Teradata

Teradata helps big companies organize and understand massive amounts of data. It makes a platform to store information and run complex math. Banks and hospitals use these tools to make better daily decisions.

What Is in the Analytic Toolbox?

• Recurring Products: Digital services and software subscriptions that businesses pay for regularly; accounts for 90.1% of revenue.
• Teradata Vantage: Flagship multi-cloud data platform that allows companies to analyze information across various storage environments.
• Consulting Services: Professional support for setting up data strategies and technical architectures; accounts for 9.7% of revenue.
• Public Cloud: Software versions running on internet servers that drove a 13% increase in annual contract value.

Strategic Shifts and Legal Settlements

• SAP Settlement: Entered an agreement on February 19, 2026, to resolve all past litigation with SAP for a $480 million gross payment.
• Global Restructuring: Initiated a plan on August 5, 2024, to realign sales functions and reduce non-revenue generating expenses.
• ESG Integration: Amended its credit agreement on September 21, 2023, to link loan fees to environmental, social, and governance (ESG) targets.

A Specialist in Complex Data

Teradata uses patented workload management technology to help enterprises run analytics across both on-premises and cloud systems. The company relies on a direct sales force to serve large clients in industries like healthcare and manufacturing worldwide.

The Q1 2026 Scorecard

• Total revenue reached $444 million in the first quarter of 2026, up 6.2% from the same period in 2025.
• Net income rose to $335 million in the first quarter of 2026, up 661.4% year-over-year due to a legal settlement.
• Public Cloud Annual Recurring Revenue (ARR) increased to $686 million by March 31, 2026, a 13% year-over-year gain.
• Operating income worsened to a $36 million loss in the first quarter of 2026, down from a $66 million profit.
• Free cash flow hit $390 million in the first quarter of 2026, up from $7 million in the prior year.

The Big Picture

Teradata has transitioned from traditional software sales to a cloud-focused subscription business. Its focus on complex analytics across hybrid and multi-cloud environments helps maintain its relevance in large-scale data management.