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Jun 30
Teradata Q2 2025 Earnings Report
Teradata reported its second quarter 2025 financial results, with total revenue and EPS outperforming expectations, driven by cloud growth and on-premise strength.
Key Takeaways
Teradata delivered a solid second quarter in 2025, exceeding its recurring revenue and total revenue outlooks, and surpassing EPS expectations. The company's strategy of leveraging both cloud and on-premise solutions for AI-driven data platforms proved effective, with significant growth in public cloud ARR.
Total revenue for Q2 2025 was $408 million, a 6% decrease as reported compared to the prior year.
Public cloud ARR increased by 17% to $634 million, demonstrating strong cloud adoption.
GAAP diluted EPS was $0.09, while non-GAAP diluted EPS reached $0.47, both outperforming expectations.
The company reiterated its full-year outlook for Total ARR, Cloud ARR, and Free Cash Flow, indicating confidence in future performance.
Teradata
Teradata
Teradata Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comPerpetual Software, Hardware & Other Revenue
CapyFin.comConsulting Services Revenue
CapyFin.com Forward Guidance
Teradata provided an outlook for the third quarter and updated its full-year 2025 guidance, reaffirming key ARR and free cash flow targets.
Positive Outlook
- Reaffirmed full-year public cloud ARR growth of 14% to 18% year-over-year in constant currency.
- Reaffirmed full-year Total ARR in the range of flat to 2% year-over-year in constant currency.
- Reaffirmed full-year cash flow from operations of $270 million to $300 million.
- Reaffirmed full-year free cash flow of $250 million to $280 million.
- Non-GAAP diluted EPS for Q3 2025 is expected to be in the range of $0.51 to $0.55 per share.
Challenges Ahead
- Recurring revenue for Q3 2025 is expected to decrease by 4% to 6% year-over-year in constant currency.
- Total revenue for Q3 2025 is expected to decrease by 7% to 9% year-over-year in constant currency.
- Full-year 2025 total revenue range is now expected to be in the range of -5% to -7% year-over-year in constant currency.
- Full-year 2025 recurring revenue is expected to be in the range of -3% to -5% year-over-year in constant currency.
- GAAP diluted EPS for Q3 2025 is expected to be in the range of $0.24 to $0.28 per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income