-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
TDC reported Q1 non-GAAP EPS of $0.88, beating consensus by $0.11, while total revenue of $444M grew 6% Y/Y, ahead of expectations by $14M. GAAP EPS of $3.47 was boosted by a $359M pre-tax benefit from the SAP litigation settlement, which provided $480M in gross proceeds. Strong cloud momentum continued with public cloud ARR growing 13% Y/Y to $686M, while total ARR reached $1.492B, up 3% Y/Y, demonstrating continued stabilization in the recurring revenue base. Management expects Q2 recurring revenue of -2% to flat Y/Y and total revenue of -4% to -2% Y/Y, suggesting near-term quarterly moderation. However, full-year 2026 guidance was largely reaffirmed with total ARR growth of 2%-4% and non-GAAP EPS of $2.55-$2.65, while cash flow guidance increased to $642M-$662M. We believe the significant margin expansion, with non-GAAP operating margin up 550 bps to 27.3%, reflects strong operational leverage and effective cost discipline as the company continues optimizing its structure.