--- title: "notice_summary_saf.revenue_title" type: "News" locale: "en" url: "https://longbridge.com/en/news/294866397.md" datetime: "2026-08-04T20:23:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294866397.md) - [en](https://longbridge.com/en/news/294866397.md) - [zh-HK](https://longbridge.com/zh-HK/news/294866397.md) generator: "portal-rs" --- # notice_summary_saf.revenue_title notice\_summary\_saf.revenue. notice\_summary\_saf.eps. notice\_summary\_saf.ebit. #### Second Quarter 2026 Financial Highlights ##### Revenue - **Total Revenue**: Teradata Corporation reported total revenue of $410 million, which was flat as reported and in constant currency compared to $408 million in the prior year period. - **Recurring Revenue**: Recurring revenue reached $363 million, marking a 3% increase as reported and 2% in constant currency year-over-year, and constituted 89% of total revenue, up from 87% in the prior year. - **Product Sales Revenue**: Product Sales revenue was $371 million, an increase of 4% as reported and 3% in constant currency compared to $357 million in Q2 2025. - **Consulting Services Revenue**: Consulting Services revenue was $39 million, a decrease of -24% as reported and -23% in constant currency compared to $51 million in Q2 2025. - **Perpetual software licenses, hardware and other revenue**: This segment generated $8 million, a 167% increase as reported and 313% in constant currency compared to $3 million in Q2 2025. ##### Annual Recurring Revenue (ARR) - **Total ARR**: Total Annual Recurring Revenue increased to $1.509 billion from $1.489 billion, representing a 1% increase as reported and 2% in constant currency. - **Public Cloud ARR**: Public cloud ARR grew to $686 million from $634 million, an increase of 8% as reported and 9% in constant currency. ##### Gross Profit - **GAAP Gross Profit**: GAAP gross profit was $243 million, a 6% increase from $230 million, with a GAAP gross margin of 59.3%, up from 56.4%. - **Non-GAAP Gross Profit**: Non-GAAP gross profit was $248 million, a 4% increase from $238 million, with a non-GAAP gross margin of 60.5%, up from 58.3%. ##### Operating Income and Margin - **GAAP Operating Income**: GAAP operating income was $48 million, a 100% increase from $24 million, resulting in a GAAP operating margin of 11.7%, up 580 basis points from 5.9%. - **Non-GAAP Operating Income**: Non-GAAP operating income was $88 million, a 31% increase from $67 million, resulting in a non-GAAP operating margin of 21.5%, up 510 basis points from 16.4%. ##### Net Income - **GAAP Net Income**: GAAP net income was $46 million, a 411% increase from $9 million, representing 11.2% of revenue, up from 2.2%. - **Non-GAAP Net Income**: Non-GAAP net income was $66 million, a 47% increase from $45 million, representing 16.1% of revenue, up from 11%. ##### Cash Flow - **Cash Flow from Operations**: Cash flow from operations was $106 million, a 147% increase from $43 million in the prior year period. - **Free Cash Flow**: Free cash flow was $105 million compared to $39 million. - **Adjusted Free Cash Flow**: Adjusted free cash flow was $127 million, a 226% increase from $39 million in the prior year period. ##### Operating Costs - **Selling, general and administrative expenses**: These expenses decreased to $120 million from $135 million in Q2 2025. - **Research and development expenses**: These expenses increased to $75 million from $71 million in Q2 2025. #### Six Months Ended June 30, 2026 Financial Highlights ##### Revenue - **Total Revenue**: Total revenue was $854 million, a 3% increase as reported and 2% in constant currency compared to $826 million in the prior year period. - **Recurring Revenue**: Recurring revenue was $763 million, a 7% increase as reported and 5% in constant currency compared to $712 million. - **Product Sales Revenue**: Product Sales revenue was $772 million, a 6% increase as reported and 5% in constant currency compared to $725 million. - **Consulting Services Revenue**: Consulting Services revenue was $82 million, a -19% decrease as reported and in constant currency compared to $101 million. - **Perpetual software licenses, hardware and other revenue**: This segment generated $9 million, a -31% decrease as reported and -26% in constant currency compared to $13 million. ##### Gross Profit - **GAAP Gross Profit**: GAAP gross profit was $519 million, a 9% increase from $478 million, with a GAAP gross margin of 60.8%, up from 57.9%. - **Non-GAAP Gross Profit**: Non-GAAP gross profit was $531 million, an 8% increase from $490 million, with a non-GAAP gross margin of 62.2%, up from 59.3%. ##### Operating Income - **GAAP Operating Income**: GAAP operating income was $12 million, an -87% decrease from $90 million, with a GAAP operating margin of 1.4%, down from 10.9%. - **Non-GAAP Operating Income**: Non-GAAP operating income was $209 million, a 32% increase from $158 million, with a non-GAAP operating margin of 24.5%, up from 19.1%. ##### Net Income - **GAAP Net Income**: GAAP net income was $381 million, a 619% increase from $53 million, representing 44.6% of revenue, up from 6.4%. - **Non-GAAP Net Income**: Non-GAAP net income was $151 million, a 39% increase from $109 million, representing 17.7% of revenue, up from 13.2%. ##### Cash Flow - **Cash Flow from Operations**: Cash provided by operating activities was $507 million compared to $51 million in the prior year period. - **Free Cash Flow**: Free cash flow was $495 million compared to $46 million. - **Adjusted Free Cash Flow**: Adjusted free cash flow was $158 million compared to $46 million. #### Outlook Teradata Corporation is increasing its outlook for non-GAAP EPS and Adjusted Free Cash Flow for the full year 2026. For the third quarter of 2026, the company anticipates recurring revenue to be in the range of -4% to -2% year-over-year and total revenue in the range of -6% to -4% year-over-year. For the full year 2026, the company expects cash flow from operations to be between $665 million and $685 million, including an after-tax net benefit of $315 million related to a settlement with SAP, and adjusted free cash flow to be between $330 million and $350 million. Teradata Corporation reaffirms its full-year 2026 ranges for total ARR growth of 2% to 4% year-over-year, recurring revenue in the range of flat to 2% year-over-year, and total revenue in the range of -2% to flat year-over-year. ### Related Stocks - [TDC.US](https://longbridge.com/en/quote/TDC.US.md) ## Related News & Research - [Teradata CEO McMillan to present at Citi Global TMT Conference](https://longbridge.com/en/news/296792497.md) - [TDC: Q2'26 saw strong recurring revenue and margin gains, with robust cash flow and positive outlook](https://longbridge.com/en/news/294864225.md) - [Q3 Earnings Forecast for FormFactor Issued By Zacks Research](https://longbridge.com/en/news/296738760.md) - [Morgan Stanley lifts Teleperformance stake above 5% to 5.02% of share capital](https://longbridge.com/en/news/296903651.md) - [Julong Holding files Form 3 initial beneficial ownership statement for director Zhang Xitian](https://longbridge.com/en/news/296773029.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**