📊 TDC Key Takeaways
Is Teradata Corp. /DE/ (TDC) a Good Investment?
Teradata's core business is deteriorating with declining revenue (-5% YoY) and negative operating income (-8.1% margin), indicating fundamental operational challenges masked by substantial non-operating gains. While strong free cash flow of $391M and a $816M cash position provide near-term stability, the inability to cover interest expense from operations (-4.5x coverage ratio) and shrinking revenue base create unsustainable long-term dynamics that warrant defensiveness.
Teradata Corp. /DE/ Key Strengths (TDC)
- Exceptional free cash flow generation of $391M (88.1% FCF margin) demonstrates cash conversion efficiency
- Strong liquidity position with $816M in cash providing substantial financial buffer
- Healthy gross margin of 62.2% indicates underlying software business model retains pricing power
- Manageable debt-to-equity ratio of 0.76x relative to total asset base of $2.1B
TDC Stock Risks: Teradata Corp. /DE/ Investment Risks
- Negative operating margin (-8.1%) with declining revenue (-5% YoY) indicates core business deterioration and revenue quality concerns
- Negative interest coverage ratio (-4.5x) means operations cannot service debt obligations; company dependent on non-operating income and cash reserves
- Massive $371M gap between operating income (-$36M) and net income ($335M) suggests non-operating gains are unsustainable and masking operational distress
- Revenue contraction in a software business signals loss of market competitiveness or customer attrition
Key Metrics to Watch
- Operating margin trend - any further deterioration confirms structural business problems
- Revenue growth trajectory - need reversal from -5% decline to -0% or positive to restore confidence
- Operating cash flow sustainability - critical early warning indicator if starts declining despite reported net income
- Interest coverage ratio - if becomes more negative, refinancing risk increases as cash depletes
Teradata Corp. /DE/ (TDC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 88.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
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/ appears fundamentally strong 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 |
|---|---|---|---|
| Q1 2026 | $418.0M | $44.0M | $0.45 |
| 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 |
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 grade of C with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TDC's key strengths?
Claude: Exceptional free cash flow generation of $391M (88.1% FCF margin) demonstrates cash conversion efficiency. Strong liquidity position with $816M in cash providing substantial financial buffer.
What are the risks of investing in TDC?
Claude: Negative operating margin (-8.1%) with declining revenue (-5% YoY) indicates core business deterioration and revenue quality concerns. Negative interest coverage ratio (-4.5x) means operations cannot service debt obligations; company dependent on non-operating income and cash reserves.
What is TDC's revenue and growth?
Teradata Corp. /DE/ reported revenue of $444.0M.
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 $3.47.
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 grade reflects both perspectives for balanced insights.
What is TDC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Teradata Corp. /DE/ has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TDC stock overvalued or undervalued?
Valuation metrics for TDC: ROE of 60.1% (sector avg: 22%), net margin of 75.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is TDC's AI grade for 2026?
Our dual AI analysis gives Teradata Corp. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TDC's free cash flow?
Teradata Corp. /DE/'s operating cash flow is $401.0M, with capital expenditures of $10.0M. FCF margin is 88.1%.
How does TDC compare to other Technology stocks?
Vs Technology sector averages: Net margin 75.5% (avg: 18%), ROE 60.1% (avg: 22%), current ratio 1.30 (avg: 2.5).
Why is TDC's return on equity (ROE) so high?
Teradata Corp. /DE/ has a return on equity of 60.1%, 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 75.5% net margin.