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Teradata Jumps on Q3 Beat and Raised 2025 EPS Guidance

Stronger margins with rising cash generation outweighed a continuing sales contraction.

Overview

  • Adjusted Q3 EPS came in at $0.72 versus the $0.54 consensus, on revenue of $416 million topping the $406.2 million estimate.
  • GAAP EPS was $0.42, up year over year, and free cash flow reached $88 million for the quarter.
  • Management lifted full-year 2025 EPS guidance to $1.22–$1.26 and guided Q4 EPS above Wall Street expectations.
  • The company reiterated that revenue pressure persists, forecasting full-year sales down 2%–4% and recurring revenue down 1%–3%.
  • Shares surged by double digits, closing up about 33% at $27.46, as commentary highlighted valuation near ~21x P/E and ~9.2x price-to-free-cash-flow.