TDC earnings analysis
What we found in TDC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Total revenue for Q1 2026 was $444 million, a 6% increase from $418 million in Q1 2025.
- Earnings Beat
- Q1 2026 diluted EPS was $0.88, up from $0.45 in Q1 2025, exceeding estimates of $0.73.
- Strong Cash Flow
- Operating cash flow reached $401 million, up significantly from just $8 million in Q1 2025.
- Improved Gross Margin
- Gross margin improved to 62.2% in Q1 2026, compared to 59.3% in Q1 2025.
- Total ARR Growth
- Total ARR increased to $1.492 billion, a 3% rise year-over-year.
- Public Cloud ARR Surge
- Public Cloud ARR rose to $686 million, reflecting a 13% growth from $606 million in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- Declining Consulting Services Revenue
- Consulting services revenue decreased 14% to $43 million in Q1 2026 from $50 million in Q1 2025.
- High Operating Expenses
- Total operating expenses were $312 million, an increase of 71% year-over-year largely due to SAP litigation costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.88
- Gross margin
- 62.2%
What they said about what is next.
Full year EPS guidance raised to $4.22 to $4.32, reflecting strong performance bolstered by SAP settlement.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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