Slide 1: Q1'26 Earnings Results
May 2026 Q1’26 Earnings Results Teradata Investor Relations © 2026 Teradata. All rights reserved.
Slide 2: Forward-looking statements 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: Q1'26 Financials
Q1’26 Financials © 2026 Teradata. All rights reserved. 4
Slide 5: Teradata – by the numbers Q1'26
Teradata – by the numbers Q1’26 Total ARR Public Cloud ARR Recurring Revenue Total Revenue $1.492B $686M $400M $444M + 3% YoY + 13% YoY + 12% YoY + 6% YoY + 2% YoY in CC + 12% YoY in CC + 9% YoY in CC + 4% YoY in CC GAAP Diluted EPS* Non-GAAP Diluted EPS Cash Flow from Operations* Free Cash Flow* $3
Slide 6: ARR by product
ARR by product 1,489 1,490 1,522 1,492 1,442 99 92 86 77 95 $1.492B 741 756 765 735 729 + 3% YoY + 2% YoY in CC 634 633 701 686 606 46% Cloud ARR as a % of Total ARR Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Cloud Subscription Maint & SW Upgrade Rights Q1'25 Q2'25 Q3'25 Q4'25 Q1’26 Cloud ARR as a % 42% 43% 42%
Slide 7: Revenue by segment
Revenue by segment 444 418 408 416 421 43 $444M 50 51 47 53 + 6% YoY 401 368 357 369 368 + 4% CC 90% Product Revenue as a % of Total Revenue Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Product Consulting Q1'25 Q2'25 Q3'25 Q4'25 Q1’26 Product Revenue as a % of Total Revenue 88% 88% 89% 87% 90% Notes: The impact of
Slide 8: Gross Margin
Product Non-GAAP gross margin $300 Gross Margin ($M) $275 70% 71% 69% 69% 68% $250 67% Total 66% $225 $300 $200 61% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 64% 65% 62% 62% Gross Margin % of Revenue $200 Gross Margin ($M) 60% 60% 58% Consulting $100 $15 25% Gross Margin ($M) 55% 19% 20% $10 15% $0 50% 9% 10% Q
Slide 9: Non-GAAP operating expenses
Non-GAAP operating expenses SG&A R&D 70 20% 68 66 28% 64 105 62 26% 60 25% 58 16% 56 24% 24% 54 80 52 50 14% 14% 14% 14% 22% 48 46 44 55 42 40 38 36 101 107 101 104 98 34 60 64 60 61 64 32 30 18% 30 10% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 SG&A Expense % of Revenue R&D Expense
Slide 10: 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% $4.50 4.36 * 27% 30% $125 24% $4.00 22% 23% 25% 3.47 * $100 $3.50 16% 20% $3.00 2.81 $75 15% 2.52 $2.50 $50 10% $2.00 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 1.42 $1.50 Operating Income % of Revenue
Slide 11: Cash flow & capital allocation
Cash flow & capital allocation 698 * Q1’26 Capital Allocation Stock repurchase 309 401 * $34M 284 263 Approximately 1.2 million shares 31 8 7 LTM25 LTM26 Q1'25 Q1'26 Cash from Operations Adjusted Free Cash Flow *The SAP settlement positively impacted Cash flow from Operations by $359 million on a pr
Slide 12: Select cash and debt balances
Select cash and debt balances Net Cash (Debt) $900 $ Millions Q1'25 Q2'25 Q3'25 Q4'25 Q1’26 $600 Cash and cash $ 368 $ 369 $ 406 $ 493 $ 816 * 816* equivalents $300 406 493 368 369 $ Millions Total debt $ (474) $ (468) $ (462) $ (456) $ (449) $- Finance lease $(300) (579) (574) (565) (551) (547) $ (
Slide 13: 2026 Financial Outlook
2026 Financial Outlook © 2026 Teradata. All rights reserved. 13
Slide 14: 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 $2.55 to $2.65 of $320 to $340 million Notes: Total Annual Recurring Revenue ("Total ARR
Slide 15: Q2'26 financial outlook
Q2’26 financial outlook Recurring revenue Total revenue Non-GAAP diluted EPS in the range of -2% to flat YoY in the range of -4% to -2% YoY in the range of $0.53 to $0.57 Notes: Non-GAAP diluted earnings per share (EPS) is a non-GAAP measures. Please see the Appendix for reconciliation of GAAP to no
Slide 16: FY26 key modeling assumptions
FY26 key modeling assumptions Non-GAAP Tax Rate WASO Approximately 24% 96.6 million Return of Adjusted FCF Other Expense Target at least 50% Approximately $22 million Notes: Adjusted free cash flow (FCF) is a non-GAAP measure. Please refer to the Appendix for additional information on the non-GAAP f
Slide 17: Industry Recognition
Industry Recognition © 2026 Teradata. All rights reserved. 17
Slide 18: 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 19: © 2026 Teradata. All rights reserved.
© 2026 Teradata. All rights reserved. 19
Slide 20: Appendix
Appendix © 2026 Teradata. All rights reserved. 20
Slide 21: 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 22: 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 23: 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 24: 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 25: Three months ended June 30, 2025 and 2024
GAAP to Non-GAAP Reconciliation Three months ended June 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 m
Slide 26: 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 27: 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 YTD Q1 financial measures may be used to reflect operational performance. These non-GAAP measures may exclude the impact of stock compensation expense and ce
Slide 28: Earnings per share – Last 12 months
GAAP to Non-GAAP Reconciliation Earnings per share – Last 12 months 2025 2026 March 31, 2026 NOTES: Q2 Q3 Q4 Q1 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) 0.09 0.42 0.38 3
Slide 29: Earnings per share – Three months ended March 31, 2026 and 2026 Outlook
GAAP to Non-GAAP Reconciliation Earnings per share – Three months ended March 31, 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, includi
Slide 30: Adjusted free cash flow reconciliation – Last twelve months
GAAP to Non-GAAP Reconciliation Adjusted free cash flow reconciliation – Last twelve months NOTES: 2025 2026 March 31, 2026 As described below, the Company believes that free cash flow and Q2 Q3 Q4 Q1 LTM adjusted free cash flow are useful non-GAAP measures for investors. Free cash flow and adjusted
Slide 31: Adjusted free cash flow reconciliation – March 31, 2026 and 2025
GAAP to Non-GAAP Reconciliation Adjusted free cash flow reconciliation – March 31, 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 unifor
Slide 32: Thank you
Thank you © 2026 Teradata. All rights reserved.
Slide 33: Teradata