Teradata Reports Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - Teradata reported strong financial results for Q4 and full-year 2025, exceeding expectations in Total Revenue, Recurring Revenue, and Free Cash Flow [1][2] - The company emphasized the effectiveness of its Autonomous AI and Knowledge platform, which aligns well with current market demands [1][3] Financial Highlights for Q4 2025 - Free cash flow was $151 million, up from $148 million in Q4 2024 [1] - Cash flow from operations increased to $160 million from $156 million [1] - Non-GAAP diluted EPS rose to $0.74 from $0.53, while GAAP diluted EPS increased to $0.38 from $0.26 [1][2] - Non-GAAP operating margin improved to 22.8% from 17.6%, and GAAP operating margin increased to 12.8% from 9.5% [1][2] - Total revenue reached $421 million, a 3% increase from $409 million, with recurring revenue at $367 million, up 5% from $351 million [1][2] - Total Annual Recurring Revenue (ARR) grew to $1.522 billion, a 3% increase from $1.474 billion [1][2] Financial Highlights for Full-Year 2025 - Free cash flow for the year was $285 million, compared to $277 million in 2024 [1] - Cash flow from operations was $305 million, slightly up from $303 million [1] - Non-GAAP diluted EPS was $2.58, compared to $2.42 in 2024, while GAAP diluted EPS was $1.35, up from $1.16 [1][2] - Total revenue decreased to $1.663 billion from $1.750 billion, a 5% decline [1][2] - Recurring revenue for the year was $1.445 billion, down 2% from $1.479 billion [1][2] - Public cloud ARR increased significantly to $701 million, a 15% rise from $609 million [1][2] 2026 Outlook - The company expects free cash flow to be between $310 million and $330 million [1] - Cash flow from operations is projected to be between $330 million and $350 million [1] - Non-GAAP diluted EPS is anticipated to be in the range of $2.55 to $2.65, while GAAP diluted EPS is expected to be between $1.26 and $1.36 [1] - Total revenue is forecasted to decline by 2% to remain flat year-over-year, with recurring revenue expected to be flat to up 2% [1][2] - Total ARR growth is projected to be between 2% and 4% year-over-year [1]