Loading...
•
Jun 30, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...