TDC
Teradata Corporation

Teradata CorporationTDC

Technology · Software - Infrastructure
34.61USD
+2.94%
Nov 05, 2026
TDC overview ready
Enterprise AI and Data Platform Provider for Hybrid Deployments
Teradata is an enterprise data, analytics, and AI-platform provider serving hybrid and cloud deployments, with associated AI implementation services.
Primary theme is weakening
Data Infrastructure Software is weakening (+5.3pp vs SPY over 21 sessions; 3 of 6 members ahead of SPY).
An early price trend
Longer-term context reads early trend, with a near-term setup of daily advance.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger cloud and AI platform providers.
Market Nov 4Filing Jun 30Price action Nov 5Research Jul 20

Conviction Level

PriceAction9.4BusinessPerformance5.0BusinessQuality8.4Valuation7.6ThemeMomentum3.0Mixed — Revenue is roughly flat year over year (+0.5%). Diluted EPS is up 433% year over year at $0.48. That earnings comparison is against a weak year-ago quarter. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+5.3pp
Theme return
+3.7%
Beating SPY
3 of 6
21 sessions to Nov 4, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

An early price trend
Longer-term context reads early trend, with a near-term setup of daily advance.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$3.2B
Avg Volume (60D)
1.8M
60 sessions
Revenue Growth YoY
-5.0%
FY2025 vs FY2024
Gross Margin
+60.8%
Trailing twelve months
Operating Margin
+7.5%
Trailing twelve months
Free Cash Flow Yield
+22.9%
P/E
7.0x
EV / EBITDA
12.6x
EV / Sales
1.7x
Market metrics as of Nov 4, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Mixed

Revenue is roughly flat year over year (+0.5%). Diluted EPS is up 433% year over year at $0.48. That earnings comparison is against a weak year-ago quarter.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthFlat
+0.5%
$410M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. -5.5%
  2. +2.9%
  3. +6.2%
  4. +0.5%
Earnings growthGrowing
+433%
Diluted EPS $0.48 vs $0.09 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +27%
  2. +46%
  3. +671%
  4. +433%
Operating marginExpanding
11.7%
+5.8 pp YoY · gross margin 59.3% (+2.9 pp)
Earnings are growing without revenue growth
The comparison is against a weak year-ago quarter

Business Quality

8.4 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; own history is the dissenting view.
Teradata Corporation has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces.

Company Research

Thesis
Teradata is an enterprise data, analytics, and AI-platform provider serving hybrid and cloud deployments, with associated AI implementation services.
Opportunity
Moderate opportunity
Enterprise spending to convert AI pilots into production systems by unifying governed structured and unstructured data, enterprise context, analytics, and controlled access for AI applications and agents.
Key risk
Competition from larger cloud and AI platform providers.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Infrastructure
What they do

Teradata Corporation provides AI and knowledge platforms designed for enterprise-grade workloads, operating through product sales and consulting services globally.

How it earns

The company generates revenue through product sales and project-based consulting services.

Products & services
AI and knowledge platforms
Consulting services for data analytics and AI implementation
Customers & end markets
Financial services
Healthcare and life sciences
Public sector
Manufacturing
Retail
Market position

Teradata is a niche player focused on enterprise-grade AI and analytics platforms with consulting support.

Demand drivers
Medium cyclicality

Demand for AI and analytics solutions can be influenced by broader IT spending cycles and enterprise investment trends.