Teradata’s fourth quarter earnings exceeded expectations, highlighting its strategic advancements in on-premise and agentic AI solutions. The company reported earnings of 38 cents per share on revenue of $421 million, a 3% increase from last year, while non-GAAP earnings hit 74 cents, outperforming estimates. CEO Stephen McMillan emphasized a focus on “revitalized execution” as customer retention improved and adoption of both traditional and new workloads increased. The demand for Teradata’s Autonomous AI and Knowledge platform is robust, with a significant interest in hybrid deployment options driven by data sovereignty and regulatory pressures. Looking ahead, Teradata anticipates a 5% revenue dip for 2025 but remains optimistic about the role of on-premise AI as a growth driver, particularly through its enhanced hardware with built-in GPUs. Additionally, cloud annual recurring revenue grew 15%, constituting 46% of its total ARR, as Teradata expands its reach through cloud marketplaces.
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