Teradata Q4 EPS Tops Estimates, Cloud ARR Rises 15%, Shares Soar 40%
Q4 adjusted EPS of $0.74 beat the $0.56 consensus and revenue reached $421 million versus $400.8 million estimates as cloud ARR rose 15% to $701 million. Shares jumped 40% to 52-week high after CEO Steve McMillan credited agentic AI tools and Q1 EPS guidance rose to $0.75–$0.79 versus $0.69 estimates.
1. Q4 Financial Results
Teradata reported Q4 adjusted EPS of $0.74, beating the $0.56 consensus, and revenue reached $421 million over estimates of $400.8 million. Total annual recurring revenue rose 3% to $1.52 billion, public cloud ARR grew 15% to $701 million, GAAP operating margin climbed to 12.8%, and free cash flow totaled $151 million.
2. Agentic AI Drives Demand
CEO Steve McMillan highlighted the impact of new agentic AI tools that automate complex data analytics for enterprise customers, attributing strong demand growth to these capabilities. Recurring revenue increased 5% to $367 million, and accelerated public cloud adoption pushed shares to a 52-week high.
3. Outlook and Analyst Revisions
For Q1, Teradata guided adjusted EPS of $0.75–$0.79 versus $0.69 consensus and revenue of $422 million to $431 million versus $412 million. Fiscal-year 2026 guidance targets $2.55–$2.65 EPS with $1.63–$1.66 billion revenue, leading Barclays to raise its target to $31, Evercore to $40 and Citizens to $49.