The earnings call presented a mixed outlook with significant achievements in ARR growth and AI innovation, tempered by revenue declines and margin pressures. The strategic focus on cloud growth and AI capabilities presents future opportunities, but near-term challenges remain with revenue and profitability.

Company Guidance -

Q3 2025

In the Teradata Second Quarter 2025 Earnings Call, several key metrics and forward-looking statements were discussed. Teradata reported a total Annual Recurring Revenue (ARR) of $1.49 billion in Q2, reflecting a 2% year-over-year increase. Cloud ARR reached $634 million, indicating a solid 15% growth in constant currency, aligning with the full-year guidance range of 14% to 18%. The company saw a decline of 6% in total revenue, amounting to $408 million, with recurring revenue at $354 million, down 4% year-over-year. The recurring revenue constituted 87% of the total revenue, up from 84% the previous year. Teradata's non-GAAP operating margin was 16.4%, with non-GAAP diluted earnings per share of $0.47, surpassing expectations. Free cash flow for the quarter was $39 million, flat year-over-year. For the full year 2025, Teradata reaffirmed its guidance for total ARR, cloud ARR, and free cash flow, while updating the total revenue decline expectation to a range of 5% to 7% year-over-year in constant currency.

Total ARR Growth

Teradata delivered total ARR of $1.49 billion in Q2, up 2% year-over-year, indicating improved execution and customer retention.

Cloud ARR Growth

Cloud ARR reported growth of 17% and 15% in constant currency, with a net expansion rate of 112%, aligning with the full-year guidance range.

Innovation in AI and Partnerships

Teradata announced advancements like the Teradata AI factory, Enterprise Vector Store, and partnerships with ServiceNow and Salesforce, highlighting its position in AI and data analytics.

Improved Retention Rates

Meaningful improvements in retention rates were noted, with expectations for continued improvement throughout the year.

Teradata (TDC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TDC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 10, 2025	2025 (Q3)	0.54 / -	0.69	―	―	―
Aug 05, 2025	2025 (Q2)	0.40 / 0.47	0.64	-26.56% (-0.17)
May 06, 2025	2025 (Q1)	0.56 / 0.66	0.57	15.79% (+0.09)
Feb 11, 2025	2024 (Q4)	0.42 / 0.53	0.56	-5.36% (-0.03)
Nov 04, 2024	2024 (Q3)	0.56 / 0.69	0.42	64.29% (+0.27)
Aug 05, 2024	2024 (Q2)	0.52 / 0.64	0.48	33.33% (+0.16)
May 06, 2024	2024 (Q1)	0.55 / 0.57	0.61	-6.56% (-0.04)
Feb 12, 2024	2023 (Q4)	0.51 / 0.56	0.35	60.00% (+0.21)
Nov 06, 2023	2023 (Q3)	0.42 / 0.42	0.31	35.48% (+0.11)
Aug 07, 2023	2023 (Q2)	0.45 / 0.48	0.33	45.45% (+0.15)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

TDC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 05, 2025	$20.23	$21.84	+7.96%
May 06, 2025	$21.95	$22.34	+1.78%
Feb 11, 2025	$30.89	$24.62	-20.30%
Nov 04, 2024	$33.38	$28.47	-14.71%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.