Teradata reported first quarter 2026 results and raised its 2026 GAAP EPS and cash flow outlook following a major SAP litigation settlement. Q1 total revenue was $444 million versus $418 million, up 6%, with recurring revenue of $400 million versus $358 million, up 12%.
Total annual recurring revenue reached $1.492 billion, up 3%, and public cloud ARR was $686 million, up 13%. GAAP diluted EPS surged to $3.47 from $0.45, largely driven by a $480 million SAP settlement that produced a $302 million after‑tax cash benefit. Non-GAAP diluted EPS was $0.88 versus $0.66.
Cash flow from operations was $401 million compared to $8 million, and free cash flow was $390 million versus $7 million, while adjusted free cash flow was $31 million. For full-year 2026, Teradata now guides GAAP diluted EPS to $4.22–$4.32, cash from operations of $642–$662 million, adjusted free cash flow of $320–$340 million, and reaffirms modest ARR and revenue ranges.
Teradata Corp ownership disclosure: Vanguard Portfolio Management reported beneficial ownership of 9,270,630 shares of Teradata common stock, equal to 9.79% of the class as of 03/31/2026. The filing states Vanguard exercises sole dispositive power over those shares and lists 63,657 shares as sole voting power. The filing notes these holdings include securities held by Vanguard funds and affiliates for which Vanguard Portfolio Management LLC exercises dispositive power.
Teradata Corp Schedule 13G/A discloses that The Vanguard Group reports zero shares beneficially owned following an internal realignment effective January 12, 2026, that disaggregated certain subsidiaries and business divisions for SEC reporting purposes. The filing states Vanguard no longer is deemed to beneficially own securities held by those subsidiaries.
Teradata Corporation is asking stockholders to vote at its virtual 2026 annual meeting on May 14, 2026 to elect three Class I directors, approve executive compensation on an advisory basis, approve an amended 2023 Stock Incentive Plan, and ratify the 2026 auditor.
The proxy highlights 2025 as a year of stabilization, with total annual recurring revenue returning to positive growth, non-GAAP operating margin and free cash flow improving, and $140 million returned via share repurchases. Cloud ARR has grown to over $700 million, nearly half of total ARR, underscoring Teradata’s shift to a modern cloud and AI-focused platform. The Board emphasizes independent leadership, ongoing refreshment, and a cooperation agreement with Lynrock Lake that added director Melissa Fisher and contemplates another Class II director. Teradata also reports progress on ESG goals, including a 35.5% reduction in energy use and a 35.0% cut in Scope 1 and 2 emissions versus 2021, and a long-term Net Zero target by 2050.
Teradata Corp. director Melissa B. Fisher reported receiving equity compensation in the form of restricted share units. She was granted 2,475 shares of common stock and an additional 1,375 shares, for a total of 3,850 shares acquired at no cash cost. According to the award terms, these restricted share units were issued under the Director Compensation Program in connection with her election to the board of directors and will vest in four equal quarterly installments starting three months after the grant date.
Teradata Corp director Melissa B. Fisher filed an initial insider ownership report on Form 3. The filing shows she holds no shares of Teradata common stock directly as of the reported date, establishing a baseline of zero beneficial ownership in the company’s common stock.
Teradata (TDC) President and CEO Stephen McMillan reported several equity-related changes in his holdings. He received a grant of 206,271 shares of common stock in the form of restricted share units that vest in three equal annual installments beginning on March 1, 2027. On March 6, 22,230 shares were withheld by the company at $28.02 per share to cover tax obligations upon RSU vesting. On March 9, 4,376 shares are scheduled to be transferred to his former spouse under a court-approved divorce agreement, after which he will no longer have reportable beneficial ownership of those shares. Following these transactions, he directly holds 782,446 shares of Teradata common stock.
Ederer John reported acquisition or exercise transactions in this Form 4 filing.
Teradata Corporation’s Chief Financial Officer, John Ederer, reported an equity compensation grant. He received 74,257 shares of common stock as a grant or award, with no cash paid per share. After this award, he directly holds 381,781 common shares.
The award consists of restricted share units that vest in three equal annual installments beginning on March 1, 2027, meaning the shares become fully earned over three years if the vesting conditions are met. This filing reflects routine executive compensation rather than an open-market stock purchase or sale.
Arora Sumeet reported acquisition or exercise transactions in this Form 4 filing.
Teradata chief product officer Sumeet Arora received an equity award of 66,007 shares on March 1, 2026 as a grant, not an open‑market purchase. The award consists of restricted share units that vest in three equal annual installments beginning on March 1, 2027. Following this grant, Arora directly holds 304,097 Teradata common shares, reflecting his ongoing equity-based compensation and alignment with shareholder outcomes.