Teradata Reports Strong Q1 Results Driven by SAP Settlement, Raises Full-Year GAAP EPS and Cash Flow Guidance
TDC sits 41% above its 52-week low of $19.83.
Summary
Teradata announced robust first-quarter 2026 results, significantly boosted by a $359 million net pre-tax settlement with SAP, and raised its full-year GAAP EPS and cash flow guidance.
Key Events · Earnings and Guidance · TDC
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Strong Q1 Financial Performance
GAAP diluted EPS soared to $3.47, compared to $0.45 in Q1 2025, and cash flow from operations reached $401 million, up from $8 million in the prior year period.
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Significant SAP Litigation Settlement
Teradata received a $480 million gross payment from a settlement with SAP, resulting in a $359 million net pre-tax benefit that significantly boosted Q1 earnings and cash flow.
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Increased Full-Year Guidance
The company raised its full-year 2026 GAAP diluted EPS outlook to a range of $4.22 to $4.32 and increased cash flow from operations guidance to $642 million to $662 million, including the after-tax benefit from the SAP settlement.
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Solid Cloud Growth Continues
Public cloud Annual Recurring Revenue (ARR) increased 13% year-over-year to $686 million, demonstrating continued momentum in the company's cloud strategy.
Analysis · TDC · Technology
Teradata delivered robust first-quarter 2026 financial results, significantly benefiting from a $359 million net pre-tax settlement with SAP. This settlement was a primary driver for the substantial increase in GAAP diluted EPS to $3.47 and cash flow from operations to $401 million. The company also demonstrated solid operational performance with public cloud Annual Recurring Revenue (ARR) growing 13% year-over-year. Furthermore, Teradata raised its full-year 2026 GAAP diluted EPS and cash flow from operations guidance, signaling improved financial outlook, albeit partially due to the one-time settlement. Investors should note the significant cash infusion and the continued growth in cloud services.
At the time of this filing, TDC was trading at $28.01 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 filing was assessed with positive market sentiment and an importance score of 8 out of 10.