Teradata Corp. (TDC) found itself in the penalty box on Wednesday, with shares tumbling after the company's third-quarter guidance came in softer than analysts had hoped. The data analytics firm reported its second-quarter results on Tuesday, and while the numbers themselves were solid, the forward-looking picture gave investors pause.
For the second quarter, Teradata reported adjusted earnings of 69 cents per share, comfortably beating the analyst estimate of 56 cents. Revenue hit $410 million, also topping the expected $397.052 million. So far, so good.
But the market is a forward-looking beast, and Teradata's outlook for the third quarter didn't measure up. The company expects adjusted EPS between 55 cents and 59 cents, below the 62 cents analysts were looking for. On the top line, Teradata projects third-quarter sales of $391.040 million to $399.360 million, missing the $404.827 million estimate. GAAP EPS for the quarter is expected to be 27 cents to 31 cents, versus the 32-cent estimate.
For the full fiscal year 2026, there's a bit of a silver lining. Teradata raised its adjusted EPS guidance from $2.55-$2.65 to $2.65-$2.73, compared to the estimated $2.67. The company also reaffirmed its annual sales guidance of $1.630 billion to $1.663 billion, which aligns with the $1.655 billion estimate.
Steve McMillan, president and CEO of Teradata, struck an optimistic tone in the earnings release. "Teradata again delivered a solid quarter, growing total ARR, recurring revenue, and meaningful free cash flow," he said. "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."
Wall Street, however, wasn't entirely convinced. Following the results, Barclays maintained an Underweight rating on Teradata and lowered its price target to $27.
From a technical standpoint, the stock's chart is flashing some warning signs. Teradata is now trading 11.2% below its 20-day simple moving average (SMA) of $30.80 and 15.7% below its 50-day SMA of $32.44. That's 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 of $29.37, which is significant 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 levels to watch: resistance at $27.50 and support at $26.
At the time of publication on Wednesday, Teradata shares were down 21.17% at $27.11.
