Teradata (NYSE:TDC) Posts Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Teradata (NYSE:TDC) released its quarterly earnings data on Thursday. The technology company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.58 by $0.12, FiscalAI reports. The firm had revenue of $399.00 million during the quarter, compared to the consensus estimate of $395.66 million. Teradata had a return on equity of 47.25% and a net margin of 27.08%. The company’s quarterly revenue was down 4.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.72 earnings per share.

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

• Teradata raised its 2026 non-GAAP EPS outlook to $2.86–$2.90 and narrowed revenue guidance to the high end of its prior ranges. It reaffirmed total ARR growth guidance of 2%–4% and adjusted free cash flow guidance, with the midpoint of the latter now at $340 million.
• Year to date, operating margin improved by 300 basis points and adjusted free cash flow rose 90% to $254 million. Q3 EPS of $0.70 exceeded the top of guidance, while management attributed its stronger full-year profit outlook to cost discipline and operating leverage.
• Management expects Q4 recurring revenue to decline 2%–4% year over year and total revenue to fall 4%–6%, citing the timing of upfront revenue recognition earlier in the year. Q3 total ARR grew just 1% as reported, though it was up 2% in constant currency.
• The company highlighted customer interest in its agentic AI, hybrid, and sovereign offerings, including new customer wins and an early-Q4 expansion deal. Executives see these products, along with the Dell partnership and AI services, as potential growth drivers into 2027, but did not provide next-year guidance.

Teradata Trading Down 2.5%

Shares of NYSE TDC opened at $31.91 on Friday. The firm has a market cap of $2.97 billion, a PE ratio of 6.75, a price-to-earnings-growth ratio of 2.49 and a beta of 0.61. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 0.08. The business has a fifty day simple moving average of $30.58 and a two-hundred day simple moving average of $30.00. Teradata has a twelve month low of $23.86 and a twelve month high of $41.78.

Insider Activity

In other news, COO Michael D. Hutchinson sold 48,077 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $30.00, for a total transaction of $1,442,310.00. Following the completion of the transaction, the chief operating officer directly owned 171,927 shares in the company, valued at approximately $5,157,810. The trade was a 21.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 10,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $30.02, for a total transaction of $300,200.00. Following the transaction, the chief executive officer directly owned 752,446 shares in the company, valued at $22,588,428.92. The trade was a 1.31% 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. 0.96% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently issued reports on TDC. Morgan Stanley lowered Teradata from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $35.00 to $29.00 in a report on Monday, August 10th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $34.00 price target on shares of Teradata in a report on Thursday, July 16th. UBS Group dropped their price target on shares of Teradata from $36.00 to $32.00 and set a “neutral” rating on the stock in a research report on Monday, September 21st. Barclays upped their target price on shares of Teradata from $27.00 to $28.00 and gave the company an “underweight” rating in a research note on Friday. Finally, Citigroup lifted their target price on Teradata from $36.00 to $40.00 and gave the company a “buy” rating in a research report on Friday, October 30th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $36.12.

Teradata News Roundup

Here are the key news stories impacting Teradata this week:

• Positive Sentiment: Q3 non-GAAP EPS was $0.70, ahead of the $0.58 consensus, and revenue of $399 million exceeded estimates of $395.66 million. Teradata also reported $91 million in operating cash flow and $96 million in adjusted free cash flow. Teradata Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Cloud ARR growth and AI product development supported the outlook. The company reiterated its full-year ARR and adjusted free-cash-flow outlook and narrowed its revenue outlook to the high end of its range; Zacks also reported a raised 2026 earnings outlook. Teradata Q3 Earnings Surpass Estimates, Revenues Decrease Y/Y
• Negative Sentiment: Revenue was down 4.1% year over year, and EPS was below the $0.72 reported a year earlier, highlighting continued pressure on growth. Barclays raised its price target to $28 from $27 but kept an “underweight” rating, implying downside from the cited $31.91 share price. Barclays stock recommendations

About Teradata

Teradata Corporation (NYSE: TDC) is a data and analytics technology company that helps organizations collect, manage, analyze and govern large volumes of enterprise data. Its offerings are designed to support business intelligence, advanced analytics, artificial intelligence and machine learning across complex data environments.

The company’s portfolio includes Teradata VantageCloud, a cloud analytics platform available through public-cloud and hybrid deployment models, as well as ClearScape Analytics, which provides tools for developing and deploying advanced analytics and AI workloads.