A Cash-Based Case To Give Teradata Corporation A Second Chance

Jul. 08, 2025 9:15 AM ETTeradata Corporation (TDC) StockTDC
Ahan Analytics
5.03K Followers

Summary

  • Teradata remains a deep value play after disappointing earnings, but recent cash flow strength and favorable valuation metrics keep me cautiously optimistic.
  • Competition from Databricks and others is fierce, yet Teradata's platform innovation and AI/ML focus offer some competitive reassurance.
  • The turnaround thesis hinges on management's guidance for ARR and cloud growth in late 2025, with improved retention and services re-acceleration as key drivers.
  • At current valuations, TDC is cheap enough for speculative entry, but technical resistance and execution risks demand strict discipline and caution.

Try a different approach and bypass the obstacle on the way.

Andrii Yalanskyi/iStock via Getty Images

When I made the case for Teradata Corporation (NYSE:TDC) last December, I was cautiously optimistic about the company’s prospects as a value investment despite what looked like growing competition (from Databricks) and a lowered ARR (Annual

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Dr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his blog "One-Twenty Two" (https://drduru.com/onetwentytwo/) delivers a different narrative for students and fans of financial markets. Dr. Duru challenges conventional market wisdoms and offers unique perspectives. The blog posts cover stocks, options, currencies, Bitcoin, and more, while leveraging the tools of both technical and fundamental analysis for short-term and long-term trading and investing. Some of these ideas and analyses are also featured here on Seeking Alpha.Dr. Duru received a B.S. in Mechanical Engineering (and an honors degree in Values, Technology, Science and Society - now simply STS) from Stanford University. For graduate studies, Dr. Duru went on to earn a Ph.D. in Engineering-Economic Systems (now Management, Science, and Society). Dr. Duru's work experiences include:*Independent consulting in operations research and decision analysis*Management consulting in product development and technology strategy*Price optimization software for computer manufacturers and internet advertising (including a shared patent for methodology)*Business Intelligence and Data Analytics, including some Data Science and Data EngineeringConsulting practice: https://ahan-analytics.drduru.com/

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TDC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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