Teradata Corporation (TDC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Teradata Corporation (TDC) Technology Profile & Competitive Position

Teradata Corporation delivers a multi-cloud data platform, Teradata Vantage, facilitating enterprise analytics and cloud migration. Serving sectors like finance and healthcare, Teradata focuses on enabling data-driven decision-making through integrated solutions and business consulting. The company operates globally with a direct sales force.

What Is the Investment Thesis for TDC?

Teradata Corporation presents a compelling investment case centered on its Teradata Vantage platform and strategic focus on multi-cloud data solutions. With a market capitalization of $2.60B and a P/E ratio of 20.00, Teradata demonstrates profitability with a 7.8% profit margin and a robust 59.5% gross margin. Key to its growth is the increasing adoption of cloud-based analytics, driving demand for platforms like Vantage. Catalysts include ongoing migration to cloud environments and expansion of its consulting services. However, potential risks involve competition from larger cloud providers and the need to continually innovate in the rapidly evolving data analytics space. Investors should monitor Teradata's ability to maintain its gross margin and expand its customer base in key sectors.

Based on FMP financials and quantitative analysis

TDC Key Highlights

• Market capitalization of $2.60B reflects investor valuation of Teradata's market position.
• P/E ratio of 20.00 indicates a relatively stable valuation compared to earnings.
• Profit margin of 7.8% demonstrates the company's ability to generate profit from its revenue.
• Gross margin of 59.5% highlights the efficiency of Teradata's service delivery and pricing strategies.
• Beta of 0.62 suggests lower volatility compared to the broader market, indicating a potentially stable investment.

Who Are TDC's Competitors?

TDC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TDC's Key Strengths?

• Established presence in the data warehousing and analytics market.
• Focus on multi-cloud environments.
• Comprehensive Teradata Vantage platform.
• Direct sales force and industry expertise.

What Are TDC's Weaknesses?

• Smaller scale compared to major cloud providers.
• Reliance on direct sales model may limit scalability.
• Potential for slower innovation compared to larger competitors.
• Limited brand recognition compared to AWS, Azure, and GCP.

What Could Drive TDC Stock Higher?

• Continued adoption of cloud-based data analytics solutions driving demand for Teradata Vantage.
• Strategic partnerships with leading technology companies expanding market reach.
• Planned integration of advanced AI and machine learning capabilities into the Teradata Vantage platform by Q4 2026.
• Expansion of business consulting services providing comprehensive solutions for clients.

What Are the Key Risks for TDC?

• Financial-distress signal — its Altman Z-Score of 1.80 sits in the distress zone (elevated bankruptcy risk).
• Intense competition from larger cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
• Rapid technological advancements and platform shifts requiring continuous innovation.
• Economic downturns affecting IT spending and customer demand.
• Security and privacy concerns related to data storage and analytics impacting customer trust.

What Are the Growth Opportunities for TDC?

• Expansion of Cloud Services: Teradata can capitalize on the growing demand for cloud-based data analytics by expanding its Teradata Vantage platform's capabilities and integrations with major cloud providers. The global cloud computing market is projected to reach $832.1 billion by 2025, presenting a significant opportunity for Teradata to increase its market share. Timeline: Ongoing.
• Strategic Partnerships: Forming strategic partnerships with leading technology companies and cloud service providers can enhance Teradata's market reach and solution offerings. Collaborations can provide access to new customer segments and expand the platform's functionality. Timeline: Ongoing.
• AI and Machine Learning Integration: Integrating advanced AI and machine learning capabilities into the Teradata Vantage platform can enhance its analytical capabilities and attract customers seeking advanced data insights. The AI market is expected to reach $190.61 billion by 2025, indicating a substantial growth opportunity. Timeline: Ongoing.
• Geographic Expansion: Expanding its presence in emerging markets, particularly in the Asia Pacific region, can drive revenue growth for Teradata. These regions are experiencing rapid economic growth and increasing adoption of data analytics solutions. Timeline: Ongoing.
• Enhancing Consulting Services: Strengthening its business consulting services can provide Teradata with a competitive advantage by offering comprehensive solutions that address clients' specific data and analytics needs. This includes helping organizations establish data visions, identify analytical opportunities, and enable multi-cloud ecosystem architectures. Timeline: Ongoing.

What Opportunities Does TDC Have?

• Growing demand for cloud-based data analytics.
• Expansion into emerging markets.
• Integration of AI and machine learning capabilities.
• Strategic partnerships with technology companies.

What Threats Does TDC Face?

• Intense competition from larger cloud providers.
• Rapid technological advancements and platform shifts.
• Economic downturns affecting IT spending.
• Security and privacy concerns related to data storage and analytics.

What Are TDC's Competitive Advantages?

• Established Technology: Teradata has a long history and established technology in the data warehousing and analytics space.
• Multi-Cloud Focus: Teradata's focus on multi-cloud environments provides a competitive advantage as organizations increasingly adopt hybrid cloud strategies.
• Industry Expertise: Teradata's deep industry expertise and consulting services differentiate it from pure-play cloud providers.
• Direct Sales Force: Teradata's direct sales force allows for targeted sales and customer support.

What Does TDC Do?

Teradata Corporation, founded in 1979 and headquartered in San Diego, California, provides a connected multi-cloud data platform designed for enterprise analytics. The company's core offering, Teradata Vantage, enables organizations to leverage data across the enterprise, connecting disparate sources to simplify ecosystems and support cloud migration. Teradata’s solutions are tailored for industries including financial services, government, healthcare, manufacturing, retail, telecommunications, and travel/transportation. Over the years, Teradata has evolved from a data warehousing pioneer to a comprehensive analytics platform provider. Its business consulting services assist organizations in establishing data and analytic visions, identifying analytical opportunities, and enabling multi-cloud ecosystem architectures. These services ensure that analytical infrastructure delivers tangible value to clients. In addition to its platform and consulting offerings, Teradata provides ongoing support and maintenance services to ensure the continuous operation and optimization of its solutions. Teradata serves its global clientele through a direct sales force operating across the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company's strategic focus on multi-cloud environments and enterprise analytics positions it to address the growing demand for data-driven insights and cloud-based solutions.

What Products and Services Does TDC Offer?

• Provides a connected multi-cloud data platform for enterprise analytics.
• Offers Teradata Vantage, a data platform for leveraging data across an enterprise.
• Connects various data sources to drive ecosystem simplification.
• Supports customers on their journey to the cloud through integrated migration.
• Offers business consulting services to establish data and analytic visions.
• Identifies and operationalizes analytical opportunities for organizations.
• Enables multi-cloud ecosystem architecture.
• Provides support and maintenance services.

How Does TDC Make Money?

• Provides subscription-based access to the Teradata Vantage platform.
• Offers business consulting services for data and analytics strategy and implementation.
• Generates revenue from support and maintenance services.
• Direct sales force targeting clients in various sectors.

What Industry Does TDC Operate In?

Teradata operates in the software infrastructure industry, which is experiencing rapid growth driven by the increasing demand for data analytics and cloud-based solutions. The market is competitive, with major players like Amazon Web Services, Microsoft Azure, and Google Cloud Platform offering competing data analytics services. Teradata differentiates itself through its focus on multi-cloud environments and its Teradata Vantage platform, which is designed to integrate with various cloud providers. The industry is expected to continue growing as businesses increasingly rely on data-driven decision-making.

Who Are TDC's Key Customers?

• Financial services companies seeking to leverage data for risk management and customer analytics.
• Government agencies using data to improve public services and policy-making.
• Healthcare organizations analyzing patient data to improve outcomes and reduce costs.
• Retail companies using data to optimize supply chains and personalize customer experiences.
• Telecommunications companies analyzing network data to improve service quality and customer satisfaction.

ROE 142%Key Financial Metrics

Return on equity for Teradata Corporation stands at 142.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 19.7%, showing how much profit it generates from its asset base. TDC trades at a trailing price-to-earnings ratio of 6.00, below the Technology sector average of ~37x. Its free cash flow yield is 26.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.30 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 16.7%, the inverse of the P/E and a quick read on earnings relative to price.

How Teradata Corporation Is Valued

Teradata Corporation carries a market capitalization of $2.60B, placing it in the mid-cap category. Relative to its peer group, TDC's quantitative score of 93/100 is above the peer average of 78/100.

F-Score 8/9Financial Health

Teradata Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.80 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Teradata Corporation revenue of about $1.65B for fiscal 2026, with EPS near $2.65. The estimate reflects 5 contributing analysts.

TDC Financials

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TDC Analyst Consensus

TDC MoonshotScore

What Investors Ask About Teradata Corporation (TDC) — Technology

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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