On August 5, Teradata fell 21.3% in regular trading, trading at $27.045/share, with turnover of $166 million. The sharp decline was triggered by disappointing third-quarter guidance issued alongside otherwise strong second-quarter results.
Teradata reported Q2 adjusted EPS of $0.69, significantly beating the consensus estimate of $0.56, while revenue of $410 million also topped the $396.1 million expectation. However, the company guided Q3 revenue midpoint at $395.2 million, below analysts' $403.6 million estimate, and Q3 EPS guidance of $0.55-$0.59 fell short of the $0.62 consensus. Morgan Stanley noted that the better-than-expected first-half performance is not flowing through into the second half, and when compared with other AI beneficiaries where growth is accelerating, Teradata's H2 deceleration stands out. The firm cut its price target to $35 from $40 while maintaining an overweight rating.
Teradata provides a connected multi-cloud data platform for enterprise analytics, serving clients across financial services, government, healthcare, manufacturing, and other sectors globally.
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