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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.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.
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