The strong EPS beat and raised EPS guidance are positive, but the Q3 revenue decline guidance (-4% to -6% YoY) signals top-line headwinds. Monitor whether ARR growth deceleration continues and if margin expansion can sustain amid revenue contraction. The stock may trade on the EPS beat initially but face pressure from the weak revenue outlook.
Price Chart
Executive Summary
Teradata reported Q2 2026 Non-GAAP EPS of $0.69, beating consensus by 23%, and revenue of $410M (+3.5% vs estimate). However, Q3 revenue guidance of -4% to -6% YoY signals a top-line contraction, partially offsetting the earnings beat. Full-year Non-GAAP EPS guidance was raised to $2.65-$2.73, but total ARR growth slowed to 1% as reported.
Key Financial Metrics
Key Facts
- Non-GAAP diluted EPS $0.69 vs consensus $0.56 (beat 23.2%)
- Revenue $410M vs consensus $396.1M (beat 3.5%)
- Q3 2026 revenue guidance: -4% to -6% YoY decline
- Full-year 2026 Non-GAAP EPS guidance raised to $2.65-$2.73 (from $2.55-$2.65)
- Total ARR $1.509B, +1% as reported (slowed from +3% in Q1)
- Public cloud ARR $686M, +8% as reported
- GAAP operating margin expanded to 11.7% from 5.9% YoY
- Adjusted free cash flow $127M, up 226% YoY
Financial Impact
EPS beat of $0.13 per share ($0.69 vs $0.56) on 96.2M diluted shares implies ~$12.5M net income above consensus; revenue beat of $13.9M
Risk Factors
- Q3 revenue guidance implies a YoY decline of 4-6%, indicating softening demand
- Total ARR growth slowed to 1% as reported, suggesting deceleration in new business
- Competitive pressure in data analytics and AI could further pressure growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-052549 |
| Document: tdc-20260804.htm | 0001628280-26-052549 |
| Document: 0001628280-26-052549-index-headers.html | 0001628280-26-052549 |
| Document: 0001628280-26-052549-index.html | 0001628280-26-052549 |
| Document: 0001628280-26-052549.txt | 0001628280-26-052549 |
| 8-K Data (Synthetic) | 0001628280-26-052549 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 8w ago | 8-K | $26.23 $28.26 | ▲ +7.74% | ▲ +8.34% | $30.14 (+14.91%) |
May 20, 2026 19w ago | Insider Cluster | $32.77 $29.71 | ▼ −9.35% | ▼ −9.69% | $30.14 (−8.03%) |
May 19, 2026 19w ago | 8-K | $33.10 $30.88 | ▼ −6.71% | ▼ −7.45% | $30.14 (−8.94%) |
May 7, 2026 21w ago | Insider Cluster | $29.63 $34.97 | ▼ −18.02% | ▼ −14.89% | $30.14 (−1.72%) |
May 7, 2026 21w ago | Insider Cluster | $29.63 $34.97 | ▼ −18.02% | ▼ −14.89% | $30.14 (−1.72%) |
May 7, 2026 21w ago | Insider Cluster | $29.63 $34.97 | ▲ +18.02% | ▲ +14.89% | $30.14 (+1.72%) |
Mar 26, 2026 27w ago | DEFA14A | $25.31 $26.47 | ▲ +4.58% | ▼ −8.16% | $30.14 (+19.08%) |
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