Q4 2025 Teradata Corp Earnings Call Transcript
Key Points
- Teradata Corp (TDC) exceeded expectations for total revenue, recurring revenue, and free cash flow in the fourth quarter of 2025.
- The company reported a 3% growth in total ARR and a 15% growth in Cloud ARR, indicating strong performance in cloud services.
- Teradata Corp (TDC) improved non-GAAP operating margins to 21% and demonstrated operational discipline.
- The company launched several innovations, including the Enterprise Vector Store and MCP Server, enhancing AI capabilities.
- Teradata Corp (TDC) announced a new partnership with Unstructured.io, expanding its AI ecosystem and capabilities.
- Consulting Services revenue decreased by 4% year over year, indicating challenges in this segment.
- Recurring revenue for the full year decreased by 2% as reported, showing a decline in some areas.
- The company anticipates typical seasonality with potential declines in total ARR and Cloud ARR in Q1 2026.
- There is uncertainty regarding the impact of new AI initiatives on ARR growth in 2026.
- The hardware refresh is not expected to significantly impact financials until late 2026 or 2027.
Good afternoon. My name is Victoria, and I will be your conference operator today. At this time, I would like to welcome everyone to the Teradata 2025 fourth quarter and full-year earnings call. (Operator Instructions)
I would now like to hand the conference over to your host today, Chad Bennett, Senior Vice President of Investor Relations and Corporate Development. You may now begin your conference.
Good afternoon, and welcome to Teradataâs fourth quarter and full-year 2025 earnings call. Steve McMillan, Teradata's President and Chief Executive Officer, will lead our call today, followed by John Ederer, Teradata's Chief Financial Officer, who will discuss our financial results and outlook.
Our discussion today includes forecasts and other information that are considered forward-looking statements. While these statements reflect our current outlook, they are subject to a number of risks and uncertainties that could cause actual results to
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