📈 Price History

Ratio Health

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📊 Peer Medians

About

Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally. It operates in two segments, Product Sales and Consulting Services. The company’s AI and Knowledge platform designed for enterprise-grade workloads. Its consulting services include support services for organizations to establish data analytics and and AI vision, enable a hybrid ecosystem architecture, and identify and operationalize opportunities. The company serves clients in financial services, healthcare and life sciences, public sector, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding TDC

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	234.2K	$6.0M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management used explicit positive language like 'delivered well', 'improved execution', 'additional confidence', 'solid foundation', 'opportunity for greater operating leverage', and provided specific metrics (e.g., ARR $1.49B, cloud ARR $634M, retention improvements). They were detailed about go-to-market changes, partner integrations, and AI product launches.

Q3 2025

Confident Specific

Management explicitly states 'solid execution,' 'beat revenue and recurring revenue guidance,' 'Total ARR growth ahead of schedule,' 'strong conviction in durable growth,' and 'meaningful Free Cash Flow growth' expected. CFO says 'pleased with the progress' and reaffirms full-year guidance.

Q4 2025

Confident Specific

Management repeatedly used phrases like 'pleased to report another set of strong results', 'exceeded expectations', 'solid footing', and 'confident' to describe performance and outlook, while providing specific numbers for ARR growth, margin, and free cash flow.

Q1 2026 latest

Confident Specific

Management expressed strong confidence with phrases like 'very pleased', 'strong start', 'outperformed', and 'exceeded top end'. They cited specific beats such as recurring revenue up 12%, total revenue up 6%, and non-GAAP EPS of $0.88, up over 30% year-over-year.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger after Q1 2026 given the clear beat on revenue, recurring revenue, and EPS, plus the strategic cash influx from the SAP settlement. AI-driven demand is tangible, with customers seeking Teradata's platform for production-grade agentic AI workloads. However, the Q2 guidance of negative year-over-year revenue growth signals caution and suggests that the beat may have been partly due to upfront term license revenue timing. The upcoming product launch on May 7th could be a catalyst, but investors should watch whether AI services and new capabilities translate into sustained ARR acceleration. The lack of granularity on geographic performance and large renewals also leaves some uncertainty. Overall, execution is improving but the near-term growth profile remains lumpy.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Teradata Q1 2026: Recurring revenue up 12%, total revenue up 6%, EPS $0.88.

Revenue & Profitability

First quarter total revenue was $444 million, up 6% year-over-year as reported. Recurring revenue reached $400 million, up 12% year-over-year. Non-GAAP EPS was $0.88, up over 30% versus Q1 2025. Operating margin was 27.3%, up from 21.8% a year ago. Free cash flow was $390 million, including $359 million pre-tax net from the SAP settlement; adjusted free cash flow (excluding settlement) was $31 million. Total ARR grew 3%, cloud ARR grew 13%.

Outlook

Management sees strong demand for production AI, noting that 100% of organizations surveyed are pursuing agentic AI, yet only 17% have moved beyond pilots and 99% face scaling challenges. Sovereign AI and security-driven demand are accelerating, particularly in regulated industries. Macro uncertainty exists but AI urgency is overriding caution. Teradata reaffirmed full-year guidance for total ARR (2%-4%), total revenue, recurring revenue, and non-GAAP EPS ($2.55-$2.65, seen at the higher end).

Growth Drivers

Key growth levers include AI services and the agentic framework (AgentStack, MCP server), which drive capacity and usage expansions in existing customers. Hybrid deployments (cloud and on-prem) and sovereign AI opportunities (especially in financial services and healthcare) are gaining traction. International markets, including a win-back in EMEA and a large Indian government agency commitment, are contributing to growth. Cloud ARR grew 13% year-over-year.

Balance Sheet & CapEx

CapEx guidance was not specifically discussed. Management noted preserving investments in R&D to support future growth. The SAP settlement ($302 million after-tax net) will be used to strengthen the balance sheet by deleveraging and to provide strategic optionality for future AI investments and continued share repurchases.

Margins

Non-GAAP operating margin improved significantly to 27.3% in Q1 from 21.8% a year ago, driven by higher recurring revenue and operating leverage. For full-year 2026, management expects approximately 100 basis points of operating margin expansion. Recurring gross margin was 70%, boosted by upfront revenue from term licenses, but is expected to normalize in Q2. Cloud gross margins are improving steadily. Consulting gross margin improved 600 bps year-over-year to 4.7%.

Key Risks

Risks flagged include currency headwinds (approximately 3 points on Q2 recurring revenue growth), volatility from upfront recurring revenue (over 10-point sequential impact expected), and memory pricing pressures that could affect FY2027 hardware refresh cycles. Management noted that macro uncertainty has historically elongated IT cycles, but AI urgency is currently overriding that caution. The Middle East conflict has not materially impacted the business.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-04

Q2 2026 saw flat total revenue but strong recurring revenue and free cash flow growth, with raised EPS and cash flow guidance for the year. Major AI platform launches and early customer wins highlight momentum, while disciplined execution and a strengthened balance sheet support continued investment and margin expansion.

Q1 2026 Q1 2026 2026-05-05

Q1 2026 saw strong revenue and EPS growth, driven by recurring revenue and AI-led demand, with robust cash flow boosted by a major SAP settlement. Guidance for the year was reaffirmed, and new AI innovations and product launches are expected to sustain momentum.

Q4 2025 Q4 2025 2026-02-10

Q4 and FY25 results exceeded expectations with ARR and free cash flow growth, driven by strong AI and hybrid platform adoption. 2026 guidance calls for continued ARR and margin expansion, with new AI innovations and a hardware refresh providing potential upside.

Q3 2025 Q3 2025 2025-11-04

Q3 2025 exceeded revenue, recurring revenue, and Free Cash Flow expectations, with Non-GAAP EPS of $0.72 and Total ARR growth ahead of schedule. Cloud ARR grew 11% year-over-year, and the company raised full-year EPS guidance while narrowing Free Cash Flow outlook. Strong AI innovation and hybrid cloud positioning drive confidence for continued growth into 2026.

Q2 2025 Q2 2025 2025-08-05

Q2 saw ARR rise 2% year-over-year to $1.49B, with cloud ARR up 15% in constant currency and improved retention rates. Revenue declined 6% year-over-year, but EPS and free cash flow outperformed expectations. FY 2025 guidance for ARR, cloud ARR, and cash flow was reaffirmed.

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