Teradata (TDC) Stock Forecast & Price Target

Teradata Corp is positioned for growth, particularly through its cloud offerings, with Cloud Annual Recurring Revenue (ARR) of $609 million reflecting a robust 15% increase year-over-year, indicating strong market demand. The company benefits from a structured go-to-market organization that is expected to enhance execution, coupled with positive momentum from its restructuring efforts and improved pipeline quality. Furthermore, Teradata's emphasis on technology innovation and integration of generative AI use cases enhances its value proposition, driving customer engagement and operational efficiency.

Teradata Corp is facing significant challenges as it projects a revenue decline of 4-6% year-over-year for 2025, following an average annual decline of 9% over the previous five years. Additionally, the company reported a 6% year-over-year decline in Total Annual Recurring Revenue (ARR) and a cloud net expansion rate that has decreased from 120% to 117%, both of which fell short of market expectations. The overall financial outlook is further complicated by a decline in perceived execution capabilities and the need for costly skilled practitioners, alongside concerns regarding higher costs and a lack of transactional capabilities in its offerings.