📊 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.
Why Buy Teradata Corp. /DE/ Stock? TDC Key Strengths
- 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 rating of SELL 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 rating reflects both perspectives for balanced insights.
Is TDC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Teradata Corp. /DE/ has a SELL rating with 70% 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 60.1% (sector avg: 22%), net margin of 75.5% (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 SELL rating 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.