Why Teradata Stock Jumped More Than 40% This Morning

MrDecoder · 2026-02-14T01:45:34+00:00

Teradata's stock surged 29.63% after a strong Q4 earnings report, with sales up 3% to $421 million and adjusted earnings rising 40% to $0.74 per share. The company is benefiting from AI advancements and remains modestly valued compared to competitors.

MrDecoder

2026-02-14 01:45:34

Abstract generation in progress

Teradata (TDC +29.63%) investors are having a great day on Wednesday, Feb. 11. Following a fantastic earnings report, the data warehousing and business analytics veteran’s stock jumped as much as 42.8% in the early action. The skyrocketing gain cooled down to 22% as of noon ET, but the stock is still at a fresh 52-week high.

Image source: Getty Images.

Teradata’s Q4 by the numbers

Teradata’s Q4 2025 sales rose 3% year over year, landing at $421 million. The analyst consensus called for approximately $400 million.

On the bottom line, adjusted earnings increased by 40% to $0.74 per share. Here, your average analyst would have settled for $0.54 per share.

And Teradata showed improving earnings quality. Recurring revenues grew faster than total sales, led by a 15% year-over-year uptick in annual recurring revenues (ARR) from the public cloud segment. The quarter’s free cash flow increased from $148 million to $151 million, far ahead of $71 million in adjusted net income.

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NYSE: TDC

Teradata

Today’s Change

(29.63%) $8.66

Current Price

$37.89

Key Data Points

Market Cap

$3.5B

Day’s Range

$35.25 - $41.70

52wk Range

$18.43 - $41.78

Volume

403K

Avg Vol

1.6M

Gross Margin

59.71%

This stock still looks cheap

As expected, artificial intelligence (AI) played a large role in Teradata’s success. Agentic AI tools are helping customers organize and access their business data, and CEO Steve McMillan sees significant business value in this approach.

“We believe that enterprises of the future will be shaped by those who harness agentic AI systems that reason, act, and adapt autonomously 24/7,” McMillan said on the earnings call. “Teradata is uniquely suited to provide all of this with our autonomous AI and knowledge platform.”

On top of the AI opportunity, Teradata’s stock remains modestly valued even after today’s gigantic jump. The shares are changing hands at less than 12 times free cash flow and roughly 2x sales today. That’s a bargain next to many market darlings in the data management and analytics sector.

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