Why it matters: Teradata's Nov 5 results show the data analytics company's shift to the cloud: public cloud annual recurring revenue reached $700 million even as total revenue fell to $399 million.
Teradata (TDC) reported third-quarter revenue of $399 million, down 4% from $416 million a year earlier. The quarter ended Sept 30. Results were released Nov 5.
Recurring revenue and the cloud: Recurring revenue was $359 million, down 2% from $366 million, and made up 90% of total revenue. Consulting services revenue fell 21% to $37 million. Total annual recurring revenue, a company metric, was $1.512 billion at Sept 30, up 1%, while public cloud annual recurring revenue rose 11% to $700 million from $633 million.
Profit: Net income was $38 million, compared with $40 million a year earlier. Diluted earnings per share were $0.40, compared with $0.42. Non-GAAP diluted earnings per share were $0.70, compared with $0.72.
Cash: Cash flow from operations was $91 million, compared with $94 million. Free cash flow, a non-GAAP measure, was $85 million, and adjusted free cash flow, also non-GAAP, was $96 million.
Products: Teradata said it made Teradata Factory, which it describes as an integrated GPU system combining analytics, AI and governance that keeps data inside a customer's own walls, generally available during the quarter. It also said it expanded Tera, its AI assistant for enterprise data work.
The company's outlook: Teradata raised its full-year 2026 range for GAAP diluted earnings per share to $4.63 to $4.67 and for non-GAAP diluted earnings per share to $2.86 to $2.90. It expects full-year total revenue of -1% to flat compared with 2025, and fourth-quarter total revenue down 4% to 6% from a year earlier. These are the company's own projections.
This story is for information only and is not investment advice.
Sources
- Teradata: third-quarter 2026 results release, Form 8-K Exhibit 99.1, SEC EDGAR, Nov 5, 2026
- Teradata: Form 8-K (results of operations), SEC EDGAR, Nov 5, 2026
- Teradata: Form 8-K filing index, SEC EDGAR, Nov 5, 2026
How we checked this: We read Teradata's third-quarter 2026 earnings release and the related Form 8-K (Item 2.02) as filed with the SEC on Nov 5, 2026, in copies saved on Nov 8, 2026 at about 5:16 PM ET, and checked every figure against them.
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