Teradata Q2 Earnings Surpass Expectations, Revenue Falls Y/Y, Shares Rise

Teradata reported Q2 2025 non-GAAP earnings of 47 cents per share, beating estimates by 14.63%. Revenues of $408 million beat estimates by 1.91% but fell 6.4% YoY. Total annual recurring revenues increased 2% YoY to $1.489 billion. Shares were up 3.36% in pre-market trading. For Q3 2025, Teradata expects non-GAAP earnings between 51-55 cents per share and total revenues to be down 7-9% YoY.

Teradata Corporation (TDC) reported strong second-quarter (Q2) 2025 financial results, beating analysts' expectations. The company's non-GAAP earnings per share (EPS) came in at 47 cents, surpassing the consensus estimate of 40 cents by 14.63% [2]. Revenues reached $408 million, slightly above the forecast of $400.89 million, marking a 1.91% beat but a 6.4% year-over-year (YoY) decline [2]. Total annual recurring revenues (ARR) increased by 2% YoY to $1.489 billion [1].

The company's stock experienced a 3.36% increase in pre-market trading following the earnings announcement. Teradata's CEO, Steve MacMillan, emphasized the company's focus on AI advancements and the strategic groundwork being laid for future growth [2]. The company expects non-GAAP EPS to range between 51 and 55 cents per share for Q3 2025, with total revenues expected to decline by 7% to 9% YoY [2].

Teradata's Q2 performance highlights its strategic pivot towards cloud and AI solutions, positioning the company for future growth despite current revenue challenges. The company's gross profit margin of 60.25% and free cash flow yield of 14% suggest efficient operations despite revenue declines [2].

References:
[1] https://seekingalpha.com/news/4477676-teradata-q2-2025-earnings-preview
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-teradata-beats-q2-2025-eps-forecast-stock-rises-93CH-4171626