Teradata Reports Strong Q4 2025 Earnings, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy TDC?
Source: seekingalpha
- Strong Performance: Teradata achieved total revenue of $421 million in Q4 2025, a 3% year-over-year increase that surpassed market expectations, demonstrating significant progress in stabilizing business performance and improving customer retention.
- Robust Cash Flow: The company generated free cash flow of $285 million, exceeding the high end of guidance, reflecting enhanced operational efficiency and improved financial health, providing a solid foundation for future investments.
- Strategic Investments: Management anticipates total annual recurring revenue (ARR) growth of 2-4% in 2026 and plans to allocate more resources to product development, indicating a proactive response to market demand.
- Innovation Focus: New products like the Enterprise Vector Store and AI Factory, along with the partnership with Unstructured.io, highlight Teradata's ongoing innovation in AI and hybrid cloud solutions, aimed at addressing customer needs for data sovereignty and compliance.
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Analyst Views on TDC
Wall Street analysts forecast TDC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TDC is 30.11 USD with a low forecast of 24.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 28.290
Low
24.00
Averages
30.11
High
42.00
Current: 28.290
Low
24.00
Averages
30.11
High
42.00
About TDC
Teradata Corporation offers a complete cloud analytics and data platform for artificial intelligence (AI). Teradata Vantage is the Company's open and connected platform that is designed to allow organizations to leverage all their data across an enterprise, in a hybrid environment. Teradata Vantage platform includes Teradata VantageCloud and Teradata VantageCore. Teradata VantageCloud is its flexible, connected, and modern cloud platform that includes Teradata VantageCloud Lake (built on its cloud-native lake architecture) and Teradata VantageCloud Enterprise. Teradata VantageCore (its on-premises platform) integrates with its cloud offerings to enable hybrid environments. Teradata Vantage's key capabilities across all deployments include ClearScape Analytics and Query Grid. ClearScape Analytics provides in-database engine analytics functionality, open and connected integrations, and operationalization at scale for effective data preparation, advanced analytics, and AI/ML performance.
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 Reports Strong Q4 2025 Earnings, Exceeding Expectations
- Strong Performance: Teradata achieved total revenue of $421 million in Q4 2025, a 3% year-over-year increase that surpassed market expectations, demonstrating significant progress in stabilizing business performance and improving customer retention.
- Robust Cash Flow: The company generated free cash flow of $285 million, exceeding the high end of guidance, reflecting enhanced operational efficiency and improved financial health, providing a solid foundation for future investments.
- Strategic Investments: Management anticipates total annual recurring revenue (ARR) growth of 2-4% in 2026 and plans to allocate more resources to product development, indicating a proactive response to market demand.
- Innovation Focus: New products like the Enterprise Vector Store and AI Factory, along with the partnership with Unstructured.io, highlight Teradata's ongoing innovation in AI and hybrid cloud solutions, aimed at addressing customer needs for data sovereignty and compliance.
See More
Teradata Exceeds Expectations in 2025 Earnings Report
- Strong Financial Performance: In Q4 2025, Teradata reported total revenue of $421 million, a 3% year-over-year increase that exceeded expectations, demonstrating the company's success in stabilizing its business and improving customer retention.
- Significant Cloud Growth: Cloud Annual Recurring Revenue (ARR) grew by 15%, now representing 46% of total ARR, reflecting strong customer demand for hybrid deployment options and enhancing the company's competitive position in the market.
- Excellent Free Cash Flow: Teradata generated $285 million in free cash flow for 2025, surpassing expectations and increasing cash and equivalents to $493 million, showcasing effective financial management.
- Optimistic Future Outlook: For 2026, Teradata expects total ARR growth of 2% to 4% and plans to increase investment in product development to capitalize on the substantial AI market opportunity, further driving profitability growth.
See More
Teradata Appoints Melissa Fisher to Board Amid Cooperation with Lynrock Lake
- Board Changes: Teradata has appointed Melissa Fisher to its Board, whose extensive experience in finance and technology is expected to provide new perspectives that support the company's long-term growth and value creation objectives.
- Cooperation Agreement: The company has reached a cooperation agreement with Lynrock Lake, which will support the full slate of directors at the 2026 Annual Meeting, reflecting confidence in Teradata's long-term value potential.
- Board Refresh Strategy: Chairman Mike Gianoni emphasized that ongoing board refreshment is a key component of the company's strategic plan aimed at enhancing governance and increasing shareholder value.
- Advisory Support: Teradata has engaged Foros as its financial advisor and Sullivan & Cromwell LLP as legal counsel to ensure compliance and strategic communication during the board changes and cooperation agreement.
See More
Teradata Appoints Melissa Fisher to Board as Part of Refreshment Strategy
- Board Changes: Teradata announced the expected appointment of Melissa Fisher as a Class I director by March 1, 2026, with her nomination for election at the 2026 Annual Meeting, aiming to inject new perspectives into the Board and drive long-term growth.
- Cooperation Agreement: The company has reached a cooperation agreement with Lynrock Lake, which will support the full slate of directors at the 2026 Annual Meeting, reflecting mutual confidence in Teradata's long-term value potential and facilitating the advancement of strategic objectives.
- Board Refreshment Plan: As part of the phased refreshment plan, one Class I and one Class II director will retire and not stand for re-election in 2026 and 2027 respectively, demonstrating Teradata's ongoing commitment to optimizing board structure to enhance governance and decision-making capabilities.
- Melissa Fisher's Background: Fisher, who previously served as CFO at Outreach.io and Qualys, brings extensive finance and technology experience, and her addition is expected to positively impact Teradata's strategic initiatives and enhance shareholder value.
See More
Teradata Scheduled to Announce Q4 Earnings on February 10th
- Earnings Announcement Date: Teradata (TDC) is set to announce its Q4 earnings on February 10th after market close, with a consensus EPS estimate of $0.56, reflecting a 5.7% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $399.75 million, representing a 2.3% year-over-year decline, which highlights competitive pressures that may impact future growth strategies.
- Historical Performance: Over the past two years, Teradata has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating reliability in financial forecasting.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and no downward revisions, while revenue estimates have experienced one upward and one downward revision, suggesting fluctuating market confidence in Teradata's future performance.
See More
Surge in Options Trading Volume for Datadog and Teradata
- Datadog Options Volume: Datadog Inc saw options trading volume of 62,594 contracts, equating to approximately 6.3 million shares, which represents about 96.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $105 strike put option expiring on February 13, 2026, has seen 6,809 contracts traded today, representing around 680,900 underlying shares, suggesting an increased bearish sentiment among investors regarding the stock's price trajectory.
- Teradata Options Activity: Teradata Corp recorded an options trading volume of 12,332 contracts, equivalent to approximately 1.2 million shares, which accounts for 92.4% of its average daily trading volume over the past month, reflecting a vibrant trading atmosphere surrounding its stock.
- Bullish Call Option Trend: The $30 strike call option expiring on February 20, 2026, has seen 6,008 contracts traded today, representing about 600,800 shares, indicating a bullish outlook among investors for Teradata's future price movements.
See More
Teradata Reports Strong Q4 2025 Earnings, Exceeding Expectations
- Strong Performance: Teradata achieved total revenue of $421 million in Q4 2025, a 3% year-over-year increase that surpassed market expectations, demonstrating significant progress in stabilizing business performance and improving customer retention.
- Robust Cash Flow: The company generated free cash flow of $285 million, exceeding the high end of guidance, reflecting enhanced operational efficiency and improved financial health, providing a solid foundation for future investments.
- Strategic Investments: Management anticipates total annual recurring revenue (ARR) growth of 2-4% in 2026 and plans to allocate more resources to product development, indicating a proactive response to market demand.
- Innovation Focus: New products like the Enterprise Vector Store and AI Factory, along with the partnership with Unstructured.io, highlight Teradata's ongoing innovation in AI and hybrid cloud solutions, aimed at addressing customer needs for data sovereignty and compliance.
See More
Teradata Exceeds Expectations in 2025 Earnings Report
- Strong Financial Performance: In Q4 2025, Teradata reported total revenue of $421 million, a 3% year-over-year increase that exceeded expectations, demonstrating the company's success in stabilizing its business and improving customer retention.
- Significant Cloud Growth: Cloud Annual Recurring Revenue (ARR) grew by 15%, now representing 46% of total ARR, reflecting strong customer demand for hybrid deployment options and enhancing the company's competitive position in the market.
- Excellent Free Cash Flow: Teradata generated $285 million in free cash flow for 2025, surpassing expectations and increasing cash and equivalents to $493 million, showcasing effective financial management.
- Optimistic Future Outlook: For 2026, Teradata expects total ARR growth of 2% to 4% and plans to increase investment in product development to capitalize on the substantial AI market opportunity, further driving profitability growth.
See More
Teradata Appoints Melissa Fisher to Board Amid Cooperation with Lynrock Lake
- Board Changes: Teradata has appointed Melissa Fisher to its Board, whose extensive experience in finance and technology is expected to provide new perspectives that support the company's long-term growth and value creation objectives.
- Cooperation Agreement: The company has reached a cooperation agreement with Lynrock Lake, which will support the full slate of directors at the 2026 Annual Meeting, reflecting confidence in Teradata's long-term value potential.
- Board Refresh Strategy: Chairman Mike Gianoni emphasized that ongoing board refreshment is a key component of the company's strategic plan aimed at enhancing governance and increasing shareholder value.
- Advisory Support: Teradata has engaged Foros as its financial advisor and Sullivan & Cromwell LLP as legal counsel to ensure compliance and strategic communication during the board changes and cooperation agreement.
See More
Teradata Appoints Melissa Fisher to Board as Part of Refreshment Strategy
- Board Changes: Teradata announced the expected appointment of Melissa Fisher as a Class I director by March 1, 2026, with her nomination for election at the 2026 Annual Meeting, aiming to inject new perspectives into the Board and drive long-term growth.
- Cooperation Agreement: The company has reached a cooperation agreement with Lynrock Lake, which will support the full slate of directors at the 2026 Annual Meeting, reflecting mutual confidence in Teradata's long-term value potential and facilitating the advancement of strategic objectives.
- Board Refreshment Plan: As part of the phased refreshment plan, one Class I and one Class II director will retire and not stand for re-election in 2026 and 2027 respectively, demonstrating Teradata's ongoing commitment to optimizing board structure to enhance governance and decision-making capabilities.
- Melissa Fisher's Background: Fisher, who previously served as CFO at Outreach.io and Qualys, brings extensive finance and technology experience, and her addition is expected to positively impact Teradata's strategic initiatives and enhance shareholder value.
See More
Teradata Scheduled to Announce Q4 Earnings on February 10th
- Earnings Announcement Date: Teradata (TDC) is set to announce its Q4 earnings on February 10th after market close, with a consensus EPS estimate of $0.56, reflecting a 5.7% year-over-year growth, indicating stable profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $399.75 million, representing a 2.3% year-over-year decline, which highlights competitive pressures that may impact future growth strategies.
- Historical Performance: Over the past two years, Teradata has beaten EPS estimates 100% of the time and revenue estimates 63% of the time, demonstrating reliability in financial forecasting.
- Estimate Revision Trends: In the last three months, EPS estimates have seen two upward revisions and no downward revisions, while revenue estimates have experienced one upward and one downward revision, suggesting fluctuating market confidence in Teradata's future performance.
See More
Surge in Options Trading Volume for Datadog and Teradata
- Datadog Options Volume: Datadog Inc saw options trading volume of 62,594 contracts, equating to approximately 6.3 million shares, which represents about 96.4% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High-Frequency Trading Insight: Notably, the $105 strike put option expiring on February 13, 2026, has seen 6,809 contracts traded today, representing around 680,900 underlying shares, suggesting an increased bearish sentiment among investors regarding the stock's price trajectory.
- Teradata Options Activity: Teradata Corp recorded an options trading volume of 12,332 contracts, equivalent to approximately 1.2 million shares, which accounts for 92.4% of its average daily trading volume over the past month, reflecting a vibrant trading atmosphere surrounding its stock.
- Bullish Call Option Trend: The $30 strike call option expiring on February 20, 2026, has seen 6,008 contracts traded today, representing about 600,800 shares, indicating a bullish outlook among investors for Teradata's future price movements.
See More
