TERADATA (TDC) Earnings Date & Reports

Key Takeaways

• Non-GAAP earnings per share (EPS) of $0.70 beat the analyst consensus of $0.58 by roughly 21%.
• Total revenue came in at $399 million, down 4.1% year over year but modestly above consensus estimates.
• Total annual recurring revenue (ARR) reached $1.51 billion, up 1% as reported and 2% in constant currency, while Public Cloud ARR grew 11% to $700 million.
• Management raised its full-year 2026 non-GAAP EPS outlook to a range of $2.86 to $2.90, above prior analyst expectations.
• Fourth-quarter revenue guidance of about $400 million implies a continued top-line decline of roughly 5% year over year.
• Get more context on Teradata's Major News, Today's Price Move, Price Targets, and Forecast on additional pages.
• Explore Trending AI Robots to see AI-driven trading strategies currently attracting investor attention.

Earnings Context and Why It Matters

Teradata's third-quarter report arrived at a pivotal moment for the enterprise data and AI platform provider. The company has spent 2026 repositioning itself around its "Teradata 3.0" strategy and a new Autonomous Knowledge Platform, betting that agentic AI workloads will eventually reaccelerate demand. Yet its core business has struggled with a multi-year revenue decline as cloud-native competitors capture market share. Against that backdrop, this quarter offered a familiar pattern: resilient profitability and disciplined execution offsetting a still-shrinking top line. For investors, the report matters less for the headline beat and more for whether ARR growth and new product traction can ultimately translate into sustained revenue expansion.

Reported Results

Teradata reported third-quarter 2026 revenue of $399 million, a 4.1% decline from $416 million in the prior-year period, slightly above the roughly $395 million consensus. Recurring revenue fell 2% to $359 million and represented 90% of total revenue, while consulting services revenue dropped 21.3% to $37 million.

On the bottom line, non-GAAP diluted EPS came in at $0.70, exceeding the $0.58 consensus estimate by about 21% and marking a beat for the fourth consecutive quarter. GAAP diluted EPS was $0.40. Total ARR rose 1% as reported to $1.51 billion, with Public Cloud ARR climbing 11% to $700 million. Adjusted free cash flow increased 9% year over year to $96 million. However, billings of $304 million fell 28% year over year, a metric investors will watch closely as a forward indicator of demand.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, breakout candidates, and market opportunities far more efficiently than manual screening, making it a practical companion for earnings-focused research. Explore the screener to refine your watchlist and identify setups aligned with your own strategy.

Market Reaction and Investor Sentiment

Shares were roughly flat in the immediate aftermath of the release, a measured response reflecting the mixed nature of the results. The strong EPS beat and raised full-year profit guidance were offset by a revenue decline, a 28% drop in billings, and conservative fourth-quarter revenue guidance. Investor sentiment heading into the print had been cautious following Teradata's second-quarter report, when shares fell sharply on a softer second-half outlook. This time, the market appeared to reward the company's profitability discipline and ARR progress while remaining unconvinced that top-line growth has inflected. The divergence between resilient earnings and persistent revenue erosion remains the central tension for shareholders.

Forward Outlook and Key Factors to Monitor

Looking ahead, Teradata's raised full-year non-GAAP EPS guidance of $2.86 to $2.90 signals confidence in continued cost discipline and margin management, even as revenue guidance remains muted. Management guided to roughly $400 million in fourth-quarter revenue, implying a year-over-year decline of about 5%.

The most important signal to watch will be whether total ARR continues its modest sequential growth, particularly as new products such as the Teradata Factory and the Autonomous Knowledge Platform move through general availability. Public Cloud ARR growth of 11% is encouraging, but investors should monitor whether cloud momentum accelerates enough to offset the continued decline in on-premises and consulting revenue.

Billings, which fell sharply this quarter, will be another key indicator of underlying demand and the health of customer commitments. Finally, the company's stated capital-allocation priorities—organic research and development first, followed by share repurchases and opportunistic M&A (mergers and acquisitions)—could shape how aggressively Teradata reinvests in its AI pivot. The core question remains whether the company can translate profitability gains and AI innovation into a sustained return to revenue growth.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations