Key facts: NYSE:TDC Q2 EPS $0.69; Revenue $410M, Cloud ARR +8%

Shares of Manhattan Associates, Agilysys, Guidewire Software, Pegasystems, and Teradata rose in afternoon trading after strong quarterly earnings and optimistic corporate commentary about AI-driven growth in enterprise software. Salesforce, CrowdStrike, and Okta reported significant AI-related revenue increases, easing investor concerns about AI disruption. Pegasystems' stock is down 36.2% year-to-date but saw a 6.2% increase on the day.

Teradata (TDC) reported Q2 revenue of $410M, above the $396.1M estimate, and adjusted EPS of $0.69 versus $0.56. Adjusted operating income was $88M. Management cited strong recurring revenue and margin improvement, plus a shift in on-premise contract revenue recognition that left sales flat YoY. Q3 revenue guidance midpoint was $395.2M, below estimates.

Teradata (NYSE:TDC) reported Q2 gross margin up 220 bps to 60.5% and recurring revenue gross margin up 30 bps to 67.8%, attributing outperformance to on-premise revenue recognition timing. Net cash rose to $323 million. The company repurchased about $40 million of stock and paid off $450 million of a term loan. It reaffirmed full-year guidance, raised non-GAAP EPS to $2.65-$2.73, and guided Q3 recurring revenue down 4%-2% and total revenue down 6%-4%.

Teradata reported Q2 2026 results with revenue of about $410M and net income of about $46M, alongside sales of about $363M. The company raised full-year GAAP diluted EPS guidance to $4.43 to $4.51. Teradata also launched an enterprise Data Analyst Agent on AWS Marketplace and added board member Bernd Leukert.

Teradata (TDC) reported Q2 adjusted EPS of 69 cents, above the 56-cent estimate, and sales of $410 million versus $397.1 million expected. For Q3, it guided adjusted EPS of 55 to 59 cents and sales of $391.0 to $399.4 million, both below estimates. FY2026 adjusted EPS was raised to $2.65-$2.73. Barclays cut its price forecast to $27. Shares fell 21.2% to $27.11.

Teradata (NYSE: TDC) shares fell 21.5% after the company issued a weaker-than-expected Q3 outlook. Teradata guided for about a 5% year-on-year sales decline and lower EPS than analysts expected, despite Q2 results of $410 million revenue and adjusted EPS of $0.69 beating forecasts.