Why Teradata Stock Jumped More Than 40% This Morning
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Teradata crushed earnings expectations and hit a 52-week high. Here's what drove the massive rally.Teradata (TDC +26.55%) investors are having a great day on Wednesday, Feb. 11. Following a fantastic earnings report, the data warehousing and business analytics veteran's stock jumped as much as 42.8% in the early action. The skyrocketing gain cooled down to 22% as of noon ET, but the stock is still at a fresh 52-week high. Image source: Getty Images. Teradata's Q4 by the numbers Teradata's Q4 2025 sales rose 3% year over year, landing at $421 million. The analyst consensus called for approximately $400 million. On the bottom line, adjusted earnings increased by 40% to $0.74 per share. Here, your average analyst would have settled for $0.54 per share. And Teradata showed improving earnings quality. Recurring revenues grew faster than total sales, led by a 15% year-over-year uptick in annual recurring revenues (ARR) from the public cloud segment. The quarter's free cash flow increased from $148 million to $151 million, far ahead of $71 million in adjusted net income. ExpandNYSE: TDCTeradataToday's Change(26.55%) $7.76Current Price$36.99Key Data PointsMarket Cap$2.7BDay's Range$35.25 - $41.7052wk Range$18.43 - $41.70Volume280KAvg Vol1.4MGross Margin59.42% This stock still looks cheap As expected, artificial intelligence (AI) played a large role in Teradata's success. Agentic AI tools are helping customers organize and access their business data, and CEO Steve McMillan sees significant business value in this approach. "We believe that enterprises of the future will be shaped by those who harness agentic AI systems that reason, act, and adapt autonomously 24/7," McMillan said on the earnings call. "Teradata is uniquely suited to provide all of this with our autonomous AI and knowledge platform." On top of the AI opportunity, Teradata's stock remains modestly valued even after today's gigantic jump. The shares are changing hands at less than 12 times free cash flow and roughly 2x sales today. That's a bargain next to many market darlings in the data management and analytics sector.Read NextNov 5, 2025 •By Rich SmithWhy Teradata Stock Exploded Higher TodayNov 5, 2024 •By Billy DubersteinWhy Teradata Plunged TodayAug 6, 2024 •By Anders BylundWhy Teradata Stock Crashed TodayJul 19, 2024 •By Rich SmithWhy Teradata Stock Is Down 8% on Friday AfternoonFeb 13, 2024 •By Keith NoonanWhy Teradata Stock Is Crashing TodayFeb 13, 2023 •By Chris NeigerWhy Teradata Stock Is Soaring TodayAbout the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedTeradataNYSE: TDC$36.99 (+26.55%) $+7.76*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.