Cloud data analytics platform Teradata beats Q3 revenue expectations
Overview
Teradata 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 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 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/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $416 mln | $406.22 mln (9 Analysts) |
Q3 Adjusted EPS | Beat | $0.72 | $0.53 (10 Analysts) |
Q3 Gross Margin | 60.80% | ||
Q3 Adjusted Gross Margin | 62.30% |
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 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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