Overview

• AI platform's Q4 revenue rose 3%, beating analyst expectations

• Adjusted EPS beat analysts' expectations

• Recurring revenue increased 5% yr/yr, driven by strong operational discipline

Outlook

• Teradata expects full-year 2026 total ARR growth of 2% to 4% year-over-year

• Company projects full-year 2026 GAAP EPS between $1.26 and $1.36

• Teradata forecasts Q1 2026 recurring revenue growth of 6% to 8% year-over-year

Result Drivers

• PUBLIC CLOUD GROWTH - Public cloud ARR increased 15% yr/yr, contributing significantly to revenue growth

• AI PLATFORM SUCCESS - Teradata's Autonomous AI and Knowledge platform resonated well with customers, driving demand

• OPERATIONAL DISCIPLINE - Strong operational discipline contributed to exceeding revenue and free cash flow expectations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Teradata Corp is $27.50, about 2.8% below its February 9 closing price of $28.29

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn3ZqRwma

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.