Teradata Corporation Common Stock (TDC)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-style investor, I start with the business. Teradata sells AI and knowledge platforms plus consulting services for enterprise-grade workloads. The figures do not show a wide moat: revenue in fiscal year 2023 was $1.8B, fiscal year 2024 was $1.8B, and fiscal year 2025 was $1.7B, so the top line is flat to slightly shrinking. Profit has improved: net income rose from $62.0M in fiscal year 2023 to $114.0M in fiscal year 2024 to $130.0M in fiscal year 2025, and diluted EPS moved from $0.61 to $1.16 to $1.35. Still, FairStock's Lynch category is SLOW GROWER, with profit up only 0.2% a year over five years and revenue down 2.0%. Quarterly filings are lumpy: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $410.0M, net income $46.0M, and diluted EPS $0.48; in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $335.0M and diluted EPS $3.47. The balance sheet shows low D/E of 0.17 and trailing free cash flow of $734.0M, a 25.9% FCF yield on the $2.8B market cap. FairStock reports ROE of 119.12% but ROCE of 9.31%, and its Altman Z-Score is 0.52, a warning. At the 2026-10-13 close of $30.48, FairStock calculates a P/E of 6.42, EV/EBITDA of 3.54, and a Graham Number of $26.05, implying a -17.01% margin of safety. Cheap on cash earnings, but weak growth and balance-sheet risk keep it a show-me story.

In plain English: Teradata sells data analytics and AI software, plus consulting services, to large organizations. The business looks mixed: sales are almost flat and quarterly profits have jumped around, but it produces a lot of cash and uses little debt. At the recent price, the stock looks inexpensive compared with reported earnings and cash flow, though one conservative value check says it is slightly above its calculated fair value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer