Teradata (NYSE:TDC) Issues Earnings Results, Beats Estimates By $0.13 EPS

Posted by Stanley Muller on Aug 5th, 2026

Teradata (NYSE:TDC – Get Free Report) released its quarterly earnings data on Tuesday. The technology company reported $0.69 EPS for the quarter, topping analysts’ consensus estimates of $0.56 by $0.13, FiscalAI reports. The firm had revenue of $410.00 million for the quarter, compared to the consensus estimate of $396.13 million. Teradata had a return on equity of 57.44% and a net margin of 24.93%.The firm’s revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.47 earnings per share. Teradata updated its Q3 2026 guidance to 0.550-0.590 EPS and its FY 2026 guidance to 2.650-2.730 EPS.

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

Teradata raised its full-year outlook for non-GAAP EPS to $2.65–$2.73 and adjusted free cash flow to $330–$350 million, while reaffirming total ARR, revenue, and recurring-revenue guidance.
Q2 recurring revenue grew 3% year over year, total ARR increased 1% as reported, and cloud ARR rose 8%; operating margin expanded to 21.5% from 16.4% a year earlier, supported by higher recurring revenue and cost discipline.
The company launched its Autonomous Knowledge Platform and AI Studio, with early wins for its hybrid cloud and on-premise AI offerings. Teradata says demand is particularly strong among regulated and international customers seeking data sovereignty and production-ready agentic AI.
Strong cash generation increased net cash to $323 million, enabled repayment of the remaining $450 million term loan, and leaves capital available for R&D, share repurchases, and strategic M&A.
The company expects recurring revenue to decline 2%–4% year over year and total revenue to decline 4%–6% in Q3, largely because more on-premise revenue was recognized upfront in the first half. Consulting-services revenue also fell 24% in Q2, while new AI products have yet to make a material contribution to ARR.

Teradata Stock Down 20.2%

Shares of Teradata stock traded down $6.94 during trading on Wednesday, reaching $27.45. The stock had a trading volume of 2,597,233 shares, compared to its average volume of 2,386,987. The company has a current ratio of 1.30, a quick ratio of 1.29 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $2.58 billion, a price-to-earnings ratio of 6.30, a P/E/G ratio of 2.36 and a beta of 0.60. Teradata has a 52 week low of $19.96 and a 52 week high of $41.78. The stock has a fifty day moving average price of $32.53 and a two-hundred day moving average price of $30.16.

Wall Street Analysts Forecast Growth

TDC has been the topic of several analyst reports. Royal Bank Of Canada restated a “sector perform” rating and set a $34.00 price target on shares of Teradata in a research note on Thursday, July 16th. UBS Group reduced their price target on Teradata from $36.00 to $34.00 and set a “neutral” rating for the company in a research report on Wednesday, May 6th. Zacks Research downgraded shares of Teradata from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 20th. Citizens Jmp restated a “market outperform” rating and issued a $49.00 price target on shares of Teradata in a research report on Wednesday, June 10th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Teradata in a research note on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Teradata currently has a consensus rating of “Hold” and an average price target of $35.44.

Read Our Latest Research Report on TDC

Insider Buying and Selling at Teradata

In related news, CRO Richard J. Petley sold 17,227 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $35.00, for a total value of $602,945.00. Following the completion of the transaction, the executive owned 188,571 shares of the company’s stock, valued at approximately $6,599,985. This trade represents a 8.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Mcmillan sold 20,000 shares of the business’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $31.71, for a total transaction of $634,200.00. Following the sale, the chief executive officer directly owned 762,446 shares in the company, valued at $24,177,162.66. This trade represents a 2.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 77,201 shares of company stock worth $2,486,235. Corporate insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its position in shares of Teradata by 76.0% during the 1st quarter. Royal Bank of Canada now owns 330,801 shares of the technology company’s stock worth $7,436,000 after purchasing an additional 142,813 shares during the last quarter. Millennium Management LLC increased its holdings in Teradata by 89.4% during the first quarter. Millennium Management LLC now owns 202,864 shares of the technology company’s stock worth $4,560,000 after buying an additional 95,777 shares during the last quarter. NewEdge Advisors LLC raised its position in Teradata by 22.6% during the first quarter. NewEdge Advisors LLC now owns 11,090 shares of the technology company’s stock worth $249,000 after acquiring an additional 2,048 shares in the last quarter. Creative Planning lifted its stake in Teradata by 52.8% in the second quarter. Creative Planning now owns 18,274 shares of the technology company’s stock valued at $408,000 after acquiring an additional 6,314 shares during the last quarter. Finally, Cetera Investment Advisers increased its stake in shares of Teradata by 7.2% during the 2nd quarter. Cetera Investment Advisers now owns 10,991 shares of the technology company’s stock worth $245,000 after purchasing an additional 736 shares during the last quarter. 90.31% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Teradata

Here are the key news stories impacting Teradata this week:

Positive Sentiment: Teradata reported second-quarter adjusted EPS of $0.69, exceeding estimates of approximately $0.55-$0.56 and rising from $0.47 a year earlier. Revenue of $410 million also surpassed expectations of $396 million. Teradata Surpasses Q2 Earnings and Revenue Estimates
Positive Sentiment: Profitability and cash generation improved substantially. Non-GAAP operating margin increased to 21.5%, operating cash flow rose 147% to $106 million, and adjusted free cash flow increased 226% to $127 million. Recurring revenue grew 3% to $363 million. Teradata Reports Second Quarter 2026 Financial Results
Positive Sentiment: Teradata raised its fiscal 2026 EPS outlook to $2.65-$2.73, above the consensus estimate of $2.47, which indicates management expects improved profitability despite limited revenue growth.
Neutral Sentiment: Analysts’ average target price is reported at $35.56, materially above the stock’s recent trading level, although estimates vary widely. The broader analyst view therefore remains mixed. Brokerages Set Teradata Target Price
Negative Sentiment: Third-quarter revenue guidance of $391.0 million-$399.4 million fell short of the $403 million consensus estimate. Management expects recurring revenue to decline 2%-4% year over year and total revenue to decline 4%-6%, reinforcing concerns about sluggish demand.
Negative Sentiment: Teradata maintained fiscal 2026 revenue guidance of $1.6 billion-$1.7 billion, below the $1.7 billion consensus at the midpoint. Barclays subsequently lowered its price target to $27 from $28 and assigned an Underweight rating, citing limited growth prospects. Barclays Lowers Teradata Price Target

Teradata Company Profile

(Get 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.