-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
TEAM delivered a strong Q3 beat with non-GAAP EPS of $1.75 exceeding consensus by $0.41, while total revenue of $1.787B grew 32% Y/Y, surpassing expectations by $90M. Cloud revenues of $1.132B accelerated to 29% growth from 26% in Q2, while Data Center sales of $560.7M surged 44% Y/Y, reaccelerating from Q2's 20% growth. RPO growth accelerated again, up 37% Y/Y reaching $3.996B, demonstrating strengthening demand and larger customer commitments driven by its AI-powered System of Work strategy. Despite restructuring charges of $223.8M, non-GAAP operating margin expanded 800 bps Y/Y to 34%, while free cash flow of $561.3M represented a 31% margin, up from Q2's 11%. Management raised FY 26 revenue growth guidance to 24% from 22%, with operating margin guidance improving to 29% from 25.5%. We view the balanced growth across Cloud migration and Data Center expansion as positive, demonstrating TEAM's ability to optimize customer transitions while maintaining strong operational leverage.