000 after purchasing an additional 2,491,938 shares in the last quarter. Morgan Stanley lifted its stake in shares of Teradata by 56.3% in the 4th quarter. Morgan Stanley now owns 3,151,388 shares of the technology company’s stock valued at $95,928,000 after acquiring an additional 1,134,722 shares during the last quarter. Fuller & Thaler Asset Management Inc. bought a new stake in shares of Teradata in the 4th quarter valued at about $67,125,000. Boston Partners lifted its stake in shares of Teradata by 70.8% in the 3rd quarter. Boston Partners now owns 1,893,414 shares of the technology company’s stock valued at $40,729,000 after acquiring an additional 784,749 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Teradata by 0.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,705,744 shares of the technology company’s stock valued at $51,925,000 after acquiring an additional 4,916 shares during the last quarter. 90.31% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting 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.