Core Insights - Teradata has been recognized in the 2025 Gartner Peer Insights Voice of the Customer for Data Science and Machine Learning Platforms, highlighting positive customer feedback on its DSML capabilities and platform performance [1][3]. Company Highlights - Teradata is one of only 11 vendors recognized in the Gartner report, receiving a 95% Willingness to Recommend score, indicating strong customer trust and perceived value in its DSML capabilities [7]. - The company achieved a rating of 4.7 out of 5 for Product Capabilities, showcasing its strength in depth, reliability, and functionality across the data science lifecycle [7]. - Sumeet Arora, Chief Product Officer at Teradata, emphasized the importance of customer feedback in shaping the company's roadmap and delivering solutions that drive measurable business outcomes [4]. Industry Context - Data science and machine learning platforms are defined as integrated sets of code-based libraries and low-code tooling that facilitate collaboration among data scientists and their business and IT counterparts, supporting all stages of the data science life cycle [2][3].

Core Insights - Teradata has achieved significant momentum in delivering AI-powered solutions, completing over 150 AI-focused customer engagements in 2025, which helped organizations operationalize AI at scale [1][8] AI Case Studies - The AI engagements spanned multiple industries, including financial services, healthcare, manufacturing, and defense, focusing on high-value use cases such as fraud detection, compliance processes, customer experience analytics, R&D optimization, and defense scenarios [8] - A large multinational bank faced challenges with anti-money laundering model deployment due to fragmented architecture; Teradata's AI solution reduced model deployment time, resulting in faster cycles and cost savings [8] - A large Asian bank utilized Teradata's AI to analyze over 50,000 weekly customer interaction transcripts, leading to improved customer engagement strategies [8] - A global auto manufacturer overcame data integration challenges in R&D cycles by utilizing Teradata's AI solutions, significantly increasing productivity [8] - A European defense agency improved the effectiveness of camouflage for high-value assets through AI-assisted object detection and pattern analysis, leveraging Teradata's AI Services [8] Importance of AI Adoption - The shift from experimentation to enterprise-scale production deployments is evident, with Teradata's autonomous AI + knowledge platform enabling robust performance, security, and governance for operational AI systems [9] Executive Perspective - The Chief Operating Officer of Teradata emphasized the need for AI solutions that operate at real-world enterprise speed and scale, highlighting the effectiveness of Teradata's platform in driving business outcomes [10] Company Overview - Teradata is positioned as an AI platform for the autonomous era, offering a comprehensive AI + Knowledge Platform and services that facilitate the deployment of solutions across various data environments [11]

Industry Overview - The momentum of the artificial intelligence (AI) infrastructure segment is expected to continue into 2026, supported by a bullish demand scenario [1] - Concerns exist regarding the overstretched valuations of major AI companies, including both infrastructure developers and application implementers [1] Investment Opportunities - Several small and mid-sized AI stocks that underperformed the broader market in the past year are identified as potential game changers for 2026, including UiPath Inc. (PATH), Five9 Inc. (FIVN), Qualys Inc. (QLYS), Teradata Corp. (TDC), and BlackBerry Ltd. (BB) [2] - Each of these stocks currently holds a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Company Highlights UiPath Inc. (PATH) - UiPath provides a robotic process automation platform that utilizes AI to automate repetitive tasks and streamline operations [5] - The platform features embedded AI, machine learning (ML), and natural language processing (NLP) capabilities, enhancing decision-making and information processing [6] - Expected revenue and earnings growth rates for the next year are 9.3% and 13.7%, respectively, with a 5.6% improvement in the earnings consensus estimate over the last 30 days [8] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from a rise in subscription revenues and Enterprise AI revenues [10] - The platform includes interactive virtual agents and AI insights, optimizing customer interactions across various channels [12] - Expected revenue and earnings growth rates for the current year are 9.5% and 8.3%, respectively, with a 1.3% improvement in the earnings consensus estimate over the last 60 days [15] Qualys Inc. (QLYS) - Qualys is experiencing increased demand for cloud-based cybersecurity solutions amid rising cyber threats [16] - The company has made strategic acquisitions to enhance its growth, including Blue Hexagon, which improved its threat detection capabilities [17] - Expected revenue and earnings growth rates for the current year are 7.7% and 6.5%, respectively, with a 10.4% improvement in the earnings consensus estimate over the last 60 days [19] Teradata Corp. (TDC) - Teradata's prospects are bolstered by improvements in annual recurring revenue (ARR) growth and cost-saving measures [20] - The company offers a portfolio that includes advanced analytics and AI capabilities, which are expected to drive top-line growth [21] - Expected revenue and earnings growth rates for the current year are -0.6% and 3.6%, respectively, with an 8.3% improvement in the earnings consensus estimate over the last 60 days [23] BlackBerry Ltd. (BB) - BlackBerry provides intelligent security software and services, leveraging AI for cybersecurity and data privacy [24] - The QNX business is gaining traction in the automotive sector, with its software suite installed in over 275 million vehicles [27] - Expected revenue and earnings growth rates for the next year are 7.4% and 13.3%, respectively, with a 6.3% improvement in the earnings consensus estimate over the last 30 days [28]

Group 1: Company Recognition - Teradata has been recognized as a Leader in The Forrester Wave™: Data Fabric Platforms, Q4 2025, evaluated among 14 technology providers based on current offerings, strategy, and customer feedback [1][3] - The report highlights Teradata's proven performance and robust architecture, making it suitable for mission-critical analytical and AI workloads in complex environments [3] Group 2: Evaluation Findings - The evolution of data fabric is driven by Agentic AI, which enables organizations to scale AI across complex ecosystems, allowing for context-aware decisions and real-time adaptation [2] - Teradata received the highest possible scores (5/5) in the Vision and Roadmap criteria, as well as in three Current Offering criteria, including Real-time Performance and Scalability [7] Group 3: Executive Commentary - The Chief Product Officer of Teradata emphasized that being named a Leader reflects the company's commitment to operationalizing AI-driven decision-making across hybrid and multi-cloud environments [3]

Group 1 - Morgan Stanley raised target prices for several companies, including Apple, emphasizing the outlook for the North American IT hardware industry until 2026 [1] - The hardware sector is expected to see a net profit growth of 17% over the next 12 months, with a historical high valuation rebound of nearly 6 times since April [1] - Analysts predict a 52% outperformance of the hardware sector compared to the market in 2025, although this is lower than the early cycle average of 83% [1] Group 2 - Structural opportunities remain in 2026, with Western Digital, Seagate Technology, Apple, TD Synnex, and Teradata identified as core overweight stocks [2] - Concerns are raised regarding Dell Technologies and HP due to significant exposure to memory chip risks, which may lead to increased product prices and pressure on hardware procurement budgets [2] - Target prices for several companies were adjusted, with Apple raised from $305 to $315, Seagate from $270 to $337, Western Digital from $188 to $228, and Teradata from $30 to $35 [2]

Industry Overview - The computer storage devices industry is expected to benefit from growth in cloud computing, IoT, connected devices, virtual reality, and AI, leading to increased demand for robust data storage solutions [1] - Companies are leveraging AI for IT Operations (AIOps) and machine learning to optimize storage solutions, while virtualization technologies are being used to streamline data storage [2] Company Insights Western Digital Corp. (WDC) - WDC has seen strong performance driven by cloud and AI demand, with cloud end market revenue increasing by 31% in the last quarter, accounting for 89% of total revenue [6] - The company has doubled shipments of ePMR products and is set to ramp up HAMR drives by the first half of 2027 [6] - WDC anticipates a client refresh cycle due to generative AI, boosting storage demand across various consumer electronics [7] - Expected revenue for fiscal Q2 2026 is $2.9 billion, a 20% increase, driven by data center demand [9] - Current revenue and earnings growth rates are projected at -12.1% and 54.8%, respectively, for the current year [10] Teradata Corp. (TDC) - TDC is expected to benefit from improved ARR growth, cost savings, and productivity measures, which will enhance free cash flow [11] - The company is well-positioned to manage enterprise data for AI systems, with innovative products like QueryGrid and ClearScape Analytics driving growth [12][14] - Recent acquisitions, such as Stemma, enhance TDC's analytics capabilities [13] - Expected revenue and earnings growth rates for next year are -0.6% and 3.3%, respectively [14] Seagate Technology Holdings plc (STX) - STX is experiencing strong demand from the cloud and high-capacity HAMR drive adoption, with significant revenue generated from data centers [15] - The company has its high-capacity nearline production booked through 2026, with revenue projections of $2.7 billion for fiscal Q2 2026, a 16% year-over-year increase [16][19] - Advancements in aerial density are a key strength for STX, providing a competitive advantage in the hard drive industry [17] - STX has formed an alliance with Acronis to offer secure storage solutions for AI-driven data growth [18]

Core Insights - The Zacks Computer-Storage Devices industry is experiencing long-term growth driven by digital transformation, edge computing, AI workloads, and enterprise cloud adoption, with companies like Western Digital benefiting from increased demand for high-capacity HDDs and SSDs [1][2]. Industry Overview - The industry includes companies that design, develop, manufacture, and market HDDs and SSDs for various applications, including PCs, servers, and consumer electronics. Some players also offer software-defined storage solutions and purpose-built servers [3]. Trends Influencing the Industry - The rapid proliferation of AI is reshaping the tech landscape, increasing demand for high-speed, high-capacity storage solutions. Traditional storage architectures are being replaced by NVMe-based SSDs and software-defined storage to meet the needs of AI applications [4]. - Innovation in cloud storage technologies is driving industry growth, with companies leveraging AI and machine learning to optimize storage solutions amid increasing data complexity [5]. - Companies are focusing on virtualization and edge computing to enhance data storage efficiency, with a shift towards recurring revenue models as cloud-native storage gains traction [6]. Market Performance - The Zacks Computer-Storage Devices industry has outperformed the S&P 500, rising 57.7% over the past year compared to the S&P 500's 14.7% growth, although it lags behind the broader sector's 21.1% increase [12]. Valuation Metrics - The industry is currently trading at a forward 12-month Price/Earnings (P/E) ratio of 18.66X, below the S&P 500's 23.35X and the sector's 28.15X, indicating potential undervaluation [15]. Company Highlights - **Western Digital (WDC)**: The company is experiencing strong demand for its high-capacity drives, with shipments of its ePMR products exceeding 2.2 million units in the September quarter. WDC expects fiscal second-quarter revenues of $2.9 billion, up 20% year-over-year, driven by data center demand [18][20]. - **Sandisk Corporation (SNDK)**: Demand for Sandisk's NAND products is expected to exceed supply, with data center revenues growing 26% sequentially. The company anticipates fiscal second-quarter revenues between $2.55 billion and $2.65 billion, driven by bit growth and price increases [23][24]. - **Teradata (TDC)**: TDC is well-positioned in the hybrid cloud space, with public cloud ARR increasing 11% year-over-year. The company expects free cash flow in the range of $260-$280 million for fiscal 2025 [29][30].

Core Insights - The company reported a solid Q3 performance with total Annual Recurring Revenue (ARR) in positive territory, exceeding expectations [1] - There was notable improvement in margins, strong free cash flow, and earnings per share, indicating a positive fundamental outlook [1] - Despite the strong fundamentals, the stock reaction was not as expected, raising questions about the valuation prior to the quarter [1]

Teradata (NYSE:TDC) FY Conference Summary Company Overview - **Company**: Teradata Corporation - **Ticker**: NYSE:TDC - **Conference Date**: December 10, 2025 Key Points Industry Context - Teradata operates in the data analytics and cloud computing industry, focusing on providing solutions for data storage and analytics, particularly in the context of AI advancements [3][36]. Financial Performance - **Q3 Performance**: Teradata reported a solid quarter with Total Annual Recurring Revenue (ARR) in positive territory, exceeding expectations [3][15]. - **Free Cash Flow**: The company highlighted strong Free Cash Flow and Earnings Per Share (EPS) growth, indicating improved financial health [3][12]. - **Stock Valuation**: The stock was perceived as undervalued prior to Q3, with a significant positive reaction following the quarter's results [4][5]. Growth Strategy - **Focus on Total ARR**: There has been a shift in focus from Cloud ARR to Total ARR, emphasizing the importance of overall growth rather than just cloud migration [19][21]. - **Customer Engagement**: Teradata aims to expand its existing customer base, particularly within the Global 1000 companies, leveraging AI as a growth driver [30][31]. - **Product Innovation**: Continued investment in R&D is prioritized to drive product innovation and support growth in both cloud and on-premise solutions [16][18]. Market Dynamics - **Hybrid Solutions**: Teradata competes in both on-premise and cloud markets, offering hybrid solutions that cater to diverse customer needs [35][40]. - **AI Integration**: The company is positioning itself as a key player in the AI landscape, emphasizing the importance of data quality and context in AI applications [36][38]. Operational Focus - **Cost Management**: Teradata is focused on optimizing its cost structure to improve margins and Free Cash Flow, which is seen as essential for supporting stock value [12][14]. - **Sales Strategy**: The sales force is evolving to better articulate use cases around AI, aiming to enhance customer engagement and drive ARR growth [50][54]. Future Outlook - **M&A Opportunities**: Teradata is open to pursuing mergers and acquisitions, particularly in technology sectors that can accelerate its AI roadmap [60][61]. - **Shareholder Value**: The company is committed to driving shareholder value through a balanced approach of growth and margin improvement, with a focus on sustainable financial practices [56][58]. Additional Insights - **Retention Rates**: Improved retention rates have been observed, which is expected to contribute positively to ARR growth [45][46]. - **Market Positioning**: Teradata's historical strength in data management positions it well to capitalize on the growing demand for AI-driven solutions [62][68]. This summary encapsulates the key insights from Teradata's FY conference, highlighting the company's financial performance, growth strategies, market dynamics, and future outlook in the context of the evolving data analytics landscape.

Core Insights - The company has reached a stabilization phase after a period of adjustment, indicating a positive trajectory for future growth [1][2] - The leadership team at Teradata is relatively new, which has contributed to a fresh perspective and renewed energy within the organization [2][3] Summary by Sections - **Company Performance** - The business has shown signs of stabilization, suggesting effective management and operational improvements [1] - **Leadership and Team Dynamics** - The new leadership team has made a significant impact, with a focus on collaboration and team dynamics being highlighted as a key takeaway [2] - There has been some turnover in the leadership team, which may have influenced the current organizational culture and performance [3]