Teradata (0LEE) AI Stock Analysis

2 Followers

Teradata

(LSE:0LEE)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong cash generationTeradata’s substantial operating and free cash flow supports internal funding for product development, cloud expansion and shareholder returns. Strong cash conversion also indicates that reported earnings are backed by cash, improving resilience and strategic flexibility over the next several quarters.

Negative Factors

Weak top-line growth outlookThe near-flat revenue outlook indicates that improved profitability is not yet supported by meaningful top-line expansion. Without stronger recurring growth, Teradata may have less operating leverage and fewer resources to sustain investment in cloud, AI products and competitive differentiation.

Teradata (0LEE) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $3.10B
Dividend Yield: ―
Average Volume (3M): 1,868
Price to Earnings (P/E): 6.8
Beta (1Y): 0.61
Revenue Growth: 1.39%
EPS Growth: 294.07%
Country: UK
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:Nov 05, 2026(Q3-2026)|% Change Since:2.92%|Next Earnings Date:Feb 15, 2027

Earnings Call SentimentPositive

The call was broadly positive. Management highlighted year-to-date ARR progress, a 300-basis-point operating-margin improvement, 90% adjusted free cash flow growth, raised EPS and free cash flow outlooks, strong AI product benchmarks, customer interest and new-logo wins. These positives outweighed the Q3 year-over-year declines in recurring revenue, consulting revenue and margins, along with negative fourth-quarter revenue comparisons and modest total ARR growth.

Positive Updates

Strong Year-to-Date Operating Progress

Year to date, total ARR was positive every quarter, operating margin increased by 300 basis points, and adjusted free cash flow grew 90% versus the first three quarters of 2025.

Negative Updates

Modest Third-Quarter Total ARR Growth

Third-quarter total ARR grew 1% as reported and 2% in constant currency. Management said the majority of ARR expansion is still expected to occur in the fourth quarter.

Company Guidance

Teradata reaffirmed total ARR guidance of 2% to 4% and its ranges for adjusted free cash flow, while narrowing FY '26 total revenue guidance to the range of minus 1% to 0% year-over-year and recurring revenue guidance to the range of 1% to 2% growth year-over-year; non-GAAP earnings per share guidance increased to $2.86 to $2.90. For Q4 2026, recurring revenue is expected to be in the range of minus 2% to minus 4% year-over-year, total revenue is expected to be in the range of minus 4% to minus 6% year-over-year, and non-GAAP diluted earnings per share is expected to be in the range of $0.58 to $0.62, with a non-GAAP tax rate of approximately 26%, weighted average shares outstanding of about 94.8 million, and FY '26 other expenses now anticipated to be approximately $17 million; operating margin expansion is now expected to be approximately 200 basis points for the year, with the midpoint of adjusted free cash flow guidance at $340 million.

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

GB:0LEE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	80Outperform	$3.96T	27.14	33.21%	0.70%	17.91%	36.06%
ORCL	79Outperform	$356.74B	19.81	42.58%	1.56%	21.62%	45.95%
PLTR	75Outperform	$406.77B	112.68	39.84%	―	87.06%	230.03%
MDB	66Neutral	$26.74B	462.86	2.00%	―	25.45%	―
PRGS	64Neutral	$1.79B	20.23	18.36%	―	6.36%	95.43%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

GB:0LEE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0LEE	Teradata Corp	33.50	6.41	23.65%
MSFT	Microsoft	521.13	21.94	4.40%
ORCL	Oracle Corporation	128.38	-86.32	-40.20%
PRGS	Progress Software	44.30	2.00	4.73%
MDB	Mongodb, Inc.	338.12	-13.02	-3.71%
PLTR	Palantir Technologies Inc.	172.40	0.26	0.15%

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