Teradata stock hits 52-week low at $22.71 amid market challenges

Published 07/03/2025, 17:44
Teradata stock hits 52-week low at $22.71 amid market challenges

In a challenging market environment, Teradata Corporation (NYSE:TDC) stock has touched a 52-week low, dipping to $22.71. According to InvestingPro analysis, the company maintains a GOOD financial health score despite current market pressures, with management actively buying back shares to support stockholder value. The data analytics and cloud company, which generates annual revenue of $1.75 billion, has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -40.17%. Investors have shown concern as the stock struggles to regain momentum, marking this price level as a critical juncture for the company. Teradata’s performance contrasts sharply with its previous year’s achievements, signaling a period of heightened scrutiny from shareholders and market analysts alike as they anticipate the company’s next move in an increasingly competitive sector. InvestingPro analysis suggests the stock is currently undervalued, with 14 additional ProTips available to subscribers providing deeper insights into TDC’s investment potential.

In other recent news, Teradata Corporation reported fourth-quarter revenue of $409 million, which represented an 11% year-over-year decline and missed analyst estimates of $414.95 million. Despite this, the company exceeded earnings expectations with adjusted earnings per share of $0.53, surpassing the projected $0.44. However, Teradata’s guidance for 2025 disappointed investors, with expected earnings per share for the first quarter ranging from $0.55 to $0.59, below the analyst consensus of $0.64. Full-year 2025 EPS guidance of $2.15-$2.25 also fell short of the Street’s $2.46 projection.

In a management update, Teradata announced the promotion of Michael Hutchinson to Chief Operating Officer. Meanwhile, Guggenheim Securities adjusted its price target for Teradata to $37 from $42, maintaining a Buy rating despite challenges in meeting financial targets. The firm’s analyst noted a revised Cloud Annual Recurring Revenue target of approximately $700 million for 2025, down from the initial goal of over $1 billion. Additionally, Teradata’s total ARR, excluding perpetual license and consulting revenue, has grown by only 3% from 2019 to 2024, falling short of earlier expectations.

The company also announced that CFO Claire Bramley will be leaving to pursue another opportunity outside the industry. Despite financial setbacks, Guggenheim’s analyst emphasized that Teradata still holds strategic value, particularly in its recurring revenue stream, and highlighted that many existing customers continue to expand their use of Teradata’s services.

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