Teradata (NYSE: TDC) shares fell more than 20% in Wednesday trading, dropping to $27.25.

The company reported its fiscal 2026 second-quarter results, with revenue of $410 million, slightly above the analyst consensus estimate of $396.1 million, but flat year-over-year. Adjusted earnings per share came in at $0.69, beating expectations by 23.1%. Adjusted operating income of $88 million also significantly exceeded forecasts.

However, the company's guidance for the third quarter proved disappointing. The midpoint of its revenue forecast is $395.2 million, below the $403.6 million analysts had anticipated. While Teradata raised its full-year adjusted EPS guidance to $2.69, investors remain concerned about the company's growth trajectory, prompting the sharp sell-off.