Teradata Reports Fourth Quarter and Full-Year 2025 Financial Results

Rhea-AI Summary

Teradata (NYSE: TDC) reported Q4 2025 and full-year results, with Total ARR $1.522B (+3% YoY) and public cloud ARR $701M (+15% YoY). Q4 recurring revenue was $367M (+5%); Q4 GAAP EPS $0.38 and non-GAAP EPS $0.74. FY free cash flow was $285M and share repurchases totaled $140M (49% of FCF).

Outlook for 2026: Total ARR growth 2%–4%, GAAP EPS $1.26–$1.36, non-GAAP EPS $2.55–$2.65, and free cash flow $310M–$330M.

Positive

• Total ARR of $1.522B, up 3% year‑over‑year
• Public cloud ARR of $701M, up 15% year‑over‑year
• Full‑year free cash flow of $285M
• Share repurchases of $140M returned 49% of free cash flow

Negative

• Full‑year total revenue declined 5% to $1.663B
• Full‑year recurring revenue declined 2% to $1.445B
• Consulting services revenue down 19% year‑over‑year

Key Figures

Q4 2025 Total ARR: $1.522B Q4 2025 Recurring Revenue: $367M Q4 2025 GAAP EPS: $0.38 +5 more

8 metrics

Q4 2025 Total ARR $1.522B Up from $1.474B in Q4 2024; 3% growth as reported

Q4 2025 Recurring Revenue $367M Versus $351M in Q4 2024; 5% growth as reported

Q4 2025 GAAP EPS $0.38 Up from $0.26 in Q4 2024

Q4 2025 Non-GAAP EPS $0.74 Up from $0.53 in Q4 2024

FY 2025 Total Revenue $1.663B Down from $1.750B in FY 2024

FY 2025 Free Cash Flow $285M Up from $277M in FY 2024

2026 FCF Guidance $310M–$330M Company’s projected free cash flow range for FY 2026

Share Repurchases $140M FY 2025 buybacks, returning 49% of free cash flow

Market Reality Check

Price: $29.23 Vol: Volume 1,418,761 is sligh...

normal vol

$29.23 Last Close

Volume Volume 1,418,761 is slightly above the 20-day average of 1,342,281, indicating modestly elevated interest ahead of earnings. normal

Technical Shares at 28.29 are trading above the 200-day MA of 24.19, reflecting a pre-news uptrend into the print.

Peers on Argus

TDC is up 2.99% while peers show mixed moves: AI +2.11%, APPN +1.64%, EVTC +0.41...

TDC is up 2.99% while peers show mixed moves: AI +2.11%, APPN +1.64%, EVTC +0.41%, FIVN -0.23%, AVDX flat. This points to a stock-specific setup rather than a broad sector rotation.

Previous Earnings Reports

5 past events · Latest: Nov 04 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q3 2025 earnings	Negative	-4.1%	Soft revenue and modest ARR growth despite ongoing cloud expansion.
Aug 05	Q2 2025 earnings	Negative	+8.0%	Revenue and EPS declines offset by strong public cloud ARR growth.
May 06	Q1 2025 earnings	Neutral	+1.8%	Improved margins and EPS with ARR pressure during revenue decline.
Feb 11	FY 2024 earnings	Negative	-20.3%	ARR and revenue declines with guidance for further revenue contraction.
Nov 04	Q3 2024 earnings	Positive	-14.7%	Strong cloud ARR and EPS growth but total ARR still declining.

Pattern Detected

Earnings have often triggered sizable moves, with an average reaction of -5.87%. The stock has sometimes sold off on otherwise positive or cloud-focused reports, showing a mix of aligned and divergent reactions.

Recent Company History

Recent earnings for Teradata show a consistent focus on ARR and public cloud growth against pressured total revenue. Prior quarters highlighted expanding cloud ARR, improving GAAP and non-GAAP EPS, and solid free cash flow, yet share reactions ranged from rallies to steep selloffs (e.g., -20.3% on 2024 results). Today’s Q4/FY 2025 report, with higher ARR, EPS and free cash flow plus 2026 guidance, fits into this pattern of cloud-led transition and margin focus.

Historical Comparison

earnings

-5.9 %

Average Historical Move

Historical Analysis

Historically, TDC’s earnings days averaged a -5.87% move. Against that backdrop, a modest pre-news gain of 2.99% suggested a less bearish setup than usual.

Typical Pattern

Across recent earnings, public cloud ARR has climbed from $606M (Q1 2025) to $701M, while total ARR improved from prior softness to $1.522B, reflecting gradual progress in the cloud-led transition.

Market Pulse Summary

This announcement highlights Q4 and full-year 2025 results with higher ARR, stronger GAAP and non-GA...

Analysis

This announcement highlights Q4 and full-year 2025 results with higher ARR, stronger GAAP and non-GAAP EPS, and free cash flow of $285M, alongside 2026 guidance for modest ARR and revenue growth. Historically, earnings have produced volatile reactions, sometimes negative even on cloud strength. Investors may focus on ARR mix, margin trends, and execution versus the 2026 outlook ranges, as well as how ongoing AI and cloud initiatives translate into sustained top-line growth.

Key Terms

annual recurring revenue, public cloud ARR, constant currency, non-GAAP, +2 more

6 terms

annual recurring revenue financial

"Total Annual Recurring Revenue ("Total ARR") is defined as the annual contract value"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

public cloud ARR financial

"Public cloud ARR is defined as the annual contract value for all active and contractually"

Public cloud ARR is the portion of a company’s annual recurring revenue that comes from products or services hosted on third‑party, widely available cloud platforms rather than on the company’s own servers. For investors it signals how much predictable, subscription-style income is tied to scalable, off‑site infrastructure — like regular rent from tenants in a shared office tower — which affects growth potential, margins and dependency on cloud providers.

constant currency financial

"on a constant currency ("CC") basis, on the Investor Relations page of the Company's"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

non-GAAP financial

"certain non-GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP gross"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

free cash flow financial

"Teradata defines free cash flow as cash provided by/used in operating activities, less"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

stock-based compensation expense financial

"Excluding: Stock-based compensation expense | | 4 | | 4 | | 17 |"

Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.

AI-generated analysis. Not financial advice.

• Fourth quarter Total ARR of $1.522 billion, an increase of 3% as reported and 1% in constant currency from the prior year period⁽¹⁾
• Fourth quarter Recurring Revenue of $367 million, up 5% as reported and 3% in constant currency⁽¹⁾
• Fourth quarter GAAP diluted EPS of $0.38 and non-GAAP diluted EPS of $0.74⁽²⁾
• Full-Year 2025 Cash Flow from Operations of $305 million and Free Cash Flow of $285 million⁽³⁾

SAN DIEGO, Feb. 10, 2026 /PRNewswire/ -- Teradata (NYSE: TDC) today announced its fourth quarter and full-year 2025 financial results.

"Teradata delivered another set of strong results in the 4th quarter, as we again exceeded expectations for Total Revenue, Recurring Revenue and Free Cash Flow," said Steve McMillan, Teradata president and CEO. "Our full-year results demonstrate strong operational discipline and establish a solid foundation as we enter 2026.

"Teradata's Autonomous AI and Knowledge platform is soundly resonating with customers; they recognize that the strengths we have built over decades are ideal for today's market needs. Our differentiated performance, scale, and hybrid capabilities, supported by our AI services, are proving to be a valuable combination. We have confidence in our agentic AI-fueled future."

Fourth Quarter 2025 Financial Highlights Compared to Fourth Quarter 2024

• Public cloud ARR increased to $701 million from $609 million, an increase of 15% as reported and 13% in constant currency⁽¹⁾
• Total ARR increased to $1.522 billion from $1.474 billion, an increase of 3% as reported and
  1% in constant currency⁽¹⁾
• Recurring revenue was $367 million versus $351 million, an increase of 5% as reported and
  3% in constant currency⁽¹⁾
• Total revenue was $421 million versus $409 million, an increase of 3% as reported and 1% in constant currency⁽¹⁾
• Recurring revenue was 87% of total revenue versus 86%
• GAAP gross margin was 60.8% versus 59.4%
• Non-GAAP gross margin was 62.0% versus 60.9%⁽²⁾
• GAAP operating margin was 12.8% versus 9.5%
• Non-GAAP operating margin was 22.8% versus 17.6%⁽²⁾
• GAAP diluted EPS was $0.38 versus $0.26 per share
• Non-GAAP diluted EPS was $0.74 versus $0.53 per share⁽²⁾
• Cash flow from operations was $160 million compared to $156 million
• Free cash flow was $151 million compared to $148 million⁽³⁾

Full-Year 2025 Financial Highlights Compared to Full-Year 2024

• Public cloud ARR increased to $701 million from $609 million, an increase of 15% as reported and 13% in constant currency⁽¹⁾
• Total ARR increased to $1.522 billion from $1.474 billion, an increase of 3% as reported and
  1% in constant currency⁽¹⁾
• Recurring revenue was $1.445 billion versus $1.479 billion, a decrease of 2% as reported and 3% in constant currency⁽¹⁾
• Total revenue was $1.663 billion versus $1.750 billion, a decrease of 5% as reported and 5% in constant currency⁽¹⁾
• Recurring revenue was 87% of total revenue versus 85%
• GAAP gross margin was 59.4% versus 60.5%
• Non-GAAP gross margin was 60.7% versus 61.7%⁽²⁾
• GAAP operating margin was 12.3% versus 11.9%
• Non-GAAP operating margin was 21.2% versus 20.3%⁽²⁾
• GAAP diluted EPS was $1.35 versus $1.16 per share
• Non-GAAP diluted EPS was $2.58 versus $2.42 per share⁽²⁾
• Cash flow from operations was $305 million compared to $303 million
• Free cash flow was $285 million compared to $277 million⁽³⁾
• Share repurchases of $140 million, resulting in a return of free cash flow of 49%

Outlook

For the full-year of 2026:

• Total ARR growth of 2% to 4% year-over-year,
• Recurring revenue in the range of flat to 2% year-over-year,
• Total revenue range in the range of -2% to flat year-over-year,
• GAAP diluted EPS is expected to be in the range of $1.26 to $1.36
• Non-GAAP diluted EPS is expected to be in the range of $2.55 to $2.65 per share⁽²⁾
• Cash flow from operations of $330 million to $350 million
• Free cash flow of $310 million to $330 million⁽³⁾

For the first quarter of 2026:

• Recurring revenue in the range of 6% to 8% year-over-year,
• Total revenue in the range of 1% to 3% year-over-year,
• GAAP diluted EPS is expected to be in the range of $0.36 to $0.40 per share
• Non-GAAP diluted EPS is expected to be in the range of $0.75 to $0.79 per share⁽²⁾

Earnings Conference Call

The conference call will begin at 1:30 p.m. PT on February 10, 2026. Investors and participants may attend the call by dialing (646) 844-6383 and entering access code 738113. For investors and participants outside the United States, see global dial-in numbers here, and use access code 738113.

The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata website at investor.teradata.com. 

Supplemental Financial Information                                                  

Additional information regarding Teradata's operating results is provided below as well as on Teradata's website at investor.teradata.com.

1.	The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency ("CC") basis, on the Investor Relations page of the Company's website at investor.teradata.com.

Revenue
(in millions)
	For the Three Months ended December 31
	2025		2024		% Change as Reported		% Change in CC
Recurring revenue	$367		$351		5 %		3 %
Perpetual software licenses, hardware and other	1		3		(67 %)		(69 %)
Consulting services	53		55		(4 %)		(6 %)
Total revenue	$421		$409		3 %		1 %
Product Sales	$368		$354		4 %		2 %
Consulting Services	53		55		(4 %)		(6 %)
Total revenue	$421		$409		3 %		1 %

 

Revenue
(in millions)
	For the Twelve Months ended December 31
	2025		2024		% Change as Reported		% Change in CC
Recurring revenue	$1,445		$1,479		(2 %)		(3 %)
Perpetual software licenses, hardware and other	17		23		(26 %)		(25 %)
Consulting services	201		248		(19 %)		(19 %)
Total revenue	$1,663		$1,750		(5 %)		(5 %)
Product Sales	$1,462		$1,502		(3 %)		(3 %)
Consulting Services	201		248		(19 %)		(19 %)
Total revenue	$1,663		$1,750		(5 %)		(5 %)

 

	As of December 31
	2025		2024		% Change as Reported		% Change in CC
Annual recurring revenue*	$1,522		$1,474		3 %		1 %
Public cloud ARR**	$701		$609		15 %		13 %

 

The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates.   * Total Annual Recurring Revenue ("Total ARR") is defined as the annual contract value for all active and contractually binding term-based contracts at the end of the period, including cloud, recurring AI services, subscriptions, hardware rental, maintenance, and software upgrade rights. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.   ** Public cloud ARR is defined as the annual contract value for all active and contractually binding term-based contracts at the end of a period that are operated in a public cloud environment. The Company believes this is a useful metric to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q.

2.	Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non-GAAP measures such as free cash flow, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata's definition may differ from other companies' definitions of these measures.
	The following tables reconcile Teradata's actual and projected results and EPS under GAAP to the Company's actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company's operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.

 

		For the Three Months						For the Twelve Months
(in millions, except per share data)		ended December 31						ended December 31
Gross Profit:		2025		2024		% Chg.		2025		2024		% Chg.
GAAP Gross Profit		$256		$243		5 %		$987		$1,058		(7 %)
% of Revenue		60.8 %		59.4 %				59.4 %		60.5 %
Excluding:
Stock-based compensation expense		4		4				17		17
Reorganization and other costs		1		2				6		5
Non-GAAP Gross Profit		$261		$249		5 %		$1,010		$1,080		(6 %)
% of Revenue		62.0 %		60.9 %				60.7 %		61.7 %
Operating Income
GAAP Operating Income		$54		$39		38 %		$205		$209		(2 %)
% of Revenue		12.8 %		9.5 %				12.3 %		11.9 %
Excluding:
Stock-based compensation expense		30		27				112		119
Reorganization and other costs		12		6				35		28
Non-GAAP Operating Income		$96		$72		33 %		$352		$356		(1 %)
% of Revenue		22.8 %		17.6 %				21.2 %		20.3 %
Net Income
GAAP Net Income		$37		$25		48 %		$130		$114		14 %
% of Revenue		8.8 %		6.1 %				7.8 %		6.5 %
Excluding:
Stock-based compensation expense		30		27				112		119
Reorganization and other costs		9		6				31		30
Income tax adjustments(i)		(5)		(6)				(24)		(25)
Non-GAAP Net Income		$71		$52		37 %		$249		$238		5 %
% of Revenue		16.9 %		12.7 %				15.0 %		13.6 %

 

	For the Three Months ended December 31				For the Twelve Months ended December 31				2026 Outlook
Earnings Per Share:	2025		2024		2025		2024		Q1 Guidance		FY Guidance
GAAP Earnings Per Share	$0.38		$0.26		$1.35		$1.16		$0.36 - $0.40		$1.26 - $1.36
Excluding:
Stock-based compensation expense	0.31		0.27		1.16		1.21		0.29		1.22
Reorganization and other costs	0.10		0.06		0.32		0.30		0.18		0.34
Income tax adjustments(i)	(0.05)		(0.06)		(0.25)		(0.25)		(0.08)		(0.27)
Non-GAAP Diluted Earnings Per Share	$0.74		$0.53		$2.58		$2.42		$0.75 - $0.79		$2.55 - $2.65

 

	i.	Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company's ongoing operations. As a result of these adjustments, the Company's non-GAAP effective tax rate for the three months ended December 31, 2025, was 22.8% and December 31, 2024, was 17.5%. In addition, for the first quarter and full year 2025, we included a discrete tax adjustment of ($0.06) for the reversal of tax reserves due to the final settlement of an IRS audit in the first quarter of 2025. For the twelve months ended December 31, 2025, the Company's non-GAAP effective tax rate was 22.4% and December 31, 2024, was 24.0%.
3.	As described below, the Company believes that free cash flow is a useful non-GAAP measure for investors. Free cash flow does not have a uniform definition under GAAP in the United States and therefore, Teradata's definition may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less investing activities related to capital expenditures for property and equipment and additions to capitalized software ("total capital expenditures"). Teradata's management uses free cash flow to assess the financial performance of the Company and believes it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company's balance sheet, repurchase of Company stock and repay the Company's debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from the measure. This non-GAAP measure should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP.

 

(in millions)	For the Three Months				For the Twelve Months
	ended December 31				ended December 31				Outlook
	2025		2024		2025		2024		2026
Cash provided by operating activities (GAAP)	$160		$156		$305		$303		$330 to $350
Less total capital expenditures	(9)		(8)		(20)		(26)		(~20)
Free Cash Flow (non-GAAP measure)	$151		$148		$285		$277		$310 to $330

Note to Investors This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as "expect," "strive," "looking ahead," "outlook," "guidance," "forecast," "anticipate," "continue," "plan," "estimate," "believe," "focus," "see," "commit," "should," "project," "will," "would," "likely," "intend," "potential," or similar expressions. Forward-looking statements in this release include our 2026 first quarter and 2026 full year financial outlook and product innovation and demand. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation, tariffs, and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including the restructuring actions; risks inherent in operating in foreign countries, including sanctions, tariffs, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for our artificial intelligence, cloud, on-prem, and hybrid offerings; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata's filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata's annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata 
Teradata is the AI platform built for the autonomous era. Our AI + Knowledge Platform and multifaceted AI Services help enterprises deploy solutions with deep domain expertise and full enterprise context. Wherever data resides—cloud, on-prem, or hybrid—Teradata connects and scales to deliver the performance AI needs. Learn more at Teradata.com.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide. 

INVESTOR CONTACT
Chad Bennett
chad.bennett@teradata.com 

MEDIA CONTACT
Jennifer Donahue
jennifer.donahue@teradata.com 

													Schedule A
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts - unaudited)
			For the Period Ended December 31
			Three Months						Twelve Months
			2025		2024		% Chg		2025		2024		% Chg
Revenue
Recurring			$       367		$        351		5 %		$            1,445		$1,479		(2 %)
Perpetual software licenses, hardware and other			1		3		(67 %)		17		23		(26 %)
Consulting services			53		55		(4 %)		201		248		(19 %)
Total revenue			421		409		3 %		1,663		1,750		(5 %)
Gross profit
Recurring			248		243				983		1,038
% of Revenue			67.6 %		69.2 %				68.0 %		70.2 %
Perpetual software licenses, hardware and other			-		(2)				4		-
% of Revenue			0.0 %		(66.7 %)				23.5 %		0.0 %
Consulting services			8		2				-		20
% of Revenue			15.1 %		3.6 %				-		8.1 %
Total gross profit			256		243				987		1,058
% of Revenue			60.8 %		59.4 %				59.4 %		60.5 %
Selling, general and administrative expenses			129		136				502		565
Research and development expenses			73		68				280		284
Income from operations			54		39				205		209
% of Revenue			12.8 %		9.5 %				12.3 %		11.9 %
Other expense, net			(1)		(9)				(27)		(45)
Income before income taxes			53		30				178		164
% of Revenue			12.6 %		7.3 %				10.7 %		9.4 %
Income tax expense			16		5				48		50
% Tax rate			30.2 %		16.7 %				27.0 %		30.5 %
Net income			$         37		$          25				$               130		$   114
% of Revenue			8.8 %		6.1 %				7.8 %		6.5 %
Net income per common share
Basic			$      0.40		$       0.26				$              1.38		$  1.18
Diluted			$      0.38		$       0.26				$              1.35		$  1.16
Weighted average common shares outstanding
Basic			93.0		95.5				94.4		96.4
Diluted			96.4		97.4				96.6		98.2

 

								Schedule B
TERADATA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions -  unaudited)
				December 31,		September 30,		December 31,
				2025		2025		2024
Assets
Current assets
Cash and cash equivalents				$              493		$              406		$              420
Accounts receivable, net				251		309		234
Inventories				13		5		18
Other current assets				80		91		77
Total current assets				837		811		749
Property and equipment, net				198		203		185
Right of use assets - operating lease, net				7		7		8
Goodwill				399		399		394
Capitalized contract costs, net				42		35		46
Deferred income taxes				209		212		226
Other assets				87		94		96
Total assets				$            1,779		$           1,761		$            1,704
Liabilities and stockholders' equity
Current liabilities
Current portion of long-term debt				$                25		$                25		$                25
Current portion of finance lease liability				50		56		57
Current portion of operating lease liability				2		3		4
Accounts payable				96		100		106
Payroll and benefits liabilities				120		96		111
Deferred revenue				533		527		512
Other current liabilities				88		99		115
Total current liabilities				914		906		930
Long-term debt				431		437		455
Finance lease liability				45		47		30
Operating lease liability				4		5		5
Pension and other postemployment plan liabilities				114		104		104
Long-term deferred revenue				11		12		10
Deferred tax liabilities				12		10		9
Other liabilities				18		21		28
Total liabilities				1,549		1,542		1,571
Stockholders' equity
Common stock				1		1		1
Paid-in capital				2,305		2,279		2,192
Accumulated deficit				(1,923)		(1,923)		(1,913)
Accumulated other comprehensive loss				(153)		(138)		(147)
Total stockholders' equity				230		219		133
Total liabilities and stockholders' equity				$            1,779		$           1,761		$            1,704

 

								Schedule C
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions - unaudited)
		For the Period Ended December 31
		Three Months				Twelve Months
		2025		2024		2025		2024
Operating activities
Net income		$                 37		$                 25		$                130		$                114
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization		23		22		90		100
Stock-based compensation expense		30		27		112		119
Deferred income taxes		7		(16)		31		(11)
Loss on Blue Chip Swap		-		1		1		4
Changes in assets and liabilities:
Receivables		58		13		(17)		52
Inventories		(8)		(2)		5		(5)
Current payables and accrued expenses		18		36		(48)		(1)
Deferred revenue		5		27		22		(70)
Other assets and liabilities		(10)		23		(21)		1
Net cash provided by operating activities		160		156		305		303
Investing activities
Expenditures for property and equipment		(9)		(7)		(19)		(24)
Additions to capitalized software		-		(1)		(1)		(2)
Business acquisitions and other investing activities, including loss on Blue Chip Swap		-		(1)		(1)		(6)
Net cash used in investing activities		(9)		(9)		(21)		(32)
Financing activities
Repurchases of common stock		(38)		(29)		(140)		(215)
Repayments of long-term borrowings		(6)		(6)		(25)		(19)
Payments of finance leases		(18)		(17)		(69)		(71)
Other financing activities, net		(2)		-		1		(1)
Net cash used in financing activities		(64)		(52)		(233)		(306)
Effect of exchange rate changes on cash and cash equivalents		-		(22)		22		(30)
Increase (decrease) in cash, cash equivalents and restricted cash		87		73		73		(65)
Cash, cash equivalents and restricted cash at beginning of period		407		348		421		486
Cash, cash equivalents and restricted cash at end of period		$                494		$                421		$                494		$                421
Supplemental cash flow disclosure:
Non-cash investing and financing activities:
Assets acquired by finance leases		$                 10		$                   4		$                 77		$                 29
Assets acquired by operating leases		$                    -		$                   4		$                   2		$                   5

 

																Schedule D
TERADATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions - unaudited)
		For the Three Months Ended December 31								For the Twelve Months Ended December 31
		2025		2024		% Change As Reported		% Change Constant Currency (2)		2025		2024		% Change As Reported		% Change Constant Currency (2)
Segment Revenue
Product Sales		$          368		$          354		4 %		2 %		$        1,462		$        1,502		(3 %)		(3 %)
Consulting Services		53		55		(4 %)		(6 %)		201		248		(19 %)		(19 %)
Total segment revenue		421		409		3 %		1 %		1,663		1,750		(5 %)		(5 %)
Segment gross profit
Product Sales		251		244						998		1,049
% of Revenue		68.2 %		68.9 %						68.3 %		69.8 %
Consulting Services		10		5						12		31
% of Revenue		18.9 %		9.1 %						6.0 %		12.5 %
Total segment gross profit		261		249						1,010		1,080
% of Revenue		62.0 %		60.9 %						60.7 %		61.7 %
Reconciling items(1)		(5)		(6)						(23)		(22)
Total gross profit		$          256		$          243						$          987		$        1,058
% of Revenue		60.8 %		59.4 %						59.4 %		60.5 %
(1)  Reconciling items include stock-based compensation, amortization of acquisition-related
intangible assets and acquisition, integration and reorganization-related items.
(2)  The impact of currency is determined by calculating the prior period results using the current-year
monthly average currency rates.

 

View original content:https://www.prnewswire.com/news-releases/teradata-reports-fourth-quarter-and-full-year-2025-financial-results-302684244.html

SOURCE Teradata Corporation

FAQ

What were Teradata (TDC) Q4 2025 earnings per share results?

Teradata reported Q4 2025 GAAP diluted EPS of $0.38 and non‑GAAP diluted EPS of $0.74. According to the company, non‑GAAP excludes stock‑based compensation and restructuring items to show underlying operational performance.

How much is Teradata's (TDC) Total ARR and how did it change in Q4 2025?

Total ARR was $1.522 billion in Q4 2025, a 3% increase year‑over‑year. According to the company, this reflects growth in cloud and recurring AI services despite broader revenue headwinds.

What is Teradata's (TDC) 2026 outlook for EPS and ARR growth?

For 2026 Teradata expects GAAP EPS $1.26–$1.36 and total ARR growth of 2%–4% year‑over‑year. According to the company, guidance also targets non‑GAAP EPS of $2.55–$2.65 and modest revenue trends.

How much free cash flow did Teradata (TDC) generate in 2025 and what did it do with it?

Teradata generated $285 million of free cash flow in 2025 and repurchased $140 million of stock. According to the company, repurchases represented 49% of free cash flow and reflect capital return priorities.

Why did Teradata (TDC) flag weakness in services revenue for 2025?

Full‑year consulting services revenue fell by 19% to $201 million, a notable decline. According to the company, product and cloud recurring revenue growth contrasted with weaker consulting engagements and project timing.