Teradata shares plunge 15% on disappointing guidance as Q4 revenue misses estimates

Published 11/02/2025, 22:32
Teradata shares plunge 15% on disappointing guidance as Q4 revenue misses estimates

SAN DIEGO - Teradata Corporation (NYSE:TDC) saw its shares tumble 15.3% in after-hours trading on Tuesday after the data analytics company reported fourth-quarter revenue that fell short of analyst estimates and provided weaker-than-expected guidance for 2025.

The company posted Q4 revenue of $409 million, down 11% year-over-year and below the consensus estimate of $414.95 million. Adjusted earnings per share came in at $0.53, beating expectations of $0.44.

However, Teradata’s outlook disappointed investors. For Q1 2025, the company expects EPS of $0.55-$0.59, below the $0.64 analyst consensus. Full-year 2025 EPS guidance of $2.15-$2.25 also missed the Street’s $2.46 projection.

"In 2024, Teradata took decisive actions to improve execution, and met our guidance ranges for both Cloud and Total (EPA:TTEF) ARR," said Steve McMillan, President and CEO. "We believe we are well positioned to return to growth this year."

The company reported public cloud annual recurring revenue (ARR) of $609 million in Q4, up 15% YoY. However, total ARR declined 6% to $1.47 billion.

Teradata also announced that CFO Claire Bramley will be leaving the company effective March 31 to take a CFO position at another company outside of Teradata’s industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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