Teradata (TDC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Teradata reported revenue of $408 million for the quarter ended June 2025, a decrease of 6.4% year-over-year, with EPS at $0.47 compared to $0.64 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $400.36 million by 1.91%, while the EPS surpassed the consensus estimate of $0.41 by 14.63% [1] Financial Performance Metrics - Annual recurring revenue (ARR) totaled $1.49 billion, exceeding the average estimate of $1.41 billion from two analysts [4] - Public Cloud ARR was reported at $634 million, slightly above the estimated $614.66 million [4] - Revenue from perpetual software licenses and hardware was $3 million, significantly below the average estimate of $4.7 million, reflecting a 40% year-over-year decline [4] - Recurring revenue was $354 million, slightly above the average estimate of $346.69 million, representing a year-over-year decrease of 3.8% [4] - Revenue from consulting services was $51 million, surpassing the average estimate of $48.96 million, but showing a year-over-year decline of 19.1% [4] - Gross profit from consulting services was reported at -$5 million, compared to an estimated profit of $0.23 million [4] - Gross profit from recurring revenue was $235 million, slightly above the estimated $232.94 million [4] Stock Performance - Teradata's shares have returned -10.8% over the past month, contrasting with a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]