Teradata Corporation (TDC) Stock Price & How to Invest

Teradata Corporation sells a massively parallel analytics database and the software around it. Its VantageCloud platform runs large-scale enterprise analytics across AWS, Azure and Google Cloud as well as on customer-owned hardware, with ClearScape Analytics for in-database machine learning and, since 2026, an Autonomous Knowledge Platform aimed at putting AI agents into production against governed enterprise data. The customer base skews to very large, data-heavy institutions in banking, telecommunications, retail, healthcare and government, many of which have run Teradata systems for decades. Spun out of NCR in 2007 and headquartered in San Diego, the company converted from perpetual licenses to subscriptions years ago, so roughly 89% of revenue is now recurring.

The investment picture is a value-and-transition story rather than a growth story. Total ARR is only creeping up (~1% to 2%) because every dollar of public cloud ARR growth is partly offset by customers retiring or shrinking on-premises deployments, and management guided full-year 2026 total revenue to somewhere between down 2% and flat. What has changed is profitability and cash: non-GAAP operating margin reached ~21.5% in the June 2026 quarter, adjusted free cash flow more than tripled year over year, and a $480 million gross settlement from SAP in February 2026 added a large one-time cash inflow. The result is a stock priced in the mid-$20s on roughly $2.7 of non-GAAP earnings power, with the market clearly skeptical that the AI platform pivot arrives fast enough to restore growth.

The core risk is secular: Teradata's on-premises installed base is shrinking, and total revenue has been flat to down for several years, with Q3 2026 revenue guided 4% to 6% lower year over year. Management attributed part of the second-half decline to revenue recognition timing rather than demand, but the market did not take that on faith and the stock fell roughly 17% to 18% after the August 2026 report. Competition is severe and better funded, with Snowflake, Databricks, Microsoft, Google and Amazon all pitching themselves as the analytics and agent layer for the enterprise. Trailing GAAP earnings are distorted upward by the one-time SAP settlement, so headline valuation metrics such as a ~5x trailing P/E overstate how cheap the ongoing business is. Finally, any credible growth reacceleration depends on agentic AI products launched only months ago, and enterprise adoption of those products is unproven at scale.

8 analysts publish price targets on TDC, averaging $35.62 against a $26.23 price as of August 2026, or +35.8%. The published targets run from $28.00 to $49.00, a moderate spread, and the ratings split 3 buy, 3 hold, 2 sell. Over the last six months there have been 6 raises and 5 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full TDC forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Teradata Corporation. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Public cloud ARR migration. Public cloud ARR reached ~$686 million in Q2 2026, up ~8% year over year and about 45% of total ARR of ~$1.51 billion. The most optimistic published target, $49.00, assumes this works close to its best case.

The case against. The core risk is secular: Teradata's on-premises installed base is shrinking, and total revenue has been flat to down for several years, with Q3 2026 revenue guided 4% to 6% lower year over year. The most pessimistic target, $28.00, is roughly what TDC is worth if this bites instead.

Read the full bull and bear case on TDC, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Teradata Corporation's investor relations page or your broker.

• Revenue (TTM): ~$1.69B
• Q2 2026 revenue: ~$410M (flat YoY)
• Public cloud ARR: ~$686M (+8% YoY)
• Total ARR: ~$1.51B (+1% YoY)
• Market cap: ~$2.5B
• Forward P/E: ~10x

Teradata screens as a deep-value software name: an enterprise value near $2.2 billion against ~$1.69 billion of revenue and guided adjusted free cash flow of ~$330 million to ~$350 million. The trailing P/E near 5x is misleading because GAAP earnings include a ~$315 million after-tax SAP settlement benefit; the forward multiple of roughly 10x on non-GAAP EPS guidance of $2.65 to $2.73 is the more representative figure. Analyst consensus sits around a hold rating with an average price target in the mid-$30s.

Other names that sit close to TDC: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get TDC exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so TDC sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where TDC fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Teradata is a cheap, cash-rich enterprise software business whose story hinges on whether cloud and agentic AI adoption can offset the decay of its legacy installed base.

Whether TDC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is TDC a buy or a sell?, and where the stock could go from here in the TDC stock forecast.

For income investors, whether TDC pays a dividend and how the payout looks is covered in does TDC pay a dividend? And to weigh TDC against a peer, read the full side-by-side comparisons: TDC vs SNOW and TDC vs AMZN.