Teradata Corporation (TDC) Reports 15% Cloud ARR Growth and Strong Free Cash Flow for 2025

Teradata Corporation (NYSE:TDC) is one of the best stocks for beginners with little money in 2026. On February 10, Teradata reported a strong conclusion to 2025, headlined by a 15% growth in Cloud ARR and a non-GAAP diluted EPS of $0.74. Q4 saw total revenue reach $421 million, supported by a 5% increase in recurring revenue. While full-year total revenue declined 5% to $1.663 billion, the company expanded its Q4 operating margin to 22.8% and generated $285 million in free cash flow for the year.

Teradata Corporation (NYSE:TDC) is pivoting toward AI and hybrid cloud solutions to spark a new growth cycle. Key innovations launched include the Enterprise Vector Store and the MCP Server, which integrate GPU capabilities and NVIDIA’s AI software stack to support on-premise AI workloads.

The company’s CEO noted that proof-of-concept AI activities doubled in 2025, many of which are now transitioning into production. To support this ecosystem, Teradata announced a partnership with Unstructured.io, aiming to make the platform more relevant for complex AI model operations and unstructured data processing. For 2026, Teradata expects total ARR growth between 2% and 4%.

Teradata Corporation (NYSE:TDC), together with its subsidiaries, provides a connected hybrid cloud analytics and data platform in the US and internationally. The company operates in two segments: Product Sales and Consulting Services.

While we acknowledge the potential of TDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.

Disclosure: None.