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Teradata Corporation

teradata.com

What Do They Do?

Sells data-management and analytics software, AI tools, and related services to large enterprises.

How Do They Make Money?

Enterprise customers buy software subscriptions, cloud access, support, and hardware rentals on contract terms; cloud charges run across the term, with extra use counted monthly. Perpetual licenses and hardware are sold once, while consulting and implementation fees track work as it is performed.

revenue
SegmentShareRevenue
Total recurring
Mix

87%
FY2022: 79%
Perpetual software licenses, hardware and other
Sold outright
1.0%
FY2022: 3.6%
Consulting services
Usage-based

12%
FY2022: 17%

Who Are Their Customers?

Large enterprises in data-intensive industries buy Teradata's data, analytics, and AI platform and related services, primarily through Teradata's direct sales force; independent software vendors, distributors, and resellers also sell it.

Do Revenues Turn Into Profits?

Yes. It kept 8 cents of every revenue dollar as net income in FY2025 and turned 17 cents into free cash flow.

Operating income, FY2025
12% of revenue
▼ −2% vs FY2024 ($209M, 12%)
Net income, FY2025
8% of revenue
▲ +14% vs FY2024 ($114M, 7%)
Free cash flow, FY2025
17% of revenue
▲ +3% vs FY2024 ($279M, 16%)

How Are They Changing?

Since the FY2025 annual report
Latest quarter: Q2 FY2026, the three months to Jun 30, 2026
Revenue
▲ 0%
vs $408M in Q2 FY2025
Net income
▲ +411%
vs $9M in Q2 FY2025
Total recurring share of revenue vs 86.8% in Q2 FY2025

Shrinking. Revenue fell 13% in 4 years, from $1.9B in FY2021 to $1.7B in FY2025, about 3% a year.

AI and knowledge platform The older report presents Teradata as a connected multi-cloud analytics and data platform with AI/ML capabilities; the latest frames it as an AI and knowledge platform for autonomous AI, with tools for AI agents and enterprise context.

Revenue over time
Total recurring Perpetual software licenses, hardware and other Consulting services
$2B$1B$0

Who Do They Compete With?

Competes with AWS, Databricks, Google Cloud, Microsoft Azure, and Snowflake

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