Teradata Q4 Revenue $421M Beats Estimates, EPS $0.74 Tops by 35%
Teradata reported Q4 revenue of $421 million, up 2.9% year-over-year and 6.5% above consensus, with EPS of $0.74 delivering a 35% surprise. Annual recurring revenue reached $1.52 billion while cloud ARR hit $701 million, offset by a 66.7% drop in perpetual license revenue to $1 million.
1. Q4 Financial Results
Teradata reported Q4 revenue of $421 million, up 2.9% year-over-year, with EPS of $0.74 delivering a 35% beat against consensus estimates of $395.24 million revenue and $0.55 EPS.
2. Recurring and Cloud ARR Performance
Annual recurring revenue reached $1.52 billion, slightly above estimates, while public cloud ARR climbed to $701 million versus $696.4 million expected, underscoring growth in subscription-based offerings.
3. Segment and License Revenue Trends
Recurring revenue rose 4.6% to $367 million, consulting services revenue slipped 3.6% to $53 million, and perpetual software and hardware revenue plunged 66.7% to $1 million year-over-year.
4. Market Reaction and Outlook
Despite the strong Q4 results, shares declined 10.9% over the past month, suggesting investor caution as license sales continue to decline.