Teradata Corporation (TDC) AI Stock Analysis

Teradata Corporation delivers an advanced multi-cloud data platform designed for enterprise analytics, centered on its flagship Teradata Vantage offering. The platform integrates diverse data sources across enterprise operations, streamlining ecosystem management and assisting clients with cloud migration. In addition to software, Teradata provides business consulting services to help organizations structure analytics strategies, identify operational opportunities, and build resilient architectures. Headquartered in San Diego, California, and founded in 1979, the company reaches clients across financial services, government, healthcare, manufacturing, retail, telecommunications, and transportation through direct sales teams in the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan.

Teradata's annual revenue contracted over several years, moving from $1.92B in FY2021 to $1.79B in FY2022, $1.83B in FY2023, $1.75B in FY2024, and $1.66B in FY2025, reflecting a 5-year CAGR of -2.0%. Gross margin held relatively steady, recorded at 61.9% in FY2021 and 59.7% in FY2025, while operating margin rose from 6.6% in FY2022 to 12.3% in FY2025. Annual net income recovered from $33.0M in FY2022 to $130.0M in FY2025. For the trailing twelve months, revenue reached $1.69B with a 27.1% profit margin and an EPS of $4.76. In the latest quarter ended June 30, 2026, quarterly revenue growth was 0.5% year-over-year, while quarterly earnings grew 433.3%.

As of June 30, 2026, Teradata held $414.0M in cash and short-term investments against $99.0M in total debt, yielding net cash of $315.0M. Shareholders' equity stood at $593.0M, resulting in a debt-to-equity ratio of 0.17, while the current ratio was 0.91. Operating cash flow totaled $305.0M in FY2025, supporting free cash flow of $286.0M after capital expenditures of $19.0M. The company deployed $140.0M toward share buybacks in FY2025, helping reduce its share count by 14.3% over five years.

Teradata trades at a trailing P/E of 6.4x and a forward P/E of 9.6x, both below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its enterprise value of $2.29B yields an EV/EBITDA of 8.6x and an EV/revenue of 1.4x, compared to peer group medians of 16.6x and a P/S of 2.8x against Teradata's 1.7x. Over the past year, TDC shares gained 45.6%, outpacing the S&P 500 return of 16.8%. Over a 5-year span, however, TDC fell 47.2%, trailing the S&P 500 gain of 83.0%.

Wall Street coverage on TDC includes 1 StrongBuy, 1 Buy, 4 Hold, and 2 Sell recommendations. The mean price target is $33.50, representing an upside of 10.3% from the last close of $30.36. Consensus calls for FY2026 revenue of $1.65B with EPS of $2.71, implying 5.0% earnings growth. For FY2027, 8 analysts project revenue to reach $1.67B with EPS of $2.91. Teradata beat EPS estimates in all 4 of its last four quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Teradata Corporation (TDC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TDC income statement, TDC balance sheet, TDC key metrics, TDC analyst forecast, TDC chart. See the TDC stock overview for the latest quote and news.