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Teradata (TDC) Q1 2026 earnings results (first quarter 2026)

10-Q filed May 6, 2026

Teradata (TDC) reported revenue of $444M for the first quarter 2026 (Q1 2026), +6% from a year earlier and +5% from the quarter before. Operating margin was -8.1%, net earnings $335M (75.5% of revenue).

Revenue$444M
Year over year+6%
Quarter over quarter+5%
Operating margin-8.1%
Net earnings$335M

Teradata, Q1 2026: revenue $444M (+6% year over year), operating margin -8.1%, net earnings $335M, operating cash flow $401M. The chart follows the revenue to costs, profit and cash.

Q1 2026AmountQ/QY/Y
Revenue$444M+5%+6%
Operating profit−$36.0M-167%-155%
Net earnings$335M+805%+661%
Operating cash flow$401M+151%50×
Free cash flow$391M+159%56×

What changed

Revenue was $444.0M in Q1 2026, up 6% year over year and up 5% from the previous quarter. Services and other was the largest line at 68% of revenue. Services and other added $26.0M year over year (up 9%), 100% of the total change. Perpetual software licenses, hardware and other declined 90%.

Gross margin was 62.2%, up 2.8 points from Q1 2025. Operating costs exceeded revenue by $36.0M, an operating margin of -8.1%. Operating expenses grew 71% against revenue growth of 6%. The fastest-growing cost line was SG&A (+107%). Net earnings were $335.0M, up 661% year over year. The effective tax rate was 23.3%. Non-operating items added $473.0M, 108% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $401.0M (up 4912% year over year), 120% of net earnings. Non-cash charges added back $25.0M of depreciation and amortization and $29.0M of share-based compensation. Capital expenditures of $10.0M left free cash flow of $391.0M.

Questions

What was Teradata's revenue in the first quarter 2026?

Teradata (TDC) reported revenue of $444M for the first quarter 2026 (Q1 2026), +6% from a year earlier and +5% from the quarter before.

Was Teradata profitable in the first quarter 2026?

Operating loss was $36.0M (-8.1% of revenue) and net earnings $335M.

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Source: Teradata 10-Q on SEC EDGAR.