Slide 1: Q2'26 Earnings Results
August 2026 Q2’26 Earnings Results Teradata Investor Relations © 2026 Teradata. All rights reserved.
Slide 2: Forward-looking statements and Non-GAAP Financial Measures
Forward-looking statements Non-GAAP Financial Measures This release contains forward-looking statements within the results; our ability to execute and realize the anticipated This presentation and the accompanying discussion include meaning of Section 21E of the Securities and Exchange Act of benefi
Slide 3: Teradata – at a glance
Teradata – at a glance Corporate purpose What we do How we do it Transforming knowledge into We turn enterprise data and We unify data, knowledge, and autonomous decisions that drive context into scalable, trusted business context, activating meaningful outcomes. autonomous intelligence that drives
Slide 4: Teradata vision: Autonomous AI + Knowledge
Teradata vision Autonomous AI Knowledge Deliver autonomous experience Build, activate, and manage AI Enabled through systems of across platform layers and end-to- outcomes through agents, AI/ML, intelligence and informed by agentic end data and AI processes. apps, and marketplaces. knowledge that ad
Slide 5: Teradata Technology Stack
Teradata Technology Stack Humans AI Workspaces Agents Agent Execution AI Tools Knowledge Context Knowledge Foundation Active & Elastic Object & Block On-Prem Multi-Cloud Sovereign Cloud In-Database Compute Storage AI Capabilities CPUs & GPUs Fabric © 2026 Teradata. All rights reserved.
Slide 6: Q2'26 Financials
Q2’26 Financials © 2026 Teradata. All rights reserved. 6
Slide 7: Teradata – by the numbers Q2'26
Teradata – by the numbers Q2’26 Total ARR Public Cloud ARR Recurring Revenue Total Revenue $1.509B $686M $363M $410M + 1% YoY + 8% YoY + 3% YoY + 0% YoY + 2% YoY in CC + 9% YoY in CC + 2% YoY in CC + 0% YoY in CC GAAP Diluted EPS Non-GAAP Diluted EPS Cash Flow from Operations Adjusted Free Cash Flow
Slide 8: ARR by product
ARR by product 1489 1490 1522 1492 1509 99 92 86 77 73 $1.509B 756 765 735 729 750 + 1% YoY + 2% YoY in CC 634 633 701 686 686 45% Cloud ARR as a % of Total ARR Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Cloud Subscription Maint & SW Upgrade Rights Q2'25 Q3'25 Q4'25 Q1’26 Q2’26 Cloud ARR as a % 43% 42% 46% 46% 4
Slide 9: Revenue by segment
Revenue by segment 444 408 416 421 410 $410M 43 51 47 53 39 + 0% YoY 401 357 369 368 371 + 0% CC 90% Product Revenue as a % of Total Revenue Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Product Consulting Q2'25 Q3’25 Q4’25 Q1’26 Q2’26 Product Revenue as a 88% 89% 87% 90% 90% % of Total Revenue Notes: The impact of
Slide 10: Non-GAAP gross margin
Product Non-GAAP gross margin $300 Gross Margin ($M) 75% $275 70% 69% 68% 70% $250 67% 67% Total $225 65% $300 $200 60% Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 64% 65% 62% 62% Product Gross Margin % of Revenue $200 60% Gross Margin ($M) 58% 60% Consulting $100 55% $15 25% Gross Margin ($M) 19% 20% $10 15% $0
Slide 11: Non-GAAP operating expenses
Non-GAAP operating expenses SG&A R&D 70 68 66 105 28% 64 26% 62 60 58 16% 25% 56 24% 24% 54 15% 80 52 14% 50 14% 14% 22% 48 46 44 55 42 40 38 36 107 101 104 98 98 34 64 60 61 64 62 32 30 18% 30 11% Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 SG&A Expense % of Revenue R&D Expense % of
Slide 12: Non-GAAP operating margin, Non-GAAP adjusted EBITDA & EPS
Non-GAAP operating margin, Non-GAAP adjusted EBITDA & EPS Non-GAAP Operating Margin Earnings per Share $150 35% $5.00 4.75 * 27% 30% $125 24% 23% 21% 25% $4.00 $100 16% 20% 3.03 $75 $3.00 2.35 15% $50 10% Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 $2.00 Non-GAAP Operating Income % of Revenue 1.13 $1.00 0.69 0.48
Slide 13: Cash flow & capital allocation
Cash flow & capital allocation 761 * Q2’26 Capital Allocation Stock repurchase 397 $40M 284 263 Approximately 1.3 million shares 106 127 43 39 LTM25 LTM26 Q2’25 Q2’26 Cash flow from Operations Adjusted Free Cash Flow *For the LTM26, the SAP settlement positively impacted Cash flow from Operations by
Slide 14: Select cash and debt balances
Select cash and debt balances Net Cash (Debt) $900 $ Millions Q2’25 Q3'25 Q4'25 Q1’26 Q2’26 $600 Cash and cash $ 369 $ 406 $ 493 $ 816 $ 414 816 * * equivalents $300 406 493 414 369 $ Millions Total debt $ (468) $ (462) $ (456) $ (449) $ 0 ** $- (91) Finance lease $(300) (574) (565) (551) (547) $ (1
Slide 15: 2026 Financial Outlook
2026 Financial Outlook © 2026 Teradata. All rights reserved. 15
Slide 16: FY26 financial outlook
FY26 financial outlook Total ARR Recurring revenue Total revenue growth of 2% to 4% YoY in the range of flat to 2% YoY in the range of -2% to flat YoY Adjusted free cash Non-GAAP diluted EPS flow in the range of $2.65 to $2.73 of $330 to $350 million Notes: Total Annual Recurring Revenue ("Total ARR
Slide 17: Q3'26 financial outlook
Q3’26 financial outlook Recurring revenue Total revenue Non-GAAP diluted EPS in the range of -4% to -2% YoY in the range of -6% to -4% YoY 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
Slide 18: FY26 key modeling assumptions
FY26 key modeling assumptions Non-GAAP Tax Rate WASO Approximately 24% 96.7 million Return of Adjusted FCF Other Expense Target at least 50% 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 informa
Slide 19: Industry Recognition
Industry Recognition © 2026 Teradata. All rights reserved. 19
Slide 20: Industry Recognition of Our Shift to an Autonomous AI + Knowledge Platform
Industry Recognition of Our Shift to an Autonomous AI + Knowledge Platform Teradata named a Leader in The Forrester Teradata named a Visionary in the “Something major is happening at Wave : Data Management for Analytics 2025 Gartner® Magic Quadrant for Teradata and it’s not just another “AI Platform
Slide 21: © 2026 Teradata. All rights reserved.
© 2026 Teradata. All rights reserved. 21
Slide 22: Appendix
Appendix © 2026 Teradata. All rights reserved. 22
Slide 23: GAAP to Non-GAAP Reconciliations and Additional Information
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-GAA
Slide 24: Three months ended June 30, 2026 and 2025
GAAP to Non-GAAP Reconciliation 2026 2025 Stock-based Other Stock-based Other % Change Compensation Special SAP Compensation Special Non-GAAP Items 2 1 3 1 GAAP Expense Settlement Non-GAAP GAAP Expense Items Non-GAAP Yr/Yr Three months Revenue Recurring Perpetual software licenses, hardware and othe
Slide 25: Three months ended March 31, 2026 and 2025
GAAP to Non-GAAP Reconciliation 2026 2025 Stock-based Other Stock-based Other % Change Compensation Special SAP Compensation Special Non-GAAP Three months 2 1 3 1 GAAP Expense Items Settlement Non-GAAP GAAP Expense Items Non-GAAP Yr/Yr Revenue Recurring $ 400 $ - $ - $ - $ 400 $ 358 $ - $ - $ 358 12
Slide 26: Three months ended December 31, 2025 and 2024
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 financi
Slide 27: Three months ended September 30, 2025 and 2024
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 financ
Slide 28: Twelve months ended December 31, 2025 and 2024
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 financ
Slide 29: Adjusted EBITDA
GAAP to Non-GAAP Reconciliation Adjusted EBITDA NOTES: 2025 2026 * While Teradata reports its results using GAAP, certain non-GAAP Q1 Q2 Q3 Q4 FY Q1 Q2 YTD financial measures may be used to reflect operational performance. These non-GAAP measures may exclude the impact of stock Total revenue (GAAP)
Slide 30: Earnings per share – Last 12 months
GAAP to Non-GAAP Reconciliation Earnings per share – Last 12 months 2026 June 30, 2026 NOTES: Q3 Q4 Q1 Q2 LTM i. Represents the income tax effect of the pre-tax adjustments Earnings Per Share: to reconcile GAAP to Non-GAAP income based on the GAAP Earnings Per Share (diliuted) 0.42 0.38 3.47 0.48 4.
Slide 31: Earnings per share – Three months ended June 30, 2026 and 2026 Outlook
GAAP to Non-GAAP Reconciliation 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, includin
Slide 32: Adjusted free cash flow reconciliation – Last twelve months
GAAP to Non-GAAP Reconciliation Adjusted free cash flow reconciliation – Last twelve months NOTES: 2026 June 30, 2026 As described below, the Company believes that free cash flow and Q3 Q4 Q1 Q2 LTM adjusted free cash flow are useful non-GAAP measures for investors. Free cash flow and adjusted free
Slide 33: Adjusted free cash flow reconciliation – June 30, 2026 and 2025
GAAP to Non-GAAP Reconciliation 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
Slide 34: teradata.
teradata.