# Teradata (TDC.US)

Canonical: https://gigainvestors.com/s/TDC

Analysis as of: 2026-10-16T07:32:16.603Z. Financial observations: FY2003–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $31.26 per share; close as of 2026-10-15.

Estimated value: low $25.44 per share, central $28.38 per share, high $32.30 per share. Buy at or below the central value $28.38 per share. Valuation as of 2026-10-16T07:32:16.603Z; scenarios are not confidence intervals.

Expected annual return: 9.2% at the stated quote. About 9.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 2

- Operating margin variation: 0.69×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.02×

- FY2019: 0.00×

- FY2020: 0.01×

- FY2021: 0.12×

- FY2022: 0.07×

- FY2023: 0.10×

- FY2024: 0.12×

- FY2025: 0.12×

- LTM to Jun 2026: 0.08×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.3%

- ROIC, second-lowest year: 4.1%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 60.0%

- Recent gross margin (lower of latest and 3-year median): 60.5%

- Years with nonpositive capital: 7

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 43.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 2.9%

- FY2018: 4.1%

- FY2019: 12.2%

- FY2020: 11.2%

- FY2021: >100%

- FY2022: 8.6%

- FY2023: 15.6%

- FY2024: 20.5%

- FY2025: 18.9%

- LTM to Jun 2026: 14.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $963M

- Net income, five-year total: $486M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.6 pp

- Working capital / revenue, change between three-year averages: -11.8 pp

- Working capital / revenue, final three-year average: 10.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.80×

- FY2022: 4.58×

- FY2023: 2.55×

- FY2024: 1.65×

- FY2025: 1.55×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- ROIC first 3 years vs last 3 years: 4.1% vs 18.9%

- Per-share earnings: -0.53 to 1.16 (three-year endpoint medians)

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.6%

- Ordinary dilution, 5-year annual growth: -2.8%

- Market cap gain: -$757M

- Cumulative retained earnings: -$1.8B

- Diluted shares, 10-year annual growth: -3.6%

- Diluted shares, 5-year annual growth: -2.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.69

- Per-share value, starting three-year median: -$0.53

- Per-share value, ending three-year median: $1.16

- Buybacks concentrated in cheaper years (correlation): -0.70

- Average buyback yield: 6.7%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $87M

- Cumulative net income, 10 years: $679M

- ROIC, first three-year median: 4.1%

- ROIC, last three-year median: 18.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.95

- FY2017: -$0.53

- FY2018: $0.25

- FY2019: -$0.21

- FY2020: $1.16

- FY2021: $1.30

- FY2022: $0.31

- FY2023: $0.61

- FY2024: $1.16

- FY2025: $1.35

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.8%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 36.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.35×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.92×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.3%

- FY2017: -15.3%

- FY2018: -14.2%

- FY2019: -8.4%

- FY2020: -6.3%

- FY2021: -14.6%

- FY2022: -19.1%

- FY2023: -16.7%

- FY2024: -11.1%

- FY2025: -9.8%

## Holders

## Price story

Down 45% since Jul 2023 · "Is Teradata (TDC) Fully Priced After Earnings Lifted Profit But Guidance Stayed Soft?" (finance.yahoo.com, Aug 2026) · sales +1.7%

Story as of 2026-10-16T09:59:40.030Z; price observation 2026-10-15.

Price needs cash profits to grow 2.3% a year for ten years

- 2025-05-19: TDC Q1 Earnings Call: Revenue Miss and Cautious Services Outlook Offset by Margin Expansion ([finance.yahoo.com](https://finance.yahoo.com/news/tdc-q1-earnings-call-revenue-133019786.html))

- 2025-11-05: Teradata raises non-GAAP EPS guidance to $2.38-$2.42 for FY25 as AI-fueled projects gain momentum ([seekingalpha.com](https://seekingalpha.com/news/4515320-teradata-raises-non-gaap-eps-guidance-to-2_38-2_42-for-fy25-as-ai-fueled-projects-gain?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-11: TDC Q4 Deep Dive: AI Initiatives and Hybrid Demand Drive Upside, Guidance Rises ([finance.yahoo.com](https://finance.yahoo.com/news/tdc-q4-deep-dive-ai-053412263.html))

- 2026-05-08: Teradata’s SAP Windfall Fuels AI Hybrid Platform Push And Valuation Debate ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/teradata-sap-windfall-fuels-ai-121541701.html))

- 2026-08-05: Is Teradata (TDC) Fully Priced After Earnings Lifted Profit But Guidance Stayed Soft? ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/teradata-tdc-fully-priced-earnings-071424830.html))

### Sales · FY2025–2026

sales +1.7%; source https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm; observed 2026-02-27.

- FY2017: $2.2B 

- FY2018: $2.2B 

- FY2019: $1.9B 

- FY2020: $1.8B 

- FY2021: $1.9B 

- FY2022: $1.8B 

- FY2023: $1.8B 

- FY2024: $1.8B 

- FY2025: $1.7B 

- FY2026: $1.7B 

### Gross margin · FY2026

gross margin 60.9%; source https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm; observed 2026-02-27.

- FY2017: 47.4% 

- FY2018: 47.4% 

- FY2019: 50.3% 

- FY2020: 55.5% 

- FY2021: 61.9% 

- FY2022: 60.2% 

- FY2023: 60.8% 

- FY2024: 60.5% 

- FY2025: 59.7% 

- FY2026: 60.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 1.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm (filed 2026-02-27); FY2025: revenue 1663000000; grossProfit 993000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 59.7% to 60.8% during 2023–25; it earns 13.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 60.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 60.5%.

- Source: https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 59.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2017,0.028769017980636236],[2018,0.04138594802694899],[2019,0.12153846153846154],[2020,0.11185840707964602],[2021,4.01953125],[2022,0.08569832402234637],[2023,0.156],[2024,0.20490900959785335],[2025,0.18927825679342036],[2026,0.14446465772717937]]; median 0.13300155963282045. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 60% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm (filed 2026-02-27); Gross margin observations: [[2021,0.6186750130412102],[2022,0.6022284122562674],[2023,0.6082924168030551]]; range within 2 percentage points.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 140 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 0; upkeep 113000000; owner earnings 140000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 616981.0534176528; upkeep 159383018.94658235; owner earnings 616981.0534176528. Growth capex / owner earnings = 1.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 59000000; owner earnings 67000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 51000000; owner earnings 250000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 31000000; owner earnings 265000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 16000000; owner earnings 151000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 20000000; owner earnings 158000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 26000000; owner earnings 188000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 19000000; owner earnings 201000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 140000000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TDC.US SharesStats.PercentInsiders = 0.985 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.019954881377522438. Price 31.26; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.5300859598853869 → FY2025 2.080745341614907. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.96 per share

- 2016-11: $26.85 per share

- 2016-12: $27.17 per share

- 2017-01: $29.36 per share

- 2017-02: $31.10 per share

- 2017-03: $31.12 per share

- 2017-04: $29.18 per share

- 2017-05: $27.26 per share

- 2017-06: $29.49 per share

- 2017-07: $31.82 per share

- 2017-08: $31.92 per share

- 2017-09: $33.79 per share

- 2017-10: $33.45 per share

- 2017-11: $38.01 per share

- 2017-12: $38.46 per share

- 2018-01: $40.50 per share

- 2018-02: $36.82 per share

- 2018-03: $39.67 per share

- 2018-04: $40.92 per share

- 2018-05: $39.87 per share

- 2018-06: $40.15 per share

- 2018-07: $38.29 per share

- 2018-08: $41.47 per share

- 2018-09: $37.71 per share

- 2018-10: $36.40 per share

- 2018-11: $37.63 per share

- 2018-12: $38.36 per share

- 2019-01: $44.38 per share

- 2019-02: $48.37 per share

- 2019-03: $43.65 per share

- 2019-04: $45.47 per share

- 2019-05: $34.34 per share

- 2019-06: $35.85 per share

- 2019-07: $36.62 per share

- 2019-08: $30.87 per share

- 2019-09: $31.00 per share

- 2019-10: $29.93 per share

- 2019-11: $26.56 per share

- 2019-12: $26.77 per share

- 2020-01: $24.34 per share

- 2020-02: $19.94 per share

- 2020-03: $20.49 per share

- 2020-04: $24.59 per share

- 2020-05: $21.41 per share

- 2020-06: $20.80 per share

- 2020-07: $21.00 per share

- 2020-08: $24.35 per share

- 2020-09: $22.70 per share

- 2020-10: $18.37 per share

- 2020-11: $21.93 per share

- 2020-12: $22.47 per share

- 2021-01: $26.90 per share

- 2021-02: $40.10 per share

- 2021-03: $38.54 per share

- 2021-04: $49.47 per share

- 2021-05: $47.87 per share

- 2021-06: $49.97 per share

- 2021-07: $49.66 per share

- 2021-08: $54.69 per share

- 2021-09: $57.35 per share

- 2021-10: $56.56 per share

- 2021-11: $43.42 per share

- 2021-12: $42.47 per share

- 2022-01: $40.34 per share

- 2022-02: $49.99 per share

- 2022-03: $49.29 per share

- 2022-04: $41.35 per share

- 2022-05: $38.43 per share

- 2022-06: $37.01 per share

- 2022-07: $38.29 per share

- 2022-08: $32.90 per share

- 2022-09: $31.06 per share

- 2022-10: $31.59 per share

- 2022-11: $34.15 per share

- 2022-12: $33.66 per share

- 2023-01: $34.88 per share

- 2023-02: $40.76 per share

- 2023-03: $40.28 per share

- 2023-04: $38.71 per share

- 2023-05: $46.86 per share

- 2023-06: $53.41 per share

- 2023-07: $56.85 per share

- 2023-08: $46.27 per share

- 2023-09: $45.02 per share

- 2023-10: $42.72 per share

- 2023-11: $47.25 per share

- 2023-12: $43.51 per share

- 2024-01: $46.18 per share

- 2024-02: $37.62 per share

- 2024-03: $38.67 per share

- 2024-04: $37.10 per share

- 2024-05: $32.61 per share

- 2024-06: $34.56 per share

- 2024-07: $32.42 per share

- 2024-08: $28.24 per share

- 2024-09: $30.34 per share

- 2024-10: $32.23 per share

- 2024-11: $30.90 per share

- 2024-12: $31.15 per share

- 2025-01: $31.91 per share

- 2025-02: $23.84 per share

- 2025-03: $22.48 per share

- 2025-04: $21.50 per share

- 2025-05: $21.96 per share

- 2025-06: $22.31 per share

- 2025-07: $20.93 per share

- 2025-08: $20.98 per share

- 2025-09: $21.51 per share

- 2025-10: $20.85 per share

- 2025-11: $28.64 per share

- 2025-12: $30.44 per share

- 2026-01: $28.52 per share

- 2026-02: $31.49 per share

- 2026-03: $25.63 per share

- 2026-04: $26.35 per share

- 2026-05: $34.05 per share

- 2026-06: $34.65 per share

- 2026-07: $30.99 per share

- 2026-08: $29.00 per share

- 2026-09: $28.84 per share

- 2026-10: $31.26 per share

## Annual estimated value (USD per share)

- FY2016: low $34.73 per share, central $38.54 per share, high $43.62 per share

- FY2017: low $19.61 per share, central $21.17 per share, high $23.24 per share

- FY2018: low $5.60 per share, central $5.61 per share, high $5.62 per share

- FY2019: low $4.04 per share, central $4.05 per share, high $4.06 per share

- FY2020: low $10.76 per share, central $11.63 per share, high $12.79 per share

- FY2021: low $11.45 per share, central $12.35 per share, high $13.56 per share

- FY2022: low $20.64 per share, central $22.79 per share, high $25.65 per share

- FY2023: low $21.25 per share, central $23.58 per share, high $26.67 per share

- FY2024: low $24.85 per share, central $27.73 per share, high $31.57 per share

- FY2025: low $24.97 per share, central $27.76 per share, high $31.47 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/816761/000162828026012671/tdc-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.