What changed
$TDC — BUY 📊
Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally.
🎯 Q1 FY26 | Rev $0B | EPS $0.88 vs $0.77 🟢
💡 Consensus underestimated Teradata's cloud ARR growth and gross margin expansion. The GAAP operating loss obscured underlying improved unit economics; the market may be slow to reprice given headline loss.
📉 Reward/Risk: 2.2:1
🏢 Business Quality: 5/10 - Solid legacy data warehousing with high switching costs but facing existential cloud transition risk; improving margins and recurring revenue offset by tepid overall growth.
📊 Valuation: cheap - EV/Sales ~1.7x vs peer SaaS 4x+, P/E ~9x on next-twelve-month basis, FCF yield >10%; multiple expansion possible if cloud re-acceleration...
🔮 Catalyst: Q2 2026 earnings report (expected ~July 2026)
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/TDC0618
Why it matters
Teradata Corporation, together with its subsidiaries, provides an AI and knowledge platforms in the United States and internationally.