Filing Flows › Teradata (TDC) › How it makes money
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…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Total recurring | $359M | 90.0% | -1% | -2% |
| ↳ Services and other | $304M | 76.2% | -2% | -0.7% |
| ↳ Subscription software licenses | $55.0M | 13.8% | +4% | -8% |
| Consulting services | $37.0M | 9.3% | -5% | -21% |
| Perpetual software licenses, hardware and other | $3.0M | 0.8% | -62% | 0% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $399M | 100.0% |
| Cost of revenue | $161M | 40.4% |
| Gross profit | $238M | 59.6% |
| Operating expenses | $184M | 46.1% |
| Operating profit | $54.0M | 13.5% |
| Income tax | $12.0M | 3.0% |
| Net earnings | $38.0M | 9.5% |
| Operating cash flow | $91.0M | 22.8% |
| Free cash flow | $86.0M | 21.6% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/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%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.