Teradata Corporation (TDC)

Comment l'entreprise gagne de l'argent

The company is mid-transition from one-time hardware and perpetual license sales to recurring subscriptions billed monthly to multi-year, whether run in the cloud or on-premises. Recurring revenue reached 87% of the total in fiscal 2025, up from 84% a year earlier, so most revenue now renews automatically rather than being re-sold each cycle. Consulting services, billed for implementation and migration work, make up the rest alongside a shrinking sliver of upfront hardware and perpetual-license sales.

Chiffre d'affaires par segment

Once a large enterprise has built years of reporting, pipelines and analytics on top of Teradata, ripping it out is a multi-year, high-risk project, which keeps existing customers paying subscriptions. The moat is narrower than it looks because cloud-native rivals now win most new workloads outright, so the switching cost protects the installed base rather than growing it.

Subscription revenue renews on multi-year terms, which smooths results compared to a pure license business, but new bookings depend on enterprise IT budgets that tighten in a downturn and on customers actually completing their migration to the cloud platform rather than delaying it.

Principaux risques

• Late and lagging cloud transition — Teradata entered the cloud data-platform market later than rivals such as Snowflake and Databricks, which have taken significant market share. Cloud net expansion has slowed year over year, evidence the transition has not fully offset the erosion of the legacy on-premises business.
• Intense competition and pricing pressure — The company describes the data-platform market as intensely competitive, with rapid technology change and frequent price reductions from rivals, which can force Teradata to cut prices or lose deals to newer entrants.
• Uncertain AI/ML regulatory environment — As Teradata adds AI and machine-learning capabilities to its platform, it is exposed to an emerging and evolving regulatory environment whose eventual impact on the business is, by its own account, difficult to predict.