#United States #San Diego #Teradata #Q2 2026 #Autonomous Knowledge Platform

Teradata Reports Strong Financial Performance in Q2 2026

Teradata Corporation (NYSE: TDC), a leading provider of data and analytics solutions, unveiled its financial results for the second quarter of 2026, showcasing impressive growth metrics and a commitment to innovation. The company reported a recurring revenue of $363 million, reflecting a 3% increase compared to the previous year, and a remarkable 2% increase in constant currency. Teradata’s GAAP operating margin rose significantly to 11.7%, a substantial improvement of 580 basis points from the prior year.

Key Financial Highlights

The financial results for the second quarter depicted a consistent upward trajectory:

• - Total ARR (Annual Recurring Revenue): Increased to $1.509 billion from $1.489 billion, marking a 2% rise in constant currency.
• - Public Cloud ARR: Rose to $686 million, reflecting an 8% increase, showcasing Teradata's strong performance in the cloud sector.
• - Total Revenue: Recorded at $410 million, slightly up by 0% as reported.
• - Recurring Revenue Ratio: Recurring revenue constituted 89% of total revenue, up from 87% last year, indicating greater stability in revenue streams.
• - GAAP Gross Margin: Increased to 59.3% compared to 56.4% last year, while Non-GAAP gross margin reached 60.5%, up from 58.3%.

CEO Steve McMillan stated, “Teradata once again delivered a solid quarter, increasing our total ARR, recurring revenue, and obtaining meaningful free cash flow.” This growth was driven primarily by the launch of their Autonomous Knowledge Platform, enhancing their offerings to support enterprises in leveraging Artificial Intelligence (AI).

Financial Performance Overview

Comparison to Q2 2025

• - Recurring Revenue:

- Q2 2026: $363 million
- Q2 2025: $354 million (3% growth)

• - Total Revenue:

- Q2 2026: $410 million
- Q2 2025: $408 million (0% growth)

• - Cash Flow from Operations: Increased to $106 million, a staggering 147% increase from the previous year.
• - Adjusted Free Cash Flow: Surged by 226% to reach $127 million, a testament to the company’s improved operational efficiency.

Teradata's strategic focus on product innovation and customer satisfaction has contributed significantly to its enhanced operating leverage, as evidenced by the improved operating margins:

• - GAAP Operating Margin: 11.7% (up from 5.9% in Q2 2025)
• - Non-GAAP Operating Margin: 21.5% (up from 16.4% last year)

Future Projections

Looking ahead to the third quarter of 2026, Teradata expects:

• - Recurring Revenue: Projected to decline between 4% to 2% year-over-year.
• - Total Revenue: Anticipated to decrease in the range of 6% to 4%.
• - GAAP and Non-GAAP EPS: Expected between $0.27 to $0.31 per share for GAAP, and $0.55 to $0.59 for Non-GAAP.

For the full year of 2026, Teradata has adjusted its outlook, increasing expectations for GAAP diluted EPS to the range of $4.43 to $4.51 and non-GAAP diluted EPS to $2.65 to $2.73.

Conference Call Information

To discuss these results and outlooks, Teradata will host an earnings conference call at 1:30 PM PT on August 4, 2026. Interested investors can join by calling (585) 542-9983 with access code 369709903. Global dial-in numbers are available on the Teradata Investor Relations website.

Conclusion

In conclusion, Teradata's strong financial results and innovative product launches demonstrate its resilience and commitment to delivering value amid ever-evolving market demands. As businesses increasingly turn to AI-driven solutions, Teradata's strategic position as a trusted partner sets the stage for continued growth and success in the upcoming quarters.