Is Teradata (TDC) Fully Valued After Earnings And Updated Guidance?

Teradata’s latest earnings and guidance in focus

Teradata (TDC) has just reported second quarter 2026 results, paired with updated guidance that points to revenue pressure in the near term but higher expected earnings for the full year.

The company reported Q2 revenue of US$410 million, with net income of US$46 million and diluted earnings per share from continuing operations of US$0.48. For the first six months of 2026, revenue was US$854 million and net income was US$381 million.

Alongside these figures, Teradata guided third quarter 2026 revenue to a range that would be 4% to 6% lower year over year, while GAAP diluted EPS is expected between US$0.27 and US$0.31. For the full year, management reaffirmed its outlook for revenue to be between a 2% decline and flat compared with 2025 and raised its GAAP diluted EPS range to US$4.43 to US$4.51.

See our latest analysis for Teradata.

Teradata’s latest earnings news, new AI-focused products on Amazon Web Services and a recent board addition have coincided with a sharp 7.17% 1 day share price return and 17.81% 7 day share price return. The 1 year total shareholder return of 70% contrasts with weaker 3 and 5 year total shareholder returns, suggesting momentum has recently picked up after a tougher longer term period.

If this earnings move has you looking at other AI focused opportunities, it could be a good moment to scan the market using our screener of 55 AI infrastructure stocks

After Teradata’s sharp share price move, the stock now sits only slightly below the average analyst target while some valuation models indicate a wider discount. So where does a reasonable fair value range actually fall for you as an investor?

Most Popular Narrative: 1% Undervalued

Teradata’s most followed narrative points to a fair value of about $34.88, which sits slightly above the last close at $34.39 and suggests only a small discount.

The accelerating adoption of AI and GenAI initiatives among large enterprises is driving a surge in demand for robust data management and analytics infrastructure, positioning Teradata's hybrid platform to capture new, high-value workloads and support sustained recurring revenue growth and platform usage.

Read the complete narrative.

Curious what sits behind that fair value. The narrative leans on a particular blend of margin compression, subdued revenue growth and a richer future earnings multiple. The full set of assumptions and timelines is where it gets interesting.

Result: Fair Value of $34.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Teradata’s story could change quickly if revenue headwinds persist, or if competition from cloud hyperscalers and open source options starts to pressure pricing further.

Find out about the key risks to this Teradata narrative.

Next Steps

Teradata’s mix of recent share price strength, earnings guidance and AI exposure can look either promising or fragile depending on your lens. Take a moment to review the data closely and weigh both sides of the story, then ground your view using the summary of 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Teradata?

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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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