Teradata (3T4) AI Stock Analysis

Teradata

(Frankfurt:3T4)

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Positive Factors

Recurring and Cloud GrowthRecurring revenue grew 3% year over year for the third consecutive quarter, while cloud ARR rose 8%. This mix supports greater revenue visibility and indicates continued customer adoption of Teradata’s subscription platform, with cloud expansion providing a durable route to growth.

Negative Factors

Uneven Revenue Track RecordTeradata’s annual revenue declined during 2022–2025 before the TTM rebound, making the latest 11.8% growth less proven. The uneven history raises a durability risk: sustained adoption and execution must be demonstrated before recent growth can be viewed as a stable multi-year trajectory.

Teradata (3T4) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 3.19B
Dividend Yield: ―
Average Volume (3M): 596
Price to Earnings (P/E): 6.8
Beta (1Y): 0.24
Revenue Growth: -5.92%
EPS Growth: 292.49%
Country: Germany
Employees: 5,100
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Teradata Business Overview & Revenue Model

Company Description

Teradata Corporation, through its various entities, delivers a unified multi-cloud data platform specifically engineered for robust enterprise analytics. A cornerstone of its product suite is Teradata Vantage, a cutting-edge data platform designed to...

Teradata Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:11.82%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call emphasized strong execution across product innovation, margin expansion, cash generation, and balance sheet improvement, alongside meaningful early customer traction for new AI-focused offerings. Near-term headwinds stem from consulting revenue weakness, ASC 606-related revenue timing that pressures H2 revenue linearity, and potential supply-chain/cost risks for on-prem hardware as Teradata Factory scales. On balance, the positives — product momentum, profitability gains, cash flow, and strategic positioning for agentic AI — outweigh the near-term operational and timing challenges, supporting confidence in the full-year targets.

Positive Updates

Recurring Revenue Growth and Stability

Recurring revenue reached $363 million, up 3% year-over-year (2% in constant currency), marking the third consecutive quarter of positive recurring revenue growth and exceeding the high end of guidance by ~3 percentage points.

Negative Updates

Consulting Services Revenue Decline

Consulting services revenue was $39 million in Q2, down 24% year-over-year (23% in constant currency). Consulting gross margin was flat and the segment's revenue softness pressured overall margins; bookings have improved but revenue remains weak.

Company Guidance

Management reaffirmed its full‑year outlook for total ARR, total revenue and recurring revenue while raising FY non‑GAAP EPS to $2.65–$2.73 and increasing adjusted free cash flow guidance to $330–$350 million; for Q3 they expect recurring revenue down 4% to 2% YoY, total revenue down 6% to 4% YoY, and non‑GAAP diluted EPS of $0.55–$0.59 (non‑GAAP tax rate ~23%, weighted average shares ~96.7M, FY other expenses ≈$19M). They noted Q2 actuals of total revenue $410M (flat YoY), recurring revenue $363M (+3% YoY, +2% CC), total ARR +1% (+2% CC), cloud ARR +8% (+9% CC), Q2 non‑GAAP EPS $0.69, adjusted free cash flow $127M, net cash $323M (up $528M YoY), ~$40M of share repurchases (~1.3M shares) and payoff of the remaining $450M term loan, and said they expect modest sequential ARR growth into Q3 with the majority of ARR growth concentrated in Q4.

Teradata Risk Analysis

Teradata disclosed 26 risk factors in its most recent earnings report. Teradata reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Teradata Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:3T4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	80Outperform	$3.88T	26.41	33.21%	0.72%	17.91%	36.06%
ORCL	79Outperform	$395.11B	18.38	42.58%	1.68%	21.62%	45.95%
PLTR	75Outperform	$442.43B	116.56	37.47%	―	78.92%	285.33%
MDB	68Neutral	$28.43B	452.33	2.00%	―	25.45%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRGS	59Neutral	$1.84B	20.49	18.36%	―	6.36%	95.43%

* Technology Sector Average

Performance Comparison

DE:3T4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:3T4	Teradata Corp	30.94	12.44	67.24%
MSFT	Microsoft	507.12	-3.01	-0.59%
ORCL	Oracle Corporation	119.22	-125.67	-51.32%
PRGS	Progress Software	44.88	2.75	6.53%
MDB	Mongodb, Inc.	330.43	-25.41	-7.14%
PLTR	Palantir Technologies Inc.	178.34	-12.40	-6.50%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Teradata AI Stock Analysis