• Second quarter Total ARR of $1.489 billion, an increase of 2% as reported and 0% in constant currency from the prior year period⁽¹⁾
• Second quarter public cloud ARR of $634 million, an increase of 17% as reported and 15% in constant currency from the prior year period⁽¹⁾
• Second quarter GAAP diluted EPS of $0.09 and non-GAAP diluted EPS of $0.47⁽²⁾
• Reiterate full year outlook for Total ARR, Cloud ARR, and Free Cash Flow

Teradata (NYSE: TDC) today announced its second quarter 2025 financial results.

“Teradata executed well in Q2, building on our cloud growth and longstanding strength in on-prem to provide customers with their preferred hybrid data and analytics environments for implementing AI. In the second quarter, we finished above the high-end of our recurring revenue outlook range, at the top end of our total revenue range, and EPS outperformed our expectations,” said Steve McMillan, President and CEO, Teradata. “Our extensive capabilities position us well as we build the modern data platforms customers need to manage the high quality, well-governed and trusted data foundations that deliver successful AI outcomes.”

Second Quarter 2025 Financial Highlights Compared to Second Quarter 2024

• Public cloud ARR increased to $634 million from $542 million, an increase of 17% as reported and 15% in constant currency⁽¹⁾
• Total ARR increased to $1.489 billion from $1.465 billion, an increase of 2% as reported and 0% in constant currency⁽¹⁾
• Recurring revenue was $354 million versus $368 million, a decrease of -4% as reported and -4% in constant currency⁽¹⁾
• Total revenue was $408 million versus $436 million, a decrease of -6% as reported and -7% in constant currency⁽¹⁾
• Recurring revenue was 87% of total revenue versus 84%
• GAAP gross margin was 56.4% versus 60.8%
• Non-GAAP gross margin was 58.3% versus 62.2%⁽²⁾
• GAAP operating margin was 5.9% versus 15.1%
• Non-GAAP operating margin was 16.4% versus 22.0%⁽²⁾
• GAAP diluted EPS was $0.09 versus $0.38 per share
• Non-GAAP diluted EPS was $0.47 versus $0.64 per share⁽²⁾
• Cash flow from operations was $43 million compared to $43 million
• Free cash flow was $39 million compared to $39 million⁽³⁾

Outlook

For the third quarter of 2025:

• Recurring revenue in the range of -4% to -6% year-over-year, in constant currency⁽⁴⁾
• Total revenue in the range of -7% to -9% year-over-year, in constant currency⁽⁴⁾
• GAAP diluted EPS is expected to be in the range of $0.24 to $0.28 per share
• Non-GAAP diluted EPS is expected to be in the range of $0.51 to $0.55 per share⁽²⁾

For the full-year 2025, Teradata updates the following ranges:

• Total revenue range is now expected to be in the range of -5% to -7% year-over-year, in constant currency⁽⁴⁾
• GAAP diluted EPS is now expected to be in the range of $1.04 to $1.12
• Non-GAAP diluted EPS is now expected to be in the range of $2.17 to $2.25 per share⁽²⁾

Teradata reaffirms the following ranges for the full-year 2025:

• Public cloud ARR growth of 14% to 18% year-over-year, in constant currency⁽⁴⁾
• Total ARR in the range of flat to 2% year-over-year, in constant currency⁽⁴⁾
• Recurring revenue in the range of -3% to -5% year-over-year, in constant currency⁽⁴⁾
• Cash flow from operations of $270 million to $300 million
• Free cash flow of $250 million to $280 million⁽³⁾

Earnings Conference Call

The conference call will begin at 1:30 p.m. PT on August 5, 2025. Investors and participants may attend the call by dialing (404) 975-4839 and entering access code 479245. For investors and participants outside the United States, see global dial-in numbers here, and use access code 479245.

The live webcast, as well as a replay, will be available on the Investor Relations page of the Teradata website at investor.teradata.com.

Supplemental Financial Information

Additional information regarding Teradata’s operating results is provided below as well as on Teradata’s website at investor.teradata.com.

Note to Investors

This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward-looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “focus,” “see,” “commit,” “should,” “project,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2025 third quarter and 2025 full year financial outlook. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: the global economic environment and business conditions in general, including inflation, tariffs, and/or recessionary conditions; the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including the restructuring actions; risks inherent in operating in foreign countries, including sanctions, tariffs, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for artificial intelligence; tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from the implementation of a new ERP system and changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Teradata

At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most. See how at Teradata.com.

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