Teradata: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 5, 2026, Teradata (NYSE:TDC) raised its full-year earnings guidance and doubled its target for annual operating margin expansion. Expanding operating margins while investing in artificial intelligence (AI) software demonstrates operational discipline.

Converting customer pilot programs into recurring software revenue will determine long-term capital compounding. Three things management said on the call stand out.

Management raised full-year non-generally accepted accounting principles, or non-GAAP, earnings per share (EPS) guidance to a range of $2.86 to $2.90. Teradata also increased full-year operating margin expansion guidance. Discipline in sales and administrative expenses allowed the business to fund software research while improving profitability.

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