FY26 Total ARR Growth Expected at 2%-4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy TDC?
Sees FY26 total ARR growth 2%-4% vs. last year; recurring revenue flat-2% vs. last year, revenue in the range of (2%)-flat vs. last year. Sees FY26 cash flow from operations $330M-$350M; free cash flow $310M-$330M.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TDC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TDC
Wall Street analysts forecast TDC stock price to rise
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 29.630
Low
24.00
Averages
30.11
High
42.00
Current: 29.630
Low
24.00
Averages
30.11
High
42.00
About TDC
Teradata Corporation is focused on helping organizations activate the intelligence in their enterprise and turn the insights from across their organization into outcomes. The Teradata Autonomous Knowledge Platform puts artificial intelligence (AI) into production across cloud, on-premises, and hybrid environments. The Company’s segments include Product Sales and Consulting Services. Its platform includes workspaces, agents, agent execution, AI, knowledge context, and foundation. The Company's products and services include Cloud, Factory, Fabric, AI Studio, and AI Services. The Company's workloads include Data engineering, Data lakes, Data warehouses, and Lakehouses. The Company serves various industries, including automotive, financial services, healthcare, retail, telecommunications, energy, government, manufacturing, and transportation. Its solutions in the real-world applications include customer experience, finance transformation, fraud prevention and supply chain logistics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Teradata Launches Autonomous Knowledge Platform to Advance AI Evolution
- Launch of Autonomous Knowledge Platform: Teradata has introduced its Autonomous Knowledge Platform, which integrates production-grade AI, analytics, and data management across cloud, on-premises, and hybrid environments, aiming to significantly enhance enterprise intelligence and operational flexibility in AI applications.
- New Features Unveiled: The platform includes Teradata AI Studio for managing AI outcomes throughout their lifecycle and Tera Agents that automate operations to improve efficiency, with expectations of achieving tenfold improvements in cost control and resource management for enterprises.
- Cloud Deployment Advantages: The Autonomous Knowledge Platform is first available on Teradata Cloud, combining always-on Active Compute with on-demand Elastic Compute, ensuring enterprises can experiment freely without impacting production workloads, thus enhancing data processing flexibility and predictability.
- Response to Market Demand: As the demand for AI continues to rise, Teradata's Autonomous Knowledge Platform provides robust data governance and performance support, helping enterprises maintain competitiveness in a rapidly changing market while addressing urgent needs for real-time decision-making and automated operations.
See More
Teradata Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Teradata reported total revenue of $444 million in Q1, reflecting a 6% year-over-year increase, with recurring revenue growing by 12%, indicating strong market performance and sustained customer demand.
- AI-Driven Market Demand: CEO Stephen McMillan highlighted that security-driven demand for sovereign AI is accelerating, enhancing traction with their AI factory offerings, which underscores the company's strategic positioning in the AI sector.
- SAP Settlement Gains: Teradata entered into a settlement agreement with SAP, receiving a gross payment of $480 million, with a pretax net amount of $359 million, which will bolster the company's financial flexibility and support future share buyback initiatives.
- Optimistic Outlook: Although the second quarter is expected to see recurring revenue decline by 2% to flat, CFO John Ederer reaffirmed the guidance ranges for total revenue and non-GAAP earnings per share, demonstrating confidence in future performance.
See More
Teradata TDC Q1 2026 Earnings Call Transcript
See More
Teradata Q1 Earnings Beat Expectations, Optimistic 2026 Outlook
- Q1 Performance Exceeds Expectations: Teradata reported a Q1 non-GAAP EPS of $0.88, beating estimates by $0.11, with revenue of $444 million reflecting a 6.2% year-over-year increase, surpassing expectations by $13.96 million, indicating strong market performance.
- 2026 Financial Outlook Upgraded: The company raised its 2026 GAAP EPS forecast to a range of $4.22 to $4.32, with operational cash flow projected between $642 million and $662 million, including a $302 million after-tax net benefit from a settlement with SAP, bolstering investor confidence.
- Annual Revenue Growth Expectations: Teradata anticipates total annual recurring revenue growth of 2% to 4% for 2026, with recurring revenue expected to remain flat to 2% growth, demonstrating the company's ongoing efforts to stabilize revenue streams.
- Stock Reaction and Market Sentiment: Despite strong Q1 results, Teradata's stock fell 6% in after-hours trading, reflecting cautious market sentiment regarding future growth, with analysts showing mixed views on the company's outlook.
See More
Teradata to Release Q1 2026 Financial Results
- Earnings Release Schedule: Teradata will announce its Q1 2026 financial results after market close on May 5, 2026, reflecting the company's ongoing commitment to financial transparency and investor communication.
- Conference Call Details: The company will host a conference call at 1:30 PM PT on the same day, allowing investors to dial in at (585) 542-9983 with access code 852900969, demonstrating Teradata's focus on investor relations.
- Global Participation Opportunity: Teradata provides global dial-in numbers for investors outside the U.S., ensuring international stakeholders can participate and receive the latest financial updates, thereby enhancing its global investor base.
- Technological Background: Teradata emphasizes its role in transforming AI technology into autonomous action, highlighting its core functions in AI agents and data governance, showcasing the company's strategic positioning in the rapidly evolving AI market.
See More
Teradata Analyst Agent Launches on Microsoft Marketplace
- Seamless Integration: The Teradata Analyst Agent is now available on Microsoft Marketplace, designed to integrate effortlessly with existing Teradata environments and Azure platforms, thereby reducing integration complexity and accelerating customers' digital transformation.
- Transparent Governable AI: The built-in Agent Telemetry provides full visibility into agent planning, execution steps, and performance, enabling enterprises to achieve governance and optimization at scale, enhancing trust in AI applications.
- Interactive Insight-Driven Experience: This agent allows business and data analysts to quickly gain data insights through a conversational user interface without writing code, thereby improving analysis efficiency and accelerating decision-making processes.
- Configurable Quality Signals: Customers can define critical quality signals based on enterprise policies and compliance needs, ensuring the reliability and safety of AI services, thus reducing risks and enhancing business value.
See More
Teradata Launches Autonomous Knowledge Platform to Advance AI Evolution
- Launch of Autonomous Knowledge Platform: Teradata has introduced its Autonomous Knowledge Platform, which integrates production-grade AI, analytics, and data management across cloud, on-premises, and hybrid environments, aiming to significantly enhance enterprise intelligence and operational flexibility in AI applications.
- New Features Unveiled: The platform includes Teradata AI Studio for managing AI outcomes throughout their lifecycle and Tera Agents that automate operations to improve efficiency, with expectations of achieving tenfold improvements in cost control and resource management for enterprises.
- Cloud Deployment Advantages: The Autonomous Knowledge Platform is first available on Teradata Cloud, combining always-on Active Compute with on-demand Elastic Compute, ensuring enterprises can experiment freely without impacting production workloads, thus enhancing data processing flexibility and predictability.
- Response to Market Demand: As the demand for AI continues to rise, Teradata's Autonomous Knowledge Platform provides robust data governance and performance support, helping enterprises maintain competitiveness in a rapidly changing market while addressing urgent needs for real-time decision-making and automated operations.
See More
Teradata Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Teradata reported total revenue of $444 million in Q1, reflecting a 6% year-over-year increase, with recurring revenue growing by 12%, indicating strong market performance and sustained customer demand.
- AI-Driven Market Demand: CEO Stephen McMillan highlighted that security-driven demand for sovereign AI is accelerating, enhancing traction with their AI factory offerings, which underscores the company's strategic positioning in the AI sector.
- SAP Settlement Gains: Teradata entered into a settlement agreement with SAP, receiving a gross payment of $480 million, with a pretax net amount of $359 million, which will bolster the company's financial flexibility and support future share buyback initiatives.
- Optimistic Outlook: Although the second quarter is expected to see recurring revenue decline by 2% to flat, CFO John Ederer reaffirmed the guidance ranges for total revenue and non-GAAP earnings per share, demonstrating confidence in future performance.
See More
Teradata TDC Q1 2026 Earnings Call Transcript
See More
Teradata Q1 Earnings Beat Expectations, Optimistic 2026 Outlook
- Q1 Performance Exceeds Expectations: Teradata reported a Q1 non-GAAP EPS of $0.88, beating estimates by $0.11, with revenue of $444 million reflecting a 6.2% year-over-year increase, surpassing expectations by $13.96 million, indicating strong market performance.
- 2026 Financial Outlook Upgraded: The company raised its 2026 GAAP EPS forecast to a range of $4.22 to $4.32, with operational cash flow projected between $642 million and $662 million, including a $302 million after-tax net benefit from a settlement with SAP, bolstering investor confidence.
- Annual Revenue Growth Expectations: Teradata anticipates total annual recurring revenue growth of 2% to 4% for 2026, with recurring revenue expected to remain flat to 2% growth, demonstrating the company's ongoing efforts to stabilize revenue streams.
- Stock Reaction and Market Sentiment: Despite strong Q1 results, Teradata's stock fell 6% in after-hours trading, reflecting cautious market sentiment regarding future growth, with analysts showing mixed views on the company's outlook.
See More
Teradata to Release Q1 2026 Financial Results
- Earnings Release Schedule: Teradata will announce its Q1 2026 financial results after market close on May 5, 2026, reflecting the company's ongoing commitment to financial transparency and investor communication.
- Conference Call Details: The company will host a conference call at 1:30 PM PT on the same day, allowing investors to dial in at (585) 542-9983 with access code 852900969, demonstrating Teradata's focus on investor relations.
- Global Participation Opportunity: Teradata provides global dial-in numbers for investors outside the U.S., ensuring international stakeholders can participate and receive the latest financial updates, thereby enhancing its global investor base.
- Technological Background: Teradata emphasizes its role in transforming AI technology into autonomous action, highlighting its core functions in AI agents and data governance, showcasing the company's strategic positioning in the rapidly evolving AI market.
See More
Teradata Analyst Agent Launches on Microsoft Marketplace
- Seamless Integration: The Teradata Analyst Agent is now available on Microsoft Marketplace, designed to integrate effortlessly with existing Teradata environments and Azure platforms, thereby reducing integration complexity and accelerating customers' digital transformation.
- Transparent Governable AI: The built-in Agent Telemetry provides full visibility into agent planning, execution steps, and performance, enabling enterprises to achieve governance and optimization at scale, enhancing trust in AI applications.
- Interactive Insight-Driven Experience: This agent allows business and data analysts to quickly gain data insights through a conversational user interface without writing code, thereby improving analysis efficiency and accelerating decision-making processes.
- Configurable Quality Signals: Customers can define critical quality signals based on enterprise policies and compliance needs, ensuring the reliability and safety of AI services, thus reducing risks and enhancing business value.
See More
