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TDC Stock Rises 43% in 3 Months: Will the Momentum Continue in 2026?
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Key Takeaways
TDC stock jumped 42.7% in 3 months, far outpacing the Computer & Tech sector's 2.8% return.
Gains stem from improved ARR, AI focus, cost savings, and productivity measures, boosting cash flow.
TDC guided 2025 EPS at $2.38-$2.42, despite a projected 6.4% drop in net sales to $1.64 billion.
Teradata (TDC - Free Report) shares have surged 42.7% in the past three months, outperforming the Zacks Computer & Technology sector’s return of 2.8%. The surge can be attributed to improved Annual Recurring Revenue (ARR), cost savings and productivity measures. An expanding portfolio that includes the launch of Enterprise Vector Store, MCP Server, AgentBuilder and Autonomous Customer Intelligence is expected to drive growth. An enhanced ClearScape Analytics with unified ModelOps capabilities designed specifically for agentic AI has been a noteworthy development for TDC. These factors are expected to boost Teradata’s free cash flow.
Can Product Innovation, AI and Acquisitions Boost TDC’s Prospects?
TDC uniquely delivers both consulting and technology, enabling agentic AI, trusted data and decades of industry innovation. The company has deployed resources with deep expertise and talent. The AI/ML engineers and data scientists are helping Teradata to become a leading AI/ML player, enabling clients to move from proof of concepts to production. TDC recently announced significant impetus in delivering AI-powered solutions for global clients. The company completed more than 150 AI engagements with customers in 2025, helping clients to solve complex business problems and generate useful value by utilizing AI on a superior scale.
Teradata is well poised to handle increasing workloads related to rising agentic AI deployments. Agentic AI, with its 24/7 always-on query potential, can increase workloads on data platforms by up to 25 times and use 50 times to 100 times more compute resources than those required by previous modern analytic workloads. TDC’s massively parallel architecture, patented workload management and query optimization are helping it to offer a high-performance environment with predictable costs that can deliver the most complex AI workloads.
Teradata is winning accolades thanks to a strong portfolio. In the third quarter of 2025, TDC was named a leader in the Forrester Wave Data Management for Analytics platforms. On Jan. 13, 2026, Gartner Peer Insights included TDC as “Voice of the Customer” for code-based libraries and low-code tooling. These would help the data scientists and their IT counterparts to collaborate among themselves with automated AI assistance for all stages that cover the data science life cycle.
TDC benefits from growing AI and strategic partnerships. The company has inked partnerships with the top three global public cloud service providers, including Amazon Web Services, Microsoft Azure and Google Cloud. These partnerships are helping TDC provide companies around the world access to its platform, Vantage Cloud. Teradata is also benefiting from acquisitions, like Stemma Technologies, which expands TDC’s capabilities in data search and exploration.
TDC Offers Strong Q4 and 2025 Guidance
For the fourth quarter of 2025, Teradata expects adjusted net earnings to be in the range of 53 cents to 57 cents per share. For 2025, TDC expects adjusted net earnings to be in the range of $2.38 to $2.42 per share.
The Zacks Consensus Estimate for fourth-quarter fiscal 2025 net sales is pegged at $395.2 million, indicating year-over-year decrease of 3.3%. The consensus mark for the fourth-quarter earnings is pegged at 55 cents per share, unchanged over the past 30 days, indicating year-over-year jump of 3.7%.
The Zacks Consensus Estimate for 2025 net sales is pegged at $1.64 billion, indicating year-over-year decrease of 6.4%. The consensus mark for the 2025 earnings is pegged at $2.40 per share, unchanged over the past 30 days, indicating year-over-year decrease of 0.8%.
Long-term earnings growth rates for Analog Devices, Ciena, and KLA are currently pegged at 18.5%, 41.75% and 10.6%, respectively. Shares of Analog Devices, Ciena and KLA have surged 21.9%, 40.6% and 36%, respectively, in the last three months.
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TDC Stock Rises 43% in 3 Months: Will the Momentum Continue in 2026?
Key Takeaways
Teradata (TDC - Free Report) shares have surged 42.7% in the past three months, outperforming the Zacks Computer & Technology sector’s return of 2.8%. The surge can be attributed to improved Annual Recurring Revenue (ARR), cost savings and productivity measures. An expanding portfolio that includes the launch of Enterprise Vector Store, MCP Server, AgentBuilder and Autonomous Customer Intelligence is expected to drive growth. An enhanced ClearScape Analytics with unified ModelOps capabilities designed specifically for agentic AI has been a noteworthy development for TDC. These factors are expected to boost Teradata’s free cash flow.
Can Product Innovation, AI and Acquisitions Boost TDC’s Prospects?
TDC uniquely delivers both consulting and technology, enabling agentic AI, trusted data and decades of industry innovation. The company has deployed resources with deep expertise and talent. The AI/ML engineers and data scientists are helping Teradata to become a leading AI/ML player, enabling clients to move from proof of concepts to production. TDC recently announced significant impetus in delivering AI-powered solutions for global clients. The company completed more than 150 AI engagements with customers in 2025, helping clients to solve complex business problems and generate useful value by utilizing AI on a superior scale.
Teradata is well poised to handle increasing workloads related to rising agentic AI deployments. Agentic AI, with its 24/7 always-on query potential, can increase workloads on data platforms by up to 25 times and use 50 times to 100 times more compute resources than those required by previous modern analytic workloads. TDC’s massively parallel architecture, patented workload management and query optimization are helping it to offer a high-performance environment with predictable costs that can deliver the most complex AI workloads.
Teradata is winning accolades thanks to a strong portfolio. In the third quarter of 2025, TDC was named a leader in the Forrester Wave Data Management for Analytics platforms. On Jan. 13, 2026, Gartner Peer Insights included TDC as “Voice of the Customer” for code-based libraries and low-code tooling. These would help the data scientists and their IT counterparts to collaborate among themselves with automated AI assistance for all stages that cover the data science life cycle.
TDC benefits from growing AI and strategic partnerships. The company has inked partnerships with the top three global public cloud service providers, including Amazon Web Services, Microsoft Azure and Google Cloud. These partnerships are helping TDC provide companies around the world access to its platform, Vantage Cloud. Teradata is also benefiting from acquisitions, like Stemma Technologies, which expands TDC’s capabilities in data search and exploration.
TDC Offers Strong Q4 and 2025 Guidance
For the fourth quarter of 2025, Teradata expects adjusted net earnings to be in the range of 53 cents to 57 cents per share. For 2025, TDC expects adjusted net earnings to be in the range of $2.38 to $2.42 per share.
The Zacks Consensus Estimate for fourth-quarter fiscal 2025 net sales is pegged at $395.2 million, indicating year-over-year decrease of 3.3%. The consensus mark for the fourth-quarter earnings is pegged at 55 cents per share, unchanged over the past 30 days, indicating year-over-year jump of 3.7%.
The Zacks Consensus Estimate for 2025 net sales is pegged at $1.64 billion, indicating year-over-year decrease of 6.4%. The consensus mark for the 2025 earnings is pegged at $2.40 per share, unchanged over the past 30 days, indicating year-over-year decrease of 0.8%.
Teradata Corporation Price and Consensus
Teradata Corporation price-consensus-chart | Teradata Corporation Quote
Zacks Rank & Other Stocks to Consider
Teradata currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader sector are Analog Devices (ADI - Free Report) , Ciena (CIEN - Free Report) and KLA (KLAC - Free Report) , each of which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Analog Devices, Ciena, and KLA are currently pegged at 18.5%, 41.75% and 10.6%, respectively. Shares of Analog Devices, Ciena and KLA have surged 21.9%, 40.6% and 36%, respectively, in the last three months.