Teradata Boosts Cloud ARR 15%, Delivers $285M Free Cash Flow
Teradata reported Q4 revenue of $421 million, driven by 15% Cloud ARR growth and a 5% rise in recurring revenue, while non-GAAP EPS reached $0.74 and operating margin expanded to 22.8%. For full-year 2025, total revenue declined 5% to $1.663 billion as the company generated $285 million in free cash flow.
1. Strong Q4 Financial Performance
Teradata generated $421 million in Q4 revenue, with Cloud ARR up 15% and recurring revenue rising 5%. Non-GAAP diluted EPS reached $0.74 and operating margin expanded to 22.8%, reflecting improved profitability.
2. Full-Year Revenue and Cash Flow
For 2025, total revenue fell 5% to $1.663 billion, while free cash flow totaled $285 million, underscoring the company’s cash generation despite top-line pressure.
3. AI and Hybrid Cloud Innovations
The company launched Enterprise Vector Store and MCP Server integrating GPU capabilities with NVIDIA’s AI stack, and proof-of-concept AI activities doubled, supported by a new partnership with Unstructured.io for unstructured data processing.
4. 2026 ARR Growth Outlook
Teradata expects total ARR to grow between 2% and 4% in 2026, reflecting a pivot toward AI and hybrid cloud solutions as key drivers for its growth strategy.