Teradata Q1 GAAP EPS Jumps to $3.47 on $480M Settlement; ARR Reaches $1.49B
TDC sits 46% above its 52-week low of $19.83.
Summary
Teradata reported robust first-quarter 2026 results, with GAAP diluted EPS soaring to $3.47, primarily driven by the recognition of a $480 million litigation settlement. This significant one-time gain follows the company's earlier disclosure in its February 10-K regarding a substantial settlement with SAP. Operationally, the company reported total annual recurring revenue (ARR) of $1.492 billion and non-GAAP diluted EPS of $0.88. Public cloud ARR grew 13% year-over-year, and recurring revenue increased 12%, indicating continued progress in its cloud transition. The settlement also materially boosted cash flow from operations to $401 million. This strong financial performance, underpinned by the settlement and solid cloud growth, is a significant positive for the company. Investors will now monitor the company's ability to sustain operational growth and generate adjusted free cash flow in subsequent quarters.
At the time of this announcement, TDC was trading at $28.91 on NYSE in the Technology sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $19.83 to $41.78. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.