Teradata
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Teradata (TDC) investor relations material

Teradata Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary10 Feb, 2026

Executive summary

  • Exceeded expectations for Q4 and FY25 total revenue, recurring revenue, and free cash flow, driven by strong EPS, ARR growth, and operational discipline.

  • Public cloud ARR grew 15% year-over-year to $701 million, now representing 46% of total ARR.

  • Launched multiple AI-driven innovations and expanded partnerships, positioning the platform for autonomous AI and hybrid deployments.

  • Customer engagement remained robust, with increased adoption of both traditional and new workloads, and a resurgence of interest in hybrid deployments.

  • Industry recognition as a leader in data management and AI platforms by Forrester, Gartner, and Nucleus Research.

Financial highlights

  • Q4 total revenue was $421 million, up 3% year-over-year; recurring revenue was $367 million, up 5% year-over-year.

  • Q4 total ARR reached $1.522 billion, up 3% as reported and 1% in constant currency; cloud ARR grew 15%.

  • Full-year 2025 total revenue was $1.663 billion, down 5% year-over-year; recurring revenue was $1.445 billion, down 2%.

  • Q4 non-GAAP operating margin was 22.8%–24%; non-GAAP diluted EPS was $0.74, up from $0.53 last year.

  • Free cash flow for FY25 was $285 million, with cash and equivalents at $493–494 million at year-end.

Outlook and guidance

  • FY26 total ARR expected to grow 2%–4% year-over-year; recurring revenue to grow 0%–2%; total revenue expected between -2% and 0%.

  • Non-GAAP diluted EPS for FY26 expected in the range of $2.55–$2.65; operating margin to expand by ~100 basis points.

  • Free cash flow guidance for FY26 is $310–$330 million; Q1 expected to be slightly negative, with most growth in Q2 and Q3.

  • Q1 2026 recurring revenue expected to grow 6%–8% year-over-year; total revenue to grow 1%–3%.

  • Cloud ARR targeted for low double-digit percentage growth, though not formally guided due to mix variability.

Reconcile FY vs Q4 recurring revenue trends
Public cloud ARR growth vs total ARR
AI platform resonance vs. 2026 growth outlook
AI engagements: conversion to material ARR?
2026 recurring revenue variability drivers?
New hardware platform: competitive advantage?
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Frequently asked questions

Teradata Corporation, a data and analytics company, provides hybrid cloud and single-cloud solutions for enterprise analytics worldwide. The company offers Teradata Database, a business critical relational database management system. It also offers Teradata Aster Analytics to deliver insights; Vantage, an open PaaS platform that allows customers to build analytical solutions or enable existing applications with advanced analytics; and Teradata Data Stream Architecture, which enables real-time IoT streaming analytic processing of high volumes of structured and unstructured data.

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