At a glance
Teradata Corp is worth $3.19B, about 25 times its fiscal 2025 earnings. Revenue fell 5.0% to $1.66B in fiscal 2025, with 7.8% kept as profit; over 5 years it has grown 2.0% a year. It pays no dividend; it spent $1.29B buying back its shares over FY2021–FY2025. The stock returned +60.1% over the past year with dividends reinvested and −9.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 20.9% in the 2020 crash (S&P 500: 33.7%) and 43.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 8 months after the lows.
The business in plain English
Teradata sells software that helps large organizations store and analyze huge amounts of data. More and more, that data also feeds artificial intelligence (AI) tools. The company targets big global companies that use data at very large scale. Customers can run the software on AWS, Microsoft Azure or Google Cloud, or on servers they own themselves, called "on-premises." They can also use a mix of both, known as "hybrid." Newer products include AgentBuilder, for building AI agents that carry out tasks on their own, and AI Factory, which brings AI tools to on-premises systems.
Teradata sells its platform through subscriptions. Customers pay either for a set amount of capacity or for what they actually use. In fiscal 2025, which ended December 31, 2025, revenue was $1.663 billion. The Product Sales segment produced 88% of that. It covers software, related services and a little hardware. A line labeled "services and other" made up 70% of total revenue on its own. Subscription software licenses added 16%. One-time "perpetual" licenses and hardware were just 1%.
The Consulting Services segment helps customers plan their systems and move AI projects into everyday use. It brought in $201 million, or 12% of revenue. Revenue was split almost evenly by region: 50.2% came from outside the US and 49.8% from the US. Sales have been slipping. Revenue fell 5% in fiscal 2025 and was down from $1.836 billion in fiscal 2020.
Price history
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TDC +60.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Services and other | $1.17B | 70.5% |
| Subscription software licenses | $273.0M | 16.4% |
| Consulting services | $201.0M | 12.1% |
| Perpetual software licenses, hardware and other | $17.0M | 1% |
By business segment
| Product Sales | $1.46B | 87.9% |
| Consulting Services | $201.0M | 12.1% |
By geography
| International | $834.0M | 50.2% |
| United States | $829.0M | 49.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $410.0M, up 0.5% from a year earlier, and net income was $46.0M (+411.1%).
- For fiscal 2025, revenue was $1.66B (-5.0% year over year; -2.0% a year from FY2020 to FY2025) with a 7.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | -2.0% weak |
|---|---|
| Operating margin | 12.3% watch |
| Free cash flow margin | 17.2% good |
| Return on equity (FY2025) | 56.5% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 7.3% watch |
| Net cash (cash minus debt) | $414.0M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.84B | $129.0M | $223.0M |
| FY2021 | $1.92B | $147.0M | $435.0M |
| FY2022 | $1.79B | $33.0M | $405.0M |
| FY2023 | $1.83B | $62.0M | $356.0M |
| FY2024 | $1.75B | $114.0M | $279.0M |
| FY2025 | $1.66B | $130.0M | $286.0M |
Valuation snapshot
| Market value | $3.19B |
|---|---|
| P/E ratio | 25.4 |
| Dividend yield | 0% |
Rank among 1514 US companies
Market value at each year end
Teradata’s market value went from $3.53B at the end of 2016 to $3.19B on Oct 28, 2026, down 10%; since the end of 2025 it is up 13%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $3.19B | +12.6% |
| 2025 | $2.84B | -4.8% |
| 2024 | $2.98B | -29.9% |
| 2023 | $4.26B | +24.2% |
| 2022 | $3.43B | -25.6% |
| 2021 | $4.61B | +87.6% |
| 2020 | $2.46B | -18.5% |
| 2019 | $3.01B | -33.6% |
| 2018 | $4.53B | -2.6% |
| 2017 | $4.65B | +31.9% |
| 2016 | $3.53B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TDC price data to Oct 28, 2026 | +12.8% | +60.1% | -6.7% | -9.4% | +2.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +12.8% |
| 2025 | -2.3% |
| 2024 | -28.4% |
| 2023 | +29.3% |
| 2022 | -20.7% |
| 2021 | +89.0% |
| 2020 | -16.1% |
| 2019 | -30.2% |
| 2018 | -0.3% |
| 2017 | +41.5% |
| 2016 | +2.8% |
| 2015 | -39.5% |
| 2014 | +4.1% |
| 2013 | -26.5% |
| 2012 | +27.6% |
| 2011 | +17.9% |
| 2010 | +31.0% |
| 2009 | +111.9% |
| 2008 | -45.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 42.8% over that stretch · deepest drop along the way 60.6%, back to its old high 11.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.5% over that stretch · deepest drop along the way 20.9%, back to its old high 0.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.7% over that stretch · deepest drop along the way 43.3%, back to its old high 8.1 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 8 sales ($4.2M), 6 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 15, 2026 | Michael D Hutchinson Chief Operating Officer | sell (plan) | $1.4M |
| May 12, 2026 | Stephen Mcmillan President and CEO, Director | sell | $634K |
| Jun 1, 2026 | Richard J Petley Chief Revenue Officer | sell (plan) | $568K |
| May 22, 2026 | Todd McElhatton Director | sell | $502K |
| May 19, 2026 | Sumeet Arora Chief Product Officer | sell (plan) | $495K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 16% | Jun 30, 2026 |
| Vanguard Portfolio Management | 10.61% | Jun 30, 2026 |
| Vanguard Capital Management | 5.12% | Jun 30, 2026 |
| AQR Capital Management, LLC | 5.09% | Jun 30, 2026 |
| Ameriprise Financial, Inc. | 4.8% | Jun 30, 2025 |
ETFs with the most weight in TDC
| DAT ProShares Big Data Refiners ETF | 3.2% |
| JMID Janus Henderson Mid Cap Growth Alpha ETF | 1.33% |
| FCLD Fidelity Cloud Computing ETF | 1.05% |
| XSW SPDR S&P Software & Services ETF | 0.72% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.53% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.51% |
| DSMC Distillate Small/Mid Cash Flow ETF | 0.49% |
| CALF Pacer US Small Cap Cash Cows ETF | 0.4% |
What could go wrong
- AI overhaul may not revive sales. Teradata is spending heavily on research to remake itself as an AI platform. It warns this spending may not bring in significant revenue for several years, if at all. Revenue fell 5% in fiscal 2025.
- Customers could cancel or shrink subscriptions. Teradata depends on customers renewing their subscription licenses and support agreements. If customers cancel, don't renew, or renew on worse terms, revenue and profits could fall.
- Intense competition in data and AI. The company calls the market for data analytics and AI software intensely competitive and fast-changing. Pressure from rivals could force lower prices or cut demand for its products and services.
- Uneven quarters and missed forecasts. Deal timing varies with each deal's size and complexity, and with whether it involves cloud or hybrid setups. Teradata says shifts in timing have already caused big swings in quarterly results and hurt its ability to meet its forecasts.
- Rising costs and reliance on partners. Teradata relies on cloud providers, suppliers and other partners. It says higher component costs have already hurt profit margins. Problems at a key partner or cloud provider could also harm the business.
- Half of revenue comes from abroad. About 50% of fiscal 2025 revenue came from outside the US. Currency swings have already affected results. Privacy laws and rules on moving data across borders could limit how customers use Teradata's products.
Recent events
- Major agreement signed
- Quarterly results released
- Executive or board change
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Executive or board change; Shareholder vote results
- Quarterly results released
- Executive or board change
- Other company announcement
- Major agreement signed
- Quarterly results released
For income and retirement investors
Teradata pays no dividend, and its yield was 0% as of October 28, 2026. An income investor would get no regular payouts. Any cash would have to come from cashing in part of the holding. Instead of paying dividends, Teradata repurchases its own shares, known as buybacks. It spent $1.29 billion on them from fiscal 2021 to 2025. That helped cut shares outstanding by 14.8% between July 2021 and July 2026. Buybacks slowed from $387 million in fiscal 2022 to $140 million in fiscal 2025.
The stock fell further than the market in each of three major sell-offs. It dropped 60.6% in the 2008 financial crisis, against 42.8% for the market, and took about 11 months to recover. In the 2020 COVID crash it fell 20.9% but recovered within a month. In the 2022 bear market it lost 43.3%, against 32.7% for the market, and needed about eight months to recover. As a single stock, Teradata carries more risk than a diversified fund.
Questions investors ask
Does Teradata pay a dividend?
No. Teradata paid no dividends from fiscal 2021 through fiscal 2025, and its dividend yield was 0% as of October 28, 2026. Instead, the company returns cash by repurchasing its own shares. It spent $1.29 billion on these buybacks over those five years. That helped reduce shares outstanding by 14.8% between July 2021 and July 2026. Income-focused investors would receive no regular payouts from this stock.
How does Teradata make money?
Mainly by charging large companies to use its data and AI platform. In fiscal 2025, revenue was $1.663 billion. The Product Sales segment brought in 88% of it, and covers software, related services and a little hardware. Consulting Services made up 12%. It helps customers design their systems and put AI projects into use. Customers can run the platform on AWS, Microsoft Azure, Google Cloud, their own servers, or a mix. They pay for a set amount of capacity or for what they use.
Is Teradata's revenue growing?
No, it has been shrinking slowly. Revenue fell 5% to $1.663 billion in fiscal 2025, down from $1.836 billion in fiscal 2020. That is a decline of about 2% a year over five years. Profit moved the other way: net income rose 14% to $130 million in fiscal 2025. In the quarter ended June 30, 2026, revenue was $410 million, up 0.5% from a year earlier. Net income jumped 411% to $46 million.
How has Teradata stock performed?
Unevenly, with big swings. As of October 28, 2026, the shares had gained 60.1% over one year. Over five years they had lost 39% in total. Over ten years they were up 27%, or about 2.5% a year. The stock's deepest drop from a peak was 75.6%. In the year to October 28, 2026, it fell as much as 35.2% at one point. Calendar-year returns ranged from a 45.9% loss in 2008 to a 111.9% gain in 2009.
What is Teradata's P/E ratio?
About 25.4 as of October 28, 2026, based on fiscal 2025 earnings of $1.35 per diluted share. The P/E ratio compares the share price with a year's profit per share. The company's total market value was about $3.19 billion. Free cash flow is the cash left after running the business and paying for equipment. It was $286 million in fiscal 2025, well above net income of $130 million.