For the quarter ended December 2025, Teradata (TDC) reported revenue of $421 million, up 2.9% over the same period last year. EPS came in at $0.74, compared to $0.53 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $395.24 million, representing a surprise of +6.52%. The company delivered an EPS surprise of +35.04%, with the consensus EPS estimate being $0.55.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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: $1.52 billion versus $1.5 billion estimated by two analysts on average.
- Annual recurring revenue (ARR) - Public Cloud: $701 million versus $696.39 million estimated by two analysts on average.
- Revenue- Perpetual software licenses and hardware: $1 million versus the three-analyst average estimate of $2.25 million. The reported number represents a year-over-year change of -66.7%.
- Revenue- Recurring: $367 million versus $345.91 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.6% change.
- Revenue- Consulting services: $53 million versus $47.41 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -3.6% change.
- Gross profit- Consulting services: $8 million versus $0.9 million estimated by two analysts on average.
- Gross profit- Recurring: $248 million versus $234.87 million estimated by two analysts on average.
View all Key Company Metrics for Teradata here>>>
Shares of Teradata have returned -10.9% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Teradata Corporation (TDC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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