Thread regarding Teradata Corp. layoffs

Teradata's Real Outlook: "Low Growth, High Cash Flow"

Instead of a collapse, Teradata is navigating a slow enterprise shift:

The Cloud Shift Offset: Public Cloud ARR is growing (~11%), but it is largely replacing legacy, high-margin on-premises maintenance and consulting contracts (consulting down ~20% YoY). Total ARR is essentially flat-to-low single-digit growth (~2%).

TradingView

The AI Pivot: Teradata is investing heavily in R&D (launching products like agentic AI coworker Tera and hybrid deployment platforms like Teradata Factory) to prevent enterprise customers from churning to competitors like Snowflake, Databricks, or BigQuery.

TradingView

Capital Return Strategy: Because it isn't spending on massive acquisitions, management is taking strong cash flows and using at least 50% of adjusted free cash flow to continuously buy back shares, which artificially props up per-share EPS even with top-line growth lagging.

TradingView

The business is stuck in low-single-digit top-line growth as legacy runoff offsets cloud gains. Wall Street analysts consensus rates the stock as a neutral "Hold," targeting a steady operational stock price around $33–$35 rather than an impending bankruptcy or structural collapse.

@e7 Except you didn’t post ALL the actual numbers, you precious little brown-noser. You left off the multiple negatives. Just so you know we’re watching, here they are:

Q3/2026:
• Total revenue was $399 million versus $416 million, a decrease of 4% as reported and 4% in constant currency(1)
• Recurring revenue was $359 million versus $366 million, a decrease of 2% as reported and 
2% in constant currency(1)
• Recurring revenue was 90% of total revenue versus 88%
• GAAP gross margin was 59.6% versus 60.8%
• Non-GAAP gross margin was 60.7% versus 62.3%(2)
• GAAP operating margin was 13.5% versus 14.7% 
• Non-GAAP operating margin was 21.8% versus 23.6%(2)
• GAAP diluted EPS was $0.40 versus $0.42 per share
• Non-GAAP diluted EPS was $0.70 versus $0.72 per share(2)
• Cash flow from operations was $91 million compared to $94 million
• Free cash flow was $85 million compared to $88 million(3)
• Adjusted free cash flow was $96 million compared to $88 million(3)

For the full-year 2026, Teradata reaffirms the following ranges:
• Total ARR growth of 2% to 4% year-over-year
• Cash flow from operations of $665 million to $685 million, which includes an after-tax net benefit of $315 million related to a settlement with SAP
• Adjusted free cash flow of $330 million to $350 million(3)

For the fourth quarter of 2026:
• Recurring revenue in the range of -2% to -4% year-over-year
• Total revenue in the range of -4% to -6% year-over-year
• GAAP diluted EPS is expected to be in the range of $0.26 to $0.30 per share
• Non-GAAP diluted EPS is expected to be in the range of $0.58 to $0.62 per share(2)

That’s how the company is doing in the actual market. Oops.

@e7 and yet revenue is continuing to decline. Cloud increasing because on-premises customers are moving to cloud and - they are modernizing - so soon we can say good bye to those customers as they take data out of Teradata and try their hand with other engines.

@cm and @ag hit the nail on the head. They got rid of most of the 'right' customer facing support that knew how to spell Teradata, knew the customers, knew the history, knew their environments, and most importantly knew their needs and how to support them...and 'management' replaced them with a skeleton crew that either can't keep up due to RIF's or put employees that don't know anything about the account (people and history or needs) in a very difficult position to carry on the level of support that they had come to expect/appreciate. Don't you think customers take note of the churn and the turnover of support staff? This brilliant strategy has contributed to the mass exodus of customers and the negative growth and declining recurring revenue YoY...Sad.

@db You went through layoff season and came back with nicknames and a wish that earnings sink the company. That's the effort level that got you cut. Settlement cash and Tinkerbell jokes aren't a strategy. The ELT didn't make you a weak performer. They just stopped paying for it. Enjoy the board — it's all you've got left.

The pile-on after someone posts actual numbers is the tell. Operating margin roughly doubled, adjusted free cash flow more than tripled, cloud ARR up 8%, and the money is going into AI. Leadership is building where the market is headed. This board answers that with nicknames, di-k jokes and nostalgia for when nobody checked output. If that is your best case, the results already explained why some people stopped getting paid to make it.

@bp money is going to the new employees while existing folks are being worked to death.

@bp big words - operating margin, free cash flow, AI - oh my. You precious little bling with a tiny little thing.

@bp Kneepads has spoken! The influx of cash from the settlement won’t last forever and today is the day! We will see how this dog is doing against real AI companies. I’m sure the news will be wonderful because Kneepads is keeping it all together.

Say what you want, Tinkerbell. Real AI companies are soaring. Teradata is moribund. Everyone knows it and recognizes your attempts to put copious amounts of lipstick on this pig.

Back in the day, customers loved talking to us. Then they started getting rid of the people that the customers liked dealing with and guess what.. They left.

"The way things were" is a nice way of saying "back when nobody checked my output." Teradata is running leaner, operating margin roughly doubled, adjusted free cash flow more than tripled and the money is going into AI. Leadership is building where the market is headed, and you're on a layoff board wishing for a time machine. "The happiest person in the world" if nothing ever changed is the most honest performance review on this board.

Leadership said, “We dont yet have the right people” and they are correct! We dont yet have the right leadership.