Teradata Corporation research snapshot
TDC AI stock analysis as of the August 4, 2026 data cutoff reads Teradata as a data analytics and AI knowledge platform whose turnaround is now showing real operating evidence, trading at a modest forward multiple while total revenue is still falling. The stock traded at $32.50 on August 3, 2026 at 3:48 PM EDT, up 1.51 or 4.87% from the $30.99 close on July 31, within a session range of $31.60 to $32.52, carrying a market capitalization near $3.06 billion, verified as $32.50 times 94.1 million shares outstanding. Q1 2026, reported May 5, 2026, delivered revenue of $444 million up 6% as reported, recurring revenue of $400 million up 12%, total ARR growth of 3%, cloud ARR growth of 13%, a non-GAAP operating margin of 27.3%, and non-GAAP EPS of $0.88, helped by an upfront term-license mix that also gave a one-time boost to reported profit. The $421 million TTM net income and the trailing P/E of 7.41 are inflated by the one-time SAP settlement that added about $302 million after tax and $2.90 to GAAP diluted EPS in Q1 2026, so the forward P/E of 12.26 on the $2.55 to $2.65 FY2026 non-GAAP EPS guidance is the more meaningful valuation. The analysis is not a price prediction, and Q2 2026 results are due after the market close on August 4, 2026. This page is informational research, not investment advice.
Current price
$32.50 at the August 3, 2026, 3:48 PM EDT reading, up 1.51 or 4.87% from the $30.99 July 31 close, within a session range of $31.60 to $32.52 after opening at $32.10, with the daily history table showing an August 3 reference close of $32.25 up 4.07%
Market cap
$3.06 billion reported by StockAnalysis.com at the August 3, 2026 reading, verified as $32.50 times 94.1 million shares outstanding, with the later $32.30 reading showing $3.04 billion
AI score
63 / 100
Rating
Improving AI-led turnaround with cloud momentum at a moderate forward multiple
Trend status
Recovering above the 200-day moving average near $29.28, sitting just below the 50-day moving average near $32.53, with 14-day RSI near 54.7
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Teradata sells enterprise data warehousing, analytics, and AI knowledge platforms to large organizations in financial services, healthcare, telecom, retail, and the public sector, generating most revenue from recurring subscriptions with a smaller consulting arm. Q1 2026 recurring revenue was $400 million, about 90% of the $444 million total. | Medium |
| Moat | The moat comes from deep enterprise relationships, high switching costs on regulated and mission-critical workloads, a mature SQL query engine for complex analytical queries, and hybrid deployments spanning cloud and on-premises. Cloud-native competitors are well funded and erode the moat at the edges. | Medium |
| Management | CEO Steve McMillan and CFO John Ederer have driven a cost restructuring, expanded non-GAAP operating margin to 27.3% in Q1 2026, returned the company to positive net cash, and negotiated a one-time SAP settlement that added about $302 million after tax. They are also pushing an AI-led product roadmap including the Autonomous Knowledge Platform and AgentStack. | Medium |
| Financial trend | Revenue fell from $1.92 billion in FY2021 to $1.66 billion in FY2025, down 4.97%, but Q1 2026 revenue rose 6% year over year with recurring revenue up 12% and cloud ARR up 13%. FY2025 net income was $130 million, while TTM net income of $421 million is inflated by the one-time SAP settlement. | Medium-high |
| Valuation | At the $32.50 reading, TDC trades at 7.41x trailing earnings, 12.26x forward non-GAAP EPS, 1.80x sales, 5.25x book, and 4.53x trailing free cash flow, with net cash of $263 million. The trailing ratios are distorted by the SAP settlement, so the forward multiple is the cleaner reference. | Medium |
| Technical trend | TDC has recovered from the late July pullback, trading above the 200-day moving average near $29.28 and just below the 50-day moving average near $32.53, with RSI near 54.7 and a 4.87% gain on August 3 into the August 4 earnings report. The stock is well below the 52-week high of $41.78. | Medium |
| Risk level | Key risks are competition from Snowflake, Databricks, Amazon Redshift, Google BigQuery, and Microsoft Fabric; total revenue still declining with Q2 2026 guidance of down 4% to 2%; reliance on a one-time SAP settlement that inflates reported results; high short interest near 18.3% of shares; and the unproven scale of the AI platform roadmap. | Medium-high |
| AI confidence | High confidence for reported financials, market data, balance sheet figures, and valuation math that matched across StockAnalysis.com, Yahoo Finance, and SEC EDGAR XBRL. Lower confidence for forward cloud ARR growth, competitive share trends, and the pace of AI product adoption. | High data confidence |
| Investment certainty | Low-medium certainty. The forward multiple is moderate and the balance sheet is improving, but total revenue is still falling, the Q2 2026 guide is negative, and the stock carries high short interest. The page gives a research framework, not a buy or sell instruction. | Low-medium |
TDC AI stock forecast
The TDC AI stock forecast uses scenario ranges around the $32.50 August 3, 2026 reading and the FY2026 non-GAAP EPS guidance of $2.55 to $2.65. It does not claim that AI can predict a specific price. The scenarios depend on whether recurring revenue growth and cloud ARR growth hold, whether total revenue stabilizes, whether the SAP-inflated reported numbers normalize without an earnings disappointment, and what multiple the market assigns to the turnaround.
$40 to $52
More likely if recurring revenue and cloud ARR keep growing in the low to mid-teens, total revenue returns to growth, non-GAAP EPS exceeds $2.65, margins keep expanding, and the market re-rates the stock toward the high end of the $28 to $49 analyst range. The three-scenario model with 8% EPS growth and a 15x exit multiple produced a target near $49.
$30 to $38
More likely if FY2026 non-GAAP EPS lands near the $2.55 to $2.65 guidance, recurring revenue grows high single digits to low double digits, total revenue declines only modestly, and the stock holds near 12x forward earnings, consistent with the analyst consensus target near $35.50 and the model base of roughly $34.
$20 to $28
More likely if competition accelerates, cloud ARR growth decelerates below 10%, total revenue decline steepens, the SAP settlement normalizes into a visible earnings drop, or the market compresses the multiple toward single digits. The three-scenario model with flat EPS and a 9x multiple produced a target near $23, close to the $28 low analyst target.
TDC AI technical analysis
TDC AI technical analysis at the August 4, 2026 data cutoff starts from the $32.50 real-time reading on August 3, 2026 at 3:48 PM EDT, up 4.87% from the $30.99 July 31 close, within a session range of $31.60 to $32.52. The stock is above the 200-day moving average near $29.28 and just below the 50-day moving average near $32.53, with 14-day RSI near 54.7 on StockAnalysis.com. Because this page does not fetch request-time market data, traders should confirm levels on a live chart before acting.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $32.50 | August 3, 2026, 3:48 PM EDT reading, up 4.87%, with the daily history table showing a reference close of $32.25 up 4.07%. |
| 50-day moving average | $32.53 | The stock sits essentially at the 50-day moving average near $32.53 per StockAnalysis.com, so a decisive move above it would confirm near-term momentum. |
| Near support | $30.56 to $30.99 | The late July consolidation area between the July 30 low and the July 31 close of $30.99 forms the first support zone below the current price. |
| Key support | $29.28 | The 200-day moving average near $29.28 per StockAnalysis.com is the long-term support that defines the recovery trend. |
| Secondary support | $27.68 to $29 | The July 23 closing low of $27.68 marks the recent cycle low. A break below it would put the rebound under serious pressure. |
| Near resistance | $33.74 to $34.83 | The July 9 and July 10 closes of $34.83 and $33.74 form the first overhead resistance zone above the current price. |
| Upper resistance | $36.44 to $36.46 | The July 6 and July 7 closes near $36.44 to $36.46 are the next meaningful resistance area before the 52-week high. |
| 52-week high | $41.78 | The 52-week high of $41.78 per StockAnalysis.com remains far overhead as the defining bull-case resistance. |
| Momentum | RSI near 54.7, positive MACD context | 14-day RSI near 54.7 per StockAnalysis.com is mildly constructive after the recovery from the late July pullback. |
| Volume | About 1.2 million shares on August 3 | The August 3 session traded near 1.2 million shares per the history table, below the 20-day average of about 2.8 million, and the stock was up 4.87% in the afternoon. |
| Volatility | Beta 0.59 | Teradata has below-market beta near 0.59, which means smaller daily swings than the broad market, though single-stock event risk spikes around earnings. |
| Invalidation | Close below $29.28, then below $27.68 | A sustained close below the 200-day moving average near $29.28 would weaken the recovery, and a break below the July 23 low of $27.68 would signal that the rebound failed. |
TDC AI trading strategy
The TDC AI trading strategy is a rules-based framework, not personalized advice. It combines the recovery trend, the upcoming Q2 2026 earnings report on August 4, 2026, position sizing, and clear invalidation levels, and it should be confirmed with live prices before any trade.
Look for TDC to hold above the $30.56 to $30.99 support zone and then close decisively above the 50-day moving average near $32.53 before targeting the $33.74 to $34.83 resistance area. Volume should confirm any breakout attempt, and the August 4 earnings report is a major catalyst.
A close back below $29.28 (the 200-day moving average) would weaken the setup, and a close below $27.68 would invalidate the recovery trend. Use position sizing appropriate for a stock with high short interest and event risk around earnings.
If TDC pulls back toward the $29.28 to $30.99 zone without any structural thesis break, monitor whether recurring revenue and cloud ARR growth stay on track and whether the stock holds above the 200-day moving average with no deterioration in fundamentals.
Set a maximum loss before entry. Do not average down solely because the forward multiple looks low, and confirm the earnings trajectory first given the SAP settlement normalization and the negative Q2 2026 total revenue guide.
Track Q2 2026 results due August 4, 2026, quarterly recurring revenue growth, cloud ARR and total ARR growth, total revenue trajectory, non-GAAP EPS versus the $2.55 to $2.65 guidance, adjusted free cash flow, and management commentary on competitive wins and losses.
Reduce exposure if recurring revenue growth decelerates below high single digits, if cloud ARR growth stalls, or if total revenue decline steepens. The SAP settlement inflates reported profit, so normalize for it when comparing quarters.
Investment research summary
Teradata provides enterprise-scale data warehousing, analytics, and AI knowledge platforms that help large organizations run complex analytical and AI workloads across cloud, on-premises, and hybrid environments, with recurring revenue of about 90% of Q1 2026 revenue.
The moat comes from deep enterprise relationships, high switching costs in regulated and mission-critical workloads, a mature SQL query optimizer, and hybrid deployment options. The moat is being challenged by cloud-native platforms such as Snowflake and Databricks and by hyperscaler-native services.
The thesis fails if competition erodes share faster than expected, if the Q1 2026 growth was concentrated in one-time upfront term-license revenue, if the SAP settlement normalization makes reported profit drop visibly, or if the AI product roadmap does not convert into durable ARR growth.
Steve McMillan and John Ederer have expanded non-GAAP operating margin to 27.3%, returned the company to positive net cash of $269 million for the first time since Q4 2021, and closed a one-time SAP settlement worth about $302 million after tax. Capital allocation has included about $34 million of Q1 2026 buybacks.
Enterprise data analytics and AI workloads are in a long-term secular growth trend. Teradata is repositioning around the Autonomous Knowledge Platform, AgentStack, MCP server, and Data Analyst Agent to capture agentic AI demand, competing with Snowflake, Databricks, and hyperscaler-native offerings.
At 12.26x forward non-GAAP EPS on the $2.55 to $2.65 FY2026 guidance, 1.80x sales, and net cash of $263 million, the valuation is moderate for a turnaround. The low trailing P/E of 7.41 is misleading because of the one-time SAP settlement, so the margin of safety depends on the turnaround becoming durable, not on the reported trailing ratios.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| TDC price and volume | $32.50 at the August 3, 2026, 3:48 PM EDT reading, up 1.51 or 4.87% from the $30.99 July 31 close, within a session range of $31.60 to $32.52 after opening at $32.10, with the daily history table showing an August 3 reference close of $32.25 up 4.07% | StockAnalysis.com overview and daily history | August 4, 2026 |
| Market capitalization | $3.06 billion reported by StockAnalysis.com, verified as $32.50 times 94.1 million shares outstanding with a deviation of 0.06%; the later $32.30 reading showed $3.04 billion | financial_rigor.py market-cap verification and StockAnalysis.com | August 4, 2026 |
| Shares outstanding | 94.1 million shares outstanding per StockAnalysis.com, with 1.47% owned by insiders and institutional ownership near 108.9%; shares down 1.15% year over year | StockAnalysis.com statistics | August 4, 2026 |
| TTM income statement | TTM revenue of $1.69 billion, gross profit of $1.03 billion, GAAP operating income of $232 million per StockAnalysis.com statistics (about $103 million per the financials page), pretax income of $557 million, net income of $421 million, EPS of $4.38, and EBITDA of $198 million | StockAnalysis.com statistics and financials | August 4, 2026 |
| TTM cash flow | Operating cash flow of $698 million, capital expenditures of negative $28 million, free cash flow of $670 million, and free cash flow per share of $7.12 over the trailing twelve months, all inflated by the one-time SAP settlement received in Q1 2026 | StockAnalysis.com cash flow statement | August 4, 2026 |
| Valuation ratios | Trailing P/E of 7.41, forward P/E of 12.26, PEG of 1.53, P/S of 1.80, P/B of 5.25, P/FCF of 4.53, EV/EBITDA of 14.00, EV/FCF of 4.14, and EV/Sales of 1.64; enterprise value of $2.77 billion | StockAnalysis.com statistics | August 4, 2026 |
| Balance sheet | Cash and cash equivalents of $816 million as of March 31, 2026; total debt of $553 million including $424 million of long-term debt noncurrent per SEC EDGAR XBRL; net cash of $263 million or $2.79 per share; total equity of $557 million; book value per share of $5.90 | StockAnalysis.com statistics and SEC EDGAR XBRL | August 4, 2026 |
| Beta and 52-week range | Beta of 0.59; 52-week range of $19.96 to $41.78 per StockAnalysis.com (Yahoo Finance shows $19.83 to $41.78); 52-week price change of +60.37%; 50-day moving average of $32.53; 200-day moving average of $29.28; 14-day RSI of 54.69 | StockAnalysis.com statistics and Yahoo Finance | August 4, 2026 |
| Short interest | 17.26 million shares short, equal to 18.34% of shares outstanding and 20.0% of float, with about 4.56 days to cover, up from 12.60 million shares short the prior month | StockAnalysis.com statistics | August 4, 2026 |
| FY2025 results | Revenue of $1.663 billion, down 4.97% from $1.750 billion; gross profit of $987 million; operating income of $205 million; net income of $130 million, up 14.04%; EPS of $1.35; operating cash flow of $305 million; free cash flow of $286 million | StockAnalysis.com financials and SEC EDGAR XBRL 10-K | August 4, 2026 |
| Five-year revenue and profit trend | FY2021 revenue of $1.917 billion with net income of $147 million; FY2022 revenue of $1.795 billion with net income of $33 million; FY2023 revenue of $1.833 billion with net income of $62 million; FY2024 revenue of $1.750 billion with net income of $114 million; FY2025 revenue of $1.663 billion with net income of $130 million | StockAnalysis.com financials | August 4, 2026 |
| Q1 2026 results | Total revenue of $444 million, up 6% as reported and 4% constant currency; recurring revenue of $400 million, up 12% as reported; consulting services revenue of $43 million, down 14%; total ARR up 3%; cloud ARR up 13%; non-GAAP operating margin of 27.3% versus 21.8%; non-GAAP diluted EPS of $0.88, up over 30%; GAAP net income of $335 million | Q1 2026 earnings call and SEC EDGAR XBRL 10-Q | August 4, 2026 |
| Q1 2026 cash flow | Free cash flow of $390 million including a $359 million pre-tax net benefit from the SAP settlement; adjusted free cash flow of $31 million; operating cash flow of $401 million and capital expenditures of $10 million per the Q1 2026 Form 10-Q | Q1 2026 earnings call and SEC EDGAR XBRL 10-Q | August 4, 2026 |
| SAP settlement | Teradata received a gross payment of $480 million in late March 2026; after legal fees and other expenses the pre-tax net amount was $359 million; the after-tax net benefit to FY2026 free cash flow is expected to be $302 million, and the settlement added $2.90 to GAAP diluted EPS in Q1 2026, with $57 million of related tax payments to be made from Q2 through Q4 2026 | Q1 2026 earnings call | August 4, 2026 |
| FY2026 guidance | Total ARR growth of 2% to 4%; non-GAAP diluted EPS of $2.55 to $2.65, expected near the higher end; adjusted free cash flow raised to $320 million to $340 million, excluding the $302 million after-tax SAP benefit; approximately 100 basis points of operating margin expansion | Q1 2026 earnings call | August 4, 2026 |
| Q2 2026 guidance | Recurring revenue of negative 2% to flat year over year; total revenue of negative 4% to negative 2% year over year; non-GAAP diluted EPS of $0.53 to $0.57; non-GAAP tax rate near 24%; weighted average shares of about 96.3 million | Q1 2026 earnings call | August 4, 2026 |
| Cash and net cash | Cash and cash equivalents of $816 million at the end of Q1 2026, up from $368 million in the prior year period, returning the company to a positive net cash position of $269 million for the first time since Q4 2021 | Q1 2026 earnings call and SEC EDGAR XBRL | August 4, 2026 |
| Revenue by segment (TTM) | Subscription software licenses of $289 million, services and other of $1.198 billion, perpetual software licenses hardware and other of $8 million, and consulting services of $194 million per StockAnalysis.com financial KPIs, consistent with a recurring-heavy business | StockAnalysis.com financial KPIs | August 4, 2026 |
| Analyst consensus | Hold rating across 8 analysts per StockAnalysis.com with an average price target of $35.50, a median of $34, a low of $28, and a high of $49; Yahoo Finance reports a 1-year target estimate near $35.62 | StockAnalysis.com forecast and Yahoo Finance | August 4, 2026 |
| Recent analyst actions | Citi raised its target to $39 from $38 with a Buy rating on July 29, 2026; RBC Capital raised its target to $34 from $29 on July 16, 2026; UBS lowered its target to $34 from $36 on May 7, 2026; Morgan Stanley holds a Buy rating with a $40 target; Barclays lowered its target to $28 from $31 with an Underweight rating on May 6, 2026 | StockAnalysis.com forecast and TipRanks via StockAnalysis.com | August 4, 2026 |
| Key management | President, CEO and Director Stephen McMillan; CFO John Ederer; Chief Data and AI Officer and CIO Josh Fecteau; CTO Louis Landry; CPO Sumeet Arora; COO Michael D. Hutchinson; CRO Richard Petley; approximately 5,100 employees; headquartered in San Diego, California | StockAnalysis.com company profile | August 4, 2026 |
| Recent product and business news | On August 3, 2026, Teradata made its enterprise-grade Data Analyst Agent available in AWS Marketplace and appointed former SAP executive Bernd Leukert to its Board of Directors; on July 15, 2026, the Teradata Autonomous Knowledge Platform reached general availability across cloud and on-premises; Teradata joined the Agentic AI Foundation in late July 2026 | PR Newswire via StockAnalysis.com news feed | August 4, 2026 |
| Upcoming earnings | Q2 2026 results are scheduled for release after the market close on Tuesday, August 4, 2026, with an earnings conference call to begin at 1:30 p.m. PT | Teradata press release via StockAnalysis.com news feed | August 4, 2026 |
This TDC AI stock analysis page is an informational research tool only. It is not investment advice, tax advice, or a recommendation to buy or sell any security. Forecast ranges are scenario estimates based on public data available as of August 4, 2026 and may be wrong if Teradata results, competitive conditions, cloud ARR trends, the SAP settlement normalization, interest rates, market sentiment, or other factors change.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
