#United States #San Diego #financial results #AI Services #Teradata

Teradata Reports Third Quarter 2026 Financial Results

SAN DIEGO, Nov. 5, 2026 – Teradata (NYSE: TDC) has released its financial results for the third quarter of 2026, showcasing continued progress in its business objectives. The company reported an increase in Annual Recurring Revenue (ARR) and a strong focus on product innovation, particularly in AI services.

In Q3 2026, Teradata achieved a total ARR of $1.512 billion, marking a 1% growth compared to the previous year. Notably, public cloud ARR rose significantly by 11% to reach $700 million, reflecting a growing demand for cloud-based solutions in today’s business environment.

Despite the growth in ARR, total revenue reported was $399 million, down 4% from $416 million in Q3 2025. Recurring revenue also saw a slight decrease of 2%, totaling $359 million. This trend suggests that while the demand for cloud services continues to increase, the overall revenue picture requires strategic adaptation.

CEO Steve McMillan emphasized the company’s commitment to innovation: "In Q3, Teradata marked another quarter of progress against the goals we set at the start of the year, driving total ARR growth, improving profitability and delivering strong free cash flow.”

Financial Highlights

The third quarter financial highlights feature:

• - GAAP diluted EPS: $0.40, compared to $0.42 in the previous year.
• - Non-GAAP diluted EPS: $0.70, slightly down from $0.72.
• - Cash flow from operations: $91 million, while adjusted free cash flow reached $96 million.

These figures demonstrate Teradata’s resilient operational cash flow, despite facing revenue challenges.

Product and Innovation Developments

Teradata made significant strides in product innovation, enhancing its offerings to maintain competitiveness in the market. Key highlights include:

• - Launching the Teradata Factory, which integrates GPU systems for analytics and AI, ensuring data security within organizational boundaries.
• - Evolving Tera into an agentic coworker that facilitates natural language analysis and automates workflows, simplifying the process for users.
• - Introducing the Tera Context Engine, a vendor-neutral framework that streamlines connections between various data sources and AI agents, empowering users with valuable insights regardless of the data’s location.
• - Improving operational efficiency with Tera Harness, which enhances AI’s accuracy and speed by intelligently routing tasks to appropriate tools and resources.
• - Making the Teradata Data Analyst Agent available through the AWS Marketplace, and integrating the Teradata platform with Microsoft OneLake for seamless data operation.

With these advancements, Teradata is not only responding to current market demands but also actively shaping the future of its ecosystem, focusing on advancing AI capabilities within enterprise data management.

Future Outlook

Looking ahead, Teradata has adjusted its forecasts for the remainder of 2026:

• - Expected GAAP diluted EPS for the year now ranges from $4.63 to $4.67.
• - The annual growth for total ARR is projected at 2% to 4% year-over-year, aligning with its long-term strategic objectives.
• - Cash flow from operations is predicted to fall between $665 million to $685 million, boosted by a significant net benefit from a recent settlement.

As Teradata continues to innovate and refine its strategies amidst fluctuating market conditions, the company expresses confidence in its ability to meet and exceed its financial goals, reinforcing its position as a key player in data analytics and AI-driven solutions.

Investors and interested parties are encouraged to join the earnings conference call scheduled for 1:30 PM PT on November 5, 2026, for a more in-depth discussion of these results and future projections. Details for participation can be found on Teradata's Investor Relations website.

For further insights and updates on Teradata, visit Teradata.com.