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August 2026 Q2'26 Earnings Results Teradata Investor Relations teradata . © 2026 Teradata . All rights reserved .
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© 2026 Teradata. All rights reserved. 2 Forward-looking statements This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. Forward-looking statements generally relate to opinions, beliefs, and projections of expected future financial and operating performance, business trends, liquidity, and market conditions, among other things. These forward - looking statements are based upon current expectations and assumptions and often can be identified by words such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,” “forecast,” “anticipate,” “continue,” “plan,” “estimate,” “believe,” “focus,” “see,” “commit,” “should,” “project,” “will,” “would,” “likely,” “intend,” “potential,” or similar expressions. Forward-looking statements in this release include our 2026 third quarter and 2026 full year financial outlook and product innovation and demand. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including those relating to: our strategy and ongoing business transformation, significant execution risk for our cloud, hybrid, on-premises, Artificial Intelligence (“AI”) and Machine Learning (“ML”) offerings, operational disruptions and unforeseen circumstances, impact of unanticipated delays or acceleration in our sales cycles to make accurate estimates impacting quarterly operating results, financial guidance and forecasts, the global economic environment and business conditions in general, including inflation, tariffs, and/or recessionary conditions; impact of price increase on our net sales, profit margins and earnings, the ability of our suppliers to meet their commitments to us; the timing of purchases, migrations, or expansions by our current and potential customers, including our ability to retain customers; the rapidly changing and intensely competitive nature of the information technology industry, the data analytics business, and artificial intelligence capabilities; fluctuations in our operating, capital allocation, and cash flow results; our ability to execute and realize the anticipated benefits of our refreshed brand, business transformation program or restructuring, sales and operational execution initiatives, and cost saving initiatives, including restructuring actions; risks inherent in operating in foreign countries, export controls and trade compliance, including sanctions, tariffs, foreign currency fluctuations, and/or acts of war; risks associated with data privacy, IP-enforcement actions, cyberattacks and maintaining secure and effective products for our customers, as well as, internal information technology and control systems; the timely and successful development, production or acquisition, availability and/or market acceptance of new and existing products, product features and services, including for our artificial intelligence, cloud, on - prem and hybrid offerings, tax rates; turnover of our workforce and the ability to attract and retain skilled employees; protecting our intellectual property; availability and successful execution of new alliance and acquisition opportunities; subscription arrangements that may be cancelled or fail to be renewed; the impact on our business and financial reporting from changes in accounting rules; and other factors described from time to time in Teradata’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10 -K, and subsequent quarterly reports on Forms 10-Q or current reports on Forms 8-K, as well as Teradata’s annual report to stockholders. Teradata does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures This presentation and the accompanying discussion include certain non-GAAP financial measures, which exclude such items as stock-based compensation expense and other special items, as well as other non -GAAP financial measures, such as free cash flow (FCF), adjusted FCF and constant currency revenue comparisons. Please refer to the Appendix for a reconciliation of non-GAAP to GAAP measures as well as additional useful information regarding Teradata’s use of non - GAAP financial measures.
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© 2026 Teradata. All rights reserved. Cash flow from operations of $106 million, up 147% from the prior year period 3 Teradata – at a glance Corporate purpose Transforming knowledge into autonomous decisions that drive meaningful outcomes. Notes: (1) The impact of currency is determined by calculating the prior -period results using the current -year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com. (2) Non -GAAP Operating Margin and Adjusted Free Cash Flow are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations t o the nearest GAAP measures. Non-GAAP Operating Margin of 21.5%, up 510 basis points from the prior year period(2) Q2’26 Financial Overview What we do We turn enterprise data and context into scalable, trusted autonomous intelligence that drives real-time business outcomes. How we do it We unify data, knowledge, and business context, activating intelligence for immediate impact. Adjusted Free Cash Flow of $127M, up 226% from the prior year period(2) Recurring Revenue growth of 3% YoY and 2% constant currency (1)
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© 2026 Teradata. All rights reserved. Autonomous AI + Knowledge Autonomous Deliver autonomous experience across platform layers and end-to- end data and AI processes. AI Build, activate, and manage AI outcomes through agents, AI/ML, apps, and marketplaces. Knowledge Enabled through systems of intelligence and informed by agentic knowledge that adapts and evolves. Teradata vision
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© 2026 Teradata. All rights reserved. Agent Execution Workspaces Agents AI Tools Knowledge Context Knowledge Foundation Active & Elastic Compute CPUs & GPUs Object & Block Storage On-Prem Sovereign CloudMulti-Cloud In-Database AI Capabilities Teradata Technology Stack Fabric Humans AI
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© 2026 Teradata. All rights reserved. © 2026 Teradata. All rights reserved. 6 Q2’26 Financials
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© 2026 Teradata. All rights reserved. Teradata – by the numbers Q2’26 + 1% YoY + 2% YoY in CC + 8% YoY + 9% YoY in CC + 0% YoY + 0% YoY in CC $1.509B $686M $363M $410M Total ARR Public Cloud ARR Recurring Revenue Total Revenue 7 Notes: Total Annual Recurring Revenue ("Total ARR") is defined as the annual contract value for all active and contractually binding term-based contracts at the end of the period, including cloud, recurring AI services, subscriptions, hardware rental, maintenance, and software upgrade rights. Public cloud ARR is defined as the annual contract value for all active and contractually binding term-based contracts at the end of a period that are operated in a public cloud environment. The Company believes these are useful metrics to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. The impact of currency on ARR is determined by calculating the prior period ending ARR using the current period end currency rates. The impact of currency on revenue is determined by calculating the prior -period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com. Non-GAAP diluted earnings per share and adjusted free cash flow are non-GAAP financial measures. Please refer to the Appendix for additional information on these non-GAAP financial measures, including reconciliations to the nearest GAAP measures. + 3% YoY + 2% YoY in CC + from $0.09 in Q2’25 + from $0.47 in Q2’25 + from $43M in Q2’25 + from $39M in Q2’25 $0.48 $0.69 $106M $127M GAAP Diluted EPS Non-GAAP Diluted EPS Cash Flow from Operations Adjusted Free Cash Flow
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© 2026 Teradata. All rights reserved. 8 ARR by product 634 633 701 686 686 756 765 735 729 750 99 92 86 77 73 1489 1490 1522 1492 1509 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Cloud Subscription Maint & SW Upgrade Rights Notes: Amounts in U.S. Dollars in Millions. Please see Teradata’s Form 10-K for the period ended December 31, 2025, for additional information. Subscription ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Subscription ARR includes on-premises subscription-based transactions and private cloud. Maintenance and Software Upgrade Rights ARR (included within total ARR) - annual contract value for all active and contractually binding term-based contracts at the end of a period. Maintenance and Software Upgrade Rights ARR includes maintenance and software upgrade rights on perpetual products. Public Cloud ARR (included within total ARR) is defined as the annual contract value for all active and contractually binding term-based contracts at the end of a period that are operated in a public cloud environment. The Company believes these are useful metrics to investors as it demonstrates progress toward achieving our strategic objectives as outlined in the Form 10-K and Form 10-Q. The impact of currency is determined by calculating the prior-period results using the current-year monthly currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com. Q2'25 Q3'25 Q4'25 Q1’26 Q2’26 Cloud ARR as a % of Total ARR 43% 42% 46% 46% 45% + 1% YoY + 2% YoY in CC $1.509B Cloud ARR as a % of Total ARR45%
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© 2026 Teradata. All rights reserved. 9 Revenue by segment 357 369 368 401 371 51 47 53 43 39 408 416 421 444 410 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Product Consulting Notes: The impact of currency is determined by calculating the prior-period results using the current-year monthly average currency rates. See the foreign currency fluctuation schedule, which is used to determine revenue on a constant currency (“CC”) basis, on the Investor Relations page of the Company’s website at investor.teradata.com. Q2'25 Q3’25 Q4’25 Q1’26 Q2’26 Product Revenue as a % of Total Revenue 88% 89% 87% 90% 90% + 0% YoY + 0% CC $410M 90% Product Revenue as a % of Total Revenue
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© 2026 Teradata. All rights reserved. 10 Non-GAAP gross margin Total Notes: Non-GAAP gross margin percentage is a non-GAAP measure. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional information Product Consulting -2% 9% 19% 5% 0% -10% -5% 0% 5% 10% 15% 20% 25% -$5 $0 $5 $10 $15 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Gross Margin ($M) Consulting Gross Margin % of Revenue 67% 69% 68% 70% 67% 60% 65% 70% 75% $200 $225 $250 $275 $300 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Gross Margin ($M) Product Gross Margin % of Revenue 58% 62% 62% 64% 60% 50% 55% 60% 65% $0 $100 $200 $300 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Gross Margin ($M) Total Gross Margin % of Revenue
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© 2026 Teradata. All rights reserved. 11 Non-GAAP operating expenses SG&A R&D 107 101 104 98 98 26% 24% 25% 22% 24% 18% 28% 30 55 80 105 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 SG&A Expense % of Revenue Notes: Amounts in U.S. Dollars in Millions. Non-GAAP SG&A and R&D expenses are non-GAAP measures. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional information. 64 60 61 64 62 16% 14% 14% 14% 15% 11%303234363840424446485052545658606264666870 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 R&D Expense % of Revenue
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© 2026 Teradata. All rights reserved. 2.35 3.03 0.47 0.69 1.13 4.75 0.09 0.48 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 LTM25 LTM26 Q2’25 Q2’26 Non-GAAP EPS (Diluted) GAAP EPS (Diluted) 12 Non-GAAP operating margin, Non-GAAP adjusted EBITDA & EPS Non-GAAP Operating Margin Earnings per Share Notes: Amounts in U.S. Dollars in Millions, except for earnings per share. Non-GAAP operating margin, Non-GAAP Adjusted EBITDA margin and earnings per share are non-GAAP measures. Please see the Appendix for reconciliations of GAAP to non-GAAP measures and additional information. 16% 24% 23% 27% 21% 10% 15% 20% 25% 30% 35% $50 $75 $100 $125 $150 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Non-GAAP Operating Income % of Revenue Non-GAAP Adjusted EBITDA Margin 22% 29% 28% 33% 27% 10% 15% 20% 25% 30% 35% 40% $50 $75 $100 $125 $150 $175 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Non-GAAP Adjusted EBITDA % of Revenue *The SAP settlement positively impacted GAAP Diluted EPS by $2.90 in Q1’26. *
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© 2026 Teradata. All rights reserved. 13 Cash flow & capital allocation 284 761 43 106 263 397 39 127 LTM25 LTM26 Q2’25 Q2’26 Cash flow from Operations Adjusted Free Cash Flow * Q2’26 Capital Allocation Approximately 1.3 million shares $40M Stock repurchase Notes: Amounts in U.S. Dollars in Millions. Adjusted free cash flow (FCF) is a non-GAAP measure. Please refer to the Appendix for additional information on the non-GAAP financial measure, including a reconciliation to the nearest GAAP measures. *For the LTM26, the SAP settlement positively impacted Cash flow from Operations by an after-tax net amount of $337 million.
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© 2026 Teradata. All rights reserved. 14 Select cash and debt balances Net Cash (Debt) $ Millions Q2’25 Q3'25 Q4'25 Q1’26 Q2’26 Cash and cash equivalents $ 369 $ 406 $ 493 $ 816 $ 414 Total debt $ (468) $ (462) $ (456) $ (449) $ 0 Finance lease liabilities $ (106) $ (103) $ (95) $ (98) $ (91) Net cash (debt) $ (205) $ (159) $ (58) $ 269 $ 323 Share Repurchases $ 28 $ 30 $ 38 $ 34 $ 40 369 406 493 816 414 (574) (565) (551) (547) (91) $(900) $(600) $(300) $- $300 $600 $900 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 $ Millions Cash and cash equivalents Total debt & finance lease liabilities *The SAP settlement positively impacted cash and cash equivalents by $359 million on a pre -tax net basis in Q1’26. ** **The company paid off the remaining balance on the term loan during Q2’26. **
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© 2026 Teradata. All rights reserved. © 2026 Teradata. All rights reserved. 15 2026 Financial Outlook
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© 2026 Teradata. All rights reserved. Non-GAAP diluted EPS in the range of $2.65 to $2.73 Total revenue in the range of -2% to flat YoY Adjusted free cash flow of $330 to $350 million Recurring revenue in the range of flat to 2% YoY 16 FY26 financial outlook Notes: Total Annual Recurring Revenue ("Total ARR") is defined as the annual contract value for all active and contractually binding term-based contracts at the end of the period, including cloud, recurring AI services, subscriptions, hardware rental, maintenance, and software upgrade rights. Non-GAAP diluted earnings per share (EPS) and adjusted free cash flow (FCF) are non-GAAP measures. Please see the Appendix for reconciliation of GAAP to non-GAAP measures and additional information. Total ARR growth of 2% to 4% YoY
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© 2026 Teradata. All rights reserved. 17 Q3’26 financial outlook Non-GAAP diluted EPS in the range of $0.55 to $0.59 Notes: Non-GAAP diluted earnings per share (EPS) is a non-GAAP measures. Please see the Appendix for reconciliation of GAAP to non-GAAP measures and additional information. Total revenue in the range of -6% to -4% YoY Recurring revenue in the range of -4% to -2% YoY
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© 2026 Teradata. All rights reserved. 18 FY26 key modeling assumptions Non-GAAP Tax Rate Approximately 24% Return of Adjusted FCF Target at least 50% WASO 96.7 million Other Expense Approximately $19 million Notes: Non-GAAP Tax rate and adjusted free cash flow (FCF) are non-GAAP measures. Please refer to the Appendix for additional information on the non-GAAP financial measure, including a reconciliation to the nearest GAAP measures.
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© 2026 Teradata. All rights reserved. © 2026 Teradata. All rights reserved. 19 Industry Recognition
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© 2026 Teradata. All rights reserved. 20© 2026 Teradata. All rights reserved. Industry Recognition of Our Shift to an Autonomous AI + Knowledge Platform Teradata named a Leader in The Forrester Wave : Data Management for Analytics Platforms, Q2 2025 Teradata named a Leader in The Forrester Wave : Data Fabric Platforms, Q4 2025 “Teradata’s strong and differentiated vision aims to democratize access to data and AI for all users.” — The Forrester Wave : Data Management For Analytics Platforms, Q2 2025 Teradata named a Visionary in the 2025 Gartner® Magic Quadrant for Cloud Database Management Systems ISG Buyers Guides : 2026 AI and Data Platforms : EXEMPLARY • AI Agents • AI Platforms • AI Governance and Operations • Agentic and Generative AI Buyers Guide • AI Agents • Analytic Data Platforms Teradata named a Leader in the Data Platform Technology Value Matrix 2025 Teradata named to 2026 Constellation ShortList for Next-Gen Databases: RDBMS for On-Premises “Something major is happening at Teradata and it’s not just another “AI pivot”. It’s a full-scale Transformation that could redefine how regulated or mission-critical enterprises adopt Agentic AI, without sacrificing reliability, governance or control.” - Dion Hinchliffe, Vice President of CIO Practice at The Futurum Group "Teradata's positioning as a Leader reflects the strength of its foundation as much as its agentic innovation” - Duncan Van Kouteren, Research Analyst at Nucleus Research. Teradata named a Leader in Data Science and Machine Learning Platform Technology Value Matrix 2025 Teradata Named a Leader in Nucleus Research 2026 DSML Platform Technology Value Matrix “Teradata's differentiation stems from its heritage in managing mission-critical analytics for the world's largest enterprises, which now serves as a foundation for AI orchestration” – Stephanie Walter , Analyst In Residence - AI Tech Stack
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© 2026 Teradata. All rights reserved. 21
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© 2026 Teradata. All rights reserved. © 2026 Teradata. All rights reserved. 22 Appendix
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© 2026 Teradata. All rights reserved. 23 GAAP to Non-GAAP Reconciliations and Additional Information Use of Non-GAAP Measures Teradata reports its results in accordance with GAAP. However, as described below, the Company believes that certain non- GAAP measures such as free cash flow, adjusted free cash flow, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, all of which exclude certain items, and which may be reported on a constant currency basis, are useful for investors. Our non-GAAP measures are not meant to be considered in isolation to, as substitutes for, or superior to, results determined in accordance with GAAP, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Each of our non-GAAP measures do not have a uniform definition under GAAP and therefore, Teradata’s definition may differ from other companies’ definitions of these measures. The following tables reconcile Teradata’s actual and projected results and EPS under GAAP to the Company’s actual and projected non-GAAP results and EPS for the periods presented, which exclude certain specified items. Our management internally uses supplemental non-GAAP financial measures, such as gross profit, operating income, net income, and EPS, excluding certain items, to understand, manage and evaluate our business and support operating decisions on a regular basis. The Company believes such non-GAAP financial measures (1) provide useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations, (2) are useful for period-over-period comparisons of such operations and results, that may be more easily compared to peer companies and allow investors a view of the Company’s operating results excluding stock-based compensation expense and special items, (3) provide useful information to management and investors regarding present and future business trends, and (4) provide consistency and comparability with past reports and projections of future results.
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© 2026 Teradata. All rights reserved. 24 GAAP to Non-GAAP Reconciliation Three months ended June 30, 2026 and 2025 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the three months ended June 30, 2026, include $6 million ($4 million after-tax) for reorganization, transformation and other activities. 3. Special items for the three months ended June 30, 2025 include $12 million ($4 million after-tax) for reorganization, transformation and other activities. 2026 2025 Stock-based Other Stock-based Other % Change Compensation Special SAP Compensation Special Non-GAAP GAAP Expense Items 2 Settlement Non-GAAP 1 GAAP Expense Items 3 Non-GAAP 1 Yr/Yr Revenue Recurring 363$ -$ -$ -$ 363$ 354$ -$ -$ 354$ 3% Perpetual software licenses, hardware and other 8 - - - 8 3 - - 3 167% Product Sales 371 - - 371 357 - - 357 4% Consulting serv ices 39 - - - 39 51 - - 51 -24% Total revenue 410 - - - 410 408 - - 408 0% Gross profit Recurring 243 (3) - - 246 235 (3) (1) 239 3% % of Revenue 66.9% 67.8% 66.4% 67.5% Perpetual software licenses, hardware and other 2 - - - 2 - - - - N/A % of Revenue 25.0% 25.0% 0.0% 0.0% Product Sales 245 (3) - 248 235 (3) (1) 239 4% % of Revenue 66.0% 66.8% 65.8% 66.9% Consulting serv ices (2) (1) (1) - - (5) (2) (2) (1) -100% % of Revenue -5.1% 0.0% -9.8% -2.0% Total gross profit 243 (4) (1) - 248 230 (5) (3) 238 4% % of Revenue 59.3% 60.5% 56.4% 58.3% Selling, general and administrative expenses 120 20 2 - 98 135 20 8 107 -8% Research and development expenses 75 9 4 - 62 71 6 1 64 -3% Total expenses 195 29 6 - 160 206 26 9 171 -6% % of Revenue 47.6% 39.0% 50.5% 41.9% Income from operations 48 (33) (7) - 88 24 (31) (12) 67 31% % of Revenue 11.7% 21.5% 5.9% 16.4% Other income (expense), net (1) - 1 - (2) (11) - - (11) Income before income taxes 47 (33) (6) - 86 13 (31) (12) 56 54% Income tax expense 1 (5) (2) (12) 20 4 1 (8) 11 % Tax rate 2.1% 23.3% 30.8% 19.6% Net income 46$ (28)$ (4)$ 12$ 66$ 9$ (32)$ (4)$ 45$ 47% % of Revenue 11.2% 16.1% 2.2% 11.0% Net income per common share Basic 0.49$ (0.30)$ (0.04)$ 0.13$ 0.70$ 0.09$ (0.34)$ (0.04)$ 0.47$ 48% Diluted 0.48$ (0.29)$ (0.04)$ 0.12$ 0.69$ 0.09$ (0.33)$ (0.04)$ 0.47$ 47% Weighted average common shares outstanding Basic 93.9 93.9 95.3 95.3 Diluted 96.2 96.2 96.0 96.0
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© 2026 Teradata. All rights reserved. 25 GAAP to Non-GAAP Reconciliation Three months ended March 31, 2026 and 2025 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the three months ended March 31, 2026, include $7 million ($6 million after-tax) for reorganization, transformation and other activities. 3. Special items for the three months ended March 31, 2025, include $3 million ($1 million after-tax) for reorganization, transformation and other activities. 2026 2025 Stock-based Other Stock-based Other % Change Compensation Special SAP Compensation Special Non-GAAP GAAP Expense Items 2 Settlement Non-GAAP 1 GAAP Expense Items 3 Non-GAAP 1 Yr/Yr Revenue Recurring 400$ -$ -$ -$ 400$ 358$ -$ -$ 358$ 12% Perpetual software licenses, hardware and other 1 - - - 1 10 - - 10 -90% Product Sales 401 - - 401 368 - - 368 9% Consulting serv ices 43 - - - 43 50 - - 50 -14% Total revenue 444 - - - 444 418 - - 418 6% Gross profit Recurring 277 (2) (1) - 280 250 (2) - 252 11% % of Revenue 69.3% 70.0% 69.8% 70.4% Perpetual software licenses, hardware and other 1 - - - 1 1 - - 1 0% % of Revenue 100.0% 100.0% 10.0% 10.0% Product Sales 278 (2) (1) 281 251 (2) - 253 11% % of Revenue 69.3% 70.1% 68.2% 68.8% Consulting serv ices (2) (2) (2) - 2 (3) (2) - (1) -300% % of Revenue -4.7% 4.7% -6.0% -2.0% Total gross profit 276 (4) (3) - 283 248 (4) - 252 12% % of Revenue 62.2% 63.7% 59.3% 60.3% Selling, general and administrative expenses 240 17 4 121 98 116 12 3 101 -3% Research and development expenses 72 8 - - 64 66 6 - 60 7% Total expenses 312 25 4 121 162 182 18 3 161 1% % of Revenue 70.3% 36.5% 43.5% 38.5% (Loss) income from operations (36) (29) (7) (121) 121 66 (22) (3) 91 33% % of Revenue (8.1%) 27.3% 15.8% 21.8% Other income (expense), net 473 - - 480 (7) (8) - - (8) Income before income taxes 437 (29) (7) 359 114 58 (22) (3) 83 37% Income tax expense 102 (5) (1) 79 29 14 (3) (2) 19 % Tax rate 23.3% 25.4% 24.1% 22.9% Net income 335$ (24)$ (6)$ 280$ 85$ 44$ (19)$ (1)$ 64$ 33% % of Revenue 75.5% 19.1% 10.5% 15.3% Net income per common share Basic 3.60$ (0.26)$ (0.06)$ 3.01$ 0.91$ 0.46$ (0.20)$ (0.01)$ 0.67$ 35% Diluted 3.47$ (0.25)$ (0.06)$ 2.90$ 0.88$ 0.45$ (0.20)$ (0.01)$ 0.66$ 33% Weighted average common shares outstanding Basic 93.0 93.0 95.1 95.1 Diluted 96.6 96.6 97.4 97.4
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© 2026 Teradata. All rights reserved. 26 GAAP to Non-GAAP Reconciliation Three months ended December 31, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the three months ended December 31, 2025 include $9 million ($8 million after-tax) for reorganization, transformation and other activities. 3. Special items for the three months ended December 31, 2024 include $6 million ($4 million after-tax) for reorganization, transformation and other activities.
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© 2026 Teradata. All rights reserved. 27 GAAP to Non-GAAP Reconciliation Three months ended September 30, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the three months ended September 30, 2025 include $7 million ($5 million after-tax) for reorganization, transformation and other activities. 3. Special items for the three months ended September 30, 2024 include $14 million ($10 million after-tax) for reorganization, transformation and other activities.
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© 2026 Teradata. All rights reserved. 28 GAAP to Non-GAAP Reconciliation Twelve months ended December 31, 2025 and 2024 Amounts in U.S. Dollars in Millions, except per share amounts. Amounts are unaudited. NOTES: 1. While Teradata reports its results using generally accepted accounting principles in the U.S. (GAAP), certain non-GAAP financial measures may be used to reflect operational performance and to determine the effectiveness of its business management. Certain special items may be segregated from our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Non-GAAP measures should not be used as a substitute for, or superior to, the Company's reported GAAP results. 2. Special items for the twelve months ended December 31, 2025 include $31 million ($18 million after-tax) for reorganization, transformation and other activities. 3. Special items for the twelve months ended December 31, 2024 include $2 million ($2 million after-tax) for losses on sale of Blue Chip Swap, and $28 million ($20 million after- tax) for reorganization, transformation and other activities.
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© 2026 Teradata. All rights reserved. 29 Adjusted EBITDA NOTES: * While Teradata reports its results using GAAP, certain non-GAAP financial measures may be used to reflect operational performance. These non-GAAP measures may exclude the impact of stock compensation expense and certain special items, which are used to support. our GAAP results from time-to-time to reflect the on-going Earnings Per Share performance of the Company. Although non- GAAP measures should not be used in isolation or as a substitute for, or superior to, the Company's reported GAAP results, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Teradata uses non-GAAP measures to manage and determine the effectiveness of its business management. A reconciliation of Teradata’s GAAP results to these non-GAAP financial measures for each period included in this summary is found in the supplemental appendices hereto. GAAP to Non-GAAP Reconciliation 2025 2026 Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Total revenue (GAAP) 418 408 416 421 1,663 444 410 854 Income (loss) from operations (GAAP) 66 24 61 54 205 (36) 48 12 Excluding: Stock based compensation expense 22 31 29 30 112 29 33 62 Reorganization and other costs 3 12 8 12 35 128 7 135 Income from operations (Non GAAP) 91 67 98 96 352 121 88 209 Depreciation and amortization (GAAP) 20 23 24 23 90 25 23 48 EBITDA (non-GAAP)* 111$ 90$ 122$ 119$ 442$ 146$ 111$ 257$ % of Revenue 26.6% 22.1% 29.3% 28.3% 26.6% 32.9% 27.1% 30.1%
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© 2026 Teradata. All rights reserved. 30 Earnings per share – Last 12 months NOTES: i. Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. GAAP to Non-GAAP Reconciliation 2026 June 30, 2026 Q3 Q4 Q1 Q2 LTM Earnings Per Share: GAAP Earnings Per Share (diliuted) 0.42 0.38 3.47 0.48 4.75 Excluding: Stock-based compensation expense 0.30 0.31 0.30 0.34 1.25 Reorganization and other costs 0.07 0.10 0.07 0.06 0.30 SAP Settlement - - (3.72) - (3.72) Income tax adjustments i (0.07) (0.05) 0.76 (0.19) 0.45 Non-GAAP Diluted Earnings Per Share 0.72 0.74 0.88 0.69 3.03 2025 June 30, 2025 Q3 Q4 Q1 Q2 LTM GAAP Earnings Per Share (diliuted) 0.33 0.26 0.45 0.09 1.13 Excluding: Stock-based compensation expense 0.30 0.27 0.23 0.32 1.12 Reorganization and other costs 0.14 0.06 0.03 0.13 0.36 Income tax adjustments i (0.08) (0.06) (0.05) (0.07) (0.26) Non-GAAP Diluted Earnings Per Share 0.69 0.53 0.66 0.47 2.35
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© 2026 Teradata. All rights reserved. 31 Earnings per share – Three months ended June 30, 2026 and 2026 Outlook NOTES: i. Represents the income tax effect of the pre-tax adjustments to reconcile GAAP to Non-GAAP income based on the applicable jurisdictional statutory tax rate of the underlying item, including the $67 million discrete income tax effect of the SAP settlement recorded in the first half of 2026. Including the income tax effect assists investors in understanding the tax provision associated with those adjustments and the effective tax rate related to the underlying business and performance of the Company’s ongoing operations. As a result of these adjustments, the Company’s GAAP effective tax rate and non-GAAP effective tax rate for the three months ended June 30, 2026, was 2.1% and 23.3%, respectively, and June 30, 2025, was 30.8% and 19.6%, respectively. For the six months ended June 30, 2026, the Company’s GAAP effective tax rate and non-GAAP effective tax rate was 21.3% and 24.5%, respectively and June 30, 2025, was 25.4% and 21.6%, respectively. GAAP to Non-GAAP Reconciliation
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© 2026 Teradata. All rights reserved. 32 Adjusted free cash flow reconciliation – Last twelve months NOTES: As described below, the Company believes that free cash flow and adjusted free cash flow are useful non-GAAP measures for investors. Free cash flow and adjusted free cash flow do not have a uniform definition under GAAP in the United States and therefore, Teradata's definitions may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less total capital expenditures and adjusted free cash flow as free cash flow less the gross proceeds from the SAP settlement, plus the non-recurring legal and other expenses incurred in connection with the SAP litigation and resulting settlement, and taxes paid specific to the settlement agreement. Teradata’s management uses free cash flow and adjusted free cash flow to assess the financial performance of the Company and believes they are useful for investors because they relate the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations and adjusted free cash flow adjusts the impact of the SAP settlement. Neither free cash flow or adjusted free cash flow represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from these measures. These non- GAAP measures should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP. GAAP to Non-GAAP Reconciliation 2026 June 30, 2026 Q3 Q4 Q1 Q2 LTM Net cash provided by operating activities (GAAP) 94 160 401 106 761$ Less capital expenditures for: Expenditures for property and equipment (5) (9) (10) (1) (25) Additions to capitalized software (1) - (1) - (2) total capital expenditures (6) (9) (11) (1) (27) Free Cash Flow (non-GAAP measure) 1 88 151 390 105 734 Less SAP gross settlement proceeds - - (480) - (480) Plus legal and other expenses - - 121 - 121 Plus taxes specific to the settlement - 22 22 Adjusted Free Cash Flow (non-GAAP Measure)1 88 151 31 127 397
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© 2026 Teradata. All rights reserved. 33 Adjusted free cash flow reconciliation – June 30, 2026 and 2025 NOTES: As described below, the Company believes that free cash flow and adjusted free cash flow are useful non-GAAP measures for investors. Free cash flow and adjusted free cash flow do not have a uniform definition under GAAP in the United States and therefore, Teradata's definitions may differ from other companies' definitions of this measure. Teradata defines free cash flow as cash provided by/used in operating activities, less total capital expenditures and adjusted free cash flow as free cash flow less the gross proceeds from the SAP settlement, plus the non-recurring legal and other expenses incurred in connection with the SAP litigation and resulting settlement, and taxes paid specific to the settlement agreement. Teradata’s management uses free cash flow and adjusted free cash flow to assess the financial performance of the Company and believes they are useful for investors because they relate the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures which can be used for among other things, investments in the Company's existing businesses, strategic acquisitions, strengthening the Company’s balance sheet, repurchase of Company stock and repay the Company’s debt obligations and adjusted free cash flow adjusts the impact of the SAP settlement. Neither free cash flow or adjusted free cash flow represent the residual cash flow available for discretionary expenditures since there may be other non-discretionary expenditures that are not deducted from these measures. These non- GAAP measures should not be considered as a substitute for, or superior to, cash flows from operating activities under GAAP. GAAP to Non-GAAP Reconciliation