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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
In fiscal 2025, TERADATA CORP /DE/ recorded $1.66B of revenue, net income of $130.00M, and an operating cash inflow of $305.00M. Revenue of $1.66B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $1.75B in fiscal 2024, revenue decreased 5.0%, a top-line contraction that reduced operating scale. Diluted earnings per share were $1.35, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $1.16 in fiscal 2024, the current result was 16.4% higher. The revenue-to-assets relationship was 0.93x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
Gross profit was $987.00M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 59.4% of revenue, showing how much of the top line remained after direct costs. Operating income was $205.00M, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 12.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $130.00M for the fiscal year. Measured against reported revenue, net income produced a 7.8% margin after operating costs and the remaining recognized items. Pretax income was $178.00M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 10.7% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $48.00M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 27.0%, without assuming a statutory-rate comparison.Liquidity and Capital Structure
At period end, the $1.78B asset base was financed through $1.55B of liabilities and $230.00M of equity. At period end, current assets of $837.00M compared with current liabilities of $914.00M, defining the company’s short-term resource position. Current assets covered only 0.92x of current liabilities, so current liabilities exceeded current assets at period end. Cash and equivalents totaled $493.00M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 53.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $456.00M, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 1.98x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 25.6%, comparing borrowing with the total asset balance. Liabilities represented 87.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 27.7% of total assets, showing the liquid cash component within the company’s broader resource base.Cash Flow and Earnings Quality
Cash flow from operations was $305.00M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 2.35x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $19.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 6.2%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $286.00M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 17.2%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 16.1%, comparing post-investment cash with the balance-sheet asset base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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