Core Insights - Teradata Corporation (NYSE:TDC) is recognized as a promising AI stock with significant potential for investors [1] - The company announced new features for its Enterprise Vector Store aimed at enhancing the use of generative AI and autonomous agents [2] Product Features - New features include unstructured integration for automating the ingestion of various document types such as PDFs, images, and audio, with video support expected soon [2] - The introduction of hybrid search capabilities that combine semantic, lexical, and metadata techniques to improve accuracy and context [2] - Multi-modal embeddings have been added to support text, images, and audio, enhancing semantic richness and allowing for up to 8K dimensions for greater accuracy and detail [3] Company Overview - Teradata Corporation provides a connected hybrid cloud analytics and data platform, operating in two segments: Product Sales and Consulting Services [4]

Core Viewpoint - Teradata's recent earnings report shows a mixed performance, with a significant drop in share price and a positive earnings beat, indicating potential volatility ahead of the next earnings release [1]. Financial Performance - Teradata reported Q4 2025 non-GAAP earnings of 74 cents per share, exceeding the Zacks Consensus Estimate by 35.04% and reflecting a year-over-year increase of 39.6% [2]. - Revenues for the quarter reached $421 million, surpassing the Zacks Consensus Estimate by 6.52%, with a 3% year-over-year increase on a reported basis and 1% on a constant-currency basis [3]. - Total annual recurring revenues (ARR) at the end of Q4 increased 3% year over year to $1.52 billion, with a 1% increase on a constant-currency basis [3]. Revenue Breakdown - Public cloud ARR grew 15% year over year to $701 million, driven by rising demand for cloud solutions, with a cloud net expansion rate of 108% [4]. - Recurring revenues, which constitute 87.2% of total revenues, rose 5% year over year to $367 million [5]. - Perpetual software license and hardware revenues dropped 67% year over year to $1 million, while consulting services revenues fell 4% to $53 million [5]. Operating Metrics - The gross margin for Q4 on a non-GAAP basis was 62%, an increase of 110 basis points year over year [6]. - Selling, general & administrative (SG&A) expenses decreased by 5.1% year over year to $129 million, while research & development (R&D) expenses rose 7.4% to $73 million [6]. - The non-GAAP operating margin improved to 22.8%, up 520 basis points year over year [6]. Balance Sheet Strength - As of December 31, 2025, Teradata had cash and cash equivalents of $493 million, up from $406 million as of September 30 [7]. - Long-term debt decreased slightly to $431 million from $437 million [7]. - The company generated $160 million in cash from operating activities in Q4, compared to $94 million in the previous quarter [7]. Guidance and Outlook - For Q1 2026, Teradata expects non-GAAP earnings to be between 75 cents and 79 cents per share [8]. - The company anticipates recurring revenues to grow between 6% and 8% year over year, with total revenues expected to increase by 1-3% [9]. - For the full year 2026, non-GAAP earnings are projected to be between $2.55 and $2.65 per share [9]. Market Sentiment - Since the earnings release, there has been an upward trend in estimates revision, with the consensus estimate shifting by 15.91% [11]. - Teradata holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [13].

Core Insights - Teradata (TDC) shares have increased by 31.8% over the past six months, significantly outperforming the Zacks Computer & Technology sector's return of 3.2% due to improved Annual Recurring Revenue (ARR), cost savings, and productivity measures [1] - The launch of new products such as Enterprise Vector Store, MCP Server, AgentBuilder, and Autonomous Customer Intelligence is expected to drive future growth [1] - The enhanced ClearScape Analytics platform, designed for agentic AI, is a notable development that is anticipated to boost Teradata's free cash flow [1] Product Innovation and AI - Teradata combines consulting and technology to enable agentic AI and trusted data, leveraging deep expertise in AI/ML to assist clients in transitioning from proof-of-concept to production [2] - The new AI features in the Enterprise Vector Store allow for the integration of structured and unstructured data, enhancing data utilization for AI applications [3] - The platform supports Multi-Modal AI, enabling understanding of various content types and integrates with tools like LangChain for faster AI application development [3] AI Engagements and Partnerships - Teradata has completed over 150 AI engagements in 2025, helping clients address complex business challenges through AI [4] - The company is well-equipped to manage increased workloads from agentic AI, which can demand significantly more compute resources than traditional analytic workloads [5] - Teradata has established partnerships with major cloud service providers, including AWS, Microsoft Azure, and Google Cloud, enhancing access to its Vantage Cloud platform [7] Financial Guidance - For Q1 2026, Teradata expects adjusted net earnings between 75 cents and 79 cents per share, with a consensus estimate for net sales at $426.4 million, reflecting a year-over-year increase of 2% [8][9] - The 2026 adjusted net earnings are anticipated to be in the range of $2.55 to $2.65 per share, with net sales estimated at $1.64 billion, indicating a year-over-year decrease of 1.3% [9] Recognition and Rankings - Teradata has been recognized as a leader in the Forrester Wave Data Management for Analytics platforms and included in Gartner Peer Insights as "Voice of the Customer" for code-based libraries and low-code tooling [6]

strengthen trust in AI applications across the...## Unstructured Achieves IL5 Authority to OperateSAN FRANCISCO--(BUSINESS WIRE)--Unstructured today announced it has achieved an Authority to Operate (ATO) at Impact Level 5 (IL5), enabling the secure deployment of its AI-ready data platform in support of missions handling Controlled Unclassified Information (CUI). The authorization was achieved through Second Front Systems' (2F) Game Warden platform, marking a significant milestone in Unstructured's ability ...

Core Insights - Teradata has introduced new agentic and multi-modal data capabilities for its Enterprise Vector Store, enabling organizations to leverage generative AI and autonomous agents across various environments [1][2] - The solution addresses the challenges posed by the rapid growth of unstructured data, which is increasing at three times the rate of structured data, and aims to unify access to both data types [1][2] New Features - The Enterprise Vector Store includes features such as LangChain integration for enterprise-scale RAG pipelines, higher embedding dimensions of up to 8K, multi-modal embeddings for text, image, and audio, and hybrid search capabilities [1] - Automated ingestion and processing of unstructured data types, including documents, PDFs, images, and audio, with future support for video [1] Market Context - Nearly 80% of companies are deploying AI agents, with many expecting over 100% ROI from these initiatives, yet face barriers like fragmented data silos and limited scalability [1] - Traditional vector databases are insufficient for enterprise-scale AI deployments, necessitating a solution like Teradata's that can handle millions of documents and thousands of files per hour [1] Use Cases - In healthcare, Teradata's solution enables the integration of structured patient records with clinical notes and medical images for faster diagnosis [1] - In insurance, claims adjudication agents can process various data types to deliver faster, explainable decisions [1] - Military organizations utilize the technology for real-time tactical guidance by processing images and terrain data [2] Development and Deployment - Open integrations with SQL, Python, and LangChain facilitate the design and orchestration of autonomous agent workflows, allowing for rapid prototyping and deployment [2] - The platform supports the transformation of unstructured data into high-quality embeddings, bridging gaps between different data types [2] Executive Commentary - Teradata's Chief Product Officer emphasized the shift towards AI agents as the primary interface for enterprise intelligence, highlighting the need for a unified platform that supports both structured and unstructured data [2] - The CEO of Unstructured noted that the integration within Teradata's platform ensures production-quality, AI-ready data without compromising governance [2] Availability - The new capabilities for Teradata Enterprise Vector Store will be generally available to customers starting April 2026 [2]

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Group 1 - The session is hosted by Erik Woodring from Morgan Stanley's Research Division, indicating a focus on the Technology, Media, and Telecommunications (TMT) sector [1] - The discussion aims to explore the priorities and changes that the new leaders in their respective roles wish to implement [2]

Teradata (NYSE:TDC) 2026 Conference March 03, 2026 03:20 PM ET Company ParticipantsErik Woodring - Lead of the U.S. IT Hardware TeamJohn Ederer - CFOSumeet Arora - Chief Product OfficerErik WoodringOkay, cool. Why don't we get started, guys? Welcome to day two, afternoon of day two, of the flagship TMT conference. My name is Erik Woodring. I lead Morgan Stanley's hardware coverage here. I am delighted to be joined by John Ederer, CFO of Teradata, Sumeet Arora, Teradata's Chief Product Officer. Both you guys ...

Industry Overview - The tech sector has experienced a significant bifurcation, with software stocks suffering substantial declines, particularly large-cap companies like Salesforce, Intuit, and Adobe, which are down over 50% from their all-time highs due to AI disruption [1] - Despite the overall downturn, some software firms are showing strong momentum and could benefit from a sector recovery [2] Software Stocks Analysis - Five software stocks with an 80 or higher rating on Benzinga Edge's Momentum Score and bullish technical signals are highlighted for potential investment [3] Individual Stock Highlights - **Teradata Corp.** - Momentum Score: 84.57 - Strategies include day trading for Q1 and swing trading for Q2 [4] - **Arteris Inc.** - Momentum Score: 93.54 - The company reported an earnings surprise, leading to a breakout above the 50-day SMA, supported by a bullish MACD cross, indicating potential for further upside [4] - **Clear Secure Inc.** - Momentum Score: 91.75 - Positive market response to optimistic guidance, with a bullish crossover on the MACD prior to the earnings report, suggesting strong future momentum [5] - **Core Scientific Inc.** - Momentum Score: 87.32 - The stock price is consolidating with potential for a breakout, supported by the 50-day SMA, and has room for upside before reaching oversold status [6] - **Mitek Systems Inc.** - Momentum Score: 88.31 - The stock has increased over 35% year-to-date, with a breakout confirmed by MACD prior to earnings, indicating potential for further gains [7][8]

Financial Performance - Teradata reported total revenues of $1.663 billion for the calendar year ended December 31, 2025[32]. - Total revenue for 2025 was $1,663 million, a decrease of 5% compared to 2024, with recurring revenue declining by 2%[183]. - Public Cloud ARR increased by 15% year-over-year to $701 million, driven by a cloud net expansion rate of 108%[189]. - Total ARR rose to $1,522 million, reflecting a 3% increase from the previous year, with a positive impact of 2% from foreign currency exchange rates[188]. - Gross profit margin was 59.4% in 2025, down from 60.5% in 2024, primarily due to a higher mix of Public Cloud revenue[187]. - Operating expenses decreased by 8% in 2025 compared to 2024, driven by cost discipline initiatives[187]. - Net income for 2025 was $130 million, an increase from $114 million in 2024, attributed to lower expenses from foreign currency fluctuations[187]. - Free cash flow increased to $285 million in 2025 from $277 million in 2024, supported by higher net income and improved deferred revenue[206]. - Cash and cash equivalents at the end of 2025 were $493 million, up $73 million from $420 million at the end of 2024[204]. - The effective income tax rate for 2025 was 27.0%, down from 30.5% in 2024, influenced by a net $2 million discrete tax benefit[201]. Business Strategy and Operations - The company executed over 150 AI engagements at customer accounts in 2025, reflecting its commitment to AI transformation[24]. - Teradata's platform is designed for enterprise-grade workloads, offering the best price performance for both on-premises and cloud deployments[19]. - The company emphasizes a hybrid architecture, allowing customers to leverage both on-premises and cloud environments effectively[24]. - Teradata's AI Factory integrates with Nvidia services and supports on-premises AI, catering to organizations with data sovereignty requirements[20]. - The company focuses on industries with high data requirements, including Financial Services, Healthcare, and Telecommunications, which have significant analytic potential[38]. - The majority of Teradata's revenue is recurring, enhancing predictability and durability of future cash flows[40]. - The company has established partnerships with the top three global public cloud service providers: AWS, Microsoft Azure, and Google Cloud, enhancing access to its platform[48]. - The company added new partnerships with ServiceNow and Salesforce in 2025, focusing on AI/ML and data integration solutions[48]. - The company operates with a fully flexible work environment, empowering employees to make decisions about productivity, with a global workforce located in approximately 38 countries[56]. - The company has a strong focus on community engagement, supporting local STEM education programs and providing volunteer opportunities for employees[63]. Research and Development - The company anticipates continued significant R&D expenditures, which may include complementary strategic acquisitions to support innovative technologies in autonomous AI[51]. - R&D expenses constitute a substantial portion of the company's discretionary fixed costs, with potential revenues from these investments not expected for several years[80]. - Research and development expenses were $280 million in 2025, slightly down from $284 million in 2024, reflecting continued cost discipline[198]. Risks and Challenges - The company is facing significant execution risks in its business transformation strategy, particularly in R&D investments related to cloud, hybrid, and AI/ML offerings[76]. - The transition to a subscription-based revenue model has resulted in variability in revenue recognition, impacting the predictability of Total Annual Recurring Revenue (ARR) and Public Cloud ARR[84]. - The company has experienced challenges in accurately estimating sales cycles, leading to fluctuations in quarterly operating results and difficulties in achieving financial guidance[82]. - The introduction of new offerings may increase the likelihood of reliability, quality, and security issues, potentially affecting customer retention and brand reputation[86]. - Cybersecurity risks are heightened due to the company's reliance on cloud and hybrid platforms, increasing joint responsibility with customers and third-party providers for data security[93]. - The company must maintain various global security certifications, such as ISO 27001 and PCI, to remain competitive, with any delays potentially impacting customer confidence[96]. - The shift to cloud and hybrid platforms has expanded the company's information security risk landscape, necessitating clear definitions of security responsibilities among stakeholders[95]. - The company has faced actual and threatened cyber-attacks, which could result in significant liability and reputational damage if customer information is compromised[90]. - The evolving regulatory requirements for AI-enabled technologies may necessitate changes in product design and development processes, potentially delaying deployments and increasing costs[79]. - Customer cancellations have not been material to the company’s business to date, but could become significant in the future due to increasing pricing pressure and competition in the IT industry[98]. - The company relies on third-party vendors for critical components, and disruptions in supply chains or vendor relationships could adversely impact operations and financial results[102]. - Increased costs and inflationary pressures on components have negatively affected profit margins, with potential for continued declines[104]. - The company has undertaken a multi-year initiative to modernize its ERP system, with deployment expected to be completed in 2025, but challenges could disrupt operations and financial reporting[108]. - Global economic conditions, including inflation and recessionary pressures, may adversely impact customer spending and the company's financial performance[114]. - The company has initiated global restructuring and cost reduction actions, which may involve risks such as increased short-term expenses and potential revenue reductions[113]. - Disruptions from natural disasters or climate change could adversely affect the company's operations and ability to deliver products and services[109]. - Inadequate internal control over financial reporting could lead to errors, impacting timely and accurate financial reporting[119]. - Material weaknesses in internal control could result in a decline in stock price and increased costs to improve systems[120]. - Increased scrutiny regarding ESG practices may impose additional costs and expose the company to new risks[121]. - The rapidly evolving AI/ML regulatory environment poses challenges that could disrupt business operations and increase costs[122]. - Competition in the IT industry, particularly for data analytics and AI solutions, is intense, affecting pricing and demand[123]. - The company faces risks from evolving privacy laws that may limit the use and adoption of its solutions[125]. - Competition for hiring and retaining qualified employees is critical, with intensified pressures in the AI sector[130]. - Legal uncertainties and changing regulations could impact financial results and operational compliance[131]. - Gaps in intellectual property protection may adversely affect the company's business and financial condition[134]. - Changes in tax laws, including the OECD's Global Anti-Base Erosion rules, could impact future effective tax rates[141]. Shareholder Actions - The company repurchased a total of 5,755,397 shares in 2025 at an average price of $24.34 per share[175]. - The general share repurchase program authorized an additional $1 billion in 2021, which expired on December 31, 2025, with a new program approved for up to $500 million starting January 1, 2026[176]. - Teradata repurchased approximately 5.8 million shares at an average price of $24.34 in 2025, compared to the same number of shares at $36.99 in 2024[207]. Facilities and Global Presence - The company operates 40 facilities in 29 countries, totaling approximately 628,000 square feet, with 73% of this space being its headquarters in San Diego[164]. - The company operates in approximately 38 countries and faces risks from fluctuations in foreign currency exchange rates, impacting its financial results[146]. - In 2025, 50% of the company's total revenues came from international operations, exposing it to risks associated with over 30 functional currencies[115]. Intellectual Property - The company owns 534 patents in the United States and is the exclusive licensee of four additional patents, reflecting significant investment in intellectual property[53].