Overview

* Teradata ( TDC ) Q3 revenue beats analysts' expectations despite a 5% yr/yr decline

* Adjusted EPS for Q3 beats consensus, reaching $0.72

* Public cloud ARR grows 11% yr/yr

Outlook

* Teradata expects Q4 2025 GAAP EPS between $0.26 and $0.30

* Company forecasts Q4 2025 non-GAAP EPS between $0.53 and $0.57

* Teradata ( TDC ) reaffirms full-year 2025 public cloud ARR growth of 14% to 18%

Result Drivers

* CLOUD GROWTH - Public cloud ARR increased by 11% yr/yr, reflecting strong demand for Teradata's ( TDC ) cloud services

* CASH FLOW IMPROVEMENT - Cash flow from operations and free cash flow increased compared to the previous year, indicating effective financial management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $416 mln $406.22

Revenue mln (9

Analysts

)

Q3 Beat $0.72 $0.53

Adjusted (10

EPS Analysts

)

Q3 Gross 60.80%

Margin

Q3 62.30%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Teradata Corp ( TDC ) is $24.00, about 10% above its November 3 closing price of $21.59

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)