Stock Analysis

Stock Analysis · Teradata Corp (TDC)

Overview

Teradata Corp (TDC) is a software company focused on data analytics and data management for large organizations. In simple terms, it helps enterprises store, organize, and analyze large amounts of information so they can run reports, understand customers, manage risk, and make decisions faster. Teradata’s products are commonly used in large-scale environments where performance, reliability, and governance are important.

The company’s business has been shifting over time from older, on-premises deployments (software running in a customer’s own data center) toward subscription software and cloud-related offerings. This shift is typical in enterprise software: instead of one-time licenses and hardware-tied setups, customers increasingly prefer ongoing subscriptions and flexible deployments that can run in public cloud environments.

In its financial reporting, Teradata generally discusses revenue in broad categories rather than a long list of consumer-facing products. The main revenue streams are typically organized as:

Subscription (software and cloud-related) – recurring revenue tied to ongoing access and usage
Consulting / services – implementation help, optimization, and advisory work
Other legacy-related revenue components – depending on the period and reporting structure (often smaller than subscription)

Exact percentages can vary by year and are best read directly from the latest annual report’s revenue footnotes and segment/product disclosures.

Over recent years, total revenue trends downward (from about $1.92B in 2021 to about $1.66B in 2025), while operating expenses decline meaningfully (from about $955M in 2021 to about $782M in 2025). Net income also improves from 2022 levels (about $33M in 2022 to about $130M in 2025), indicating that cost discipline has been an important driver of profitability even as revenue has been under pressure.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 16, 2026
Context
Sector	Technology
Industry	Software - Infrastructure
Market Cap ⓘ	$3.17B
Beta ⓘ	0.54
Fundamental
P/E Ratio ⓘ	24.86	25.13
Profit Margin ⓘ	7.82%	6.91%
Revenue Growth ⓘ	2.90%	15.25%
Debt to Equity ⓘ	242.17%	19.82%
PEG ⓘ	3.35
Free Cash Flow ⓘ	$305.00M

Teradata’s market capitalization is about $3.17B, and its beta of ~0.54 suggests the stock has historically moved less than the broader market. Profit margin is about 7.82%, modestly above the industry median (~6.91%), while year-over-year revenue growth is about 2.9%, far below the industry median (~15.25%). Debt-to-equity is about 242% versus an industry median near 20%, indicating substantially higher leverage than many peers. The P/E ratio is ~24.9, close to the industry median (~25.1). Free cash flow over the trailing twelve months is about $305M.

Growth (Low)

Teradata operates in the broader analytics and data platform area, which is an important part of modern IT. Demand drivers include cloud migration, the need to manage and govern growing data volumes, and wider adoption of advanced analytics. In that sense, the overall problem Teradata addresses remains relevant for many organizations.

However, the company’s recent top-line performance suggests it is not currently capturing the same growth pace as the median company in its industry group. The revenue growth pattern shown below is uneven, including multiple periods of contraction before returning to modest growth in the most recent period.

The chart shows several years where year-over-year revenue growth was negative, followed by a return to positive growth at about 2.9% most recently. That profile can be consistent with a business in transition (for example, product mix changes and contract timing), but it also means that long-term expansion has not yet become consistent.

Cash generation can matter for long-term durability, especially for mature software companies. Teradata has continued to generate positive free cash flow across the periods shown, although it has declined from earlier highs.

Free cash flow remains positive (about $305M TTM), with prior periods ranging roughly from $271M to $477M. Sustained cash generation can support reinvestment in product development and ongoing balance-sheet obligations, but the direction of travel is still important to monitor over time.

Potential catalysts, based on typical items discussed in company filings, include continued migration toward recurring subscription revenue, new product capabilities for analytics in cloud environments, and stabilization of renewals and expansions within large enterprise accounts. Whether these translate into durable growth depends on execution and competitive positioning.