tdc-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33458

TERADATA CORPORATION

(Exact name of registrant as specified in its charter)


Delaware						75-3236470
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)

17095 Via Del Campo

San Diego, California 92127

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (866) 548-8348

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol

Name of Each Exchange on which Registered:

Common Stock, $0.01 par value

TDC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

At July 24, 2026, the registrant had approximately 93.0 million shares of common stock outstanding.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION




	Description	Page

Item 1.	Financial Statements

	Condensed Consolidated Statements of Income (Unaudited) Three and Six Months Ended June 30 , 2026 and 2025	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and Six Months Ended June 3 0 , 2026 and 2025	5

	Condensed Consolidated Balance Sheets (Unaudited) June 30 , 2026 and December 31, 2025	6

	Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30 , 2026 and 2025	7

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) Three and Six Months Ended June 30 , 2026 and 2025	8

	Notes to Condensed Consolidated Financial Statements (Unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	30

PART II—OTHER INFORMATION

	Description	Page

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31

Item 3.	Defaults Upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	32

Item 6.	Exhibits	33

	Signatures	34

Table of Contents

Part 1—FINANCIAL INFORMATION


Item 1.			Financial Statements.

Teradata Corporation

Condensed Consolidated Statements of Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
In millions, except per share amounts	2026		2025		2026		2025
Revenue
Subscription software licenses	$	53	$	65	$	152	$	148

Services and other	310		289		611		564
Total recurring	363		354		763		712
Perpetual software licenses, hardware and other	8		3		9		13
Consulting services	39		51		82		101
Total revenue	410		408		854		826
Cost of revenue
Subscription software licenses	8		5		19		10

Services and other	112		114		224		217
Total recurring	120		119		243		227
Perpetual software licenses, hardware and other	6		3		6		12
Consulting services	41		56		86		109
Total cost of revenue	167		178		335		348
Gross profit	243		230		519		478
Operating expenses
Selling, general and administrative expenses	120		135		360		251
Research and development expenses	75		71		147		137
Total operating expenses	195		206		507		388
Income from operations	48		24		12		90
Other (expense) income, net
Interest expense	(6)		(6)		(12)		(13)
Interest income	7		2		10		5
Other (expense) income	(2)		(7)		474		(11)
Total other (expense) income, net	(1)		(11)		472		(19)
Income before income taxes	47		13		484		71
Income tax expense	1		4		103		18
Net income	$	46	$	9	$	381	$	53
Net income per common share
Basic	$	0.49	$	0.09	$	4.07	$	0.56
Diluted	$	0.48	$	0.09	$	3.95	$	0.55
Weighted average common shares outstanding
Basic	93.9		95.3		93.5		95.2
Diluted	96.2		96.0		96.4		97.0

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Teradata Corporation

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2026		2025		2026		2025
Net income	$	46	$	9	$	381	$	53
Other comprehensive income:
Foreign currency translation adjustments	3		18		(2)		26
Unrealized (loss) gain on cross-currency net investment hedge, before tax	(2)		(13)		2		(18)
Unrealized (loss) gain on cross-currency net investment hedge, tax portion	—		3		(1)		4
Total currency translation adjustments	1		8		(1)		12
Derivatives:
Derivative change, before tax	(3)		(2)		(1)		(6)
Derivatives, tax portion	1		—		—		1
Derivative change, net of tax	(2)		(2)		(1)		(5)
Defined benefit plans:
Reclassification of loss to net income, before tax	2		2		4		4
Defined benefit plans, tax portion	—		(1)		(1)		(1)
Defined benefit plans, net of tax	2		1		3		3
Other comprehensive income	1		7		1		10
Comprehensive income	$	47	$	16	$	382	$	63

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Balance Sheets (Unaudited)


In millions, except per share amounts	June 30, 2026		December 31, 2025
Assets
Current assets
Cash and cash equivalents	$	414	$	493
Accounts receivable, net	256		251
Inventories	5		13
Other current assets	98		80
Total current assets	773		837
Property and equipment, net	191		198
Right of use assets - operating lease, net	8		7
Goodwill	397		399
Capitalized contract costs, net	39		42
Deferred income taxes	166		209
Other assets	84		87
Total assets	$	1,658	$	1,779
Liabilities and stockholders’ equity
Current liabilities
Current portion of long-term debt	$	—	$	25
Current portion of finance lease liability	46		50
Current portion of operating lease liability	2		2

Accounts payable	55		96
Payroll and benefits liabilities	91		120
Deferred revenue	560		533
Other current liabilities	91		88
Total current liabilities	845		914
Long-term debt	—		431
Finance lease liability	45		45
Operating lease liability	6		4
Pension and other postemployment plan liabilities	111		114
Long-term deferred revenue	12		11
Deferred tax liabilities	12		12
Other liabilities	34		18
Total liabilities	1,065		1,549
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	—		—
Common stock: par value $0.01 per share, 500.0 shares authorized, 93.4 and 92.5 shares issued at June 30, 2026 and December 31, 2025, respectively	1		1
Paid-in capital	2,361		2,305

Accumulated deficit	(1,617)		(1,923)
Accumulated other comprehensive loss	(152)		(153)
Total stockholders’ equity	593		230
Total liabilities and stockholders’ equity	$	1,658	$	1,779

See Notes to Condensed Consolidated Financial Statements (Unaudited).

Table of Contents

Teradata Corporation

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Six Months Ended June 30,
In millions	2026		2025
Operating activities
Net income	$	381	$	53
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48		43
Stock-based compensation expense	62		53
Deferred income taxes	40		4
Loss on Blue Chip Swap	1		—
Changes in assets and liabilities:
Receivables	(5)		(59)
Inventories	8		13
Current payables and accrued expenses	(47)		(54)
Deferred revenue	28		11
Other assets and liabilities	(9)		(13)
Net cash provided by operating activities	507		51
Investing activities
Expenditures for property and equipment	(11)		(5)

Additions to capitalized software	(1)		—

Other investing activities, net	(1)		(1)
Net cash used in investing activities	(13)		(6)
Financing activities
Repurchases of common stock	(74)		(72)

Repayments of long-term borrowings	(456)		(12)


Payments of finance leases	(32)		(33)
Other financing activities, net	(7)		(2)
Net cash used in financing activities	(569)		(119)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4)		23
Decrease in cash, cash equivalents and restricted cash	(79)		(51)
Cash, cash equivalents and restricted cash at beginning of period	494		421
Cash, cash equivalents and restricted cash at end of period	$	415	$	370

Supplemental cash flow disclosure:
Assets acquired under operating lease	$	3	$	2
Assets acquired under finance lease	$	28	$	52

Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets:


	June 30, 2026		December 31, 2025
Cash and cash equivalents	$	414	$	493
Restricted cash	1		1
Total cash, cash equivalents and restricted cash	$	415	$	494