📊 TDC Key Takeaways
Is Teradata Corp. /DE/ (TDC) a Good Investment?
Teradata demonstrates strong operational leverage and cash generation, with net income growing 14% and FCF of $286M despite 5% revenue decline, indicating effective cost management. However, declining topline revenue, elevated debt/equity of 1.87x, and sub-1.0 current ratio present material concerns that offset profitability strengths and warrant a cautious stance.
Why Buy Teradata Corp. /DE/ Stock? TDC Key Strengths
- Exceptional interest coverage of 25.6x eliminates financial distress risk
- Strong free cash flow generation of $286M (17.2% FCF margin) supports capital allocation
- Net income growth of 14% YoY despite revenue decline shows operational efficiency and cost discipline
- Healthy gross margin of 59.4% typical of quality software businesses
- High ROE of 56.5% demonstrates efficient capital deployment
TDC Stock Risks: Teradata Corp. /DE/ Investment Risks
- Revenue declining 5% YoY signals loss of competitive position or market share erosion in software market
- Current ratio of 0.92x and quick ratio of 0.90x below 1.0 indicate potential liquidity constraints
- Debt/equity ratio of 1.87x is elevated; limits financial flexibility for M&A or downturns
- Asset-light model (19M capex) may reflect underinvestment in R&D or product development
- Profitability gains driven by cost-cutting rather than revenue growth is unsustainable long-term
Key Metrics to Watch
- Revenue growth stabilization and return to positive YoY growth
- Current ratio improvement toward 1.2x+ to reduce liquidity risk
- Operating margin sustainability without further cost reduction
- Debt/equity ratio trajectory and debt repayment progress
Teradata Corp. /DE/ (TDC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TDC Profit Margin, ROE & Profitability Analysis
TDC vs Technology Sector: How Teradata Corp. /DE/ Compares
How Teradata Corp. /DE/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Teradata Corp. /DE/ Stock Overvalued? TDC Valuation Analysis 2026
Based on fundamental analysis, Teradata Corp. /DE/ has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Teradata Corp. /DE/ Balance Sheet: TDC Debt, Cash & Liquidity
TDC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Teradata Corp. /DE/'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $0.61 reflects profitable operations.
TDC Revenue Growth, EPS Growth & YoY Performance
TDC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $416.0M | $9.0M | $0.33 |
| Q2 2025 | $408.0M | $9.0M | $0.09 |
| Q1 2025 | $418.0M | $20.0M | $0.20 |
| Q3 2024 | $438.0M | $12.0M | $0.12 |
| Q2 2024 | $436.0M | $17.0M | $0.17 |
| Q1 2024 | $465.0M | $20.0M | $0.20 |
| Q3 2023 | $417.0M | -$4.0M | $0.08 |
| Q2 2023 | $430.0M | -$4.0M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Teradata Corp. /DE/ Dividends, Buybacks & Capital Allocation
TDC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Teradata Corp. /DE/ (CIK: 0000816761)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TDC
What is the AI rating for TDC?
Teradata Corp. /DE/ (TDC) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TDC's key strengths?
Claude: Exceptional interest coverage of 25.6x eliminates financial distress risk. Strong free cash flow generation of $286M (17.2% FCF margin) supports capital allocation.
What are the risks of investing in TDC?
Claude: Revenue declining 5% YoY signals loss of competitive position or market share erosion in software market. Current ratio of 0.92x and quick ratio of 0.90x below 1.0 indicate potential liquidity constraints.
What is TDC's revenue and growth?
Teradata Corp. /DE/ reported revenue of $1.7B.
Does TDC pay dividends?
Teradata Corp. /DE/ does not currently pay dividends.
Where can I find TDC SEC filings?
Official SEC filings for Teradata Corp. /DE/ (CIK: 0000816761) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TDC's EPS?
Teradata Corp. /DE/ has a diluted EPS of $1.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TDC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Teradata Corp. /DE/ has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TDC stock overvalued or undervalued?
Valuation metrics for TDC: ROE of 56.5% (sector avg: 22%), net margin of 7.8% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy TDC stock in 2026?
Our dual AI analysis gives Teradata Corp. /DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TDC's free cash flow?
Teradata Corp. /DE/'s operating cash flow is $305.0M, with capital expenditures of $19.0M. FCF margin is 17.2%.
How does TDC compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.8% (avg: 18%), ROE 56.5% (avg: 22%), current ratio 0.92 (avg: 2.5).
Is Teradata Corp. /DE/ carrying too much debt?
TDC has a debt-to-equity ratio of 1.87x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is TDC's return on equity (ROE) so high?
Teradata Corp. /DE/ has a return on equity of 56.5%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 7.8% net margin.