Key Takeaways Teradata beat Q4 estimates with EPS up 39.6% and revenues rising 3% year over year.TDC saw public cloud ARR jump 15% to $701M, with a 108% cloud net expansion rate.Teradata guided for 2026 EPS of $2.55-$2.65 and projects low double-digit cloud ARR growth.Teradata (TDC) reported fourth-quarter 2025 non-GAAP earnings of 74 cents per share, which beat the Zacks Consensus Estimate by 35.04%. The bottom line increased 39.6% year over year.Revenues of $421 million beat the Zacks Consensus Estimate b ...

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分组1 - Teradata reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing an increase from $0.53 per share a year ago, resulting in an earnings surprise of +35.04% [1] - The company achieved revenues of $421 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 6.52%, and up from $409 million in the same quarter last year [2] - Teradata has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 7.1% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $406.79 million, and for the current fiscal year, it is $2.48 on revenues of $1.63 billion [7] 分组3 - The Computer-Storage Devices industry, to which Teradata belongs, is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - Teradata currently holds a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]

Teradata (NYSE:TDC) Q4 2025 Earnings call February 10, 2026 04:30 PM ET Company ParticipantsChad Bennett - SVP of Investor Relations and Corporate DevelopmentDerrick Wood - Managing DirectorErik Woodring - Managing DirectorJohn Ederer - CFONick Jones - Managing DirectorRadu Saltan - Director of Equity ResearchSteve McMillan - President and CEOWamsi Mohan - Managing DirectorYitchuin Wong - Senior Equity Research AssociateConference Call ParticipantsChirag Ved - VP and Equity Research AnalystSheldon McMeans - ...

Financial Data and Key Metrics Changes - In Q4 2025, total revenue was $421 million, up 3% year-over-year, exceeding expectations due to higher recurring revenue [17] - Total ARR grew 3% on a reported basis, marking a stabilization milestone for the business [15][16] - Free cash flow for the year reached $285 million, exceeding the high end of the outlook [20] Business Line Data and Key Metrics Changes - Recurring revenue for Q4 was $367 million, up 5% year-over-year, driven by higher upfront revenue from term license subscriptions [17] - Consulting services revenue for Q4 was $53 million, down 4% year-over-year, indicating challenges in this segment [17] Market Data and Key Metrics Changes - Cloud ARR grew 15% as reported, now representing 46% of total ARR, reflecting a strong shift towards cloud solutions [16] - The trailing 12-month cloud net expansion rate was 108%, indicating robust customer engagement in cloud services [16] Company Strategy and Development Direction - The company is focused on harnessing AI systems to enhance enterprise decision-making and operational efficiency [6][10] - A hybrid model combining on-prem and cloud solutions is being emphasized to meet diverse customer needs [6][10] - The launch of new products, including the Enterprise Vector Store and Teradata AI Factory, aims to drive AI adoption and operationalize autonomous AI [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing profitable growth into 2026, supported by strong customer engagement and product innovations [5][14] - The company anticipates a typical seasonal decline in ARR in Q1, followed by stabilization and growth in subsequent quarters [22] Other Important Information - The board announced the addition of Melissa Fisher, enhancing governance and oversight [27] - The company plans to invest more in product development to capitalize on market opportunities while maintaining profitability [26] Q&A Session Summary Question: On-premise AI materiality and customer production status - Management sees on-premise AI as a key growth driver, with increased production activity from proof of concepts [30] Question: Free cash flow growth versus EPS guidance - The difference in guidance is attributed to a one-time tax benefit in Q4, affecting EPS but not free cash flow [32] Question: Growth inflection drivers - The growth is attributed to improved demand and proactive product enhancements, particularly in AI solutions [36] Question: 2026 outlook visibility and uncertainties - Migration deals are complex and timing can be uncertain, while expansions provide more consistent growth visibility [40] Question: Impact of large deals on performance - Strong deal momentum across various industries has contributed positively to performance, with improved retention rates expected to continue [46] Question: Contribution from new AI-related solutions - New product initiatives are expected to provide upside potential, but not heavily factored into current financial outlooks [62] Question: Hardware refresh status and customer visibility - The new hardware platform is expected to be available in late Q2 or Q3, with sales teams preparing customers for its deployment [66] Question: Investments in headcount and sales hiring - The company plans to focus on forward-deployed engineering and product development to enhance AI solution delivery [72]

Financial Data and Key Metrics Changes - Total ARR grew by 3% on a reported basis and 1% in constant currency, marking a stabilization milestone for the business [15][16] - Fourth quarter total revenue was $421 million, up 3% year-over-year as reported and 1% in constant currency, exceeding expectations [16][17] - Free cash flow for the full year reached $285 million, surpassing the high end of the outlook [15][19] - Non-GAAP diluted earnings per share were $0.74, exceeding the top end of the outlook range by $0.17 [18] Business Line Data and Key Metrics Changes - Cloud ARR grew by 15% as reported and 13% in constant currency, now representing 46% of total ARR [16] - Consulting services revenue for the fourth quarter was $53 million, down 4% year-over-year as reported and down 6% in constant currency [17] Market Data and Key Metrics Changes - Customer engagement across all regions and industries shifted towards AI and Elastic Compute, indicating a growing interest in AI solutions [6][12] - The company saw a resurgence of interest in its hybrid model, with customers leveraging both on-prem and cloud deployment options [5][21] Company Strategy and Development Direction - The company is focused on harnessing Agentic AI systems to enable autonomous decision-making at enterprise scale [5] - A strong emphasis is placed on product development and innovation, with plans to invest more resources in this area to fuel future growth [15][26] - The company aims to maintain a hybrid deployment strategy to meet diverse customer needs driven by data sovereignty and regulatory environments [5][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 on solid footing, with expectations for continued growth in total ARR, operating margin, and free cash flow [15][23] - The company anticipates typical seasonality in ARR, with Q1 expected to be the largest renewal and highest erosion quarter [20][23] Other Important Information - The company announced a board refreshment initiative, with plans to add new independent directors to enhance governance [27] - A new partnership with Unstructured.io was established to automate the ingestion of unstructured content into analysis-ready data [10] Q&A Session Summary Question: On-premise AI materiality and customer investment - Management sees on-premise AI as a key growth driver, with increased POC activity leading to production deployments [30] Question: Free cash flow growth versus EPS guidance - The difference in guidance is attributed to a one-time tax benefit in Q4, affecting EPS but not free cash flow [32][33] Question: Drivers behind growth inflection - The AI marketplace is opening new opportunities, with improved retention rates and product announcements contributing to growth [36][38] Question: Visibility on migration versus expansion - Migration deals are complex and timing is hard to gauge, while expansions provide more consistent revenue growth [40][41] Question: Impact of new AI-related solutions on revenue - New product capabilities are expected to contribute to growth, but not heavily factored into current financial outlook [62] Question: Investments in headcount and sales hiring - The company plans to invest in forward-deployed engineering and product development to enhance AI solutions [68][70] Question: Seasonality and revenue growth expectations - Typical seasonality is expected, with Q1 showing erosion followed by growth in subsequent quarters [73][75] Question: Board refreshment and governance changes - The board refreshment process is ongoing, with a focus on enhancing skill mix and governance [77] Question: Characteristics of successful software companies in AI transition - The company emphasizes its role as a data layer for AI, positioning itself for growth in the autonomous AI space [81][82] Question: Operating margin expansion drivers - Expansion will be driven by gross margin improvements and efficiencies in operating expenses [84]

February 2026 Q4'25 and 2025 Earnings Results Teradata Investor Relations © 2026 Teradata. All rights reserved. Forward-looking statements 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 ...

Core Viewpoint - Teradata Corporation is advancing its Board refreshment program by appointing Melissa Fisher as a new Class I director and entering into a cooperation agreement with Lynrock Lake LP to enhance its strategic initiatives and shareholder value [1][2]. Board Changes - One Class I director will retire and not stand for reelection at the 2026 Annual Meeting, and one Class II director will retire and not stand for reelection at the 2027 Annual Meeting [1]. - The Board is actively searching for an additional independent director to join after the 2026 Annual Meeting, collaborating with Lynrock Lake for candidate selection [1]. Appointment of Melissa Fisher - Melissa Fisher is expected to be appointed as a Class I director by March 1, 2026, and will be nominated for election at the 2026 Annual Meeting, with her term expiring at the 2029 Annual Meeting [1]. - Fisher has extensive experience in finance and technology, having served as CFO at Outreach.io and Qualys, and has a background in investment banking at Goldman Sachs and BofA Securities [1][2]. Cooperation Agreement with Lynrock Lake - Lynrock Lake has agreed to support the Board's full slate of directors at the 2026 Annual Meeting and has committed to customary standstill, mutual non-disparagement, and voting provisions [1]. - The agreement aims to foster collaboration for the long-term value potential of Teradata and to enhance strategic initiatives [1][2]. Advisors - Foros is serving as the financial advisor, Sullivan & Cromwell LLP as legal counsel, and Collected Strategies as strategic communications advisor to Teradata [1].

Financial Performance - Fourth quarter Total ARR reached $1.522 billion, a 3% increase year-over-year, and 1% in constant currency [4]. - Fourth quarter Recurring Revenue was $367 million, up 5% as reported and 3% in constant currency [5]. - Total revenue for Q4 2025 was $421 million, a 3% increase from $409 million in Q4 2024; however, total revenue for the twelve months decreased by 5% to $1.663 billion from $1.750 billion [23]. - Recurring revenue for Q4 2025 was $367 million, a 5% increase from $351 million in Q4 2024; however, total recurring revenue for the year decreased by 2% to $1.445 billion [23]. - Total segment revenue for Q4 2025 was $421 million, a 3% increase compared to $409 million in Q4 2024 [29]. - Total segment revenue for the twelve months ended December 31, 2025, was $1,663 million, down 5% from $1,750 million in 2024 [29]. Earnings and Margins - GAAP diluted EPS for the fourth quarter was $0.38, compared to $0.26 per share in the prior year [8]. - Non-GAAP diluted EPS for the fourth quarter was $0.74, up from $0.53 per share year-over-year [8]. - GAAP Earnings Per Share for Q4 2025 was $0.38, up from $0.26 in Q4 2024, representing a 46% increase [16]. - Non-GAAP Diluted Earnings Per Share for Q4 2025 was $0.74, compared to $0.53 in Q4 2024, indicating a 40% increase [16]. - GAAP gross margin improved to 60.8% from 59.4% in the previous year [5]. - Non-GAAP operating margin increased to 22.8% from 17.6% year-over-year [5]. - The company reported a net income of $37 million for Q4 2025, compared to $25 million in Q4 2024, reflecting a 48% increase [23]. - Net income for Q4 2025 was $37 million, up from $25 million in Q4 2024, representing a 48% increase [27]. - The company reported a decrease in consulting services gross profit margin to 6.0% for the twelve months ended December 31, 2025, down from 12.5% in 2024 [29]. Cash Flow and Assets - Full-Year 2025 Cash Flow from Operations totaled $305 million, with Free Cash Flow of $285 million [4]. - Free Cash Flow for Q4 2025 was $151 million, compared to $148 million in Q4 2024, with a full year total of $285 million, up from $277 million [18]. - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $305 million, slightly up from $303 million in 2024 [27]. - Cash, cash equivalents, and restricted cash at the end of Q4 2025 totaled $494 million, an increase from $421 million at the end of Q4 2024 [27]. - Total current assets increased to $837 million as of December 31, 2025, from $749 million a year earlier [25]. Stock and Liabilities - The total liabilities of the company as of December 31, 2025, were $1.549 billion, a slight decrease from $1.571 billion a year earlier [25]. - Repurchases of common stock in Q4 2025 amounted to $38 million, compared to $29 million in Q4 2024 [27]. Future Guidance - The company expects Total ARR growth of 2% to 4% year-over-year for 2026 [8]. - GAAP diluted EPS guidance for 2026 is projected to be in the range of $1.26 to $1.36 [8]. - The company expects Q1 2026 guidance for GAAP Earnings Per Share to be between $0.36 and $0.40, and full year guidance to be between $1.26 and $1.36 [16].

Core Insights - Teradata reported strong financial results for Q4 and full-year 2025, exceeding expectations in Total Revenue, Recurring Revenue, and Free Cash Flow [1][2] - The company emphasized the effectiveness of its Autonomous AI and Knowledge platform, which aligns well with current market demands [1][3] Financial Highlights for Q4 2025 - Free cash flow was $151 million, up from $148 million in Q4 2024 [1] - Cash flow from operations increased to $160 million from $156 million [1] - Non-GAAP diluted EPS rose to $0.74 from $0.53, while GAAP diluted EPS increased to $0.38 from $0.26 [1][2] - Non-GAAP operating margin improved to 22.8% from 17.6%, and GAAP operating margin increased to 12.8% from 9.5% [1][2] - Total revenue reached $421 million, a 3% increase from $409 million, with recurring revenue at $367 million, up 5% from $351 million [1][2] - Total Annual Recurring Revenue (ARR) grew to $1.522 billion, a 3% increase from $1.474 billion [1][2] Financial Highlights for Full-Year 2025 - Free cash flow for the year was $285 million, compared to $277 million in 2024 [1] - Cash flow from operations was $305 million, slightly up from $303 million [1] - Non-GAAP diluted EPS was $2.58, compared to $2.42 in 2024, while GAAP diluted EPS was $1.35, up from $1.16 [1][2] - Total revenue decreased to $1.663 billion from $1.750 billion, a 5% decline [1][2] - Recurring revenue for the year was $1.445 billion, down 2% from $1.479 billion [1][2] - Public cloud ARR increased significantly to $701 million, a 15% rise from $609 million [1][2] 2026 Outlook - The company expects free cash flow to be between $310 million and $330 million [1] - Cash flow from operations is projected to be between $330 million and $350 million [1] - Non-GAAP diluted EPS is anticipated to be in the range of $2.55 to $2.65, while GAAP diluted EPS is expected to be between $1.26 and $1.36 [1] - Total revenue is forecasted to decline by 2% to remain flat year-over-year, with recurring revenue expected to be flat to up 2% [1][2] - Total ARR growth is projected to be between 2% and 4% year-over-year [1]