Teradata Raises Full-Year EPS and Cash Flow Outlook After Solid Q2 Beat

summarizeSummary

Teradata reported Q2 2026 non-GAAP EPS of $0.69, beating estimates, and raised its full-year EPS and free cash flow guidance. Recurring revenue grew 3% and public cloud ARR rose 8%, while operating margins expanded significantly.

check_boxKey Events · Earnings and Guidance · TDC

• Q2 Earnings Beat

  Non-GAAP diluted EPS of $0.69 exceeded expectations, up from $0.47 a year ago. Total revenue was $410 million, flat year-over-year, with recurring revenue up 3% to $363 million.

• Full-Year Guidance Raised

  Non-GAAP diluted EPS guidance raised to $2.65–$2.73, above the $2.63 consensus. Adjusted free cash flow outlook increased to $330–$350 million, reflecting strong cash generation.

• Margin Expansion

  GAAP operating margin expanded to 11.7% from 5.9% a year ago, and non-GAAP operating margin reached 21.5%, up 510 basis points, driven by operating leverage and cost discipline.

• Cloud ARR Growth

  Public cloud annual recurring revenue grew 8% as reported (9% in constant currency) to $686 million, now representing 45% of total ARR of $1.509 billion.

auto_awesomeAnalysis · TDC · Technology

Teradata delivered a strong second quarter, with non-GAAP EPS of $0.69 beating expectations and operating margins expanding sharply. The company raised its full-year non-GAAP EPS guidance to $2.65–$2.73, above consensus, and boosted its adjusted free cash flow forecast to $330–$350 million. Recurring revenue grew 3%, driven by an 8% jump in public cloud ARR, while GAAP operating margin nearly doubled to 11.7%. The results and raised outlook signal that the company's shift to cloud and recurring revenue is gaining traction and generating meaningful operating leverage.