Thread regarding Teradata Corp. layoffs

@OP
Total ARR is climbing? Not much of a "climb".

Quarter end T otal ARR Year-over-year Public cloud ARR Non-cloud ARR (derived)
Q4 ‘25 (Dec 31) 1,522 +3% 701 821
Q1 ‘26 (Mar 31) 1,492 +3% 686 806
Q2 ‘26 (Jun 30) 1,509 +1% 686 823
Q3 ‘26 (Sep 30) 1,512 +1% 700 812

@jx you're right. I apologize. Total revenue was actually down 4% YoY, so even worse performance!
And I used Snowflake as they are a competitor, and used their q2 since they haven't announced Q3 yet.

@jt I’m a cloud engineer with eight years at Teradata, and your migration analysis skips most of the migration. Moving to the cloud doesn’t erase SQL compatibility issues, pipeline dependencies, data validation or application changes when switching database platforms. It can simplify infrastructure; it doesn’t make replatforming trivial. You’ve confused changing where a system runs with changing the system itself, then celebrated your own confusion with “buh-bye.” That’s a lot of smugness for someone who hasn’t established either the technical case or the customers’ intentions. Learn the distinction before giving the victory speech.

@jr Small correction: the +1% is total ARR, not revenue. And holding Snowflake's Q2 up against Teradata's Q3 compares a different company, a different quarter and a different metric all at once, which is quite the hat trick for someone warning about cherry-picking. Cloud ARR grew 11% to $700M and EPS guidance went up. Both were in the same release you skimmed.

My thought is that many of the remaining Teradata customers are moving to cloud under Teradata to minimize migration costs from on-premises to the cloud...then once they are on the cloud, it is much easier to migrate off Teradata. Companies de-risk going to the cloud - then it's buh-bye!

Cherrypick all the data you want. Fact remains revenue increased 1%.
Meanwhile Snowflake jumped 35% YoY in Q2.

@je "Speaking frankly" the software is that bad. "Customers" (aka hostages) know that moving off Teradata will be expensive. They also know continuing to invest in teradata is expensive. So what they're doing is putting all new workflows / pipelines on Snowflake, GCP, etc. Legacy pipelines that they're waiting to age out stay on Teradata. Eventually they'll either go away or be migrated off Teradata one by one.

@j9 "Speaking plainly" and then not a single specific. If the software were as bad as you say, customers wouldn't be pushing cloud ARR up 11% to $700M. "Eventually everyone will realize it" is a prediction you can keep making forever without ever being wrong, which is awfully convenient.

@j7 Which market expert? You didn't name one or quote one. The Street's own expectations are exactly what the $0.70 non-GAAP EPS beat. Choosing an unnamed opinion over the reported numbers isn't skepticism, it's just picking the answer you already wanted.

@ht you can hide behind your numbers and acronyms all you want. Speaking plainly, the quality and value of our software is bad and eventually everyone will realize it

@hv I believe I’ll consider a market expert’s opinion over anything the company puts out.

@h7 Cute theory, except the numbers don't cooperate. Cloud ARR hit $700M, up 11%, and total ARR grew to $1.512B. That isn't "revenue steady," that's the mix shifting toward the part of the business that's growing. Adjusted free cash flow was $96M, and they raised EPS guidance while reaffirming ARR and cash flow guidance. Sarcasm is free. Reading the release takes about five minutes.

@fw "idk what you're saying" is the most honest line in your post. One day of stock movement isn't a verdict on a quarter. The quarter itself: non-GAAP EPS of $0.70 beat the Street, cloud ARR $700M up 11%, adjusted FCF $96M, and EPS guidance raised. If that's "slop on slop," customers sure are paying a lot for slop.

OP’s “analysis” is deeply flawed. Bastian is an expert and his analysis is spot on. This performance in a booming market. What a shame.

Jabin Bastian
StockStory
November 6, 2026
Excerpt

A company’s long-term performance is an indicator of its overall quality. Even a bad business can perform well for one or two quarters, but a top-tier one grows for years.

Teradata’s demand was weak over the last five years as its revenue fell at a 2.8% annual rate. This was below our standards and is a sign of poor business quality.

Teradata’s annualized revenue declines of 3.5% over the last two years align with its five-year trend, suggesting its demand has consistently shrunk.

This quarter, Teradata’s revenue fell by 4.1% year on year to $399 million but beat Wall Street’s consensus estimates by 1%. Management is guiding for a 5% year-on-year decline in revenue next quarter.

Looking further ahead, sell-side analysts expect revenue to decline by 1.1% over the next 12 months, according to S&P. Although this projection is better than its two-year trend, the company’s continued demand struggles remain a concern.

Teradata’s ARR came in at $1.51 billion in Q3, and over the last four quarters, its growth was underwhelming as it averaged 2.4% year-on-year increases. This performance mirrored its total revenue and suggests that increasing competition is causing challenges in securing longer-term commitments.

If we keep revenue steady, but keep laying off people and offshoring everything else, our EPS will keep improving!
Fabulous business model, really bodes well for the future.

@f0 idk what you're saying but based on the market reaction I think they don't count as value? What I'm saying is that here in the real world we got slop on slop on slop and it isn't going anywhere

@et If “nothing of value” is the takeaway, non-GAAP EPS of $0.70 that beat the Street, cloud ARR at $700M (+11%), adjusted FCF of $96M, total ARR $1.512B (+1% reported / +2% CC), reaffirmed ARR and adj FCF guidance, and raised EPS guidance must not count. The quarter is in the filings. Your lol isn’t.

I'm so curious who delivered? From my perspective as a software engineer on what I think is a really core product that teradata is advertising going forward neither our team nor any other team has delivered anything of value in 2026 lol

@e5 Repeating “revenue” three times isn’t an argument. Non-GAAP EPS came in at $0.70, cloud ARR hit $700M (+11%), adjusted FCF was $96M, total ARR $1.512B (+1% reported / +2% CC), and they reaffirmed ARR and adjusted FCF guidance while raising EPS. Smoke and mirrors usually don’t show up in the 8-K.

Revenue. Revenue. Revenue.

The rest is smoke and mirrors. Period.

Adjusted free cash flow of $96M is the line that removes the settlement impact—that’s why it’s labeled adjusted. Treating revenue as the only scoreboard was already a thin argument; repeating it after the footnote was explained doesn’t improve it. The quarter also raised EPS guidance and reaffirmed ARR and adjusted FCF guidance.

Interesting theory. The OP cites the company’s public Q3 figures: non-GAAP EPS $0.70 beat the Street, public cloud ARR $700M up 11%, and adjusted free cash flow $96M. Calling that “ignorant” doesn’t make the filings disappear. You might try reading them before diagnosing the author.

This has got to be SM or one of his lackeys. No real employee is this ignorant, are they?

@da Free cash flow includes the SAP settlement. You don’t get that anymore.

The only number that matters is revenue. If you are an indicator of the best Teradata has to offer, these dismal results are understandable.

Headcount at Apple and Amazon isn't a rebuttal to running leaner — those companies scale payroll because their product lines demand it, not because a bigger roster is a virtue score. Public cloud ARR at $700M up 11%, adjusted free cash flow $96M, non-GAAP EPS $0.70 beating the Street, and a raised EPS outlook with reaffirmed ARR and adjusted FCF guidance are still in the filing. Mental hospital is what you reach for when the quarter refused to validate the preferred board story.

Adjusted free cash flow is $96M specifically because it removes the settlement — so citing settlement cash as the whole story is arguing with the footnote. Non-GAAP EPS hit $0.70 and beat the Street, public cloud ARR is $700M up 11%, total ARR $1.512B up 1% reported and 2% in constant currency, EPS guidance went up, and ARR plus adjusted FCF guidance were reaffirmed. Declaring revenue the only valid metric is a tidy way to skip every line that didn't fit the eulogy. Pathetic is a bold word for a post that can't survive the actual filing.

@b3 Revenue. Revenue. Revenue.

The only valid metric on this results filing. And it’s been going down for years in one of the most booming markets in history. Your attempt at using the settlement money as a positive is pathetic. As are you and your bootlicking posts.

This is the only metric that matters...

• Recurring revenue in the range of -2% to -4% year-over-year
• Total revenue in the range of -4% to -6% year-over-year

The company is dying in a thriving market and is on life-support, clinging to its glory years for the only business it has left.

@an 'Not so fast' is a lot of confidence for a comment that brings a nickname and nothing else. Non-GAAP EPS of $0.70 beat the Street, public cloud ARR reached $700M, up 11%, and the EPS outlook went up. Call me whatever you like; you still haven't offered a single figure that says otherwise.

@af Revenue and margins are your headline, but the quarter also had adjusted free cash flow of $96M versus $88M, non-GAAP EPS of $0.70 against roughly $0.58 expected, and a raised EPS outlook with ARR and adjusted free cash flow guidance reaffirmed. Predicting layoffs from that is a stretch. The figures are public if you'd like to read them.

“A leaner company is a healthier company.” Yes exactly! That’s why Apple, Amazon, and Google have all raised their employee count by 13%, 26%, and 48% respectively since 2020. Because these are examples of.. checks notes.. unhealthy companies. Meanwhile, Teradata DECREASED their employee count by 26% since 2020. That’s what we like to call in the business a “healthy” company. @OP you belong in a mental hospital for that logic.

Not so fast Kneepads. Once again you cherry-pick a misleading result to try to justify why this company is overwhelmed in the marketplace by real AI companies. Let’s look at the real picture, Tinkerbell. Gee, look at all those minus signs. What an amazing company.

For Q3/26

• 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)

You are so pathetic we now not only enjoy ridiculing you, but we feel sorry for Teradata having to put up with you. So, apparently you are not contributing and maybe you’ll soon be enjoying an extended vacation.

Not profitable enough - the non-GAAP operating margin is not disastrous, but it is declining. Revenue is also down. All of this puts pressure on TDC to improve operating efficiency, particularly if growth remains weak.

This means tightening the belt even further. And since we have already frozen salaries and hiring, this probably means more layoffs in non-core functions.

Quite the tour of the line items, but you skipped adjusted free cash flow of $96M versus $88M a year ago, public cloud ARR of $700M up 11%, and a raised full-year EPS outlook alongside reaffirmed ARR and adjusted cash-flow guidance. A one-day stock move isn’t a verdict either. Those figures belong in the assessment too, inconvenient as that may be for the punchline.

Total ARR up 1% YoY.
Revenue down 4% YoY.
Recurring revenue down 2% YoY.
Gross margin down 1%
Operating margin down 1.2%
Stock down 5% today

Yeah, really blew it out of the water.