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Technology · Software - Infrastructure · TDC

What Teradata Does & How It Makes Money (TDC)

Updated October 2026 · reflects Teradata's latest reported financials

Enterprise data analytics and AI platform provider. It earns revenue mainly by selling its AI and knowledge platform to enterprises through a direct sales force (Product Sales segment), plus fees from consulting and support services (Consulting Services segment).

Teradata's story, moat and numbers — in a 3-minute visual book.

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How Teradata makes money

It earns revenue mainly by selling its AI and knowledge platform to enterprises through a direct sales force (Product Sales segment), plus fees from consulting and support services (Consulting Services segment).

What Teradata does

Teradata Corporation, founded in 1979 and based in San Diego, provides an AI and knowledge platform built for enterprise-grade data workloads. Large organizations use it to manage and analyze data at scale and to build AI on top of that data, across hybrid environments. The company reports two segments: Product Sales, covering its platform, and Consulting Services, which helps clients shape their data analytics and AI vision, design hybrid architectures, and find and put AI opportunities into operation. It sells through a direct sales force to customers in financial services, healthcare and life sciences, the public sector, manufacturing, retail, telecommunications, and travel/transportation, in the US and internationally.

Products & services

What is Teradata worth?

On an owner-earnings DCF, Teradata's most-likely value is about $75 versus a recent price near $31 (144% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$51) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Deeply discounted
Owner-earnings fair value · recent price ≈ $31
Fair value (most likely)
$75
Range
$62–$104
No-growth floor
$51
Price
~$31

On the financials alone, $31 is below even the no-growth floor ($51); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -5.9%/yr. A bargain only if that pessimism is overdone.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Technology Industry Software - Infrastructure HQ United States Ticker TDC Official site

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