Lumida
/TDC
⌘K
Teradata Corp

Teradata Corp

TDC
$27.84USD↑+1.75%+0.48 today

MARKET CAP

2.6B

P/E (TTM)

6.4x

FWD P/E

—

DAY RANGE

$27 – $28

52W RANGE

$20
$42

AI Summary

Stalk
TrimMedium

TDC is in a Stage 3 distribution range with a bearish descending triangle between $28.30 support and $30.12 resistance. Medium-term bias is bearish given the pattern and multi-year downtrend. Short-term momentum has rolled over below EMAs near horizontal support, suggesting deferred sell execution until a breakdown confirms continuation.

  • ↑Free cash flow $285M in FY2025 and $127M in Q2’26 drive reinvestment
  • ↑Returned $40M in share buybacks, targeting 50% of FCF to capital returns
  • ↓Q2’26 recurring revenue expected down 2–4%, signaling growth risks
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Teradata Corporation (NYSE:TDC) is a leading provider of integrated data and analytics solutions, focusing on enabling enterprises to optimize their data for artificial intelligence (AI) initiatives. The company operates within the hybrid cloud space, offering both on-premise and cloud-based solutions tailored for the needs of sectors such as finance and healthcare, where data governance and security are paramount. Teradata is strategically positioned to leverage its capabilities in AI as organizations increasingly seek to operationalize their data management processes.

Bull says

  • ↑Free cash flow $285M in FY2025 and $127M in Q2’26 drive reinvestment
  • ↑Returned $40M in share buybacks, targeting 50% of FCF to capital returns
  • ↑Annual recurring revenue $363M, +3% YoY; cloud ARR +8% YoY
  • ↑Non-GAAP EPS $0.69 in Q2’26 beat estimates, reflecting operational discipline
  • ↑Autonomous Knowledge Platform launch expands AI analytics addressable market
  • ↑Robust liquidity and high institutional ownership support growth initiatives

Bear says

  • ↓Q2’26 recurring revenue expected down 2–4%, signaling growth risks
  • ↓Consulting services revenue declined 24% YoY; profitability conversion remains weak
  • ↓Negative earnings revisions indicate analyst skepticism on future earnings
  • ↓Intense competition from Snowflake, Databricks and cloud-native rivals
  • ↓Macro uncertainty may curb enterprise AI and hybrid cloud spending
  • ↓Low profitability and negative dividend yield may deter income investors

Investment themes with TDC

Software↓ -1.57%

Cloud-based digital tools powering business productivity and innovation

MSFT · ORCL · PLTR

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-05-2026neutral

Transcript signals

Bull points

  • The profitability of a recurring revenue stream is certainly the most profitable segment that we have, and that will obviously lay the groundwork for some durable free cash flow growth as we move forward.
  • We've got over $630 million, and as we grow that at, you know, mid-double-digit, mid-teens in terms of growth for this year, that has some meaningful growth impact to our numbers as well.
  • We're actually tracking a little ahead of the plan. We were hoping to get back to positive territory by the end of the year. We actually got to positive growth this quarter, now with a little bit of help from currency, but even on a constant currency basis, got back to flat this quarter.

Bear points

  • we did know that 2024 was going to be an outlier from an erosion perspective, particularly in our on-prem business.
  • we are seeing a reduction in the number of what I would call pure play cloud migrations where the customer is looking to migrate to the cloud to generate some form of cost optimization.
  • It's a little too early for me to to give you specifics on that, but it's definitely something that we're taking a close look at and it's something that that could impact positively impact cash flow this year as well as next year.
Read full transcript analysis ›