Compared to Estimates, Teradata (TDC) Q3 Earnings: A Look at Key Metrics

By Zacks Equity Research | November 04, 2025, 8:00 PM

Teradata (TDC) reported $416 million in revenue for the quarter ended September 2025, representing a year-over-year decline of 5.5%. EPS of $0.72 for the same period compares to $0.69 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $405.7 million, representing a surprise of +2.54%. The company delivered an EPS surprise of +35.85%, with the consensus EPS estimate being $0.53.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Teradata performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Annual recurring revenue (ARR) - Total: $1.49 billion versus the two-analyst average estimate of $1.39 billion.
  • Annual recurring revenue (ARR) - Public Cloud: $633 million versus $633.62 million estimated by two analysts on average.
  • Revenue- Perpetual software licenses and hardware: $3 million versus $4.02 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -57.1% change.
  • Revenue- Recurring: $366 million versus the three-analyst average estimate of $352.45 million. The reported number represents a year-over-year change of -1.6%.
  • Revenue- Consulting services: $47 million compared to the $48.6 million average estimate based on three analysts. The reported number represents a change of -23% year over year.
  • Gross profit- Perpetual software licenses and hardware: $3 million compared to the $0.9 million average estimate based on two analysts.
  • Gross profit- Recurring: $250 million compared to the $242.01 million average estimate based on two analysts.

View all Key Company Metrics for Teradata here>>>

Shares of Teradata have returned -6.2% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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