Core Insights - The artificial intelligence (AI) infrastructure segment is expected to maintain strong momentum in 2026, driven by robust demand, despite concerns over the high valuations of major AI companies [2][3]. Company Summaries Calix Inc. (CALX) - Calix reported adjusted earnings of $0.39 per share for Q4 2025, exceeding the Zacks Consensus Estimate of $0.38, and significantly up from $0.08 per share a year ago [4]. - Quarterly revenues reached $272.45 million, surpassing the Zacks Consensus Estimate by 0.90% [4]. - The company has integrated AI into its cloud platform to enhance operations and service delivery for broadband providers, with major clients including Lumen Technologies and Verizon [6]. - Calix's expected revenue and earnings growth rates for the current year are 15.6% and 41.5%, respectively, with a 4.9% improvement in the earnings estimate over the last 30 days [7]. Teradata Corp. (TDC) - Teradata reported adjusted earnings of $0.74 per share for Q4 2025, beating the Zacks Consensus Estimate of $0.55, and up from $0.53 per share a year ago [8]. - Total revenues were $421 million, exceeding the Zacks Consensus Estimate by 6.52% [8]. - The company is expected to benefit from improved annual recurring revenue (ARR) growth, cost savings, and productivity measures, which will drive free cash flow [9]. - Teradata's innovative AI capabilities and new product rollouts are anticipated to enhance its analytics offerings and drive long-term growth [10][12]. - The expected revenue and earnings growth rates for Teradata are -2.1% and -3.9%, respectively, with a 0.4% improvement in the earnings estimate over the last 90 days [13]. Lumen Technologies Inc. (LUMN) - Lumen reported adjusted earnings of $0.23 per share for Q4 2025, contrasting with a loss of $0.21 per share as per the Zacks Consensus Estimate, and an adjusted loss of $0.09 per share in the prior year [14]. - Total revenues were $3.041 billion, down 8.7% year over year, and missed the Zacks Consensus Estimate by 1.4% [14]. - The company is focusing on AI-driven solutions, securing $13 billion in Private Connectivity Fabric (PCF) deals by the end of 2025, with revenues of $41 million and $116 million recognized in Q4 and full-year 2025, respectively [15][16]. - Lumen's active customers for its network-as-a-service (NaaS) platform grew by 29% quarter over quarter, indicating strong demand for its services [17]. - The expected revenue and earnings growth rates for Lumen are -12.4% and 15.4%, respectively, with a significant improvement in the earnings estimate of over 100% in the last seven days [18].

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] Company Highlights Calix Inc. (CALX) - Calix reported quarterly adjusted earnings of $0.39 per share, surpassing the Zacks Consensus Estimate of $0.38, and showing significant growth from $0.08 per share a year ago [6] - Quarterly revenues reached $272.45 million, exceeding the Zacks Consensus Estimate by 0.90% [6] - The company has integrated AI into its cloud platform to enhance operations and service delivery for broadband service providers [8] - Expected revenue and earnings growth rates for Calix are 15.6% and 41.5%, respectively, for the current year [9] Teradata Corp. (TDC) - Teradata reported quarterly adjusted earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.55, and up from $0.53 per share a year ago [11] - Total revenues were $421 million, exceeding the Zacks Consensus Estimate by 6.52% [11] - The company is expected to benefit from improved annual recurring revenue (ARR) growth, cost savings, and productivity measures [12] - Teradata's expected revenue and earnings growth rates are -2.1% and -3.9%, respectively, for the current year [16] Lumen Technologies Inc. (LUMN) - Lumen reported fourth-quarter adjusted earnings of $0.23 per share, contrasting with a Zacks Consensus Estimate of a loss of $0.21 [17] - Total revenues were $3.041 billion, down 8.7% year over year, and missed the Zacks Consensus Estimate by 1.4% [17] - The company secured $13 billion in AI-linked Private Connectivity Fabric (PCF) deals, boosting demand for its network-as-a-service (NaaS) solutions [18][19] - Lumen's expected revenue and earnings growth rates are -12.4% and 15.4%, respectively, for the current year [21]

Core Insights - Teradata (TDC) shares have increased by 42.7% over the past three months, significantly outperforming the Zacks Computer & Technology sector's return of 2.8% due to improved Annual Recurring Revenue (ARR), cost savings, and productivity measures [1][10] - The company is expanding its portfolio with new products like Enterprise Vector Store, MCP Server, AgentBuilder, and Autonomous Customer Intelligence, which are expected to drive future growth [1] - Enhanced ClearScape Analytics with unified ModelOps capabilities for agentic AI is a notable development that is anticipated to boost Teradata's free cash flow [1] Product Innovation and AI - Teradata uniquely combines consulting and technology to enable agentic AI and trusted data, leveraging deep expertise and talent in AI/ML [2] - The company has completed over 150 AI engagements in 2025, assisting clients in solving complex business problems through AI [2] Workload Management - Teradata is well-equipped to manage increased workloads from agentic AI deployments, which can amplify workloads by up to 25 times and require 50 to 100 times more compute resources than previous analytic workloads [3] - The company's patented workload management and query optimization contribute to a high-performance environment for complex AI workloads [3] Industry Recognition - In Q3 2025, Teradata was recognized as a leader in the Forrester Wave Data Management for Analytics platforms and included in Gartner Peer Insights as "Voice of the Customer" for code-based libraries and low-code tooling [4] Strategic Partnerships and Acquisitions - Teradata has formed partnerships with major cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud, enhancing access to its Vantage Cloud platform [5] - The acquisition of Stemma Technologies has expanded Teradata's capabilities in data search and exploration [5] Financial Guidance - For Q4 2025, Teradata expects adjusted net earnings between 53 cents and 57 cents per share, while for the full year 2025, adjusted net earnings are projected to be between $2.38 and $2.42 per share [6] - The Zacks Consensus Estimate for Q4 2025 net sales is $395.2 million, reflecting a year-over-year decrease of 3.3%, while the estimate for 2025 net sales is $1.64 billion, indicating a 6.4% decrease [7][8] Stock Performance - Teradata's stock has shown significant gains, attributed to improved ARR, AI focus, cost savings, and productivity measures, despite a projected decline in net sales [10]