New York, Feb 12, 2026, 08:16 (EST) — Premarket
- Teradata shares closed up about 29.5% on Wednesday after a board deal with activist Lynrock Lake and a fourth-quarter beat
- The company forecast 2%-4% total ARR growth for 2026 and guided to $310-$330 million in free cash flow
- Teradata expects to add Melissa Fisher to its board by March 1 under the cooperation agreement
Teradata shares jumped nearly 30% on Wednesday to close at $37.88. The data-analytics firm paired a fourth-quarter beat with a board pact with activist investor Lynrock Lake. (Businessinsider)
The move matters now because Teradata is still trying to convince the market that its shift toward subscription-style revenue can produce steadier growth. Investors tend to lean on contracted metrics when tech budgets get choppy.
A lot of the focus sits on ARR — annual recurring revenue — which is a run-rate figure based on the annual value of active, binding contracts. It’s not cash in the door, but it’s a quick read on whether the pipeline is holding.
A filing showed Teradata agreed to expand its board to 10 directors and appoint Melissa Fisher as a Class I director by March 1, subject to onboarding and independence checks. The pact also calls for another director to be added after the 2026 annual meeting and no later than Aug. 1, while Lynrock agreed to voting support, standstill and non-disparagement terms; Teradata capped expense reimbursement at $100,000. (SEC)
In the cooperation agreement itself, Lynrock said it beneficially owned 9,416,666 Teradata shares as of the effective date. The document also lays out how long the standstill runs and the conditions around director replacement rights. (SEC)
Chairman Mike Gianoni framed Fisher’s appointment as part of a board “refreshment” push, saying her financial experience would be “additive” to initiatives already under way. Lynrock Lake’s chief investment officer and CEO, Cynthia Paul, said the firm “firmly believe[s] in the long-term value potential” of Teradata. (Teradata)
Teradata reported fourth-quarter revenue of $421 million and non-GAAP, or adjusted, diluted earnings of 74 cents a share. Total ARR rose to $1.522 billion at quarter-end, while public cloud ARR climbed to $701 million; the company generated $151 million in free cash flow — cash left after capital spending — in the quarter and $285 million for 2025. (Teradata)
For 2026, Teradata forecast total ARR growth of 2% to 4% on a constant-currency basis, which strips out the effect of exchange-rate swings. It also projected non-GAAP earnings of $2.55 to $2.65 per share and free cash flow of $310 million to $330 million, and guided to first-quarter non-GAAP earnings of 75 to 79 cents. (Nasdaq)
UBS analyst Radi Sultan called the ARR guide the “biggest positive” in the update and said the company could beat that range, Barron’s reported. UBS kept a neutral rating but lifted its price target to $36 from $23, while pointing to competition from cloud data rivals including Snowflake, Databricks and Palantir Technologies. (Barron’s)
Teradata also picked up some technical momentum: Investors.com said its Relative Strength rating rose to 71 from 65, still below levels typically seen in leading growth stocks. In the database software group, it said MongoDB ranks first. (Investors)
But the rally comes with room for disappointment. Teradata warned in a separate filing that a weaker economy, customer delays in purchases or migrations, and “intensely competitive” conditions in data analytics and AI could still derail results. (SEC)
Investors now turn to two clocks: Fisher’s expected appointment by March 1 and any added detail in proxy materials ahead of the 2026 annual meeting. The next test is whether first-quarter results track the company’s recurring-revenue growth guidance.
