Teradata (TDC)
NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$28.05-2.57%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
QuarterlyIQ Insights · TDC
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks TDC against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8445).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 4 guided quarters · 145.9% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on growing total annual recurring revenue (ARR) and recurring revenue, including public cloud ARR expansion.
Stated as a priority in 3 of last 3 quarters. Total ARR grew modestly from $1.489 billion in 2025-Q2 to $1.509 billion in 2026-Q2 (+1% reported, +2% constant currency). Recurring revenue rose from $354 million to $363 million in the same period. Management has consistently emphasized ARR and recurring revenue growth, and the financials show delivering steady, if modest, progress.
“Total ARR increased to $1.509 billion from $1.489 billion, an increase of 1% as reported and 2% in constant currency.”
“Total ARR increased to $1.492 billion, an increase of 3% as reported and 2% in constant currency.”
“Board refreshment program and strategic initiatives underway including ARR growth focus.”
Enhance GAAP and non-GAAP operating income and margins through operational leverage and cost management.
Management stated this priority in 3 of last 3 quarters. GAAP operating margin improved significantly from 5.9% in 2025-Q2 to 11.7% in 2026-Q2, and non-GAAP operating margin rose from 16.4% to 21.5% over the same period. Operating income doubled from $24 million to $48 million quarter-over-quarter in 2026-Q2. The trajectory shows delivering meaningful margin improvement consistent with management's stated focus.
Increase cash flow from operations and adjusted free cash flow, normalizing for SAP litigation settlement impacts.
This priority was stated in 3 of last 3 quarters. Cash flow from operations rose from $43 million in 2025-Q2 to $106 million in 2026-Q2, a 147% increase. Adjusted free cash flow, which normalizes for SAP litigation settlement impacts, increased from $39 million to $127 million over the same period. Management has consistently emphasized improving cash flow, and the financials show delivering strong progress.
Continue the board refreshment program by appointing new directors and enhancing governance practices.
Stated in 2 of last 3 quarters. The company announced the appointment of Melissa Fisher to the Board effective March 1, 2026, as part of a broader board refreshment program. Management has maintained focus on governance enhancement through director transitions. The priority shows consistent follow-through with new director appointments.
“Board refreshment program and strategic initiatives underway including new director appointments.”
Oversee mergers and acquisitions activity and manage credit agreements to support financial flexibility.
Stated in 2 of last 3 quarters. Management disclosed entering into a $400 million unsecured revolving credit facility in 2026-Q2 and a Cooperation Agreement in 2025-Q4 related to strategic governance. These actions demonstrate active management of capital structure and M&A-related agreements. The priority shows consistent attention with concrete credit facility execution.
Over the trailing year it converted 1.56x of net income into operating cash flow. Historically, Information Technology names rated neutral grew net income 57% of the time over the next year (vs 52% for the rest of the cohort, n=4162).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
15 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“GAAP Operating Margin of 11.7%, up 580 basis points from prior year period.”
“Non-GAAP Operating Margin was 27.3% versus 21.8% prior year.”
“Focus on improving operating income and margins through cost discipline.”
“Cash flow from operations was $106 million compared to $43 million prior year.”
“Cash flow from operations was $401 million including SAP settlement benefit.”
“Focus on improving cash flow and free cash flow metrics.”
“Board expects to appoint Melissa Fisher to the Board as a Class I director no later than March 1, 2026.”
“Teradata entered into a Credit Agreement with Bank of America for a $400 million unsecured revolving credit facility.”
“Entered into a Cooperation Agreement with Lynrock Lake LP related to Board and strategic initiatives.”