Teradata Stock Soars After Strong Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy TDC?
Source: Fool
- Strong Earnings Report: Teradata's Q4 2025 sales rose 3% year-over-year to $421 million, surpassing analyst expectations of $400 million, indicating the company's sustained growth potential in data warehousing and business analytics.
- Improved Profitability: Adjusted earnings increased by 40% to $0.74 per share, significantly exceeding the analyst consensus of $0.54, reflecting enhanced earnings quality and boosting investor confidence.
- Recurring Revenue Growth: Annual recurring revenues (ARR) grew by 15% year-over-year, primarily driven by strong performance in the public cloud segment, showcasing the company's competitive edge and rising market demand in cloud computing.
- AI-Driven Future: CEO Steve McMillan emphasized that Teradata's autonomous AI and knowledge platform offers unique value to enterprises, which is expected to drive future business growth and further solidify its position in the data management and analytics sector.
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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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- Improved Profitability: Adjusted earnings increased by 40% to $0.74 per share, significantly exceeding the analyst consensus of $0.54, reflecting enhanced earnings quality and boosting investor confidence.
- Recurring Revenue Growth: Annual recurring revenues (ARR) grew by 15% year-over-year, primarily driven by strong performance in the public cloud segment, showcasing the company's competitive edge and rising market demand in cloud computing.
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- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
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- Unexpected Drop in Unemployment Rate: The unemployment rate fell from 4.4% to 4.3%, which appears positive on the surface; however, this contrasts sharply with the downward revisions in job growth, possibly leading investors to question the economic outlook.
- Robinhood's Poor Market Performance: Robinhood Markets Inc. (NASDAQ:HOOD) saw its stock tumble 12% following a revenue miss and disappointing cryptocurrency trading results, reflecting market concerns about its future profitability and potentially undermining investor confidence.
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- Strong Earnings Report: Teradata's Q4 2025 sales rose 3% year-over-year to $421 million, surpassing analyst expectations of $400 million, indicating the company's sustained growth potential in data warehousing and business analytics.
- Improved Profitability: Adjusted earnings increased by 40% to $0.74 per share, significantly exceeding the analyst consensus of $0.54, reflecting enhanced earnings quality and boosting investor confidence.
- Recurring Revenue Growth: Annual recurring revenues (ARR) grew by 15% year-over-year, primarily driven by strong performance in the public cloud segment, showcasing the company's competitive edge and rising market demand in cloud computing.
- AI-Driven Future: CEO Steve McMillan emphasized that Teradata's autonomous AI and knowledge platform offers unique value to enterprises, which is expected to drive future business growth and further solidify its position in the data management and analytics sector.
See More
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- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
See More
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- Vertiv's Upbeat Guidance: Vertiv's stock jumped nearly 20% due to its optimistic guidance for 2026, with orders accelerating significantly in Q4, surpassing Wall Street expectations and indicating strong demand in the data center market.
- Unity Software's Downgrade: Unity Software's shares fell nearly 30% after issuing a first-quarter revenue outlook between $480 million and $490 million, below analysts' expectations of $492.1 million, raising concerns about its future growth prospects.
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- Sales Growth: The company's quarterly sales reached $391.578 million, exceeding the anticipated $385.560 million, suggesting sustained demand for its products that could drive future revenue growth.
- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
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See More
