Teradata (TDC) Stock Forecast & Price Target

Teradata Corp is experiencing a positive shift in its go-to-market strategy, as management anticipates continued execution improvements following a mid-year restructuring, which is expected to enhance pipeline quality and deal flow. The company reported a notable growth in Cloud Annual Recurring Revenue (ARR), reaching $609 million with a year-over-year increase of 15%, demonstrating strong demand for its cloud solutions despite slightly conservative revenue guidance. Furthermore, the integration of innovative technologies, including access to over 60 Generative AI use cases, positions Teradata to meet customer needs for enhanced experiences and operational efficiency, solidifying its competitive edge in the data analytics sector.

Teradata Corp has experienced a concerning trend with a projected 4-6% year-over-year revenue decline for 2025, following an average annual decline of 9% over the previous five years. The company's total annual recurring revenue (ARR) also suffered a 6% year-over-year decrease, coming in below consensus expectations, which further reflects the challenges in growth. Additionally, while Teradata's non-GAAP operating margin has improved, the ongoing restructuring costs and the decline in cloud net expansion rate raise significant concerns about the sustainability of its financial performance and market position.