Description

Teradata Unlocks Agentic AI With Dell Technologies — Hybrid Infrastructure Takes Center Stage!

Teradata’s second quarter of 2026 demonstrated a continuation of its strategic focus on hybrid data management and the emerging agentic AI market, with a number of product innovations and solid financial performance underpinning its current positioning. The company reported growth in total annual recurring revenue (ARR) by 1% as reported (2% constant currency), and cloud ARR increased by 8% year-over-year (9% constant currency). Recurring revenue rose 3% year-over-year, marking the third consecutive quarter of positive growth. Total revenue remained stable at $410 million, slightly above the high end of guidance, largely driven by recurring revenue. However, consulting services revenue declined significantly by 24% year-over-year, impacting margins in that segment, although bookings and project backlogs improved with ongoing cost structure optimization. Profitability metrics showed meaningful advances, with non-GAAP operating margin expanding to 21.5% from 16.4% in the prior year’s quarter.