AI Earnings Predictions for Teradata Corporation (TDC)

EX-99.1

2 tdc03312026exhibit991.htm

EX-99.1

Document

Exhibit 99.1

INVESTOR CONTACT

Chad Bennett

chad.bennett@teradata.com

MEDIA CONTACT

Jennifer Donahue

jennifer.donahue@teradata.com

Teradata Reports First Quarter 2026 Financial Results

•Total ARR of $1.492 billion, an increase of 3% as reported and 2% in constant currency from the prior year period(1)

•Public cloud ARR of $686 million, an increase of 13% as reported and 12% in constant currency from the prior year period(1)

•Recurring Revenue of $400 million, up 12% as reported and 9% in constant currency(1)

•Cash Flow from Operations of $401 million and Free Cash Flow of $390 million, which includes a pre-tax net benefit of $359 million related to a settlement with SAP(3)

SAN DIEGO – May 5, 2026 -- Teradata (NYSE: TDC) today announced its first quarter 2026 financial results.

“Teradata delivered a strong first quarter, outperforming on key growth and performance metrics as we enter 2026. Enterprises are discovering that winning with AI requires context, governed data, codified industry knowledge, and a hybrid infrastructure that meets them wherever they operate," said Steve McMillan, President and CEO of Teradata. "Our autonomous AI and knowledge capabilities are the proven foundation for this AI era, and with significant innovations ahead, we are well positioned to enable the world's leading organizations to rapidly deploy agentic AI. Our trajectory is clear, and we believe that the opportunity to create meaningful, lasting value for our shareholders is significant.”

First Quarter 2026 Financial Highlights Compared to First Quarter 2025

•Total ARR increased to $1.492 billion from $1.442 billion, an increase of 3% as reported and 2% in constant currency(1)

•Public cloud ARR increased to $686 million from $606 million, an increase of 13% as reported and 12% in constant currency(1)

•Recurring revenue was $400 million versus $358 million, an increase of 12% as reported and 9% in constant currency(1)

•Total revenue was $444 million versus $418 million, an increase of 6% as reported and 4% in constant currency(1)

•Recurring revenue was 90% of total revenue versus 86%

•GAAP gross margin was 62.2% versus 59.3%

•Non-GAAP gross margin was 63.7% versus 60.3%(2)

•GAAP operating margin was (8.1%) versus 15.8%

•Non-GAAP operating margin was 27.3% versus 21.8%(2)

•GAAP diluted EPS was $3.47 versus $0.45 per share

•Non-GAAP diluted EPS was $0.88 versus $0.66 per share(2)

•Cash flow from operations was $401 million compared to $8 million

•Free cash flow was $390 million compared to $7 million(3)

•Adjusted free cash flow was $31 million compared to $7 million(3)

SAP Litigation Settlement

On February 19, 2026, Teradata entered into a settlement agreement with SAP. From the settlement, Teradata received a gross payment of $480 million in the first quarter of 2026. After accounting for legal fees and other expenses for the litigation and resulting settlement, the pre-tax net amount was $359 million, with $79 million of tax expense being recognized as a discrete item for US GAAP purposes in the first quarter. The net after tax settlement positively impacted GAAP Diluted EPS by $2.90 in the first quarter of 2026. For both Cash flow from Operations and Free Cash Flow, the pre-tax amount of $359 million was reflected in the first quarter of 2026. In addition, an estimated $57 million of cash tax payments related to the settlement is expected to be paid by the end of 2026 which will change the Cash flow from Operations and Free Cash Flow linearity. Regarding the tax payments, approximately half is expected to be paid in second quarter of 2026 and the remaining half is expected to be split between the third and fourth quarters of 2026. On an after-tax net basis, the settlement is expected to provide a benefit of $302 million to Cash from Operations and Free Cash Flow.

Teradata is introducing Adjusted Free Cash Flow to provide a normalized free cash flow measure for the business. Adjusted Free Cash Flow will reflect adjustments for the impact from the SAP litigation and resulting settlement gross proceeds, legal and other expenses and incremental cash taxes specific to the settlement.

Outlook

For the second quarter of 2026:

•Recurring revenue in the range of -2% to flat year-over-year

•Total revenue in the range of -4% to -2% year-over-year

•GAAP diluted EPS is expected to be in the range of $0.22 to $0.26 per share

•Non-GAAP diluted EPS is expected to be in the range of $0.53 to $0.57 per share(2)

For the full year 2026, Teradata increases the following ranges:

•GAAP diluted EPS is now expected to be in the range of $4.22 to $4.32

•Cash flow from operations of $642 million to $662 million, which includes an after-tax net benefit of $302 million related to a settlement with SAP

•Adjusted free cash flow of $320 million to $340 million(3)

For the full year 2026, Teradata reaffirms the following ranges:

•Total ARR growth of 2% to 4% year-ov

tdc-20260210TERADATA CORP /DE/0000816761false00008167612026-02-102026-02-10

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 10, 2026

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 001-33458

Delaware75-3236470 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

17095 Via Del Campo San Diego, California 92127

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (866) 548-8348

N/A (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered Common Stock, $0.01 par valueTDCNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02    Results of Operations and Financial Condition. Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934. On February 10, 2026, the Company issued a press release setting forth its fourth quarter and full-year 2025 operating results as well as current outlook estimates for the first quarter of 2026 and for the full-year 2026 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference.

The Company also posted supplemental material dated February 10, 2026, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Item 9.01        Financial Statements and Exhibits. (d)    Exhibits: The following exhibits are attached with this current report on Form 8-K:

Exhibit No.Description 99.1 Press Release, dated February 10, 2026, issued by the Company (Earnings Press Release).

104Cover Page Interactive Data (embedded within the Inline XBRL document).

Safe Harbor Statement

This Current Report on Form 8-K 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. All statements, other than statements of historical facts, included in this Current Report on Form 8-K and in the accompanying press release, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including statements about our 2026 first quarter and full year 2026 financial outlook and product innovation and demand are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company’s actual results to differ materially. In

tdc-20251104TERADATA CORP /DE/0000816761false00008167612025-11-042025-11-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 4, 2025

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 001-33458

Delaware75-3236470 (State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

17095 Via Del Campo San Diego, California 92127 (Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (866) 548-8348

N/A (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered Common Stock, $0.01 par valueTDCNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02    Results of Operations and Financial Condition. Teradata Corporation ("Teradata" or the "Company") is furnishing the following information as required under Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934. On November 4, 2025, the Company issued a press release setting forth its third quarter of fiscal year 2025 operating results as well as current outlook estimates for the fourth quarter of 2025 and for the full-year 2025 (the "Earnings Press Release"). A copy of the Earnings Press Release is attached hereto as Exhibit 99.1 and hereby incorporated by reference. The Company also posted supplemental material dated November 4, 2025, on the Investor Relations page of its website at investor.teradata.com. Except as specifically noted herein, information on the Company’s website is not, and will not be deemed to be, a part of this Current Report on Form 8-K or incorporated into any other filings the Company may make with the Securities and Exchange Commission.

Item 9.01        Financial Statements and Exhibits. (d)    Exhibits: The following exhibits are attached with this current report on Form 8-K:

Exhibit No.Description 99.1 Press Release, dated November 4, 2025, issued by the Company (Earnings Press Release).

104Cover Page Interactive Data (embedded within the Inline XBRL document).

Safe Harbor Statement

This Current Report on Form 8-K 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. All statements, other than statements of historical facts, included in this Current Report on Form 8-K which address activities, events or developments that the Company expects or anticipates will or may occur in the future, including statements about our 2025 fourth quarter and full year 2025 financial outlook in the accompanying press release are forward-looking statements. These forward-looking statements are based upon current expectations and assumptions and involve risks and uncertainties that could cause the Company’s actual results to differ materially. In addition to the factors discussed in this Fo