Teradata Corporation's stock surged 13.31% intraday on Tuesday, driven by the company's fourth-quarter financial results that significantly exceeded analyst expectations and positive forward-looking guidance.
The cloud database and AI platform provider reported Q4 non-GAAP earnings of $0.74 per diluted share, beating the FactSet consensus estimate of $0.56. Revenue for the quarter reached $421 million, also surpassing expectations of $400.5 million. The company's recurring revenue increased 5% year-over-year to $367 million, with public cloud annual recurring revenue growing by 15%.
Additionally, Teradata announced progress on its board refreshment program, including a cooperation agreement with activist investor Lynrock Lake and the expected appointment of Melissa Fisher to the board. The company also provided optimistic guidance, projecting Q1 2026 non-GAAP EPS of $0.75 to $0.79 (versus analyst expectations of $0.69) and full-year 2026 non-GAAP EPS of $2.55 to $2.65 (in line with analyst expectations of $2.54).
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