Compared to Estimates, Teradata (TDC) Q3 Earnings: A Look at Key Metrics

Core Insights - Teradata reported $416 million in revenue for Q3 2025, a year-over-year decline of 5.5%, with an EPS of $0.72 compared to $0.69 a year ago, exceeding the Zacks Consensus Estimate of $405.7 million by 2.54% and delivering an EPS surprise of 35.85% against a consensus estimate of $0.53 [1] Financial Performance Metrics - Annual recurring revenue (ARR) totaled $1.49 billion, surpassing the two-analyst average estimate of $1.39 billion - Public Cloud ARR was reported at $633 million, closely matching the average estimate of $633.62 million - Revenue from perpetual software licenses and hardware was $3 million, significantly below the average estimate of $4.02 million, reflecting a 57.1% decline year-over-year - Recurring revenue stood at $366 million, slightly above the three-analyst average estimate of $352.45 million, representing a year-over-year change of -1.6% - Revenue from consulting services was $47 million, compared to the average estimate of $48.6 million, indicating a 23% year-over-year decline [4] Stock Performance - Teradata shares have returned -6.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change, and the stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]