Core Insights - Teradata (TDC) reported its Q3 numbers, leading to a significant increase in its share price by over 30% at the close of trading [1]. Financial Performance - The Q3 results prompted analysts to take a closer look at the company's financials, indicating strong performance that attracted investor interest [1].

Teradata ( TDC ) just reported its Q3 numbers, which made analysts pile into the company, sending its share up over 30% on the close. I wanted to go through the numbers in more detail and see if suchMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure ...

Core Insights - Teradata Corp. (NYSE:TDC) experienced a significant stock price increase of 32.59% to close at $27.46, driven by strong earnings performance and an optimistic earnings outlook for 2025 [1][3] Financial Performance - Teradata reported a net income increase of 25% to $40 million, up from $32 million in the same period last year, despite a revenue decline of 5% to $416 million from $440 million year-on-year [2] - The revenue drop was less severe than the company's anticipated decline of 7 to 9 percent, indicating better-than-expected performance [3] Future Outlook - The company raised its diluted earnings per share (EPS) growth outlook for full-year 2025 to a range of $1.22 to $1.26, up from the previous range of $1.04 to $1.12 [4] - Teradata maintained its expectations for a revenue decline of 5 to 7 percent year-on-year, along with a recurring revenue drop of 3 to 5 percent in the same comparable period [4]

Core Insights - Teradata (TDC) reported third-quarter 2025 non-GAAP earnings of 72 cents per share, exceeding the Zacks Consensus Estimate by 35.85%, with a year-over-year increase of 4.3% [1][7] - Revenues for the quarter were $416 million, surpassing the Zacks Consensus Estimate by 2.54%, but reflecting a decline of 5.5% year over year on a reported basis and 6% on a constant-currency basis [1][4] - Total annual recurring revenues (ARR) at the end of the third quarter rose 1% year over year to $1.49 billion, remaining flat on a constant-currency basis [1] Revenue Breakdown - Public cloud ARR increased by 11% year over year to $633 million, driven by rising demand for cloud solutions, with a cloud net expansion rate of 112% [3] - Recurring revenues, which account for 88% of total revenues, decreased by 2% year over year to $366 million [4] - Perpetual software license and hardware revenues dropped 57.1% year over year to $3 million, while consulting services revenues fell 23% to $47 million [4] Operating Performance - The gross margin on a non-GAAP basis was 62.3%, an increase of 70 basis points year over year [5] - Selling, general & administrative (SG&A) expenses decreased by 11% year over year to $122 million, while research & development (R&D) expenses were $70 million, down 4.1% [5] - The non-GAAP operating margin rose to 23.6%, up 110 basis points year over year [5] Balance Sheet Strength - As of September 30, 2025, Teradata had cash and cash equivalents of $406 million, up from $369 million as of June 30 [6] - Long-term debt decreased to $437 million from $443 million in the previous quarter [6] - The company generated $94 million in cash from operating activities, compared to $43 million in the previous quarter [6] Future Guidance - For Q4 2025, non-GAAP earnings are expected to be between 53 and 57 cents per share, with recurring revenues projected to decline by 1% to 3% year over year [9] - Total revenues are anticipated to decrease by 2% to 4% year over year [9] - For the full year 2025, non-GAAP earnings are expected to be between $2.38 and $2.42 per share [9] Market Performance - Teradata shares were up 21.1% at the time of reporting, although they have dropped 33.6% year to date, underperforming the Zacks Computer & Technology sector's appreciation of 29.4% [2]

Core Insights - Teradata's stock surged 26.5% following a strong Q3 earnings report, exceeding analyst expectations for both earnings and revenue [1] - The company reported adjusted earnings of $0.72 per share on revenue of $416 million, surpassing forecasts of $0.54 per share and $406.3 million in revenue [1][3] - Despite the positive adjusted earnings, GAAP earnings were only $0.42 per share, although this represented a 27% year-over-year increase [3] Financial Performance - Free cash flow for the quarter increased to $88 million, indicating strong cash generation [3][4] - Revenue of $416 million, while better than expected, was down 5% year-over-year, and recurring revenue decreased by 2% [3] - Management provided guidance indicating a potential revenue decline of 2% to 4% year-over-year, with recurring revenue expected to fall by 1% to 3% [5] Future Outlook - Teradata's management anticipates GAAP profit for the full year to be between $1.22 and $1.26 per share, with free cash flow projected between $260 million and $280 million [6] - The current stock price of $26 results in a P/E ratio of approximately 21 and a price-to-free-cash-flow ratio of about 9.2, suggesting the stock remains undervalued [6]

Core Insights - Tianrui Company (TDC.US) experienced a significant stock increase of over 26%, closing at $26.20 [1] - For Q3 2025, the company reported earnings per share (EPS) of $0.72, surpassing analyst expectations of $0.54 [1] - The quarterly revenue reached $416 million, exceeding the forecast of $406.2 million [1] - The company raised its GAAP EPS guidance for the fiscal year 2025 to a range of $1.22 to $1.26, significantly above the previous market expectation of $1.03 [1]

Core Insights - Tianrui Company (TDC.US) experienced a significant stock increase of over 26%, reaching $26.20 [1] - For Q3 2025, the company reported earnings per share (EPS) of $0.72, surpassing analysts' expectations of $0.54 [1] - The quarterly revenue was $416 million, exceeding the forecast of $406.2 million [1] - The company raised its GAAP EPS guidance for the fiscal year 2025 to a range of $1.22 to $1.26, significantly above the previous market expectation of $1.03 [1]

Revenue Performance - Total Annual Recurring Revenue (ARR) reached $1.490 billion, a 1% increase from $1.482 billion in Q3 2024, with a 1% positive impact from foreign currency fluctuations [84]. - Public Cloud ARR increased by 11% to $633 million compared to $570 million in Q3 2024, with no impact from foreign currency fluctuations [84]. - Total revenue for Q3 2025 was $416 million, a decrease of $24 million or 5% from Q3 2024, with recurring revenue down 2% [84]. - Total revenue decreased by $99 million, or 7%, to $1,242 million for the first nine months of 2025 compared to $1,341 million in 2024 [1]. - Recurring revenue decreased by 4%, while Public Cloud revenue increased due to expansions and migrations [1]. - Revenue from perpetual software licenses, hardware, and other decreased by 20% year over year [2]. - Consulting services revenue decreased by 23% due to lower order booking activity in the second half of 2024 [2]. Profitability Metrics - Gross margin improved to 60.8% in Q3 2025 from 60.5% in Q3 2024, driven by a greater mix of recurring revenue [84]. - Operating income for Q3 2025 was $61 million, up from $56 million in Q3 2024 [84]. - Net income increased to $40 million in Q3 2025, compared to $32 million in Q3 2024 [84]. - Total gross profit decreased to $731 million, or 58.9% of revenue, down from $815 million, or 60.8% of revenue in 2024 [3]. - Selling, general and administrative expenses decreased by 13% to $373 million, representing 30.0% of revenue [6]. Cash Flow and Financial Position - Cash provided by operating activities was $145 million, a decrease of $2 million compared to the prior year [12]. - Free cash flow increased to $134 million for the first nine months of 2025, compared to $129 million in 2024 [14]. - The company had no outstanding borrowings on its $400 million Revolving Facility as of September 30, 2025 [22]. Taxation - The effective tax rate for Q3 2025 was 25.9%, down from 31.9% in Q3 2024 [94]. - The effective tax rate decreased to 25.6% for the nine months ended September 30, 2025, down from 33.6% in 2024 [10]. Market and Risk Factors - Cloud Net Expansion Rate was 109% in Q3 2025, down from 120% in Q3 2024 [84]. - No material changes to market risk factors were reported compared to the previous disclosures in the 2024 Annual Report [128]. - New accounting pronouncements are discussed in Note 2 of the Condensed Consolidated Financial Statements [127].

Core Insights - Teradata Corp reported better-than-expected third-quarter financial results, with earnings of 72 cents per share, surpassing the analyst consensus estimate of 54 cents per share [2] - The company also reported quarterly sales of $416 million, exceeding the analyst consensus estimate of $406.228 million [2] - Following the positive results, Teradata shares rose 14.6% to $23.73 in pre-market trading [2] - Additionally, Teradata raised its FY25 EPS guidance above estimates and issued fourth-quarter EPS guidance above estimates [1] Financial Performance - Teradata's quarterly earnings were 72 cents per share, beating the expected 54 cents per share [2] - Quarterly sales reached $416 million, surpassing the forecast of $406.228 million [2] Market Reaction - Teradata shares experienced a significant increase of 14.6%, reaching $23.73 in pre-market trading following the earnings report [2]

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