The former England captain denied in court earlier this week that he called the Queens Park Rangers defender a "f****** black c***" at Loftus Road in October.
Terry maintained that he thought that was what Mr Ferdinand said to him as they traded insults. He also said he was "angry and upset" over claims that he was a racist.
Chief Magisrate Howard Riddle said in his written judgement: "The prosecution evidence as to what was said by Mr Ferdinand at this point is not strong."
"It is therefore possible that what he [Mr Terry] said
was not intended as an insult, but rather as a challenge to what he believed had
been said to him.
"In those circumstances, there being a doubt, the only verdict the court can record is one of not guilty."
Terry did not make a comment as he left the court.
The 31-year-old was stripped of the England captaincy as a result of this case. The original court case was set to be in March but was moved forward to this week for footballing reasons, having the case after the conclusion of the European Championships.
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