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How Teradata (TDC) makes money

Teradata (TDC) made $399M of revenue in the third quarter 2026 (Q3 2026), -4% from a year earlier. Total recurring brought in $359M (90%); Consulting services brought in $37.0M (9%); Perpetual software licenses, hardware and other brought in $3.0M (1%). Of every dollar of revenue, 60¢ was left as gross profit, 14¢ was left as operating profit, 10¢ was left as net earnings.

Drawing the Sankey…

Teradata revenue by segment, Q3 2026Teradata revenue by segment, Q3 2026Total recurring$359MConsulting services$37.0MPerpetual software licenses, hard…$3.0M
Teradata: revenue by line, Q1 2025 to Q3 2026Teradata: revenue by line, Q1 2025 to Q3 2026Total recurringConsulting servicesPerpetual software li…Total recurring: $359M latest$359MConsulting services: $37.0M latest$37.0MPerpetual software licenses, hardware and other: $3.0M latestQ1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026Q3 2026
Total recurring went from 86% of revenue in Q1 2025 to 90% in Q3 2026, the largest shift in the mix.
Teradata revenue by quarterTeradata revenue by quarter$418MQ1 2025$408MQ2 2025$416MQ3 2025$421MQ4 2025$444MQ1 2026$410MQ2 2026$399MQ3 2026
Teradata: where each dollar of revenue goesTeradata: where each dollar of revenue goesCost of revenue40¢Gross profit60¢Operating expenses46¢Operating profit14¢Income tax3¢Net earnings10¢Operating cash flow23¢Free cash flow22¢

Revenue by segment, Q3 2026

SegmentRevenueShareQ/QY/Y
Total recurring$359M90.0%-1%-2%
  ↳ Services and other$304M76.2%-2%-0.7%
  ↳ Subscription software licenses$55.0M13.8%+4%-8%
Consulting services$37.0M9.3%-5%-21%
Perpetual software licenses, hardware and other$3.0M0.8%-62%0%

Where each dollar of revenue goes

LineQ3 2026% of revenue
Revenue$399M100.0%
Cost of revenue$161M40.4%
Gross profit$238M59.6%
Operating expenses$184M46.1%
Operating profit$54.0M13.5%
Income tax$12.0M3.0%
Net earnings$38.0M9.5%
Operating cash flow$91.0M22.8%
Free cash flow$86.0M21.6%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 2026$399M-4%
Q2 2026$410M+0.5%
Q1 2026$444M+6%
Q4 2025$421M+3%
Q3 2025$416M-6%
Q2 2025$408M-6%
Q1 2025$418M-10%

From Teradata's 10-Q filed Nov 6, 2026 (on EDGAR).

Questions

How does Teradata make money?

Teradata (TDC) made $399M of revenue in the third quarter 2026 (Q3 2026), -4% from a year earlier. Total recurring brought in $359M (90%); Consulting services brought in $37.0M (9%); Perpetual software licenses, hardware and other brought in $3.0M (1%). Of every dollar of revenue, 60¢ was left as gross profit, 14¢ was left as operating profit, 10¢ was left as net earnings.

What is Teradata's biggest business?

Total recurring: $359M in the third quarter 2026, 90% of revenue, -2% from a year earlier.

What is Teradata's profit margin?

Net earnings were $38.0M, 9.5% of revenue, in the third quarter 2026; the operating margin was 13.5%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.