Teradata Corp (TDC)
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symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
The business is real and hard to replace: 86.9 percent recurring revenue in 2025, $2,033 million of contracted obligations, three consecutive years of operating income around $200 million and, since June 24, 2026, no bank debt at all — against $816 million of cash at March 31, 2026. No sign of substance risk, hence no red. What is missing for green is the growth side: revenue is 23 percent below its 2018 level and fell in five of the past seven years, the cloud net expansion rate slipped from 117 to 108 percent, consulting revenue shrank 19 percent in 2025, and stock-based compensation of $112 million consumes 39 percent of free cash flow — issued shares rose from 92.5 million to 94.4 million in the first quarter of 2026 despite buybacks. On top of that sits the competition the annual report names itself. The decision is yours.
symbol.quality_note
In the first quarter of 2026 Teradata earned $335 million — more than in all of 2025. $280 million of that came from SAP, as a settlement after eight years of litigation. We read the 2025 annual report, the quarterly report filed May 6, 2026 and every disclosure through late July, and test the question the check does not answer: is free cash flow already carried by the subscription business — or still by the old contracts? A windfall is not a business model.
Read the analysis
Stock Watch
This analysis is as of July 27, 2026. Stock Watch will tell you what's changed at TDC since then.
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Appears in These Scanners
This stock currently matches 11 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 31.00 $ — 61% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AITeradata bezeichnet sich in Geschäfts- und Quartalsbericht selbst als „AI and knowledge platform“ und verkauft KI-Produkte (AI Factory, AgentBuilder, AI Services); 2025 wurden nach eigenen Angaben mehr als 150 KI-Projekte bei Kunden umgesetzt.
View the full file — quotes, sources, reviewed filings
„This new landscape demands a new system of intelligence, and we believe Teradata is uniquely suited to provide this with our autonomous AI and knowledge platform as well as our data and analytics capabilities."
Diese neue Landschaft verlangt nach einem neuen System der Intelligenz, und wir glauben, dass Teradata mit seiner autonomen KI- und Wissensplattform sowie seinen Daten- und Analysefähigkeiten in einzigartiger Weise geeignet ist, dieses bereitzustellen.
„Across Teradata, we are executing and advancing in our transformation as a modern, leading AI and knowledge platform. Our transition has earned recognition from numerous industry analyst firms, and we delivered more than 150 AI engagements at customer accounts in 2025."
Überall bei Teradata setzen wir unsere Wandlung zu einer modernen, führenden KI- und Wissensplattform um und treiben sie voran. Unser Übergang hat Anerkennung von zahlreichen Branchenanalysten erhalten, und wir haben 2025 mehr als 150 KI-Projekte bei Kunden umgesetzt.
„With our AI and knowledge platform, underpinned by our extensive patented workload management optimization technology, we believe we are well positioned to help enterprises become more autonomous, while enabling our customers to focus on managing, securing, and providing trustworthy data for AI and analytics across hybrid and multi-cloud environments."
Mit unserer KI- und Wissensplattform, gestützt auf unsere umfangreiche patentierte Technik zur Optimierung der Lastverwaltung, sehen wir uns gut aufgestellt, Unternehmen zu mehr Eigenständigkeit zu verhelfen und unseren Kunden zugleich zu ermöglichen, sich auf die Verwaltung, Absicherung und Bereitstellung vertrauenswürdiger Daten für KI und Analytik über hybride und Multi-Cloud-Umgebungen hinweg zu konzentrieren.
Filings Reviewed: 10-K 2026-02-27 · 10-Q 2026-05-06 · 8-K 2026-06-24 · 8-K 2026-05-19 · DEF 14A 2026-03-26 · SCHEDULE 13D/A 2026-07-08
Rated on July 27, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 14.9% above the current price.
- Consensus
- Hold
- Analyst Ratings
- 11
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 2.67 | 2.60 – 2.81 | 1,653 | 3.3% | 8 |
| 12/31/2027 | 2.89 | 2.74 – 3.06 | 1,681 | 8.4% | 8 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Next Reporting Date
- Expected Earnings per Share
- 0.36 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.26 | – | 409 | -10.50 | 6.10 | 156 | 148 |
| 2025: Q1 | 0.45 | 126.10 | 418 | -10.10 | 10.50 | 8 | 7 |
| 2025: Q2 | 0.09 | -75.30 | 408 | -6.40 | 2.20 | 43 | 39 |
| 2025: Q3 | 0.42 | 27.00 | 416 | -5.50 | 9.60 | 94 | 99 |
| 2025: Q4 | 0.38 | 49.50 | 421 | 2.90 | 8.80 | 160 | 151 |
| 2026: Q1 | 3.47 | 667.70 | 444 | 6.20 | 75.50 | 401 | 390 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 2,322 | 232 | 125 | 0.95 | 446 | 971 | 2,405 |
| 2017 | 2,156 | 64 | -67 | -0.53 | 324 | 668 | 2,556 |
| 2018 | 2,164 | 43 | 30 | 0.25 | 364 | 495 | 2,360 |
| 2019 | 1,899 | 6 | -24 | -0.21 | 148 | 262 | 2,057 |
| 2020 | 1,836 | 16 | 129 | 1.16 | 267 | 400 | 2,193 |
| 2021 | 1,917 | 231 | 147 | 1.30 | 463 | 460 | 2,169 |
| 2022 | 1,795 | 118 | 33 | 0.31 | 419 | 258 | 2,022 |
| 2023 | 1,833 | 186 | 62 | 0.61 | 375 | 135 | 1,873 |
| 2024 | 1,750 | 209 | 114 | 1.16 | 303 | 133 | 1,704 |
| 2025 | 1,663 | 205 | 130 | 1.35 | 305 | 230 | 1,779 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
Of the $335 million of quarterly net income (03/31/2026), $280 million came from the SAP settlement. The underlying business contributed $55 million, against $44 million a year earlier. Over the same period the company reports an operating loss of $36 million, because the $121 million of fees sits in selling expenses.
The shift is far along: 86.9 percent recurring revenue in 2025, 90.1 percent in the first quarter of 2026, perpetual licenses effectively gone ($17 million in 2025). But growth comes only from the public cloud (ARR $701 million, up 15 percent), while subscription ARR fell 4 percent and maintenance ARR fell 13 percent (12/31/2025).
Free cash flow was $285 million in 2025 after $277 million in 2024 — steady even though revenue fell 5 percent. It therefore comes mostly from cost cuts and from a still-large legacy base, not from growth. The $390 million of the first quarter of 2026 includes $359 million from the SAP settlement; adjusted, roughly $31 million remains.
Stock-based compensation expense was $112 million in 2025, or 39 percent of free cash flow. In the first quarter of 2026 issued shares rose from 92.5 million to 94.4 million despite buybacks. On May 14, 2026 shareholders added 6,300,000 authorized plan shares — 6.7 percent of the count.
On June 24, 2026 Teradata repaid the term loan in full and put in place an undrawn $400 million revolving facility maturing in 2031. At March 31, 2026 cash of $816 million stood against a $449 million term loan; the equity ratio was 26.0 percent after 12.9 percent at year-end 2025.
The 2025 annual report names AWS, Databricks, Google Cloud, Microsoft Azure and Snowflake — rivals with far larger budgets. Revenue is 23 percent below its 2018 level, and the cloud net expansion rate fell from 117 to 108 percent (12/31/2025). Existing customers are therefore expanding more slowly than a year earlier.
Teradata is a profitable niche vendor with a genuine position in very large data estates: 86.9 percent recurring revenue, $2,033 million of contracted obligations, $285 million of free cash flow in 2025 and, since June 24, 2026, no bank debt. The price looks low — but the trailing P/E of 6.5 rests largely on a court settlement that will not repeat; without it the multiple is roughly 19. Behind that stands revenue 23 percent below its 2018 level, a cloud business whose existing customers expand more slowly than a year ago, and a share count that rises despite buybacks. The scanner sees a turnaround; the filings so far show one quarter. Not investment advice.
- Hook: in-house stock scanner "Turnaround-Kandidaten", U.S. selection, turnaround check 6 of 8, measured July 27, 2026 on both brands. 44 of the 60 hits share the same score — Teradata sits in the bottom third and therefore outside the 25 displayed places. The lists are recalculated daily.
- Data as of July 26/27, 2026 for metrics and prices. All business figures come from the 2025 annual report (02/27/2026), the quarterly report for the period ended 03/31/2026 (05/06/2026) and the disclosures filed through July 8, 2026.
- Do not confuse: Teradata Corporation (TDC, San Diego) has nothing to do with the Danish telecom group TDC A/S. The SEC conformed name is "TERADATA CORP /DE/" — a registry convention, not a renaming.
- We did not use the Altman-Z value of 3.83 stored in our data set: it cannot be reconciled with the 2025 annual statement or the balance sheet as of 03/31/2026. The article uses self-computed balance sheet ratios instead.
About the Company
Teradata Corporation bietet gemeinsam mit ihren Tochtergesellschaften KI- und Wissensplattformen in den USA und international an. Sie ist in zwei Segmenten tätig: Product Sales und Consulting Services.
| Employees | 5,100 |
|---|---|
| Headquarters | San Diego, CA |
| Address | 17095 Via Del Campo, 92127 San Diego, United States |
| Phone | 866 548 8348 |
| Website | teradata.com |
| IPO Date | 1. Oct 2007 |
| ISIN | US88076W1036 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Stephen McMillan | President, CEO & Director | 1971 |
| John Ederer | Chief Financial Officer | 1970 |
| Charles Smotherman | Senior VP & Chief Accounting Officer | – |
| Scot Frazier Rogers J.D. | Chief Administrative Officer & Corporate Secretary | 1967 |
| Richard Petley | Chief Revenue Officer | 1967 |
| Sumeet Arora | Chief Product Officer | 1975 |
| Michael D. Hutchinson | Chief Operating Officer | 1966 |
| Louis Landry | Chief Technology Officer | – |
| Josh Fecteau | Chief Data & AI Officer and Chief Information Officer | – |
| Chad Michael Bennett | Senior Vice President of Investor Relations & Corporate Development | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.