Teradata Corporation (NYSE: TDC) shares traded higher Wednesday after the company reported fourth-quarter results that exceeded analyst expectations and provided first-quarter and full-year guidance above consensus forecasts. For the fourth quarter, the company posted adjusted earnings per share of $0.74, surpassing estimates of $0.56. Revenue totaled $421 million, compared with consensus expectations of approximately $401 million.
Annual recurring revenue reached $1.52 billion at quarter end, reflecting a 3% increase from the prior year period. Public cloud annual recurring revenue rose 15% to $701 million. Recurring revenue increased 5% year over year to $367 million and represented 87% of total quarterly revenue.
On a GAAP basis, operating margin improved to 12.8%, up from 9.5% in the same quarter last year. Adjusted operating margin was 22.8%, compared with 17.6% a year earlier. Cash flow from operations totaled $160 million in the quarter, while free cash flow was $151 million. For the first quarter, Teradata expects adjusted earnings per share between $0.75 and $0.79. Analysts had been forecasting $0.69 per share. Revenue is projected in a range of $422.18 million to $430.54 million, compared with consensus estimates near $412 million.
For fiscal 2026, the company forecast adjusted earnings per share of $2.55 to $2.65, compared with analyst estimates of $2.54. Revenue for the year is expected between $1.63 billion and $1.66 billion, versus consensus projections of about $1.63 billion.
Following the earnings release, the stock reached a new 52-week high. Management highlighted growth in recurring revenue and cloud-related annual recurring revenue, citing continued momentum in cloud and artificial intelligence initiatives. The company also announced a refresh of its board and said it is cooperating with activist investor Lynrock Lake to support strategic execution.
About Teradata Corporation
Teradata Corporation (NYSE: TDC), founded in 1979 and headquartered in San Diego, California, provides cloud-based data analytics and enterprise data management software. The company offers analytics, data warehousing, and artificial intelligence solutions to businesses across multiple industries worldwide.
At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.
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