10-K · February 27, 2026
Teradata's 10-K reveals a strategic focus on transitioning to a subscription-based model with strong cloud offerings, achieving a revenue of $1.663 billion in 2025, down 5% from 2024. The company recorded a gross margin…
Earnings analysis · 10-Q
TDC earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Teradata Corporation reported strong Q1 2026 results with revenues of $444 million and GAAP EPS of $0.88, both exceeding analyst expectations. The company achieved a notable increase in Total Annual Recurring Revenue…
Read full summary
Teradata Corporation reported strong Q1 2026 results with revenues of $444 million and GAAP EPS of $0.88, both exceeding analyst expectations. The company achieved a notable increase in Total Annual Recurring Revenue (ARR) to $1.492 billion, mainly driven by a 13% rise in Public Cloud ARR. However, operating expenses surged due to legal costs related to the SAP settlement, resulting in an operating loss of $36 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.88
- Gross margin
- 62.2%
What stood out
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Revenue Growth
Total revenue for Q1 2026 was $444 million, a 6% increase from $418 million in Q1 2025.
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Earnings Beat
Q1 2026 diluted EPS was $0.88, up from $0.45 in Q1 2025, exceeding estimates of $0.73.
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Strong Cash Flow
Operating cash flow reached $401 million, up significantly from just $8 million in Q1 2025.
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Improved Gross Margin
Gross margin improved to 62.2% in Q1 2026, compared to 59.3% in Q1 2025.
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Total ARR Growth
Total ARR increased to $1.492 billion, a 3% rise year-over-year.
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Public Cloud ARR Surge
Public Cloud ARR rose to $686 million, reflecting a 13% growth from $606 million in Q1 2025.
What to watch
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Increased Operating Losses
Operating loss of $36 million in Q1 2026 compared to operating income of $66 million in Q1 2025 due to rising legal fees.
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Declining Consulting Services Revenue
Consulting services revenue decreased 14% to $43 million in Q1 2026 from $50 million in Q1 2025.
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High Operating Expenses
Total operating expenses were $312 million, an increase of 71% year-over-year largely due to SAP litigation costs.
Management's outlook
Full year EPS guidance raised to $4.22 to $4.32, reflecting strong performance bolstered by SAP settlement.
Earlier filings 4
10-Q · November 5, 2025
In its Q3 FY2025 results, Teradata reported a top-line revenue of $416 million, representing a decline of 5% year-over-year but a beat of 2.5% against analyst expectations. Gross margin improved to 60.8%, and EPS…
10-Q · August 6, 2025
Teradata's Q2 2025 results showed a revenue decline of 6% year-over-year to $408 million, driven by decreased consulting services and perpetual software revenue. Gross margins fell to 56.4%, reflecting lower consulting…
10-Q · May 7, 2025
Teradata's Q1 2025 results show a decrease in total revenue to $418 million, a drop of 10% year-over-year, primarily due to falling recurring revenue. However, net income saw a substantial increase to $44 million, up…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.