Did Teradata's (TDC) New AI Leadership and Margin Gains Just Shift Its Investment Narrative?

• In the past week, Teradata reported its third-quarter and nine-month 2025 earnings, announced updated full-year guidance, and named Josh Fecteau as Chief Data and AI Officer to lead its enterprise-wide data and AI strategy. The results showed lower revenues but improved net income and earnings per share compared to the previous year, reflecting an ongoing focus on margin improvement and AI-driven transformation.
• The company’s appointment of a dedicated Chief Data and AI Officer signals a heightened commitment to AI initiatives and may influence how investors weigh Teradata’s response to evolving technology trends.
• We'll explore how Teradata’s earnings update and leadership move in AI may reshape its risk-reward profile and growth narrative.

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Teradata Investment Narrative Recap

To be a Teradata shareholder today, you need to believe that AI and cloud momentum can offset ongoing revenue headwinds, while margin resilience remains the story’s biggest short-term catalyst and persistent top-line declines the biggest risk. The company’s Q3 update, lower revenues but better earnings and margin performance, reaffirmed this status quo, without delivering material change to near-term risk or upside. Teradata’s recent appointment of a Chief Data and AI Officer is most relevant here, sharpening executive focus on the AI transition that underpins the company’s strategy for sustainable growth. In contrast, the real test for Teradata investors will be...

Read the full narrative on Teradata (it's free!)

Teradata's narrative projects $1.6 billion revenue and $101.6 million earnings by 2028. This requires a 0.9% yearly revenue decline and a $8.4 million decrease in earnings from the current $110.0 million.

Uncover how Teradata's forecasts yield a $25.78 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted three fair value estimates for Teradata ranging from US$21 to US$79, suggesting wide variability in views. Some see ongoing revenue headwinds as a central challenge with direct impact on longer-term earnings power and competitiveness, consider these different outlooks as you weigh your own view of the company.

Explore 3 other fair value estimates on Teradata - why the stock might be worth 24% less than the current price!

Build Your Own Teradata Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Teradata research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Teradata research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Teradata's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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