Teradata's stock surged 19.71% in after-hours trading on Tuesday, following the release of its fourth-quarter financial results which significantly exceeded analyst expectations.
The company reported Q4 adjusted earnings per share of $0.74, beating the consensus estimate of $0.56 by a substantial margin. Revenue for the quarter reached $421 million, surpassing expectations of $400.8 million. Key drivers included a 5% year-over-year increase in recurring revenue to $367 million, with public cloud annual recurring revenue growing by 15%.
Teradata also provided positive guidance for the coming year, projecting full-year 2026 adjusted EPS between $2.55 and $2.65, and total ARR growth of 2% to 4%. Additionally, the company announced progress on its board refreshment program, including a cooperation agreement with Lynrock Lake and the expected appointment of Melissa Fisher to the board, signaling strong corporate governance and strategic alignment with shareholders.
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