Teradata Corp
NYSE:TDC
Teradata Corp
In the world of data-driven decision making, Teradata Corp. has carved out a substantial niche by delivering enterprise data analytics solutions that empower businesses to harness their data effectively. The company's roots stretch back to 1979, originating as a division of NCR Corporation before spinning off, establishing itself as a stalwart in the realm of data warehousing. Teradata facilitates companies to collect, manage, and analyze both structured and unstructured data across multiple platforms, providing critical insights that drive strategic business outcomes. This process is orchestrated through its flagship offering, the Vantage platform, which integrates analytics capabilities with scalable data management and flexible deployment options. By striking a balance between on-premises solutions and cloud-based services, Teradata ensures it caters to a diverse clientele across various sectors, from retail and healthcare to financial services and telecommunications.
Revenue streams for Teradata flow primarily from its suite of software, consulting services, and maintenance agreements, which together form a comprehensive support system for enterprise clients. The company differentiates itself by delivering powerful performance on complex workloads, enabling real-time data analytics that equip businesses with the agility to respond swiftly to market shifts. Additionally, Teradata's professional services arm plays a crucial role in customizing and optimizing its offerings to fit specific industry requirements and client objectives. By doing so, Teradata not only enhances client satisfaction but also fosters long-term partnerships, ensuring a steady recurring revenue base. This strategic model of intertwining software capabilities with tailored consultative services positions Teradata as a pivotal ally for businesses intent on deriving value from their data investments.
In the world of data-driven decision making, Teradata Corp. has carved out a substantial niche by delivering enterprise data analytics solutions that empower businesses to harness their data effectively. The company's roots stretch back to 1979, originating as a division of NCR Corporation before spinning off, establishing itself as a stalwart in the realm of data warehousing. Teradata facilitates companies to collect, manage, and analyze both structured and unstructured data across multiple platforms, providing critical insights that drive strategic business outcomes. This process is orchestrated through its flagship offering, the Vantage platform, which integrates analytics capabilities with scalable data management and flexible deployment options. By striking a balance between on-premises solutions and cloud-based services, Teradata ensures it caters to a diverse clientele across various sectors, from retail and healthcare to financial services and telecommunications.
Revenue streams for Teradata flow primarily from its suite of software, consulting services, and maintenance agreements, which together form a comprehensive support system for enterprise clients. The company differentiates itself by delivering powerful performance on complex workloads, enabling real-time data analytics that equip businesses with the agility to respond swiftly to market shifts. Additionally, Teradata's professional services arm plays a crucial role in customizing and optimizing its offerings to fit specific industry requirements and client objectives. By doing so, Teradata not only enhances client satisfaction but also fosters long-term partnerships, ensuring a steady recurring revenue base. This strategic model of intertwining software capabilities with tailored consultative services positions Teradata as a pivotal ally for businesses intent on deriving value from their data investments.
Revenue Beat: Teradata exceeded expectations for total revenue, recurring revenue, and free cash flow in Q4, with total revenue of $421 million, up 3% year-over-year.
ARR Growth: Total ARR returned to positive growth, up 3% for the year, and cloud ARR grew 15%, now comprising 46% of total ARR.
Profitability: Operating margin improved significantly to 22.8% in Q4, with consulting services gross margin jumping to 18.9%.
EPS Outperformance: Non-GAAP diluted EPS was $0.74 for Q4, beating the top end of guidance by $0.17, helped by higher recurring revenue and a one-time tax benefit.
Strong Free Cash Flow: Free cash flow reached $285 million for the year, above outlook, and $151 million in Q4.
2026 Outlook: Management forecasts ARR growth of 2–4%, recurring revenue growth of 0–2%, and free cash flow of $310–330 million, with most growth expected in Q2 and Q3.
AI & Hybrid Focus: Teradata launched several new AI-focused products and services and emphasized customer demand for hybrid deployments (on-prem and cloud).
Capital Return: $140 million in share repurchases for 2025, with a new $500 million buyback authorized for 2026.
