Teradata Corp. (NYSE:TDC) stock traded lower on Wednesday after reporting second-quarter financial results and issuing third-quarter guidance below Wall Street estimates on Tuesday.
For the second quarter, Teradata reported adjusted earnings of 69 cents per share, beating the analyst estimate of 56 cents. Sales reached $410 million, topping the expected $397.052 million.
Outlook Misses Street Estimates
For the third quarter, Teradata expects adjusted EPS between 55 cents and 59 cents, below the 62 cents estimate. The company projects third quarter sales of $391.040 million to $399.360 million, missing the $404.827 million estimate.
Teradata sees third quarter GAAP EPS of 27 cents to 31 cents versus the 32 cents estimate.
For the fiscal year 2026, Teradata has increased its adjusted EPS guidance from $2.55-$2.65 to $2.65-$2.73, compared to an estimated $2.67.
The company also reaffirmed its annual sales guidance of $1.630 billion to $1.663 billion, aligning with an estimated $1.655 billion.
“Teradata again delivered a solid quarter, growing total ARR, recurring revenue, and meaningful free cash flow,” said Steve McMillan, president and CEO of Teradata.
“We are pleased with our strong product innovation this quarter, highlighted by the launch of our Autonomous Knowledge Platform, bringing a powerful set of capabilities to help enterprises deploy agentic AI. With our differentiated hybrid platform, positive customer reaction, and tangible operating leverage, we remain confident in our future, and are increasing our outlook for non-GAAP EPS and Adjusted Free Cash Flow.”
Following the results, Barclays maintained an Underweight rating on Teradata and lowered its price forecast to $27.
Critical Technical Levels for TDC Stock
Teradata is now trading 11.2% below its 20-day SMA ($30.80) and 15.7% below its 50-day SMA ($32.44), a setup that typically keeps rallies “sold into” until price can reclaim those trend lines. It’s also 6.9% below the 200-day SMA ($29.37), which is important because losing the long-term average often shifts longer-horizon flows from buying dips to selling bounces.
The moving-average structure still shows some longer-term support under the hood, with the 50-day SMA above the 200-day SMA (a golden cross that occurred in November 2025), but the shorter-term crossover is bearish with the 20-day SMA below the 50-day SMA.
- Key Resistance: $27.50
- Key Support: $26
TDC Price Action: Teradata shares were down 21.17% at $27.11 at the time of publication on Wednesday, according to Benzinga Pro data.
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