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Teradata Reaches Major Litigation Settlement with SAP SE

Story Highlights
  • On Feb. 19, 2026, Teradata settled all litigation with SAP for $480 million.
  • Teradata expects $355–$362 million net cash benefit, shaping future capital allocation plans.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Teradata Reaches Major Litigation Settlement with SAP SE

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Teradata ( (TDC) ) has issued an update.

On February 19, 2026, Teradata entered into a settlement agreement with SAP SE and its U.S. affiliates to resolve all past and pending litigation between the parties, with mutual releases of all claims and liabilities tied to the disputes. Under the deal, Teradata is entitled to receive a gross payment of $480 million within 60 days of the effective date, after which both sides will ask the court to dismiss all claims, defenses and counterclaims with prejudice.

Teradata expects the net cash benefit from the settlement, after contingent fee arrangements and other legal costs but before taxes, to range between approximately $355 million and $362 million. The company is assessing how best to deploy these proceeds and has signaled that it will outline its plans on its first-quarter 2026 earnings call, a development that could materially affect its balance sheet flexibility and capital allocation options for shareholders.

The most recent analyst rating on (TDC) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Teradata stock, see the TDC Stock Forecast page.

Spark’s Take on TDC Stock

According to Spark, TipRanks’ AI Analyst, TDC is a Neutral.

The score is driven primarily by strong free cash flow and improving profitability, tempered by balance-sheet leverage and uneven/declining revenue. Technicals are currently soft (below key short-term moving averages with negative MACD), while valuation is mid-range (P/E ~21). Guidance supports measured ARR/margin and cash-flow improvement, but with near-term top-line and seasonality headwinds.

To see Spark’s full report on TDC stock, click here.

More about Teradata

Teradata is a data analytics and information technology company that provides cloud, on-premises and hybrid data platforms and related services, with a focus on helping enterprises manage large-scale data and advanced analytics. Operating in the intensely competitive IT and analytics markets, it serves global customers that rely on secure, high-performance data infrastructure to support business intelligence and artificial intelligence workloads.

Average Trading Volume: 1,679,849

Technical Sentiment Signal: Hold

Current Market Cap: $3.06B

Find detailed analytics on TDC stock on TipRanks’ Stock Analysis page.

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