Teradata has beaten earnings estimates in all four of the last four quarters with an average positive surprise of 184%, earns exceptional return on equity of 118% with 25% net margins and a Piotroski financial health score of 7 out of 9 — but 19% short interest, a high put-to-call ratio of 2.50, and a stock price already above the analyst target limit near-term entry.
Thesis pillars
- Exceptional Return On Equity→Stable
- Massive Earnings Beat Streak→Stable
- High Short Interest Squeeze Risk↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Teradata Corporation (TDC) Stock Analysis
Catalyst-Driven edge
Technology · Software - Infrastructure
Wait for pullback to $27.43. At $28.52 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $27.43 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single-source components; Thin upside margin: 8.3%.
Teradata Corporation provides an enterprise AI and analytics platform supporting cloud, on-premises, and hybrid environments across two segments: Product Sales and Consulting Services. The company generated $1.663 billion in total revenues for calendar year 2025, with the... Read more
Wait for pullback to $27.43. At $28.52 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $27.43 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single-source components; Thin upside margin: 8.3%. Chart setup: No clear chart pattern; technical signals are mixed. Deep value: 58% margin of safety. Extreme undervaluation. | Falling knife (FK=6.5): wait for stabilization. Score 5.8/10, moderate confidence.
Passes 4/8 gates (clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
About Teradata Corporation
About Teradata Corporation
Teradata Corporation reported total revenues of $1.663 billion for calendar year 2025 across two operating segments — Product Sales and Consulting Services — with subscription-based contracts representing the majority of revenue. The company operates from headquarters in San Diego, California, employing approximately 5,100 people globally (roughly 30% in the United States and 70% across the rest of the world), and delivered more than 150 AI engagements at customer accounts in 2025. No single customer represents 10% or more of total revenue.
Teradata generates revenue through flexibly priced subscription offerings — ranging from capacity-based to consumption-based — sold directly through a sales force in which more than 80% of employees are in customer-facing or revenue-driving roles. The platform spans public cloud deployments on AWS, Microsoft Azure, and Google Cloud, as well as private cloud and on-premises configurations. Customers are concentrated in Financial Services, Healthcare and Life Sciences, Public Sector, Manufacturing, Retail, Telecommunications, and Travel/Transportation verticals. Hardware for on-premises offerings is assembled by Flex Ltd., with key components sourced from Dell Technologies (servers), NetApp (storage disk systems), and NVIDIA (GPUs); certain components are purchased from single sources. Teradata competes against AWS, Databricks, Google Cloud, Microsoft Azure, and Snowflake in the data management and analytics market.
Show full overview
Teradata's supply chain for on-premises hardware depends on Flex Ltd. as key contract manufacturer; a disruption at Flex or at a sole-source component supplier, or a global shortage of semiconductors or GPUs, could impact the timing or profitability of customer shipments. The 10-K notes that demand for GPUs and other AI-adjacent components may exceed supply, and that tariff or inflationary pressures could compress margins. Historically, the company has offset such pressures through price adjustments and alternative sourcing, but these measures may not fully mitigate future cost increases.
See also: Technology · Software - Infrastructure
From Teradata Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-26Recent Developments — Teradata Corporation
Latest news
- NEWS How much upside is left in Teradata (TDC)? Wall Street analysts think 32.68% - MSN — MSN positive
- NEWS Why Teradata (TDC) is a top momentum stock for the long term - MSN — MSN positive
- NEWS Why Teradata (TDC) is a Top Momentum Stock for the Long-Term - Yahoo Finance — Yahoo Finance positive
- NEWS Teradata Corp (TDC) Technical Analysis: Support, Resistance, Indicators & Moving Averages - TradingKey — TradingKey neutral
- NEWS Teradata Shareholders Approve Expanded Stock Incentive Plan - The Globe and Mail — The Globe and Mail positive
Generated 2026-07-26T05:12:17Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierFlex10-K Item 1A: 'we rely on Flex as a key contract manufacturer for certain on-premises hardware offerings'
- HIGHSuppliersingle-source components10-K Item 1A: 'There are some components of our solutions that we purchase from single sources due to price, quality, technology or other reasons.'
Material Events(8-K, last 90d)
- 2026-05-19Item 5.02LOWTeradata stockholders approved the Teradata 2023 Stock Incentive Plan as Amended and Restated on May 14, 2026, adding 6,300,000 shares. No officer departure; compensatory arrangement amendment only.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $27.43. At $28.52 the A.R:R is 0.7:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $27.43 (support + ATR) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Supplier: single-source components; Thin upside margin: 8.3%. Chart setup: No clear chart pattern; technical signals are mixed. Deep value: 58% margin of safety. Extreme undervaluation. | Falling knife (FK=6.5): wait for stabilization. Target $30.89 (+8.3%), stop $25.81 (−10.5%), A.R:R 0.7:1. Score 5.8/10, moderate confidence.
Take-profit target: $30.89 (+8.3% upside). Target $30.89 (+8.3%), stop $25.81 (−10.5%), A.R:R 0.7:1. Stop-loss: $25.81.
Concentration risk — Supplier: single-source components; Thin upside margin: 8.3%; Negative momentum.
Teradata Corporation trades at a P/E of 6.3 (forward 9.9). TrendMatrix value score: 8.6/10. Verdict: Buy (Wait for Entry).
14 analysts cover TDC with a consensus score of 3.6/5. Average price target: $36.
What does Teradata Corporation do?Teradata Corporation provides an enterprise AI and analytics platform supporting cloud, on-premises, and hybrid...
Teradata Corporation provides an enterprise AI and analytics platform supporting cloud, on-premises, and hybrid environments across two segments: Product Sales and Consulting Services. The company generated $1.663 billion in total revenues for calendar year 2025, with the majority from subscription-based contracts. Teradata had approximately 5,100 employees globally at December 31, 2025, with hardware assembly outsourced to Flex Ltd.