Teradata Conference Call Summary Company Overview - **Company**: Teradata (NYSE:TDC) - **Event**: UBS Global Technology and AI Conference - **Date**: December 03, 2025 Key Points Company and Industry Insights - Teradata has stabilized its business and is experiencing a positive cadence of performance after a period of turnover in leadership [4][5][6] - The company is focusing on transitioning to a cloud business model and enhancing its AI capabilities, referred to internally as "Teradata 3.0" [5][6] AI Integration and Opportunities - AI is becoming increasingly integrated into Teradata's pipeline, with approximately one-third of deals involving AI [7] - The company is on track to complete around 150 proof of concepts (POCs) by the end of the year, indicating strong traction in AI discussions with customers [7][8] - Key AI use cases include anti-money laundering, fraud detection, and customer experience enhancements, particularly in financial services and retail [8][9][10] Product Portfolio and Monetization - Teradata's AI product offerings include Enterprise Vector Store, MCP server, and Agent Builder, with a focus on expanding the use of the Teradata platform [11][12] - The company aims to monetize these offerings through traditional cross-sell activities and by increasing workflow capacity as AI solutions are adopted [11][12] Services Business and AI Services Group - The AI Services group was launched to engage customers in developing AI solutions, serving as a natural extension of the POC work [13][14] - The consulting business is transitioning from cloud migration to AI services, with expectations of stabilizing revenue and improving margins [19][20] Cloud Migration Dynamics - The conversation around cloud migration has shifted towards AI investments, with customers considering both on-premises and cloud solutions based on workload requirements [22][23] - Teradata offers hybrid solutions, allowing customers to choose their preferred deployment method while addressing concerns around security and compliance [23][25] Competitive Landscape - The competitive environment is stabilizing, with a shift in focus from cloud migration to AI solutions, which may benefit Teradata's market position [39][40] - The company is leveraging its existing data estate and industry data models to enhance its competitive advantage in AI discussions [40] Financial Performance and Future Outlook - Teradata has successfully returned to positive annual recurring revenue (ARR) growth, with expectations for continued growth in 2026 [67][69] - The company is focused on maintaining cost efficiency, protecting margins, and enhancing free cash flow while investing in product innovation [68][69] Shareholder Value and Capital Allocation - Teradata has committed to using 50% of its free cash flow for share repurchases, with a renewed program of $500 million for stock buybacks [57][58] - The company is open to M&A opportunities that could accelerate its product roadmap, focusing on technology tuck-in deals [59][60] Conclusion - Teradata is positioned for growth through its focus on AI integration, a stable services business, and a commitment to shareholder value through share repurchases and potential M&A activity. The company aims to leverage its unique capabilities in the evolving landscape of data management and AI solutions [69][70]

Core Viewpoint - The comparison between Teradata (TDC) and Pure Storage (PSTG) indicates that TDC currently offers better value for investors based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Estimates - Teradata has a Zacks Rank of 1 (Strong Buy), while Pure Storage has a Zacks Rank of 3 (Hold), suggesting that TDC has a more favorable earnings estimate revision trend [3]. - The improving analyst outlook for TDC makes it a more attractive option for investors focused on earnings estimates [3]. Group 2: Valuation Metrics - TDC has a forward P/E ratio of 11.11, significantly lower than PSTG's forward P/E of 39.19, indicating that TDC may be undervalued relative to its earnings potential [5]. - The PEG ratio for TDC is 2.29, while PSTG's PEG ratio is 2.33, suggesting that TDC's expected earnings growth is more favorable when considering its valuation [5]. - TDC's P/B ratio is 11.32 compared to PSTG's P/B of 19.23, further highlighting TDC's relative undervaluation [6]. Group 3: Overall Value Grades - Based on various valuation metrics, TDC holds a Value grade of B, while PSTG has a Value grade of D, indicating that TDC is the superior choice for value investors at this time [6].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Performance - Teradata (TDC) has seen a 7.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - SB Financial Group (SBFG) has experienced a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Farmers & Merchants Bancorp (FMAO) has recorded a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - First Financial Corporation Indiana (THFF) has noted a 3.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Alpine Income Property Trust (PINE) has seen a 2.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

When I made the case for a second chance in Teradata ( TDC ), I referenced three key points that made the stock newly attractive: 1) guidance, 2) cash flow trends, and 3) valuation. After a 32.6% post-earnings surge that validated TDC asDr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his ...

When I made the case for a second chance in Teradata ( TDC ), I referenced three key points that made the stock newly attractive: 1) guidance, 2) cash flow trends, and 3) valuation. After a 32.6% post-earnings surge that validated TDC asDr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his ...

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]