Teradata (NYSE: TDC) grows cloud ARR, boosts 2025 margins but guides cautious 2026

Rhea-AI Filing Summary

Teradata Corporation reported mixed fourth quarter and full-year 2025 results, highlighting growing cloud momentum alongside softer overall revenue. In the fourth quarter, total revenue rose to $421 million from $409 million, driven by recurring revenue of $367 million versus $351 million. Public cloud annual recurring revenue increased to $701 million from $609 million, while total ARR reached $1.522 billion from $1.474 billion. Profitability improved, with GAAP diluted EPS of $0.38 versus $0.26 and non-GAAP diluted EPS of $0.74 versus $0.53, supported by higher GAAP and non-GAAP operating margins.

For full-year 2025, total revenue declined to $1.663 billion from $1.750 billion and recurring revenue edged down to $1.445 billion from $1.479 billion, even as cloud ARR grew 15% as reported. GAAP diluted EPS increased to $1.35 from $1.16 and non-GAAP diluted EPS rose to $2.58 from $2.42, reflecting stronger margins and cost discipline. Cash flow from operations was $305 million compared to $303 million, and free cash flow improved to $285 million from $277 million, with $140 million returned via share repurchases.

Looking to 2026, Teradata expects total ARR growth of 2% to 4%, recurring revenue from flat to 2% growth, and total revenue between a 2% decline and flat year-over-year. The company projects GAAP diluted EPS of $1.26 to $1.36 and non-GAAP diluted EPS of $2.55 to $2.65, alongside cash flow from operations of $330 million to $350 million and free cash flow of $310 million to $330 million. First-quarter 2026 guidance calls for recurring revenue growth of 6% to 8%, total revenue growth of 1% to 3%, and GAAP diluted EPS of $0.36 to $0.40 with non-GAAP diluted EPS of $0.75 to $0.79.

Insights

Equity research analyst

Cloud ARR and margins improved, but overall revenue contracted and 2026 guidance is modest.

Teradata shows a clear shift toward higher-value recurring and cloud business. Public cloud ARR rose to $701 million from $609 million, and total ARR reached $1.522 billion, supporting better gross and operating margins and higher GAAP and non-GAAP EPS.

However, full-year 2025 total revenue declined to $1.663 billion from $1.750 billion and recurring revenue eased to $1.445 billion. This suggests legacy and consulting areas remain under pressure even as cloud subscriptions grow, tempering the top-line profile.

For 2026, guidance implies low single-digit ARR growth and flat to slightly negative total revenue, with non-GAAP EPS of $2.55–$2.65. Free cash flow is guided to $310–$330 million, above 2025’s $285 million. Overall, the update is strategically constructive but not thesis-changing, as growth remains modest while profitability and cash generation hold steady.

TERADATA CORP /DE/0000816761false00008167612026-02-102026-02-10

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

__________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 10, 2026

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 001-33458

 

Delaware						75-3236470
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

17095 Via Del Campo

San Diego, California 92127

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (866) 548-8348

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, $0.01 par value			TDC			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02    Results of Operations and Financial Condition.

Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

On February 10, 2026, the Company issued a press release setting forth its fourth quarter and full-year 2025 operating results as well as current outlook estimates for the first quarter of 2026 and for the full-year 2026 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The Company also posted supplemental material dated February 10, 2026, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Item 9.01        Financial Statements and Exhibits.

(d)    Exhibits:

The following exhibits are attached with this current report on Form 8-K:

Exhibit No.						Description
99.1						Press Release, dated February 10, 2026, issued by the Company (Earnings Press Release).
104						Cover Page Interactive Data (embedded within the Inline XBRL document).

Safe Harbor Statement

This Current Report on Form 8-K 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. All statements, other than statements of historical facts, included in this Current Report on Form 8-K and in the accompanying press release, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including statements about our 2026 first quarter and full year 2026 financial outlook and product innovation and demand are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company’s actual results to differ materially. In addition to the factors discussed in this Form 8-K filing, other risks and uncertainties could affect the Company’s future results, and could cause actual results to differ materially from those expressed in such forward-looking statements, 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 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.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

TERADATA CORPORATION

Date: February 10, 2026

By:

/s/ John Ederer

John Ederer

Chief Financial Officer

Exhibit 99.1

INVESTOR CONTACT Chad Bennett chad.bennett@teradata.com MEDIA CONTACT Jennifer Donahue jennifer.donahue@teradata.com

Teradata Reports Fourth Quarter and Full-Year 2025 Financial Results

•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 – February 10, 2026 -- 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 now expected to be in the range of $1.26 to $1.36

•Non-GAAP diluted EPS is now 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 at netroadshow.com/events/global-numbers?confId=71997, 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												For the Twelve Months
			ended December 31												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.

						For the Three Months												For the Twelve Months
						ended December 31												ended December 31												Outlook
(in millions)						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.

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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.

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						—		%				(66.7)		%										23.5		%				—		%
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, 2025						September 30, 2025						December 31, 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.

FAQ

How did Teradata (TDC) perform in Q4 2025?

Teradata’s Q4 2025 revenue rose to $421 million from $409 million, led by recurring revenue of $367 million. GAAP diluted EPS was $0.38 versus $0.26, and non-GAAP diluted EPS was $0.74 versus $0.53, reflecting stronger margins and earnings.

What were Teradata (TDC) full-year 2025 financial results?

For 2025, Teradata reported $1.663 billion in total revenue, down from $1.750 billion, and recurring revenue of $1.445 billion. GAAP diluted EPS increased to $1.35 from $1.16 and non-GAAP diluted EPS rose to $2.58 from $2.42, with free cash flow of $285 million.

How fast is Teradata’s cloud business growing?

Teradata’s cloud business is expanding, with public cloud ARR reaching $701 million in 2025, up from $609 million. Total ARR increased to $1.522 billion from $1.474 billion. This shows solid subscription and cloud traction even as overall revenue declined modestly year-over-year.

What guidance did Teradata (TDC) give for full-year 2026?

For 2026, Teradata expects total ARR growth of 2–4%, recurring revenue from flat to 2% growth, and total revenue between a 2% decline and flat. It projects GAAP diluted EPS of $1.26–$1.36 and non-GAAP diluted EPS of $2.55–$2.65, with free cash flow of $310–$330 million.

What is Teradata’s Q1 2026 outlook for revenue and earnings?

For Q1 2026, Teradata guides to recurring revenue growth of 6–8% year-over-year and total revenue growth of 1–3%. GAAP diluted EPS is expected at $0.36–$0.40, with non-GAAP diluted EPS of $0.75–$0.79, indicating stronger early-year momentum.

How strong is Teradata’s cash flow and capital return profile?

In 2025, Teradata generated $305 million of cash flow from operations and $285 million of free cash flow. It repurchased $140 million of stock, returning 49% of free cash flow. For 2026, it targets operating cash flow of $330–$350 million and free cash flow of $310–$330 million.

Did Teradata improve profitability in 2025?

Yes. Teradata’s GAAP operating margin was 12.3% in 2025 versus 11.9%, and non-GAAP operating margin rose to 21.2% from 20.3%. GAAP diluted EPS increased to $1.35 from $1.16, and non-GAAP diluted EPS climbed to $2.58 from $2.42, showing better profitability.

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