Back to top

Image: Bigstock

TDC Stock Rises 32% in 6 Months: Will the Momentum Continue in 2026?

Read MoreHide Full Article

Key Takeaways

  • TDC shares rise 31.8% in six months, outpacing the sector on ARR growth and cost savings.
  • New AI tools like Enterprise Vector Store help TDC process structured and unstructured data.
  • TDC completed 150 AI engagements and partners with AWS, Azure and Google Cloud.

Teradata (TDC - Free Report) shares have surged 31.8% in the past six months, outperforming the Zacks Computer & Technology sector’s return of 3.2%. 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 platform 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?

Teradata 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. Its AI/ML engineers and data scientists help Teradata to become a leading AI/ML player, enabling clients to move from proof-of-concept stages to production. 

The company has recently launched new AI features for its product, Enterprise Vector Store. The new system can combine structured data, including databases and tables, with unstructured data such as documents, PDFs and images. This helps companies use their data more effectively for AI. It uses a hybrid search, which includes meaning-based search, keyword search and metadata search. The platform supports Multi-Modal AI, enabling it to understand different types of content, such as text, images and Audio. It integrates with tools like LangChain, which will help developers to build AI applications quickly and deploy AI systems faster in companies.

TDC 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 solve complex business problems and generate useful value by utilizing AI on a superior scale. 
 

                                  Teradata Corporation Price and Consensus

Teradata Corporation Price and Consensus

Teradata Corporation price-consensus-chart | Teradata Corporation Quote

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 as much as 25 times and require 50-100 times more compute resources than previous modern analytic workloads. TDC’s massively parallel architecture, patented workload management and query optimization help it offer a high-performance environment with predictable costs, capable of delivering 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 tools help the data scientists and their IT counterparts to collaborate with automated AI assistance across all stages of 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 to provide companies worldwide access to its platform, Vantage Cloud. In the fourth quarter of 2025, TDC announced a partnership with Unstructured.io to help companies convert unstructured data into structured formats for AI analysis.

TDC Offers Q1 and 2026 Guidance

For the first quarter of 2026, Teradata expects adjusted net earnings to be in the range of 75 cents to 79 cents per share. For 2026, TDC anticipates adjusted net earnings to be in the range of $2.55-$2.65 per share. 

The Zacks Consensus Estimate for first-quarter fiscal 2026 net sales is pegged at $426.4 million, indicating a year-over-year increase of 2%. The consensus mark for the first-quarter earnings is pinned at 77 cents per share, up 9 cents over the past 30 days, indicating a year-over-year jump of 16.7%.

The Zacks Consensus Estimate for 2026 net sales is pegged at $1.64 billion, indicating a year-over-year decrease of 1.3%. The consensus mark for the 2026 earnings is pinned at $2.61 per share, up 15 cents over the past 30 days, indicating a year-over-year increase of 1.2%.

TDC’s Zacks Rank & Stocks to Consider

Teradata currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Advanced Energy Industries (AEIS - Free Report) , Alps Electric (APELY - Free Report) and Lam Research (LRCX - Free Report) , which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Advanced Energy Industries, Alps Electric and Lam Research are currently pegged at 19.3%, 38.8% and 17.7%, respectively. Shares of Advanced Energy Industries, Alps Electric and Lam Research are up 194.4, 28.1% and 181%, respectively, over the past 12 months.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in