Teradata(US:TDC) ZACKS·2026-02-11 19:26Core Insights - Teradata (TDC) reported Q4 2025 non-GAAP earnings of 74 cents per share, exceeding the Zacks Consensus Estimate by 35.04%, with a year-over-year increase of 39.6% [1] - Revenues reached $421 million, surpassing the Zacks Consensus Estimate by 6.52%, reflecting a 3% year-over-year growth [1] Financial Performance - Total annual recurring revenues (ARR) at the end of Q4 increased 3% year over year to $1.52 billion, with a 1% increase on a constant-currency basis [2] - Public cloud ARR grew 15% year over year to $701 million, driven by rising demand for cloud solutions, with a cloud net expansion rate of 108% [3] - Recurring revenues, accounting for 87.2% of total revenues, rose 5% year over year to $367 million [4] - Perpetual software license and hardware revenues dropped 67% year over year to $1 million, while consulting services revenues fell 4% to $53 million [4] Operating Metrics - Q4 gross margin on a non-GAAP basis was 62%, an increase of 110 basis points year over year [5] - Selling, general & administrative (SG&A) expenses decreased 5.1% year over year to $129 million, while research & development (R&D) expenses rose 7.4% to $73 million [5] - Non-GAAP operating margin improved to 22.8%, up 520 basis points year over year [5] Balance Sheet Strength - As of December 31, 2025, Teradata had cash and cash equivalents of $493 million, up from $406 million as of September 30 [6] - Long-term debt decreased to $431 million from $437 million in the previous quarter [6] - The company generated $160 million in cash from operating activities in Q4, compared to $94 million in the previous quarter [6] Future Guidance - For Q1 2026, non-GAAP earnings are expected to be between 75 cents and 79 cents per share, with recurring revenues projected to increase by 6% to 8% year over year [8] - For 2026, Teradata anticipates non-GAAP earnings between $2.55 and $2.65 per share, with public cloud ARR growth projected at a low double-digit percentage [7][9]