Teradata Exceeds Expectations in 2025 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy TDC?
Source: Yahoo Finance
- Strong Financial Performance: In Q4 2025, Teradata reported total revenue of $421 million, a 3% year-over-year increase that exceeded expectations, demonstrating the company's success in stabilizing its business and improving customer retention.
- Significant Cloud Growth: Cloud Annual Recurring Revenue (ARR) grew by 15%, now representing 46% of total ARR, reflecting strong customer demand for hybrid deployment options and enhancing the company's competitive position in the market.
- Excellent Free Cash Flow: Teradata generated $285 million in free cash flow for 2025, surpassing expectations and increasing cash and equivalents to $493 million, showcasing effective financial management.
- Optimistic Future Outlook: For 2026, Teradata expects total ARR growth of 2% to 4% and plans to increase investment in product development to capitalize on the substantial AI market opportunity, further driving profitability growth.
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Analyst Views on TDC
Wall Street analysts forecast TDC stock price to fall
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 33.540
Low
24.00
Averages
30.11
High
42.00
Current: 33.540
Low
24.00
Averages
30.11
High
42.00
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.
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