Revenue growth remains highly inconsistent, with the firm reporting a 6.2% increase in 2026Q1 while struggling to maintain gross margins above the 60% threshold due to cloud infrastructure costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 1.69B | 1.66B | 1.75B | 1.83B | 1.79B | 1.92B | 1.84B | 1.9B | 2.16B | 2.16B | 2.32B | 2.53B | 2.73B | 2.69B | 2.67B | 2.36B | 1.94B | 1.71B | 1.76B | 1.7B | 1.55B | 1.47B |
| Revenue Growth % | -0.82% | -4.97% | -4.53% | 2.12% | -6.36% | 4.41% | -3.32% | -12.25% | 0.37% | -7.15% | -8.22% | -7.39% | 1.49% | 1.01% | 12.83% | 22% | 13.28% | -3.01% | 3.53% | 10.02% | 5.45% | - |
| Cost of Goods Sold | 672M | 670M | 692M | 718M | 714M | 731M | 817M | 944M | 1.14B | 1.13B | 1.13B | 1.25B | 1.25B | 1.22B | 1.17B | 1.29B | 848M | 771M | 813M | 786M | 718M | 672M |
| COGS % of Revenue | - | 40.29% | 39.54% | 39.17% | 39.78% | 38.13% | 44.5% | 49.71% | 52.59% | 52.6% | 48.84% | 49.57% | 45.86% | 45.28% | 44.05% | 54.74% | 43.8% | 45.11% | 46.14% | 46.18% | 46.41% | 45.81% |
| Gross Profit | 1.02B | 993M | 1.06B | 1.11B | 1.08B | 1.19B | 1.02B | 955M | 1.03B | 1.02B | 1.19B | 1.28B | 1.48B | 1.47B | 1.49B | 1.07B | 1.09B | 938M | 949M | 916M | 829M | 795M |
| Gross Margin % | 60.21% | 59.71% | 60.46% | 60.83% | 60.22% | 61.87% | 55.5% | 50.29% | 47.41% | 47.4% | 51.16% | 50.43% | 54.14% | 54.72% | 55.95% | 45.26% | 56.2% | 54.89% | 53.86% | 53.82% | 53.59% | 54.19% |
| Gross Profit Growth % | - | -6.14% | -5.11% | 3.15% | -8.85% | 16.39% | 6.7% | -6.92% | 0.39% | -13.97% | -6.9% | -13.73% | 0.41% | -1.21% | 39.48% | -1.75% | 15.99% | -1.16% | 3.6% | 10.49% | 4.28% | - |
| Operating Expenses | 912M | 788M | 849M | 929M | 963M | 955M | 1B | 949M | 983M | 958M | 876M | 994M | 976M | 941M | 911M | 837M | 673M | 600M | 616M | 596M | 527M | 511M |
| OpEx % of Revenue | - | 47.38% | 48.51% | 50.68% | 53.65% | 49.82% | 54.63% | 49.97% | 45.43% | 44.43% | 37.73% | 39.29% | 35.72% | 34.96% | 34.18% | 35.44% | 34.76% | 35.11% | 34.96% | 35.02% | 34.07% | 34.83% |
| Selling, General & Admin | 626M | 481M | 565M | 635M | 650M | 646M | 669M | 621M | 666M | 652M | 664M | 766M | 770M | 757M | 728M | 663M | 526M | 483M | 508M | 470M | 410M | 391M |
| SG&A % of Revenue | - | 28.92% | 32.29% | 34.64% | 36.21% | 33.7% | 36.44% | 32.7% | 30.78% | 30.24% | 28.6% | 30.28% | 28.18% | 28.12% | 27.32% | 28.07% | 27.17% | 28.26% | 28.83% | 27.61% | 26.5% | 26.65% |
| Research & Development | 286M | 280M | 284M | 294M | 313M | 309M | 334M | 328M | 317M | 306M | 212M | 228M | 206M | 184M | 183M | 174M | 147M | 117M | 108M | 126M | 117M | 120M |
| R&D % of Revenue | - | 16.84% | 16.23% | 16.04% | 17.44% | 16.12% | 18.19% | 17.27% | 14.65% | 14.19% | 9.13% | 9.01% | 7.54% | 6.84% | 6.87% | 7.37% | 7.59% | 6.85% | 6.13% | 7.4% | 7.56% | 8.18% |
| Other Operating Expenses | 0 | 27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6M | 0 | 0 | -9M | 0 | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 105M | 205M | 209M | 186M | 118M | 231M | 16M | 6M | 43M | 64M | 232M | -92M | 503M | 532M | 580M | 456M | 415M | 338M | 333M | 320M | 302M | 284M |
| Operating Margin % | 6.22% | 12.33% | 11.94% | 10.15% | 6.57% | 12.05% | 0.87% | 0.32% | 1.99% | 2.97% | 9.99% | -3.64% | 18.41% | 19.76% | 21.76% | 19.31% | 21.44% | 19.78% | 18.9% | 18.8% | 19.52% | 19.36% |
| Operating Income Growth % | - | -1.91% | 12.37% | 57.63% | -48.92% | 1343.75% | 166.67% | -86.05% | -32.81% | -72.41% | 352.17% | -118.29% | -5.45% | -8.28% | 27.19% | 9.88% | 22.78% | 1.5% | 4.06% | 5.96% | 6.34% | - |
| EBITDA | 175M | 295M | 309M | 302M | 252M | 380M | 188M | 151M | 172M | 202M | 360M | 78M | 672M | 679M | 706M | 558M | 475M | 401M | 393M | 388M | 357M | 339M |
| EBITDA Margin % | 10.36% | 17.74% | 17.66% | 16.48% | 14.04% | 19.82% | 10.24% | 7.95% | 7.95% | 9.37% | 15.5% | 3.08% | 24.6% | 25.22% | 26.49% | 23.62% | 24.54% | 23.46% | 22.3% | 22.8% | 23.08% | 23.11% |
| EBITDA Growth % | -45.31% | -4.53% | 2.32% | 19.84% | -33.68% | 102.13% | 24.5% | -12.21% | -14.85% | -43.89% | 361.54% | -88.39% | -1.03% | -3.82% | 26.52% | 17.47% | 18.45% | 2.04% | 1.29% | 8.68% | 5.31% | - |
| D&A (Non-Cash Add-back) | 70M | 90M | 100M | 116M | 134M | 149M | 172M | 145M | 129M | 138M | 128M | 170M | 169M | 147M | 126M | 102M | 60M | 63M | 60M | 68M | 55M | 55M |
| EBIT | 97M | 178M | 193M | 147M | 91M | 218M | 3M | 13M | 49M | 73M | 233M | -135M | 497M | 512M | 580M | 456M | 415M | 338M | 333M | 320M | 302M | 284M |
| Net Interest Income | -9M | 0 | -18M | -5M | -9M | -20M | -23M | -14M | -8M | -4M | -6M | -4M | -3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4M | 0 | 11M | 25M | 15M | 6M | 4M | 12M | 14M | 11M | 6M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13M | 0 | 29M | 30M | 24M | 26M | 27M | 26M | 22M | 15M | 12M | 9M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 452M | -27M | -45M | -69M | -51M | -39M | -40M | -23M | -16M | -10M | -14M | 51M | -9M | -24M | -2M | 25M | -1M | -4M | 5M | 2M | 0 | 0 |
| Pretax Income | 557M | 178M | 164M | 117M | 67M | 192M | -24M | -17M | 27M | 58M | 221M | -41M | 494M | 508M | 578M | 481M | 414M | 334M | 338M | 322M | 302M | 284M |
| Pretax Margin % | 32.98% | 10.7% | 9.37% | 6.38% | 3.73% | 10.02% | -1.31% | -0.9% | 1.25% | 2.69% | 9.52% | -1.62% | 18.08% | 18.87% | 21.69% | 20.36% | 21.38% | 19.54% | 19.18% | 18.92% | 19.52% | 19.36% |
| Income Tax | 136M | 48M | 50M | 55M | 34M | 45M | -153M | 7M | -3M | 125M | 96M | 83M | 127M | 131M | 159M | 128M | 113M | 80M | 88M | 122M | 110M | 78M |
| Effective Tax Rate % | 24.42% | 26.97% | 30.49% | 47.01% | 50.75% | 23.44% | 637.5% | -41.18% | -11.11% | 215.52% | 43.44% | -202.44% | 25.71% | 25.79% | 27.51% | 26.61% | 27.29% | 23.95% | 26.04% | 37.89% | 36.42% | 27.46% |
| Net Income | 421M | 130M | 114M | 62M | 33M | 147M | 129M | -24M | 30M | -67M | 125M | -124M | 367M | 377M | 419M | 353M | 301M | 254M | 250M | 200M | 192M | 206M |
| Net Margin % | 24.93% | 7.82% | 6.51% | 3.38% | 1.84% | 7.67% | 7.03% | -1.26% | 1.39% | -3.11% | 5.38% | -4.9% | 13.43% | 14% | 15.72% | 14.95% | 15.55% | 14.86% | 14.19% | 11.75% | 12.41% | 14.04% |
| Net Income Growth % | 205.07% | 14.04% | 83.87% | 87.88% | -77.55% | 13.95% | 637.5% | -180% | 144.78% | -153.6% | 200.81% | -133.79% | -2.65% | -10.02% | 18.7% | 17.28% | 18.5% | 1.6% | 25% | 4.17% | -6.8% | - |
| Net Income (Continuing) | 421M | 130M | 114M | 62M | 33M | 147M | 129M | -20M | 30M | -67M | 125M | -214M | 367M | 377M | 419M | 353M | 301M | 254M | 250M | 200M | 192M | 206M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.36 | 1.35 | 1.16 | 0.61 | 0.31 | 1.30 | 1.16 | -0.21 | 0.25 | -0.53 | 0.95 | -0.89 | 2.33 | 2.27 | 2.44 | 2.05 | 1.77 | 1.46 | 1.39 | 1.10 | 1.06 | 1.14 |
| EPS Growth % | 207.04% | 16.38% | 90.16% | 96.77% | -76.15% | 12.07% | 652.38% | -184% | 147.17% | -155.79% | 206.74% | -138.2% | 2.64% | -6.97% | 19.02% | 15.82% | 21.23% | 5.04% | 26.36% | 3.77% | -7.02% | - |
| EPS (Basic) | - | 1.38 | 1.18 | 0.62 | 0.32 | 1.35 | 1.18 | -0.21 | 0.25 | -0.53 | 0.96 | -0.89 | 2.36 | 2.31 | 2.49 | 2.10 | 1.80 | 1.48 | 1.40 | 1.11 | 1.06 | 1.14 |
| Diluted Shares Outstanding | 96.6M | 96.6M | 98.2M | 102.4M | 105.8M | 112.9M | 111.6M | 114.2M | 121.2M | 125.8M | 131.5M | 139.6M | 157.8M | 166.4M | 171.7M | 171.9M | 170.4M | 173.9M | 179.8M | 181.3M | 180.7M | 180.7M |
| Basic Shares Outstanding | 93M | 94.4M | 96.4M | 99.8M | 103.2M | 108.6M | 109.3M | 114.2M | 119.2M | 125.8M | 129.7M | 139.6M | 155.3M | 163.4M | 168.2M | 168.1M | 167.4M | 171.9M | 178.1M | 180.8M | 180.7M | 180.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cloud transition revenue cannibalization
As indicated by the most recent quarterly data, Teradata's revenue growth has fluctuated significantly, with a 6.2% increase in 2026Q1 following a period of contraction, suggesting that the company's transition to a cloud-first model continues to create uneven top-line performance across its legacy and subscription segments.
The inconsistency in revenue growth suggests that the company is struggling to balance the decline of legacy perpetual licenses with the ramp-up of cloud-based recurring revenue. Investors should monitor whether the 2026Q1 growth represents a sustainable inflection point or merely a temporary fluctuation driven by the timing of large enterprise contract renewals.
Based on reported financial statements, Teradata's gross margin has hovered near 60%, with a notable dip to 56.4% in 2025Q2, reflecting the ongoing cost burden of third-party cloud infrastructure as the firm shifts away from its historically higher-margin on-premise hardware and software maintenance business model.
The compression of gross margins appears to be a direct consequence of the cloud pivot, where infrastructure costs paid to public cloud providers act as a drag on profitability. This trend suggests that Teradata may face long-term margin headwinds unless it can achieve sufficient scale to improve its leverage with cloud service providers.
According to the income statement data, operating income has shown extreme volatility, ranging from a $36 million loss in 2026Q1 to a $66 million profit in 2025Q1, indicating that the company has yet to achieve the consistent operating leverage expected from a mature software-as-a-service business model.
The lack of stable operating leverage suggests that SG&A expenses are not scaling efficiently relative to gross profit, likely due to the dual-track requirement of supporting legacy systems while investing in cloud-native innovation. This volatility warrants further investigation into whether management can effectively control overhead costs during this multi-year strategic transition.
As reported in recent filings, Teradata's net income has been significantly impacted by non-operating factors, including a $335 million net income figure in 2026Q1 that stands in stark contrast to its operating loss, suggesting that investors should look past headline EPS to understand the underlying operational performance.
The disconnect between operating income and net income suggests that one-time items or tax anomalies are masking the true earnings power of the core business. Analysts should focus on normalized operating metrics to determine if the company is generating sustainable value for shareholders beyond these accounting fluctuations.
While management emphasizes the cloud transition, the persistent revenue volatility and margin pressure suggest that the short-seller thesis—that Teradata is a melting ice cube—remains a credible risk, especially if the company fails to capture sufficient share in the competitive cloud-native data analytics market.
The market's skepticism appears rooted in the potential for Teradata to be permanently displaced by cloud-native competitors that offer superior elasticity and lower total cost of ownership. Investors should monitor whether the company's 'hybrid-forever' strategy is a genuine competitive moat or merely a defensive posture against inevitable market share erosion.
Quick answers to the most common questions about buying TDC stock.
For fiscal year 2025, Teradata Corporation (TDC) reported total revenue of $1.66B. This represents a 13.4% increase compared to $1.47B in 2005.
Teradata Corporation (TDC) is profitable, generating $130.0M in net income for the fiscal year ending 2025 with a net profit margin of 7.8%.
Teradata Corporation (TDC) reported an operating income of $205.0M, resulting in an operating profit margin of 12.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Teradata Corporation (TDC) generated $993.0M in gross profit for the year, representing a gross profit margin of 59.7%. This demonstrates the company's core pricing power and production efficiency.