Teradata (TDC) Shares Surge 42.7% in Three Months, Driven by ARR Growth

Written by Emily J. Thompson, Senior Investment Analyst

TDC-0.4%

ADI-0.06%

CIEN+6.58%

Source: NASDAQ.COM

Updated: Jan 19 2026

0mins

Source: NASDAQ.COM

Outstanding Stock Performance: Teradata's shares have surged 42.7% over the past three months, significantly outperforming the Zacks Computer & Technology sector's return of 2.8%, reflecting strong market confidence in its future growth prospects.
ARR Growth Driver: The company has implemented cost-saving and productivity measures that have driven Annual Recurring Revenue (ARR) growth, which is expected to further enhance free cash flow and strengthen financial stability.
AI Solutions Expansion: Teradata completed over 150 AI engagements in 2025, helping clients solve complex business problems, indicating its leadership position in the AI/ML space and robust market demand.
Strengthened Strategic Partnerships: Collaborations with top global cloud service providers like Amazon AWS, Microsoft Azure, and Google Cloud have enhanced Teradata's market reach and technical capabilities, further solidifying its leadership in data management and analytics platforms.

TDC

$29.58+Infinity%1D

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: 29.700

Low

24.00

Averages

30.11

High

42.00

Current: 29.700

Low

24.00

Averages

30.11

High

42.00

RBC Capital

Sector Perform

maintain

$23 -> $32

2026-01-05

Reason

RBC Capital

Price Target

$23 -> $32

AI Analysis

2026-01-05

maintain

Sector Perform

Reason

RBC Capital raised the firm's price target on Teradata to $32 from $23 and keeps a Sector Perform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.

Morgan Stanley

Erik Woodring

Overweight

maintain

$30 -> $35

2025-12-17

Reason

Morgan Stanley

Erik Woodring

Price Target

$30 -> $35

2025-12-17

maintain

Overweight

Reason

Morgan Stanley analyst Erik Woodring raised the firm's price target on Teradata (TDC) to $35 from $30 and keeps an Overweight rating on the shares. Among the IT Hardware group, the firm recommends being overweight cloud capex winners, product-cycle beneficiaries such as Apple, and unique assets, while it suggests being underweight stocks with elevated memory exposure - like Dell (DELL) and HP (HPQ) - and is "increasingly more cautious" on memory-exposed names as well, the analyst tells investors in a year-ahead note.

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Citizens JMP

Market Perform

Outperform

upgrade

$42

2025-11-10

Reason

Citizens JMP

Price Target

$42

2025-11-10

upgrade

Market Perform

Outperform

Reason

Citizens JMP upgraded Teradata to Outperform from Market Perform with a $42 price target. The firm says the company has repositioned itself to drive growth in free cash flow per share over the next several years. In addition, the stock has fallen 11% year-to-date, the analyst tells investors in a research note. The firm says Teradata has shifted its emphasis from a "narrow focus" on public cloud annual recurring revenue growth to a broader focus on factors including ARR growth, which should drive growth in free cash flow per share.

TD Cowen

Derrick Wood

Hold

maintain

$24 -> $25

2025-11-05

Reason

TD Cowen

Derrick Wood

Price Target

$24 -> $25

2025-11-05

maintain

Hold

Reason

TD Cowen analyst Derrick Wood raised the firm's price target on Teradata to $25 from $24 and keeps a Hold rating on the shares. The firm said updated their model following Q3 results and unchanged guidance with good progress on margins.

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.