Teradata Corp ( (TDC) ) has released its Q3 earnings. Here is a breakdown of the information Teradata Corp presented to its investors.
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Teradata Corp, a leader in the cloud analytics and data platform sector, specializes in providing solutions for AI workloads, offering both cloud and on-premise options for its clients. In its third quarter of 2025, Teradata reported a total annual recurring revenue (ARR) of $1.490 billion, marking a slight increase from the previous year. The company also achieved a cash flow from operations of $94 million and a free cash flow of $88 million, alongside a GAAP diluted EPS of $0.42 and a non-GAAP diluted EPS of $0.72.
Key financial highlights for the quarter include an 11% increase in public cloud ARR to $633 million and a total revenue of $416 million, which represents a 5% decrease from the previous year. Despite a decline in recurring revenue and consulting services, Teradata improved its GAAP and non-GAAP gross margins to 60.8% and 62.3%, respectively. The company also reported a GAAP operating margin of 14.7% and a non-GAAP operating margin of 23.6%.
Looking forward, Teradata reaffirms its full-year outlook, expecting GAAP diluted EPS to range between $1.22 and $1.26, and non-GAAP diluted EPS to range between $2.38 and $2.42. The company anticipates cash flow from operations to be between $280 million and $300 million, with free cash flow projected to be between $260 million and $280 million. Teradata remains optimistic about its public cloud ARR growth, projecting a year-over-year increase of 14% to 18%.
In conclusion, Teradata continues to focus on solidifying its position in the cloud analytics market, with an emphasis on AI workloads. The management remains confident in its strategic direction and financial outlook for the remainder of the year, despite some challenges in revenue growth.