The CEO's open-market sale following a quarter that beat on GAAP EPS but guided Q2 revenue down 2-4% YoY is a cautionary signal. Monitor Q2 earnings for further revenue deceleration; the SAP settlement masks underlying business trends. The stock may face pressure as the market digests the divergence between headline EPS and core revenue guidance.
Price Chart
Executive Summary
Three Teradata insiders, including the CEO and Chief Revenue Officer, sold a total of $1.77M in open-market sales within a week of the Q1 2026 earnings release. While Q1 results showed strong headline GAAP EPS ($3.47 vs $0.45) and revenue growth (+6% YoY), these were heavily inflated by a $359M pre-tax SAP litigation settlement. Excluding the settlement, adjusted free cash flow was only $31M, and Q2 guidance calls for total revenue to decline 2-4% YoY. The insider sales, particularly the CEO's first open-market sale in the window, suggest limited confidence in the near-term outlook despite the settlement-driven beat.
Key Financial Metrics
Key Facts
- CEO Stephen McMillan sold 20,000 shares at ~$31.71 for $634K on May 12, his first open-market sale in the cluster window.
- CRO Richard Petley sold 34,317 shares at ~$30.84 for $1.06M on May 7.
- CPO Sumeet Arora sold 2,645 shares at ~$30.84 for $82K on May 7.
- Total insider sales of $1.77M represent ~0.06% of TDC's $3.0B market cap, below the 0.1% materiality threshold but notable due to C-suite participation.
- Q1 2026 GAAP diluted EPS of $3.47 included a $2.90 net benefit from the SAP settlement; non-GAAP EPS was $0.88 vs $0.66.
- Q2 2026 guidance: total revenue -4% to -2% YoY, recurring revenue -2% to flat YoY.
- Full-year 2026 total revenue guidance reaffirmed at -2% to flat YoY.
- Adjusted free cash flow (ex-SAP settlement) was $31M in Q1, versus $7M in Q1 2025.
Financial Impact
Insider sales of $1.77M (0.06% of market cap) are modest in absolute size but involve the CEO and CRO selling immediately after a quarter where core revenue growth guidance turned negative.
Risk Factors
- Q2 revenue guidance of -4% to -2% YoY signals potential softening in core demand.
- SAP settlement artificially inflated Q1 cash flow and EPS; normalized free cash flow remains low.
- CEO selling after a beat may indicate insider view that the stock is fairly valued or that headwinds persist.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 SEC document filed with EDGAR.
| Document | Accession Number |
|---|---|
| CLUSTER Data (Synthetic) | cluster-TDC-1778711537791 |
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%) |
US Market Status
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