Teradata Corporation (NYSE:TDC) shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter adjusted earnings per share guidance above estimates.
- Teradata shares are testing new highs. What’s behind TDC new highs?
Q4 Results And Outlook
Teradata reported adjusted earnings per share of 74 cents, beating the consensus estimate of 56 cents. In addition, the company reported revenue of $421 million, beating the consensus estimate of $400.81 million.
Total annual recurring revenue increased 3% year-over-year to $1.52 billion. Public cloud ARR rose 15% to $701 million. Recurring revenue increased 5% to $367 million and accounted for 87% of total revenue.
GAAP operating margin improved to 12.8% from 9.5% in the prior year’s quarter, while adjusted operating margin increased to 22.8% from 17.6%. Cash flow from operations totaled $160 million and free cash flow was $151 million in the quarter.
Looking ahead, the company expects first-quarter adjusted earnings per share of 75 cents to 79 cents, versus the consensus estimate of 69 cents, and revenue of $422.18 million to $430.54 million, compared with estimates of $411.89 million.
For fiscal-year 2026, the company projects adjusted earnings per share of $2.55 to $2.65, versus the consensus estimate of $2.54. Revenue is expected to range from $1.63 billion to $1.66 billion, compared with estimates of $1.63 billion.
Following the company’s quarterly results, multiple analysts lifted price targets.
- Barclays analyst Raimo Lenschow maintained an Underweight and raised the price target from $27 to $31.
- Evercore ISI Group analyst Chirag Ved maintained an Outperform and raised the price target from $28 to $40.
- Citizens analyst Patrick Walravens maintained a Market Outperform and raised the price target from $42 to $49.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Teradata, highlighting its strengths and weaknesses compared to the broader market:
- Value: 33.74 — The stock is trading at a moderate valuation relative to its peers.
- Quality: 48.94 — The balance sheet remains relatively healthy.
- Momentum: 69.61 — The stock is showing strong momentum compared to the broader market.
The Verdict: Teradata’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is outperforming the broader market. However, the value score suggests that it may be trading at a premium, warranting caution for potential investors.
Teradata Shares Soar Wednesday
TDC Price Action: At the time of writing, Teradata shares are trading 22.75% higher at $35.88, according to data from Benzinga Pro.
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