Data and analytics software provider Teradata (NYSE:TDC) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

Teradata missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $409 million, down 10.5% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations.

Is Teradata a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Teradata’s revenue to decline 7.9% year on year to $428.2 million, a further deceleration from the 2.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Teradata has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Teradata’s peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.8%, beating analysts’ expectations by 2.6%, and Commvault Systems reported revenues up 23.2%, topping estimates by 4.8%. Confluent traded down 18.2% following the results while Commvault Systems’s stock price was unchanged.

Read our full analysis of Confluent’s results here and Commvault Systems’s results here.

There has been positive sentiment among investors in the data and analytics software segment, with share prices up 15.5% on average over the last month. Teradata is up 14.9% during the same time and is heading into earnings with an average analyst price target of $28.78 (compared to the current share price of $22.07).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.