TERADATA CORP /DE/, 10-K filed on 2/27/2026
Annual Report
v3.25.4
Cover - USD ($)
shares in Millions, $ in Billions
 12 Months Ended
Dec. 31, 2025
Jan. 30, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-33458    
Entity Registrant Name TERADATA CORPORATION    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 75-3236470    
Entity Address, Address Line One 17095 Via Del Campo    
Entity Address, City or Town San Diego    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92127    
City Area Code 866    
Local Phone Number 548-8348    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol TDC    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 2.1
Entity Common Stock, Shares Outstanding (in shares)   92.2  
Documents Incorporated by Reference Portions of the registrant’s Notice of Annual Meeting of Stockholders and Proxy Statement, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after registrant’s fiscal year end of December 31, 2025 are incorporated herein by reference.    
Entity Central Index Key 0000816761    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Atlanta, Georgia
Auditor Firm ID 238
v3.25.4
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue      
Total revenue $ 1,663 $ 1,750 $ 1,833
Cost of revenue      
Total cost of revenue 676 692 718
Gross profit 987 1,058 1,115
Operating expenses      
Selling, general and administrative expenses 502 565 635
Research and development expenses 280 284 294
Total operating expenses 782 849 929
Income from operations 205 209 186
Other expense, net      
Interest expense (26) (29) (30)
Interest income 9 11 25
Other expense (10) (27) (64)
Total other expense, net (27) (45) (69)
Income before income taxes 178 164 117
Income tax expense 48 50 55
Net income $ 130 $ 114 $ 62
Net income per weighted average common share      
Basic (in usd per share) $ 1.38 $ 1.18 $ 0.62
Diluted (in usd per share) $ 1.35 $ 1.16 $ 0.61
Weighted average common shares outstanding      
Basic (in shares) 94.4 96.4 99.8
Diluted (in shares) 96.6 98.2 102.4
Total recurring      
Revenue      
Total revenue $ 1,445 $ 1,479 $ 1,492
Cost of revenue      
Total cost of revenue 462 441 418
Subscription software licenses      
Revenue      
Total revenue 273 289 310
Cost of revenue      
Total cost of revenue 21 17 20
Services and other      
Revenue      
Total revenue 1,172 1,190 1,182
Cost of revenue      
Total cost of revenue 441 424 398
Perpetual software licenses, hardware and other      
Revenue      
Total revenue 17 23 45
Cost of revenue      
Total cost of revenue 13 23 38
Consulting services      
Revenue      
Total revenue 201 248 296
Cost of revenue      
Total cost of revenue $ 201 $ 228 $ 262
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 130 $ 114 $ 62
Other comprehensive income (loss):      
Foreign currency translation adjustments 25 (24) 6
Unrealized (loss) gain on cross-currency net investment hedge, before tax (18) 8 (7)
Unrealized (loss) gain on cross-currency net investment hedge, tax portion 4 (2) 2
Total currency translation adjustments 11 (18) 1
Derivatives:      
Unrealized (loss) gain on derivatives, before tax (8) 1 (5)
Unrealized (loss) gain on derivatives, tax portion 2 0 1
Unrealized (loss) gain on derivatives, net of tax (6) 1 (4)
Defined benefit plans:      
Reclassification of loss to net income, before tax 8 9 7
Defined benefit plan adjustment, before tax (21) (9) (17)
Defined benefit plans, tax portion 2 (1) 3
Defined benefit plans, net of tax (11) (1) (7)
Other comprehensive loss (6) (18) (10)
Comprehensive income $ 124 $ 96 $ 52
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 493 $ 420
Accounts receivable, net 251 234
Inventories 13 18
Other current assets 80 77
Total current assets 837 749
Property and equipment, net 198 185
Right of use assets - operating lease, net 7 8
Goodwill 399 394
Capitalized contract costs, net 42 46
Deferred income taxes 209 226
Other assets 87 96
Total assets 1,779 1,704
Current liabilities    
Current portion of long-term debt 25 25
Current portion of finance lease liability 50 57
Current portion of operating lease liability 2 4
Accounts payable 96 106
Payroll and benefits liabilities 120 111
Deferred revenue 533 512
Other current liabilities 88 115
Total current liabilities 914 930
Long-term debt 431 455
Finance lease liability 45 30
Operating lease liability 4 5
Pension and other postemployment plan liabilities 114 104
Long-term deferred revenue 11 10
Deferred tax liabilities 12 9
Other liabilities 18 28
Total liabilities 1,549 1,571
Commitments and contingencies (Note 10)
Stockholders’ equity    
Preferred stock: par value $0.01 per share, 100.0 shares authorized, no shares issued and outstanding at December 31, 2025 and 2024, respectively 0 0
Common stock: par value $0.01 per share, 500.0 shares authorized, 92.5 and 95.1 shares issued and outstanding at December 31, 2025 and 2024, respectively 1 1
Paid-in capital 2,305 2,192
Accumulated deficit (1,923) (1,913)
Accumulated other comprehensive loss (153) (147)
Total stockholders’ equity 230 133
Total liabilities and stockholders’ equity $ 1,779 $ 1,704
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Millions
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value (in usd per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 100.0 100.0
Preferred stock, shares issued (in shares) 0.0 0.0
Preferred stock, shares outstanding (in shares) 0.0 0.0
Common stock, par value (in usd per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 500.0 500.0
Common stock, shares issued (in shares) 92.5 95.1
Common stock, shares outstanding (in shares) 92.5 95.1
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net income $ 130 $ 114 $ 62
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 90 100 116
Stock-based compensation expense 112 119 126
Deferred income taxes 31 (11) (11)
Loss on Blue Chip Swap 1 4 13
Changes in assets and liabilities:      
Receivables (17) 52 78
Inventories 5 (5) (5)
Account payables and accrued expenses (48) (1) 7
Deferred revenue 22 (70) (5)
Other assets and liabilities (21) 1 (6)
Net cash provided by operating activities 305 303 375
Investing activities      
Expenditures for property and equipment (19) (24) (19)
Additions to capitalized software (1) (2) (1)
Business acquisitions, other investing activities and proceeds on Blue Chip Swap, net of purchases (1) (6) (29)
Net cash used in investing activities (21) (32) (49)
Financing activities      
Repurchases of common stock (140) (215) (308)
Repayments of long-term borrowings (25) (19) 0
Payments of finance leases (69) (71) (82)
Other financing activities, net 1 (1) 7
Net cash used in financing activities (233) (306) (383)
Effect of exchange rate changes on cash and cash equivalents 22 (30) (28)
Increase (decrease) in cash, cash equivalents and restricted cash 73 (65) (85)
Cash, cash equivalents and restricted cash at beginning of year 421 486 571
Cash, cash equivalents and restricted cash at end of year 494 421 486
Reconciliation of cash, cash equivalents and restricted cash to the Consolidated Balance Sheets      
Cash and cash equivalents 493 420 486
Restricted cash 1 1 0
Total cash, cash equivalents and restricted cash 494 421 486
Supplemental cash flow disclosure:      
Assets acquired by finance lease 77 29 90
Assets acquired by operating lease 2 5 6
Cash paid during the year for:      
Income taxes, net 71 75 65
Interest $ 26 $ 29 $ 30
v3.25.4
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Paid-in Capital
Retained Earnings (Accumulated Deficit)
Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2022   101.0      
Beginning balance at Dec. 31, 2022 $ 258 $ 1 $ 1,941 $ (1,565) $ (119)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 62     62  
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)   4.0      
Employee stock compensation, employee stock purchase programs and option exercises, net of tax 133   133    
Repurchases of common stock, retired (in shares)   (7.0)      
Repurchases of common stock, retired (308)     (308)  
Pension and postemployment benefit plans, net of tax (7)       (7)
Unrealized gain (loss) on derivatives, net of tax (4)       (4)
Currency translation adjustment 1       1
Ending balance (in shares) at Dec. 31, 2023   98.0      
Ending balance at Dec. 31, 2023 135 $ 1 2,074 (1,811) (129)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 114     114  
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)   3.0      
Employee stock compensation, employee stock purchase programs and option exercises, net of tax 118   118    
Repurchases of common stock, retired (in shares)   (6.0)      
Repurchases of common stock, retired (216)     (216)  
Pension and postemployment benefit plans, net of tax (1)       (1)
Unrealized gain (loss) on derivatives, net of tax 1       1
Currency translation adjustment $ (18)       (18)
Ending balance (in shares) at Dec. 31, 2024 95.1 95.0      
Ending balance at Dec. 31, 2024 $ 133 $ 1 2,192 (1,913) (147)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 130     130  
Employee stock compensation, employee stock purchase programs and option exercises, net of tax (in shares)   4.0      
Employee stock compensation, employee stock purchase programs and option exercises, net of tax 113   113    
Repurchases of common stock, retired (in shares)   (6.0)      
Repurchases of common stock, retired (140)     (140)  
Pension and postemployment benefit plans, net of tax (11)       (11)
Unrealized gain (loss) on derivatives, net of tax (6)       (6)
Currency translation adjustment $ 11       11
Ending balance (in shares) at Dec. 31, 2025 92.5 93.0      
Ending balance at Dec. 31, 2025 $ 230 $ 1 $ 2,305 $ (1,923) $ (153)
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]  
Description of Business, Basis of Presentation and Significant Accounting Policies Description of Business, Basis of Presentation and Significant Accounting Policies
Description of the Business. Teradata Corporation ("we," "us," "Teradata," or the "Company") is focused on helping organizations activate the intelligence in their enterprise and turn the insights from across their organizations into outcomes. We believe that we have architected our platform for autonomous Artificial Intelligence ("AI") operations and organizations’ toughest data and analytics challenges, particularly as enterprises are evaluating how to cost effectively deploy agentic AI. With our AI and knowledge platform, underpinned by our extensive patented workload management optimization technology, we believe we are well positioned to help enterprises become more autonomous, while enabling our customers to focus on managing, securing, and providing trustworthy data for AI and analytics across hybrid and multi-cloud environments.
Basis of Presentation. The financial statements are presented on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Recurring revenue consists of our on-premises and cloud subscriptions, which have varying term lengths from one month to five years. Recurring revenue is intended to depict the revenue recognition model for these subscription transactions. The recurrence of these revenue streams in future periods depends on several factors, including contractual periods and customers' renewal decisions. Perpetual software licenses, hardware and other revenue consists of hardware and perpetual software licenses recognized upfront and revenue related to third party perpetual products. Consulting Services revenue consists of consulting, implementation and installation services.
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. On an ongoing basis, management evaluates these estimates and judgments, including those related to allowances for doubtful accounts, the valuation of inventory to net realizable value, impairments of goodwill and other intangibles, stock-based compensation, leases, pension and other postemployment benefits, and income taxes and any changes will be accounted for on a prospective basis. Actual results could differ from those estimates.
Revenue Recognition
The Company adopted Financial Accounting Standards Board ("FASB") Standards Update No. 2014-09, Revenue from Contracts with Customers ("Topic 606") as of January 1, 2018 for all contracts not completed as of the date of adoption. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company performs the following five steps:
1.identify the contract with a customer,
2.identify the performance obligations in the contract,
3.determine the transaction price,
4.allocate the transaction price to the performance obligations in the contract, and
5.recognize revenue when (or as) the Company satisfies a performance obligation.
The Company only applies the above five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for goods or services it transfers to the customer. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience, published credit, and financial information pertaining to the customer.
Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales, value add, and other taxes the Company collects concurrent with revenue-producing activities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a good or service to a customer. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of
cumulative revenue will not occur once the uncertainty is resolved. The Company uses the expected value method or the most likely amount method depending on the nature of the variable consideration. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates in the period such variances become known. Typically, the amount of variable consideration is not material.
For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. The Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct within the context of the contract. If these criteria are not met, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Revenue is then recognized either at a point in time or over time depending on our evaluation of when the customer obtains control of the promised goods or services. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue recorded in a given period. In addition, the Company has developed assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company determines the standalone selling price for a good or service by considering multiple factors including, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. The Company reviews the standalone selling price for each of its performance obligations on a periodic basis and updates it, when appropriate, to ensure that the practices employed reflect the Company’s recent pricing experience. The Company maintains internal controls over the establishment and updates of these estimates, which includes review and approval by the Company’s management.
Teradata delivers its platform and services primarily through direct sales channels, as well as through other independent software vendors and distributors and value-added resellers. Standard payment terms may vary based on the country in which the contract is executed, but are generally between 30 days and 90 days. The following is a description of the principal activities and performance obligations from which the Company generates its revenue:
•Subscription software licenses, services and other - The Company sells on-premises and cloud subscriptions to its customers through its subscription licenses, cloud and hardware rental offerings. Teradata’s on-premises subscription licenses include a right-to-use license and revenue is recognized upfront at a point in time unless the customer has a contractual right to cancel, where revenue is recognized period-to-period based on the cancellation terms. Subscription licenses are reported within the subscription software licenses caption on the Consolidated Statements of Income. The subscription software license support and unspecified software license upgrade rights on a when-and-if-available basis that are included in the subscription are reported within the recurring services and other caption and recognized ratably over the contract term. Cloud arrangements include a right-to-access software license on third party hosted hardware such as the public cloud. Revenue is recognized ratably, or as consumed, over the contract term and included within the recurring services and other caption. Cloud arrangements typically include a minimum fixed amount that is recognized ratably over the contract term and may include an elastic amount for usage above the minimum, which is recognized monthly based on actual utilization. For the Company's hardware rental offering, the Company owns the hardware and typically finances the hardware to more closely align the use of cash with the expected cash inflows from contracts with customers. The revenue for these arrangements is generally recognized straight-line over the term of the contract and is included within the recurring services and other caption. Hardware rentals are generally accounted for as operating leases and considered outside the scope of Topic 606.
•Perpetual maintenance and software upgrade rights - Revenue for maintenance and unspecified software upgrade rights on a when-and-if-available basis are recognized straight-line over the term of the contract and included within the recurring services and other caption.
•Perpetual software licenses, hardware and other - Revenue for software is generally recognized when the customer has the ability to use and benefit from its right to use the license. Hardware is typically
recognized upon delivery once title and risk of loss have been transferred (when control has passed). Other revenue includes the sale of perpetual third-party related products.
•Consulting Services - The Company accounts for individual services as separate performance obligations if a service is separately identifiable from other items in a combined arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Revenue for consulting, managed services, implementation and installation services is recognized as services are provided by measuring progress toward the complete satisfaction of the Company’s obligation. Progress for services that are contracted for at a fixed price is generally measured based on hours incurred as a portion of total estimated hours. Progress for services that are contracted for on a time and materials basis is generally based on hours expended. These input methods (e.g. hours incurred or expended) of revenue recognition are considered a faithful depiction of our efforts to satisfy services contracts and therefore reflect the transfer of services to a customer under such contracts.
Significant Accounting Policies and Practical Expedients
The following are the Company’s significant accounting policies not already disclosed elsewhere and practical expedients relating to revenue from contracts with customers:
•Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.
•Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment cost and are included in cost of revenues.
•The Company does not adjust for the effects of a significant financing component if the period between performance and customer payment is one year or less.
•The Company expenses the costs to obtain a contract as incurred when the expected amortization period is one year or less.
Cash and Cash Equivalents. All short-term, highly-liquid investments having original maturities of three months or less are considered to be cash equivalents.
Allowance for Doubtful Accounts. Teradata establishes provisions for doubtful accounts using expected credit losses methodology and specific provisions for known issues.
Inventories. Inventories are stated at the lower of cost or market. Finished goods inventory is determined using actual cost.
Long-Lived Assets
Property and Equipment. Property and equipment, leasehold improvements and rental equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets primarily on a straight-line basis. The Company's estimate of depreciation expense incorporates management assumptions regarding the useful economic lives and residual values of its assets. Equipment is generally depreciated over 3 to 5 years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Customer rental equipment is typically depreciated over the associated customer rental period, which is typically 3 years. Total depreciation expense on the Company’s property and equipment for December 31 was as follows:
In millions202520242023
Depreciation expense$86 $94 $110 
Capitalized Software. Direct development costs associated with internal-use software are capitalized and amortized over the estimated useful lives of the resulting software. The costs are capitalized when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Teradata typically amortizes capitalized internal-use software on a straight-line basis over four years beginning when the asset is substantially ready for use.
Costs incurred for the development of analytic database software that will be sold, leased or otherwise marketed are expensed as incurred based on the frequency and agile nature of development. The Company uses agile development methodologies to help respond to new technologies and trends and rapidly changing customer needs. Agile development methodologies are characterized by a more dynamic development process with more frequent and iterative revisions to a product release features and functions as the software is being developed. Due to the shorter development cycle and focus on rapid production associated with agile development, the Company did not capitalize any amounts for external-use software development costs in 2025, 2024 and 2023 due to the relatively short duration between the completion of the working model and the point at which a product is ready for general release.
The following table identifies the activity relating to capitalized internal-use software for the following periods:
 Internal-use Software
In millions202520242023
Beginning balance at January 1$4 $5 $8 
Capitalized2 2 2 
Amortization(2)(3)(5)
Ending balance at December 31$4 $4 $5 
The aggregate amortization expense (actual and estimated) for internal-use software for the following periods is:
 ActualFor the years ended (estimated)
In millions202520262027202820292030
Internal-use software amortization expense$2 $2 $2 $1 $1 $1 
Valuation of Long-Lived Assets. Long-lived assets such as property and equipment, acquired intangible assets and internal capitalized software are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment is calculated based on the present value of future cash flows and an impairment loss would be recognized when estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount. No material impairment was recognized during 2025, 2024 and 2023.
Cloud computing arrangements. Implementation costs incurred in our hosting arrangements that are service contracts are recorded as other long-term assets on the consolidated balance sheets. Implementation costs include activities such as integrating, configuring and customizing the related software. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for post-configuration training, maintenance and minor modifications or enhancements are expensed as incurred. The capitalized cloud computing implementation costs are amortized on the straight-line basis over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. We apply the same impairment model to these assets as we use to evaluate internally-developed software for impairment.
Goodwill. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather are tested for impairment annually or upon occurrence of an event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 5 for additional information.
Research and Development Costs. Research and development costs are expensed as incurred. Research and development costs primarily include labor-related costs, contractor fees, and overhead expenses directly related to research and development support.
Pension and Postemployment Benefits. The Company accounts for its pension benefit and its non-U.S. postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of
December 31, 2025. Liabilities are computed using the projected unit credit method. The objective under this method is to expense each participant’s benefits under the plan as they accrue, taking into consideration salary increases and the plan’s benefit allocation formula. Thus, the total pension or postemployment benefit to which each participant is expected to become entitled is broken down into units, each associated with a year of past or future credited service.
The Company recognizes the funded status of its pension and non-U.S. and Japan postemployment plan obligations in its consolidated balance sheet and records, in other comprehensive income, certain gains and losses that arise during the period, but are deferred under pension and postemployment accounting rules. See Note 8 for additional information.
Foreign Currency. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at daily exchange rates prevailing during the period. Adjustments arising from the translation are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in determining net income.
Income Taxes. Income tax expense is provided based on income before income taxes in the various jurisdictions in which the Company conducts its business. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company made an accounting policy election in 2018 related to the 2017 Tax Act to provide for the tax expense related to global intangible low-taxed income ("GILTI") in the year the tax is incurred. Teradata recognizes tax benefits from uncertain tax positions only if it is more likely than not the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all the deferred income tax assets will not be realized. See Note 6 for additional information.
Stock-based Compensation. Stock-based payments to employees, including restricted shares and restricted share units, are recognized in the financial statements based on their fair value. See Note 7 for additional information.
Earnings Per Share. Basic earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted-average number of shares outstanding includes the dilution from potential shares added from stock options, restricted share awards and other stock awards. Refer to Note 7 for share information on the Company’s stock compensation plans.
The components of basic and diluted earnings per share for the years ended December 31 are as follows: 
In millions, except earnings per share202520242023
Net income attributable to common stockholders$130 $114 $62 
Weighted average outstanding shares of common stock94.4 96.4 99.8 
Dilutive effect of employee stock options, restricted shares and other stock awards2.2 1.8 2.6 
Common stock and common stock equivalents96.6 98.2 102.4 
Earnings per share:
Basic$1.38 $1.18 $0.62 
Diluted$1.35 $1.16 $0.61 
Options to purchase an immaterial number of shares in 2025, 2024, and 0.3 million shares in 2023 of common stock, were not included in the computation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares and, therefore, the effect would have been anti-dilutive.
Recently Adopted Accounting Pronouncements
Beginning with our 2025 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" that was issued by the Financial Accounting Standards Board (FASB). This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. Upon adoption, the guidance was applied prospectively to the current period presented in the financial statements. For additional information, see Note 6 — Income Taxes.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). The new guidance requires disaggregated information about certain income statement expense line items on an annual and interim basis. This guidance will be effective for annual periods beginning the year ended December 31, 2027 and for interim periods thereafter. The new standard permits early adoption and can be applied prospectively or retrospectively. We are evaluating the effect that this guidance will have on our Consolidated Financial Statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). The new guidance eliminates the requirement to classify software development costs by project stage, instead, entities now capitalize internal-use software costs when management has both authorized and committed funding for the project and it is probable the software will be completed and used as intended. This guidance will be effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption is permitted and the standard may be applied prospectively, retrospectively, or using a modified approach. We are evaluating the effect that this guidance will have on our Consolidated Financial Statements.
v3.25.4
Supplemental Financial Information
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
 At December 31
In millions20252024
Accounts receivable
Trade$257 $243 
Other4 5 
Accounts receivable, gross261 248 
Less: allowance for doubtful accounts(10)(14)
Total accounts receivable, net$251 $234 
Other current assets
Income tax receivable$12 $12 
Pre-paid expenses and Other68 65 
Total other current assets$80 $77 
Property and equipment
Land$8 $8 
Buildings and improvements95 86 
Finance lease assets220 218 
Machinery and other equipment494 438 
Property and equipment, gross817 750 
Less: accumulated depreciation(619)(565)
Total property and equipment, net$198 $185 
Other current liabilities
Income tax payable$4 $52 
Sales and value-added taxes20 17 
Pension and other postemployment plan liabilities15 13 
Other49 33 
Total other current liabilities$88 $115 
Deferred revenue
Deferred revenue, current$533 $512 
Long-term deferred revenue11 10 
Total deferred revenue$544 $522 
Other long-term liabilities
Uncertain tax positions$13 $21 
Other5 7 
Total other long-term liabilities$18 $28 

Twelve Months Ended December 31,
In millions202520242023
Other expense
Foreign currency (gains) losses$(2)$8 $38 
Blue chip swap losses1 4 13 
Other11 15 13 
Total Other expense$10 $27 $64 
Argentina Blue Chip Swap Transaction
The Central Bank of Argentina maintains currency controls that limit Teradata's ability to access U.S. dollars in Argentina and remit cash from its Argentine operations. There is a foreign exchange mechanism known as Blue Chip Swaps, which effectively results in a parallel U.S. dollar exchange rate. This parallel rate, which cannot be used as the basis to remeasure Teradata's net monetary assets in U.S. dollars under U.S. GAAP, has been higher than Argentina’s official exchange rate, when the Company completed its swaps, since September 30, 2023. During 2025, 2024, and 2023 we entered into Blue Chip Swap transactions, in order to remit cash from our Argentine operations that resulted in a pre-tax loss on investment of $1 million for the twelve months ended December 31, 2025, a pre-tax loss on investment of $4 million during 2024, and a pre-tax loss on investment of $13 million during 2023.
v3.25.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue from Contracts with Customers
The following table presents a disaggregation of revenue for the years ended December 31:
In millions20252024*2023*
United States
Recurring $765 $815 $862 
Perpetual software licenses, hardware and other7 7 13 
Consulting services57 72 98 
Total United States829 894 973 
International
Recurring680 664 630 
Perpetual software licenses, hardware and other10 16 32 
Consulting services144 176 198 
Total International834 856 860 
Total Revenue$1,663 $1,750 $1,833 
* Prior period information has been reclassified to conform to the current period presentation.
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:
In millionsDecember 31, 2025December 31, 2024
Accounts receivable, net$251 $234 
Contract assets$6 $4 
Current deferred revenue$533 $512 
Long-term deferred revenue$11 $10 
Revenue recognized during the year ended December 31, 2025 from amounts included in deferred revenue at the beginning of the period was approximately $461 million.
Transaction Price Allocated to Unsatisfied Obligations
The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2025:
In millionsDecember 31, 2025Year 1Year 2 and Thereafter
Remaining unsatisfied obligations$2,182 $1,473 $709 
The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,167 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies the Company otherwise. The Company expects to recognize revenue of approximately $537 million in the next year from contracts that are non-cancelable. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts.
Contract Costs
The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:
In millionsDecember 31, 2024CapitalizedAmortizationDecember 31, 2025
Capitalized contract costs$46 $21 $(25)$42 
In millionsDecember 31, 2023CapitalizedAmortizationDecember 31, 2024
Capitalized contract costs$68 $13 $(35)$46 
v3.25.4
Contract Costs
 12 Months Ended
Dec. 31, 2025
Capitalized Contract Cost [Abstract]  
Contract Costs Revenue from Contracts with Customers
Disaggregation of Revenue from Contracts with Customers
The following table presents a disaggregation of revenue for the years ended December 31:
In millions20252024*2023*
United States
Recurring $765 $815 $862 
Perpetual software licenses, hardware and other7 7 13 
Consulting services57 72 98 
Total United States829 894 973 
International
Recurring680 664 630 
Perpetual software licenses, hardware and other10 16 32 
Consulting services144 176 198 
Total International834 856 860 
Total Revenue$1,663 $1,750 $1,833 
* Prior period information has been reclassified to conform to the current period presentation.
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:
In millionsDecember 31, 2025December 31, 2024
Accounts receivable, net$251 $234 
Contract assets$6 $4 
Current deferred revenue$533 $512 
Long-term deferred revenue$11 $10 
Revenue recognized during the year ended December 31, 2025 from amounts included in deferred revenue at the beginning of the period was approximately $461 million.
Transaction Price Allocated to Unsatisfied Obligations
The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2025:
In millionsDecember 31, 2025Year 1Year 2 and Thereafter
Remaining unsatisfied obligations$2,182 $1,473 $709 
The amounts above represent the price of firm orders for which work has not been performed or goods have not been delivered and exclude unexercised contract options outside the stated contractual term that do not represent material rights to the customer. Although the Company believes that the contract value in the above table is firm, approximately $1,167 million of the amount includes customer-only general cancellation for convenience terms that the Company is contractually obligated to perform unless the customer notifies the Company otherwise. The Company expects to recognize revenue of approximately $537 million in the next year from contracts that are non-cancelable. The Company believes the inclusion of this information is important to understanding the obligations that the Company is contractually required to perform and provides useful information regarding remaining obligations related to these executed contracts.
Contract Costs
The Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically four years. These costs are periodically reviewed for impairment. The following table identifies the activity relating to capitalized contract costs:
In millionsDecember 31, 2024CapitalizedAmortizationDecember 31, 2025
Capitalized contract costs$46 $21 $(25)$42 
In millionsDecember 31, 2023CapitalizedAmortizationDecember 31, 2024
Capitalized contract costs$68 $13 $(35)$46 
v3.25.4
Goodwill and Acquired Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets Goodwill and Acquired Intangible Assets
The following table identifies the activity relating to goodwill by our new operating segments:
In millionsBalance December 31,
2024		Currency
Translation
Adjustments		Balance December 31,
2025
Goodwill
Product Sales$387 $5 $392 
Consulting Services7 — 7 
Total goodwill$394 $5 $399 
On August 5, 2024, Teradata announced that it realigned its sales function and initiated global restructuring to optimize operations. Due to these organizational changes, Teradata manages its business under two segments, which are also the Company’s operating segments: (1) Product Sales and (2) Consulting Services. Teradata’s Product Sales segment represents the results for the Recurring Revenue and Perpetual Software Licenses, Hardware and Other line items and the Consulting Services segment represents the Consulting Services line item, each as disclosed in the Company’s financial statements and in the tables in this Form 10-K.
In the fourth quarter of 2025, the Company performed its annual impairment test and determined that no impairment to the carrying value of goodwill was necessary as each reporting unit's fair value was above its carrying value. The Company reviewed its two reporting units in its 2025 goodwill impairment assessment, as each of the operating segments were considered separate reporting units for purposes of testing.
Acquired intangible assets were specifically identified when acquired and are deemed to have finite lives. The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:
December 31,
2025
In millionsAmortization
Life (in Years)		Gross Carrying
Amount		Accumulated Amortization
Amount
Acquired intangible assets
Intellectual property/developed technology5$14 $(7)
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:
ActualFor the years ended (estimated)
In millions202520262027202820292030
Amortization expense$3 $3 $3 $1 $— $— 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the years ended December 31, income before income taxes consisted of the following: 
In millions202520242023
Income before income taxes
United States$44 $58 $35 
Foreign134 106 82 
Total income before income taxes$178 $164 $117 
For the years ended December 31, income tax expense consisted of the following:
In millions202520242023
Income tax expense
Current
Federal$(6)$32 $25 
State and local1 5 5 
Foreign22 24 36 
Deferred
Federal21 (9)(12)
State and local3 (2)(2)
Foreign7 — 3 
Total income tax expense$48 $50 $55 
Effective income tax rate27.0%30.5%47.0%
The following table presents the principal components, (on a prospective basis, as enhanced by ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures), of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
20252025
(amounts in millions)Amount%
Income tax expense at the U.S. federal tax rate$37 21.0 %
Foreign tax effects
Ireland
Statutory tax rate difference between Ireland and U.S.(8)(4.5)%
Argentina
Statutory tax rate difference between Argentina and U.S.1 0.6 %
Permanent Tax Benefit for Hyperinflationary Adjustment(4)(2.4)%
Valuation Allowance Offset42.2%
Withholding Tax for Ireland31.7%
Other foreign jurisdictions 7 3.9 %
Effect of Cross Border Tax Laws
GILTI Tax2 1.1 %
Subpart F Income3 1.7 %
Foreign Tax Credits(5)(2.8)%
Incremental US Tax on US Branches2 1.1 %
State and local income taxes, net of federal benefits (a)
2 1.1 %
Non-Taxable or Non-Deductible Items
Share-Based Payment Awards15 8.4 %
Tax Credits
US Research & Development Tax Credits(5)(2.8)%
US Investment Tax Credit(5)(2.8)%
Change in valuation allowance5 2.8 %
Changes in unrecognized tax positions(6)(3.3)%
Effective income tax rate$48 27.0 %
    
(a) State taxes in Arizona, California, Minnesota, Illinois, New Jersey, North Carolina, Rhode Island and Texas made up the majority (greater than 50 percent) of the tax effect in this category.
The following table presents the principal components, (as reported in prior years), of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
20242023
Income tax expense at the U.S. federal tax rate21.0 %21.0 %
Foreign income tax differential(3.2)%1.5 %
U.S. tax on foreign earnings(0.7)%(1.7)%
State and local income taxes (1.3)%(3.2)%
U.S. permanent book/tax differences1.8 %3.7 %
U.S. research and development tax credits(4.2)%(6.1)%
Change in valuation allowance10.7 %18.6 %
Argentina hyperinflationary adjustment
— %13.1 %
Tax impact of stock compensation4.3 %1.7 %
Tax impact of uncertain tax positions2.1 %(0.8)%
Other, net— %(0.8)%
Effective income tax rate30.5 %47.0 %
The 2025 effective tax rate included a net $2 million of discrete tax benefit, of which $9 million of tax benefit resulted from the reversal of unrecognized tax benefits, a majority of which was due to the settlement of the Company's 2020 federal income tax audit in the first quarter. This benefit was largely offset by $7 million of additional tax expense from stock-based compensation vesting.

The 2024 effective tax rate included a net $3 million of discrete tax expense, a majority of which related to additional tax expense from stock-based compensation vesting.

The 2023 effective tax rate included a net $18 million of discrete tax expense, of which $15 million of tax expense related to the foreign currency exchange translation impact on deferred tax and tax payable balances for Teradata's Argentina operations due to hyperinflation in Argentina and $10 million of tax expense related to a valuation allowance recorded against deferred tax assets for Argentina and other reorganization and transformation activities. These were partially offset by $4 million tax benefit related to the reversal of a FIN 48 tax reserve due to the expiration of statute of limitations and $3 million of incremental tax benefit related to stock-based compensation.
Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:
In millions20252024
Deferred income tax assets
Employee pensions and other liabilities$42 $41 
Other balance sheet reserves and allowances30 29 
Operating lease liabilities2 2 
Tax loss and credit carryforwards133 115 
Deferred revenue3 3 
Intangibles and capitalized software161 184 
Total deferred income tax assets371 374 
Valuation allowance(110)(101)
Net deferred income tax assets261 273 
Deferred income tax liabilities
Right of use assets - operating lease2 2 
Property and equipment30 24 
Other32 31 
Total deferred income tax liabilities64 57 
Total net deferred income tax assets$197 $216 
As of December 31, 2025, Teradata had NOL and tax credit carryforwards totaling $135 million (tax effected and before any valuation allowance offset and application of recognition criteria for uncertain tax positions). Of the total tax carryforwards, $12 million are NOLs in the United States and certain foreign jurisdictions, a small portion of which will begin to expire in 2026, which have a $4 million valuation allowance offset; $24 million are United States foreign tax credit carryforwards which expire in 2029, which have a $24 million valuation allowance offset; $5 million are federal R&D tax credit carryforward which will begin to expire in 2045; and $94 million are California R&D tax credits that have an indefinite carryforward period, which have a $69 million valuation allowance offset and $25 million of FIN 48 reserve recorded.
The Company considers a majority of its foreign earnings to not be indefinitely reinvested outside of the United States, and any distributions of profits from non-U.S. subsidiaries are not expected to cause a significant United States tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. The Company has recorded $4 million of deferred foreign withholding tax expense with respect to certain earnings which are not considered permanently reinvested as they would be taxable upon remittance. Deferred taxes have not been provided on earnings considered indefinitely reinvested.
The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company reflects any interest and penalties recorded in connection with its uncertain tax positions as a component of income tax expense.
As of December 31, 2025, the Company’s uncertain tax positions totaled approximately $38 million, of which $13 million is reflected in the other liabilities section of the Company’s balance sheet as a non-current liability and $25 million of uncertain tax positions relates to certain tax attributes generated by the Company, which are netted against the underlying deferred tax assets recorded on the balance sheet. The entire balance of $38 million in uncertain tax positions would cause a decrease in the effective income tax rate upon recognition. Teradata has recorded $2 million of interest accruals related to its uncertain tax liabilities as of December 31, 2025.
Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:
In millions20252024
Balance at January 1$44 $40 
Gross increases for prior period tax positions1 1 
Gross increases for current period tax positions3 3 
Decreases due to the lapse of applicable statute of limitations(2)— 
Decreases relating to settlements with taxing authorities(8)— 
Balance at December 31$38 $44 
The Company and its subsidiaries file income tax returns in the United States and various state jurisdictions, as well as numerous foreign jurisdictions. As of December 31, 2025, the Company has ongoing tax audits related to a limited number of foreign jurisdictions. The Company's tax returns for years 2022-2025 are still open for assessment by tax authorities in its major jurisdictions.
Supplemental Cash Flow data
For the year ended December 31, 2025, the Company paid the following income taxes (net of refunds received), disaggregated by jurisdiction:
In millions2025
Income tax paid (net of refunds received)
Domestic
Federal$43 
State and local4 
Foreign
Ireland7 
Other17 
Total income tax paid (net of refunds received)$71 
v3.25.4
Employee Stock-based Compensation Plans
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Employee Stock-based Compensation Plans Employee Stock-based Compensation Plans
The Company recorded stock-based compensation expense for the years ended December 31 as follows: 
In millions202520242023
Restricted share units109 115 122 
Employee stock purchase program3 4 4 
Total stock-based compensation before income taxes112 119 126 
Tax benefit(11)(17)(23)
Total stock-based compensation, net of tax$101 $102 $103 
The Teradata Corporation 2012 Stock Incentive Plan (the "2012 SIP"), as amended, and the Teradata 2023 Stock Incentive Plan (the "2023 SIP"), as amended, provide for the grant of several different forms of stock-based compensation. The 2023 SIP was adopted and approved by stockholders in May 2023 and no further awards may be made under the 2012 SIP after that time. Awards granted under the 2012 Plan prior to stockholder approval of the 2023 Plan will remain outstanding in accordance with their terms. A total of 10.9 million shares were authorized to
be issued under the 2023 SIP. In May 2025, the Teradata Board of Directors adopted the Teradata 2025 New Employee Stock Inducement Plan (the "2025 NESIP"). A total of 1.0 million shares are reserved for grant under the 2025 NESIP. Pursuant to the 2025 NESIP, the Company may grant equity incentive compensation as a material inducement for certain individuals to commence employment with Teradata within the meaning of Rule 303A.08 of the NYSE Listed Company Manual.
New shares of the Company’s common stock are issued as a result of the vesting of restricted share units, upon stock option exercises, and at the time of grant for restricted shares, for awards under all plans.
As of December 31, 2025, the Company’s primary types of stock-based compensation were restricted share units and the employee stock purchase program (the "ESPP").
Stock Options
No stock options were granted in 2025, 2024, or 2023.
Restricted Shares and Restricted Share Units
The 2023 SIP and 2025 NESIP provide for the issuance of restricted shares, as well as restricted share units. These grants consist of both service-based and performance-based awards. Service-based awards typically vest over a three-year period beginning on the effective date of grant. These grants are not subject to future performance measures. The cost of these awards, determined to be the fair market value at the date of grant, is expensed ratably over the vesting period. Performance-based grants are subject to future performance measurements over a one-to three-year period. All performance-based shares that are earned in respect of an award will become vested at the end of the performance and/or service period provided the employee is continuously employed by the Company and applicable performance measures and other vesting conditions are met. The fair value of each performance-based award is determined on the grant date, based on the Company’s stock price, and assumes that performance targets will be achieved. Over the performance period, the number of shares of stock that will be issued is adjusted upward or downward based upon management’s assessment of the probability of achievement of performance targets. The ultimate number of shares issued and the related compensation cost recognized as expense will be based on a comparison of the final achievement of performance metrics to the specified targets. For substantially all restricted share grants, at the date of grant, the recipient has all rights of a stockholder, subject to certain restrictions on transferability and risk of forfeiture. A recipient of restricted share units does not have the rights of a stockholder and is subject to restrictions on transferability and risk of forfeiture. For both restricted shares and restricted share units, any potential dividend rights would be subject to the same vesting requirements as the underlying equity award. As a result, such rights are considered a contingent transfer of value and consequently these equity awards are not considered participating securities.
We did not issue restricted shares in 2025, 2024, or 2023. The following table reports restricted share unit activity during the year ended December 31, 2025:
Shares in thousandsNumber of
Shares		Weighted-
Average 
Grant
Date Fair
 Value
per Share
Unvested shares at January 1, 20256,657 $40.05 
Granted6,563 $22.74 
Vested(3,004)$40.19 
Forfeited/canceled(1,312)$29.26 
Unvested shares at December 31, 20258,904 $28.66 
The following table summarizes the weighted-average fair value of restricted share units granted for Teradata equity awards and the total fair value of shares vested.
202520242023
Weighted-average fair value of restricted share units granted
$22.74 $36.33 $39.98 
Total fair value of shares vested (in millions)
$121 $124 $116 
As of December 31, 2025, there was $138 million of unrecognized compensation cost related to unvested restricted share unit grants. The unrecognized compensation cost is expected to be recognized over a remaining weighted-average period of 1.0 years.
The following table represents the composition of Teradata restricted share unit grants in 2025:
Shares in thousandsNumber of
Shares		Weighted-
Average 
Grant
Date Fair 
Value
Service-based restricted share units5,547 $23.30 
Performance-based restricted share units1,016 $19.69 
Total restricted share unit grants6,563 $22.74 
Employee Stock Purchase Program
The Company’s ESPP provides eligible employees of Teradata and its designated subsidiaries an opportunity to purchase the Company’s common stock at a discount at the end of a 6-month purchase period. Additionally, the ESPP has a look-back feature whereby the purchase discount is based off the lower of the market prices at the beginning or end of each 6-month purchase period (September to February, and March to August). The ESPP discount is 15% of the relevant market price and is considered compensatory.
Employees may authorize payroll deductions of up to 10% of eligible compensation for common stock purchases. A total of 9.3 million shares were authorized to be issued under the ESPP, with approximately 1.7 million shares remaining under that authorization at December 31, 2025. The shares of Teradata common stock purchased by a participant on an exercise date (the last day of each month), for all purposes, are deemed to have been issued and sold at the close of business on such exercise date. Prior to that time, none of the rights or privileges of a stockholder exists with respect to such shares.
Employee purchases and aggregate cost were as follows at December 31:
In millions202520242023
Employee stock purchases0.5 0.4 0.4 
Aggregate cost $10 $12 $13 
v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Pension and Postemployment Plans. Teradata currently sponsors defined benefit pension plans for certain of its international employees. For those international pension plans for which the Company holds asset balances, those assets are primarily invested in common/collective trust funds (which include publicly traded common stocks, corporate and government debt securities, real estate indirect investments, cash or cash equivalents) and insurance contracts.
Postemployment obligations relate to benefits provided to involuntarily terminated employees and certain inactive employees after employment but before retirement. These benefits are paid in accordance with various foreign statutory laws and regulations, and Teradata’s established postemployment benefit practices and policies. Postemployment benefits may include disability benefits, supplemental unemployment benefits, severance, workers’ compensation benefits, continuation of health care benefits and life insurance coverage, and are funded on a pay-as-you-go basis.
Pension and postemployment benefit costs for the years ended December 31 were as follows: 
 202520242023
In millionsPensionPostemploymentPensionPostemploymentPensionPostemployment
Service cost$4 $9 $4 $11 $4 $12 
Interest cost3 2 3 2 3 2 
Expected return on plan assets(2)— (2)— (2)— 
Settlement charge— — 1 — — — 
Amortization of actuarial loss — 7 — 8 — 6 
Amortization of prior service cost— 1 — 1 — 1 
Total costs$5 $19 $6 $22 $5 $21 
The underfunded amount of pension and postemployment obligations is recorded as a liability in the Company’s consolidated balance sheet. The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31:
 PensionPostemployment
In millions2025202420252024
Change in benefit obligation
Benefit obligation at January 1$100 $116 $56 $56 
Service cost4 4 9 11 
Interest cost3 3 2 2 
Plan participant contributions1 1 — — 
Actuarial (gain) loss(6)— 26 11 
Benefits paid(3)(2)(27)(24)
Settlement(5)(9)— — 
Plan Amendment3 (6)(4)— 
Currency translation adjustments9 (7)— — 
Benefit obligation at December 31$106 $100 $62 $56 
Change in plan assets
Fair value of plan assets at January 1$49 $60 $— $— 
Actual return on plan assets— 4 — — 
Company contributions5 5 — — 
Benefits paid(3)(2)— — 
Currency translation adjustments3 (4)— — 
Plan participant contribution1 1 — — 
Settlements(5)(9)— — 
Other— (6)— — 
Fair value of plan assets at December 3150 49 — — 
Funded status (underfunded)$(56)$(51)$(62)$(56)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets$11 $10 $— $— 
Current liabilities(3)(2)(12)(11)
Non-current liabilities(64)(59)(50)(45)
Net amounts recognized$(56)$(51)$(62)$(56)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Unrecognized Net actuarial (gain) loss $(11)$(6)$81 $62 
Unrecognized Prior service cost3 — (2)3 
Total$(8)$(6)$79 $65 
The following table presents the accumulated pension benefit obligation at December 31:
In millions20252024
Accumulated pension benefit obligation$97 $93 
The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31:
In millions20252024
Projected benefit obligation$91 $84 
Accumulated benefit obligation$84 $79 
Fair value of plan assets
$25 $24 
The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income:
 PensionPostemployment
In millions2025202420252024
Actuarial (gain) loss arising during the year
$(3)$(2)$26 $12 
Amortization of loss included in net periodic benefit cost
— — (8)(9)
Prior service cost arising during the year3 — (4)— 
Recognition of loss due to settlement
— (1)— — 
Foreign currency exchange(1)— — — 
Total recognized in other comprehensive (income) loss
$(1)$(3)$14 $3 
The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows:
 Pension Benefit ObligationsPension Benefit Cost
 20252024202520242023
Discount rate3.6%3.2%3.2%3.2%3.1%
Rate of compensation increase3.5%3.4%3.4%3.2%3.1%
Expected return on plan assetsN/AN/A3.9%4.0%3.9%
Interest crediting rate assumption1.7%1.6%1.6%1.6%1.5%
 Postemployment 
Benefit Obligations		Postemployment 
Benefit Cost
 20252024202520242023
Discount rate5.2%4.6%4.6%4.6%3.8%
Rate of compensation increase4.9%4.3%4.3%3.0%3.0%
Involuntary turnover rate6.0%5.0%5.0%4.5%4.0%
The Company determines the expected return on assets based on individual plan asset allocations, historical capital market returns, and long-term interest rate assumptions, with input from its actuaries, investment managers, and independent investment advisors. The company emphasizes long-term expectations in its evaluation of return factors, discounting or ignoring short-term market fluctuations. Expected asset returns are reviewed annually, but are generally modified only when asset allocation strategies change or long-term economic trends are identified.
International discount rates were determined by examining interest rate levels and trends within each country, particularly yields on high-quality corporate bonds, relative to our future expected cash flows. For markets without a deep corporate bonds, relative to our future expected cash flows.
Gains and losses have resulted from changes in actuarial assumptions and from differences between assumed and actual experience, including, among other items, changes in discount rates and differences between actual and assumed asset returns. These gains and losses (except those differences being amortized to the market-related value) are only amortized to the extent that they exceed 10% of the higher of the market-related value of plan assets or the projected benefit obligation of each respective plan. Amortization of deferred gains and losses are recognized in the Consolidated Statements of Income as a component of Other expense.
Plan Assets. The weighted-average asset allocations at December 31, by asset category are as follows:
Actual Asset Allocation
as of December 31		Target Asset
 20252024Allocation
Equity securities35%33%34%
Debt securities54%56%59%
Insurance (annuity) contracts9%8%4%
Real estate2%3%3%
Total100%100%100%
Investment Strategy. Teradata employs several investment strategies across its various international pension plans. In some countries, particularly where Teradata does not have a large employee base, the Company may use insurance (annuity) contracts to satisfy its future pension payment obligations, whereby the Company makes pension plan contributions to an insurance company in exchange for which the pension plan benefits will be paid when the members reach a specified retirement age or on earlier exit of members from the plan. In other countries, the Company may employ local asset managers to manage investment portfolios according to the investment policies and guidelines established by the Company, and with consideration to individual plan liability structure and local market environment and risk tolerances. The Company’s investment policies and guidelines primarily emphasize diversification across and within asset classes to maximize long-term returns subject to prudent levels of risk, with the overall objective of enabling the plans to meet their future obligations. The investment portfolios contain a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across domestic and international stocks, small and large capitalization stocks, and growth and value stocks. Fixed-income assets are diversified across government and corporate bonds. Where applicable, real estate investments are made through real estate securities, partnership interests or direct investment, and are diversified by property type and location.
Fair Value. Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are more fully described in Note 11.
The following is a description of the valuation methodologies used for pension assets as of December 31, 2025.
Common/collective trust funds (which include money market funds, equity funds, bond funds, real estate indirect investments, etc.): Valued at the net asset value ("NAV") of shares held by the pension plan at year end, as reported to the pension plan by the trustee, which represents the fair value of shares held by the pension plan. Because the NAV of the shares held in the common/collective trust funds are derived by the value of the underlying investments, the Company has classified these underlying investments as Level 2 fair value measurements.
Insurance contracts: Valued by discounting the related future benefit payments using a current year-end market discount rate, which represents the fair value of the insurance contract. The Company has classified these contracts as Level 3 assets for fair value measurement purposes.
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2025: 
  Fair Value Measurements at Reporting Date Using
Quoted Prices in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs
In millionsDecember 31, 2025(Level 1)(Level 2)(Level 3)
Money market funds$2 $— $2 $— 
Equity funds18 — 18 — 
Bond/fixed-income funds27 — 27 — 
Real estate indirect investments1 — 1 — 
Insurance contracts2 — — 2 
Total assets at fair value$50 $— $48 $2 
The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2025:
In millionsInsurance
Contracts
Balance as of January 1, 2025$2 
Purchases, sales and settlements, net— 
Balance as of December 31, 2025$2 
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2024: 
  Fair Value Measurements at Reporting Date Using
Quoted Prices in Active 
Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs
In millionsDecember 31, 2024(Level 1)(Level 2)(Level 3)
Equity funds$17 $— $17 $— 
Bond/fixed-income funds26 — 26 — 
Real estate indirect investments3 — 3 — 
Insurance contracts2 — — 2 
Total assets at fair value$48 $— $46 $2 
The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2024:
In millionsInsurance
Contracts
Balance as of January 1, 2024$8 
Purchases, sales and settlements, net(6)
Balance as of December 31, 2024$2 
Cash Flows Related to Employee Benefit Plans
Cash Contributions. In 2026, the Company expects to contribute approximately $2 million to the international pension plans.
Estimated Future Benefit Payments. The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the Company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans:
 Pension Postemployment
In millionsBenefitsBenefits
Year
2026$6 $12 
2027$6 $12 
2028$6 $12 
2029$6 $12 
2030$7 $12 
2031 - 2035$41 $60 
Savings Plans. United States employees and many international employees participate in defined contribution savings plans. These plans generally provide either a specified percent of pay or a matching contribution on participating employees’ voluntary elections. The Company’s matching contributions typically are subject to a maximum percentage or level of compensation. Employee contributions can be made pre-tax, after-tax or a combination thereof. The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31:
In millions202520242023
U.S. savings plan$13 $15 $16 
International subsidiary savings plans$12 $10 $10 
v3.25.4
Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
As a portion of Teradata’s operations is conducted outside the United States and in currencies other than the U.S. dollar, the Company is exposed to potential gains and losses from changes in foreign currency exchange rates. In an attempt to mitigate the impact of currency fluctuations, the Company uses foreign exchange forward contracts to hedge transactional exposures resulting predominantly from foreign currency denominated inter-company receivables and payables. The forward contracts are designated as fair value hedges of specified foreign currency denominated inter-company receivables and payables and generally mature in three months or less. The fair values of foreign exchange contracts are based on market spot and forward exchange rates and represent estimates of possible value that may not be realized in the future. Across its portfolio of contracts, Teradata has both long and short positions relative to the U.S. dollar. As a result, Teradata’s net involvement is less than the total contract notional amount of the Company’s foreign exchange forward contracts.
Gains and losses from foreign exchange forward contracts are fully recognized each period and reported along with the offsetting gain or loss of the related hedged item, either in cost of revenues or in other income (expense), depending on the nature of the related hedged item.
During June 2022, Teradata entered into a cross-currency swap designated as a net investment hedge, to hedge the Euro currency exposure of its net investment in certain foreign subsidiaries. This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. Changes in the fair value of this swap are recorded in Accumulated Other Comprehensive Loss in the same manner as foreign currency translation adjustments. In assessing the effectiveness of this hedge, the Company used a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related swap.
The cross-currency swap contract has an expiration date of June 29, 2026. At maturity of the cross-currency swap contract, the Company will deliver the notional amount of €143 million and will receive $150 million from the counterparty. The Company will receive monthly interest payments from the counterparty based on a fixed interest rate until maturity of the agreements.
In June 2022, Teradata refinanced its long-term debt and its associated interest rate swap ("Prior Interest Rate Swap"), which were due to mature in June 2023, and executed a five-year Secured Overnight Financing Rate
("SOFR") interest rate swap, to fix the interest rate on approximately 90% of the principal balance of the $500 million term loan, with an initial notional amount of $450 million, as more fully described in Note 12. The Company uses interest rate swaps to manage interest rate risks on future interest payments caused by interest rate changes on its variable rate term loan. The notional amount of the hedge steps down according to the amortization schedule of the term loan. The notional amount of the hedge was $416 million as of December 31, 2025.
The Company performed an initial effectiveness assessment on the interest rate swap and the net investment hedge foreign currency swap, and the hedges were determined to be effective. The hedges are being evaluated qualitatively on a quarterly basis for effectiveness. Changes in fair value are recorded in Accumulated Other Comprehensive Loss and periodic settlements of the interest rate swap will be recorded in interest expense along with the interest on amounts outstanding under the term loan.
The following table identifies the contract notional amount of the Company’s hedging instruments at December 31:
In millions20252024
Contract notional amount of foreign exchange forward contracts$81 $70 
Net contract notional amount of foreign exchange forward contracts$7 $21 
Contract notional amount of foreign currency exchange (net investment hedge)$150 $150 
Contract notional amount of interest rate swap $416 $439 
All derivatives are recognized in the consolidated balance sheets at their fair value. The notional amounts represent agreed-upon amounts on which calculations of dollars to be exchanged are based and are an indication of the extent of Teradata’s involvement in such instruments. These notional amounts do not represent amounts exchanged by the parties and, therefore, are not a measure of the instruments. Refer to Note 11 for disclosures related to the fair value of all derivative assets and liabilities.
The Company does not hold or issue derivative financial instruments for trading purposes, nor does it hold or issue leveraged derivative instruments. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, the Company exposes itself to credit risk. The Company manages exposure to counterparty credit risk by entering into derivative financial instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
In the ordinary course of business, the Company is subject to proceedings, lawsuits, governmental investigations, claims and other matters, including those that relate to the environment, health and safety, employee benefits, export compliance, intellectual property, tax matters and other regulatory compliance and general matters, including for Foreign Corrupt Practices Act ("FCPA") and shareholder matters. It is not currently a party to any litigation, nor is it aware of any pending or threatened litigation against it that the Company believes would materially affect its business, operating results, financial condition or cash flows, other than the following.
On June 19, 2018, the Company and certain of its subsidiaries filed a lawsuit (the "TD-SAP 1" suit) in the U.S. District Court for the Northern District of California against SAP SE, SAP America, Inc., and SAP Labs, LLC (collectively, "SAP"). In the TD-SAP 1 lawsuit, the Company alleged, among other things, that SAP misappropriated certain of the Company’s trade secrets within the Company’s enterprise data analytics and warehousing products and used such trade secrets to help develop, improve, introduce, and sell one or more competing products. The Company further alleged that SAP employed anticompetitive practices using its substantial market position in the enterprise resource planning applications market to pressure the Company’s customers and prospective customers to use one or more of SAP's competing products and reduce or eliminate customers' and prospective customers' use of the Company's offerings. The Company sought an injunction barring SAP’s alleged conduct, monetary damages, and other available legal and equitable relief. In July 2019, SAP filed patent infringement counterclaims against the Company based on five of SAP’s U.S. patents. On August 31, 2020, the Company filed a second lawsuit against SAP (the "TD-SAP 2" suit) in the U.S. District Court for the Northern District of California, in which the Company alleged infringement by SAP of four of the Company's U.S. patents. On February 16, 2021, SAP filed additional patent infringement counterclaims against the Company in response. On the same day, SAP also filed a lawsuit in Germany (the "TD-SAP 3" suit) for infringement of a single German patent. In November 2021, the district court dismissed the Company’s antitrust claims and most of its trade secret
claims in the TD-SAP 1 suit. In December 2021, the Company appealed that decision to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. That Court ruled the appeal should be decided by the Ninth Circuit Court of Appeals and transferred the appeal to the Ninth Circuit, where a three-judge panel heard oral arguments on February 12, 2024. Soon after, the Company and SAP entered into a partial settlement agreement that resulted in full dismissal of all claims and counterclaims in the TD-SAP 2 suit in California and the TD-SAP 3 suit in Germany, as well as a stay of all claims and counterclaims remaining in the TD-SAP 1 suit pending resolution of the Company’s appeal. On December 19, 2024, the Ninth Circuit panel ruled in the Company’s favor, overturning the district court’s summary judgment decision with respect both to the antitrust claims and the trade secret claims, and remanding to the district court for further proceedings. On January 23, 2025, SAP petitioned the Ninth Circuit for rehearing en banc. The Ninth Circuit denied SAP’s rehearing petition on March 4, 2025, and issued its mandate returning the case to the district court on April 1, 2025. On June 2, 2025, SAP petitioned for a writ of certiorari ("cert") to the Supreme Court challenging the Ninth Circuit’s reasoning on applicability of the per se rule to the Company’s antitrust claim. The Supreme Court denied SAP’s cert petition on October 6, 2025. Trial is set to begin with jury selection on March 30, 2026, in the U.S. District Court for the Northern District of California. As of December 31, 2025, it was not possible to determine the likelihood of a loss or a reasonably estimated range of loss, if any, pertaining to any of SAP’s remaining patent counterclaims in the TD-SAP 1 lawsuit. Please refer to Note 17 for an update to these legal proceedings.

On June 14, 2024, a putative securities class action lawsuit was filed against the Company and certain of its officers in the United States District Court for the Southern District of California (the "Court"), captioned Ostrander v. Teradata Corporation, No. 24-cv-01034 (S.D. Cal.). The complaint asserts claims for alleged violations of federal securities laws related to statements concerning the Company’s business and 2023 financial outlook for Total ARR and Public Cloud ARR. The plaintiff seeks to represent a class of certain persons who purchased or otherwise acquired the Company’s stock during the period from February 13, 2023 to February 12, 2024 and seeks unspecified damages and other relief. On December 6, 2024, the lead plaintiff in the case filed an amended complaint, after which the Company filed a motion to dismiss on February 4, 2025, which the court granted on September 26, 2025. The court entered final judgment in the case in Teradata's favor on January 6, 2026. No notice of appeal has been filed.

There are two pending shareholder derivative actions that adopt similar allegations as the securities class action and assert claims purportedly on behalf of Teradata and against the Company's directors and officers. Brennan v. McMillan, et al., Case No. 25-cv-02113-BEN-BLM (S.D. Cal.); Lipshutz v. McMillan, et al., Case No. 25-cv-01121-CAB-MSB (S.D. Cal.). These cases have been consolidated and are currently stayed. The Company cannot reasonably estimate the amount of any potential financial loss or cost that could result from Ostrander or the ancillary lawsuits at this stage of the litigation.
Other Contingencies. The Company provides its customers with certain indemnification rights. In general, the Company agrees to indemnify the customer if a third party asserts patent or other infringement on the part of the customer for its use of the Company’s offerings. The Company has indemnification obligations under its charter and bylaws to its officers and directors, and has entered into indemnification agreements with the officers and directors of its subsidiaries. From time to time, the Company also enters into agreements in connection with its acquisition and divestiture activities that include indemnification obligations by the Company. The fair value of these indemnification obligations is typically not readily determinable due to the conditional nature of the Company’s potential obligations and the specific facts and circumstances involved with each particular agreement. As such, the Company has generally not recorded a liability in connection with these indemnification arrangements. Historically, payments made by the Company under these types of agreements have not had a material effect on the Company’s consolidated financial condition, results of operations or cash flows.
Concentrations of Risk. The Company is potentially subject to concentrations of credit risk on accounts receivable and financial instruments such as hedging instruments, and cash and cash equivalents. Credit risk includes the risk of nonperformance by counterparties. The maximum potential loss may exceed the amount recognized on the balance sheet. Exposure to credit risk is managed through credit approvals, credit limits, selecting major international financial institutions (as counterparties to hedging transactions) and monitoring procedures. Teradata’s business often involves large transactions with customers, and if one or more of those customers were to default in its obligations under applicable contractual arrangements, the Company could be exposed to potentially significant losses. However, management believes that the reserves for potential losses were adequate at December 31, 2025 and December 31, 2024.
The Company is also potentially subject to concentrations of supplier risk. Our hardware components are assembled primarily by Flex Ltd. ("Flex"). Flex procures a wide variety of components used in the manufacturing process on behalf of the Company. Although many of these components are available from multiple sources, Teradata utilizes preferred supplier relationships to provide more consistent and optimal quality, cost and delivery. Typically, these preferred suppliers maintain alternative processes and/or facilities to ensure continuity of supply. Given the Company’s strategy to outsource its manufacturing activities to Flex and to source certain components from single suppliers, a disruption in production at Flex or at a supplier could impact the timing of customer shipments and/or Teradata’s operating results. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations for components that may be in excess of demand.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The Company’s assets and liabilities measured at fair value on a recurring basis include money market funds, interest rate swaps and foreign currency exchange contracts. A portion of the Company’s excess cash reserves are held in money market funds which generate interest income based on the prevailing market rates. Money market funds are included in cash and cash equivalents in the Company’s balance sheet. Money market fund holdings are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy.
When deemed appropriate, the Company minimizes its exposure to changes in foreign currency exchange rates using derivative financial instruments, specifically, foreign exchange forward contracts. Additionally, in June 2022, Teradata executed a five-year interest rate swap with a $450 million initial notional amount to hedge the floating interest rate on its term-loan and a four-year cross-currency swap with initial notional amounts of €143 million/$150 million, as a net investment hedge to hedge the Euro currency exposure of our net investment in certain foreign subsidiaries. The fair value of these contracts and swaps are measured at the end of each interim reporting period using observable inputs other than quoted prices, specifically market spot and forward exchange rates. As such, these derivative instruments are classified within Level 2 of the valuation hierarchy. Fair value of unrealized gains for open contracts are recorded in other assets and the fair value of unrealized losses are recorded in other liabilities in the Company's balance sheet (classified between current and long-term by their remaining duration). The fair value of foreign exchange forward contracts recorded in other assets and other liabilities at December 31, 2025 and 2024 were not material. Realized gains and losses from the Company’s fair value hedges net of corresponding gains or losses on the underlying exposures were immaterial for years ended December 31, 2025, 2024 and 2023.
The Company’s assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2025 and December 31, 2024 were as follows:
 Fair Value Measurements at Reporting Date Using
Quoted Prices 
in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant Unobservable Inputs
In millionsTotal(Level 1)(Level 2)(Level 3)
Assets
Money Market Funds at December 31, 2025$162 $162 $— $— 
Money Market Funds at December 31, 2024$151 $151 $— $— 
Foreign Currency Swap at December 31, 2024$1 $— $1 $— 
Interest Rate Swap at December 31, 2025$1 $— $1 $— 
Interest Rate Swap at December 31, 2024$9 $— $9 $— 
Liabilities
Foreign Currency Swap at December 31, 2025$18 $— $18 $— 
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
On June 28, 2022, the Company entered into a Credit Agreement that provides for (i) a five-year unsecured term loan in an aggregate principal amount of $500 million (the "Term Loan"), and (ii) a five-year unsecured revolving credit facility in an aggregate principal amount of up to $400 million, including a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans (the "Revolving Facility" and, collectively with the Term Loan, the "Credit Facility").
All outstanding borrowings pursuant to the Revolving Facility are due and payable on June 28, 2027, however, the maturity date of the Revolving Facility may be extended by agreement of the parties for up to two additional one-year periods. The Term Loan is payable in quarterly installments, which commence on June 30, 2024, with 1.25% of the initial principal amount due on each of the first twelve payment dates, with all remaining principal due on June 28, 2027. Under the terms of the Credit Facility, Teradata from time to time and subject to certain conditions may increase the lending commitments under the Credit Facility in an aggregate principal amount up to an additional $450 million, to the extent that existing or new lenders agree to provide such additional commitments. The outstanding principal amount of the Credit Facility bears interest at a floating rate based upon, at Teradata’s option, a negotiated base rate or an adjusted term SOFR rate, plus in each case, a margin based on the Company's leverage ratio. As disclosed in Note 9, in June 2022, Teradata entered into an interest rate swap, where the notional amount of the hedge steps down according to the amortization schedule of the related term loan, to hedge approximately 90% (or $450 million at inception) of the floating interest rate of the total $500 million Term Loan and a cross currency swap to hedge a portion of Euro currency exposure of its net investment in certain foreign subsidiaries.
The Credit Facility is unsecured but is guaranteed by certain of Teradata’s material domestic subsidiaries and contains certain customary representations and warranties, default provisions, and affirmative and negative covenants, including, among others, covenants regarding the maintenance of a leverage ratio and covenants relating to financial reporting, compliance with laws, subsidiary indebtedness, liens, sale and leaseback transactions, mergers and other fundamental changes, and entry into certain restrictive agreements. Most of the covenants are subject to materiality, thresholds, and exceptions. On September 21, 2023, the Credit Agreement was amended to establish key performance indicators with respect to certain environmental, social, and governance ("ESG") targets, pursuant to which certain positive or negative adjustments would be made to various fees and applicable margin based on Teradata’s performance against such ESG targets.
As of December 31, 2025 and 2024, the Company had no borrowings outstanding under the Credit Facility, leaving $400 million in additional borrowing capacity available under the Credit Facility. The Company was in compliance with all covenants as of December 31, 2025 and 2024.
The term loan principal outstanding was $456 million at December 31, 2025 and $481 million at December 31, 2024. As disclosed in Note 9, Teradata entered into an interest rate swap to hedge the floating interest rate of the term loan. As a result of the swap, Teradata’s fixed rate on approximately 90% of the term loan equals 3.25% excluding the applicable leverage-based margin as defined in the term loan agreement. As of December 31, 2025 and 2024, the all-in fixed rates are 4.16% and 4.24%, respectively. Deferred issuance costs are amortized over the five-year term of the Term Loan to interest expense. As of December 31, 2025 the remaining unamortized deferred issuance costs are approximately $1 million. 
Annual contractual maturities of outstanding principal on the Term Loan at December 31, 2025, are as follows: 

In millionsPrincipal payments
202625 
2027431 
Total$456 
The Term Loan is recognized on the Company’s balance sheet at its unpaid principal balance, net of deferred issuance costs, and is not subject to fair value measurement. However, given that the loan carries a variable rate, the Company estimates that the unpaid principal balance of the Term Loan would approximate its fair value. If measured at fair value in the financial statements, the Company’s Term Loan would be classified as Level 2 in the fair value hierarchy.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
Lessee
The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from approximately 1 to 7 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.
When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.
The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:
In millions, except weighted average calculationsClassification on the Balance Sheet20252024
Assets  
Operating lease assetsRight of use assets - operating lease, net$7 $8 
Finance lease assetsProperty and equipment, net118 109 
Total lease assets $125 $117 
   
Liabilities  
Current  
OperatingCurrent portion of operating lease liability$2 $4 
FinanceCurrent portion of finance lease liability50 57 
Non current  
OperatingOperating lease liability4 5 
FinanceFinance lease liability45 30 
Total lease liabilities $101 $96 
   
Weighted-average remaining lease term  
Operating leases 3.96 years3.49 years
Finance leases 2.06 years1.65 years
Weighted-average discount rate  
Operating leases(1)
 5.73 %5.40 %
Finance leases 6.25 %6.83 %
(1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.
Lessee Costs
The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31:
In millions202520242023
Finance lease cost 
Depreciation of leased assets$56 $61 $68 
Interest of lease liabilities6 7 7 
Operating lease cost4 5 7 
Sub-lease income from real estate properties owned and leased(6)(5)(5)
Total lease cost$60 $68 $77 
Other Information
The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:
In millions20252024
Operating cash flows for operating leases$5 $7 
Operating cash flows for finance leases$6 $7 
Financing cash flows for finance leases$69 $71 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2025:
In millionsOperating LeasesFinance Leases
2026$4 $54 
20272 33 
20281 14 
20291 — 
20301 — 
Thereafter— — 
Total minimum lease payments9 101 
Less: amount of lease payments representing interest(3)(6)
Present value of future minimum lease payments6 95 
Less: current obligations under leases(2)(50)
Long-term lease obligations$4 $45 
The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2024:
In millionsOperating LeasesFinance Leases
2025$7 $61 
20263 27 
20271 5 
20281 — 
20292 — 
Thereafter— — 
Total minimum lease payments14 93 
Less: amount of lease payments representing interest(5)(6)
Present value of future minimum lease payments9 87 
Less: current obligations under leases(4)(57)
Long-term lease obligations$5 $30 
Lessor
The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company may own or lease the hardware. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.
The following table includes rental revenue for the years ended December 31:
In millions202520242023
Rental revenue*$212 $213 $216 
*Rental revenue includes hardware maintenance.
The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2025:
In millionsRental Revenue
2026$225 
202785 
2028-2966 
Total$376 
Leases Leases
Lessee
The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from approximately 1 to 7 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.
When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.
The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:
In millions, except weighted average calculationsClassification on the Balance Sheet20252024
Assets  
Operating lease assetsRight of use assets - operating lease, net$7 $8 
Finance lease assetsProperty and equipment, net118 109 
Total lease assets $125 $117 
   
Liabilities  
Current  
OperatingCurrent portion of operating lease liability$2 $4 
FinanceCurrent portion of finance lease liability50 57 
Non current  
OperatingOperating lease liability4 5 
FinanceFinance lease liability45 30 
Total lease liabilities $101 $96 
   
Weighted-average remaining lease term  
Operating leases 3.96 years3.49 years
Finance leases 2.06 years1.65 years
Weighted-average discount rate  
Operating leases(1)
 5.73 %5.40 %
Finance leases 6.25 %6.83 %
(1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.
Lessee Costs
The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31:
In millions202520242023
Finance lease cost 
Depreciation of leased assets$56 $61 $68 
Interest of lease liabilities6 7 7 
Operating lease cost4 5 7 
Sub-lease income from real estate properties owned and leased(6)(5)(5)
Total lease cost$60 $68 $77 
Other Information
The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:
In millions20252024
Operating cash flows for operating leases$5 $7 
Operating cash flows for finance leases$6 $7 
Financing cash flows for finance leases$69 $71 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2025:
In millionsOperating LeasesFinance Leases
2026$4 $54 
20272 33 
20281 14 
20291 — 
20301 — 
Thereafter— — 
Total minimum lease payments9 101 
Less: amount of lease payments representing interest(3)(6)
Present value of future minimum lease payments6 95 
Less: current obligations under leases(2)(50)
Long-term lease obligations$4 $45 
The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2024:
In millionsOperating LeasesFinance Leases
2025$7 $61 
20263 27 
20271 5 
20281 — 
20292 — 
Thereafter— — 
Total minimum lease payments14 93 
Less: amount of lease payments representing interest(5)(6)
Present value of future minimum lease payments9 87 
Less: current obligations under leases(4)(57)
Long-term lease obligations$5 $30 
Lessor
The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company may own or lease the hardware. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.
The following table includes rental revenue for the years ended December 31:
In millions202520242023
Rental revenue*$212 $213 $216 
*Rental revenue includes hardware maintenance.
The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2025:
In millionsRental Revenue
2026$225 
202785 
2028-2966 
Total$376 
Leases Leases
Lessee
The Company leases property and equipment under finance and operating leases. The Company's operating leases primarily consist of automobiles in certain countries and real estate, including office, storage and parking spaces. The duration of these leases range from approximately 1 to 7 years. The Company's finance leases primarily consist of equipment financed for the purpose of delivering services to our customers. For leases with terms greater than 12 months, the Company recorded the related asset and obligation at the present value of lease payments over the term. Many of our leases include variable rental escalation clauses which are recognized when incurred. Some of our leases also include renewal options and/or termination options that are factored into the determination of lease payments and lease terms when it is reasonably certain that the Company will exercise these options. Lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. For real estate leases beginning in 2019 and later, we account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs). For automobile leases we account for lease and non-lease components together.
When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, real estate leases do not typically provide a readily determinable implicit rate. Therefore, the Company must estimate the incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate used in the calculation of the lease liability is based on the secured rate associated with financed lease obligations for each location of leased property.
The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:
In millions, except weighted average calculationsClassification on the Balance Sheet20252024
Assets  
Operating lease assetsRight of use assets - operating lease, net$7 $8 
Finance lease assetsProperty and equipment, net118 109 
Total lease assets $125 $117 
   
Liabilities  
Current  
OperatingCurrent portion of operating lease liability$2 $4 
FinanceCurrent portion of finance lease liability50 57 
Non current  
OperatingOperating lease liability4 5 
FinanceFinance lease liability45 30 
Total lease liabilities $101 $96 
   
Weighted-average remaining lease term  
Operating leases 3.96 years3.49 years
Finance leases 2.06 years1.65 years
Weighted-average discount rate  
Operating leases(1)
 5.73 %5.40 %
Finance leases 6.25 %6.83 %
(1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.
Lessee Costs
The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31:
In millions202520242023
Finance lease cost 
Depreciation of leased assets$56 $61 $68 
Interest of lease liabilities6 7 7 
Operating lease cost4 5 7 
Sub-lease income from real estate properties owned and leased(6)(5)(5)
Total lease cost$60 $68 $77 
Other Information
The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:
In millions20252024
Operating cash flows for operating leases$5 $7 
Operating cash flows for finance leases$6 $7 
Financing cash flows for finance leases$69 $71 
Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2025:
In millionsOperating LeasesFinance Leases
2026$4 $54 
20272 33 
20281 14 
20291 — 
20301 — 
Thereafter— — 
Total minimum lease payments9 101 
Less: amount of lease payments representing interest(3)(6)
Present value of future minimum lease payments6 95 
Less: current obligations under leases(2)(50)
Long-term lease obligations$4 $45 
The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2024:
In millionsOperating LeasesFinance Leases
2025$7 $61 
20263 27 
20271 5 
20281 — 
20292 — 
Thereafter— — 
Total minimum lease payments14 93 
Less: amount of lease payments representing interest(5)(6)
Present value of future minimum lease payments9 87 
Less: current obligations under leases(4)(57)
Long-term lease obligations$5 $30 
Lessor
The Company receives rental revenue for leasing hardware offerings to its customers. For our hardware rental offering, the Company may own or lease the hardware. Leases sometimes include options to renew but typically do not include lessee purchase options. The revenue for these operating leases is generally recognized straight-line over the term of the contract and is included within the recurring revenue caption on the consolidated statements of income. Equipment used for this revenue is reported within Property and equipment, net on the consolidated balance sheet.
The following table includes rental revenue for the years ended December 31:
In millions202520242023
Rental revenue*$212 $213 $216 
*Rental revenue includes hardware maintenance.
The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2025:
In millionsRental Revenue
2026$225 
202785 
2028-2966 
Total$376 
v3.25.4
Segment, Other Supplemental Information and Concentrations
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment, Other Supplemental Information and Concentrations Segment, Other Supplemental Information and Concentrations
Teradata manages its business under two segments, which are also the Company’s operating segments: (1) Product Sales and (2) Consulting Services. Teradata’s Product Sales segment represents the results for the Recurring Revenue and Perpetual Software Licenses, Hardware and Other line items and the Consulting Services segment represents the Consulting Services. For purposes of discussing results by segment, management excludes the impact of certain items, consistent with the manner by which management evaluates the performance of each segment. This format is useful to investors because it allows analysis and comparability of operating trends. It also includes the same information that is used by Teradata management to make decisions regarding the segments and to assess financial performance. The chief operating decision maker ("CODM"), who is our President and Chief Executive Officer, evaluates the performance of each segment by comparing segment revenue and segment gross profit results to historical and previously forecasted financial information on a monthly and quarterly basis to allocate operating and capital resources. Our CODM monitors assets for the consolidated Company but does not use assets by segment when assessing performance or making operating segment resource allocations.
The following table presents segment revenue, segment cost of revenue and segment gross profit for the Company for the years ended December 31: 
In millions202520242023
Segment revenue
Product Sales$1,462 $1,502 $1,537 
Consulting Services201 248 296 
Total revenue1,663 1,750 1,833 
Segment cost of revenue
Product Sales (1)
464 453 446 
Consulting Services (2)
189 217 254 
Total segment cost of revenue653 670 700 
Segment gross profit
Product Sales998 1,049 1,091 
Consulting Services12 31 42 
Total segment gross profit1,010 1,080 1,133 
Stock-based compensation expense17 17 17 
Acquisition, integration and reorganization-related costs6 5 1 
Total gross profit987 1,058 1,115 
Selling, general and administrative expenses502 565 635 
Research and development expenses280 284 294 
Total income from operations$205 $209 $186 
(1) Cost of Product Sales includes product costs of $241 million in 2025, $223 million in 2024, and $193 million in 2023 for Public Cloud fees and direct product and third-party software costs associated with the Company's perpetual product sales. Depreciation expense included in Cost of Product Sales was $71 million in 2025, $79 million in 2024, and $88 million in 2023. The remaining cost of Product Sales includes payroll and benefits costs, and corporate allocations including back-office information technology, real estate, and other support services.
(2) Cost of Consulting Services includes payroll and benefit costs of $120 million in 2025, $137 million in 2024, and $149 million in 2023. The remaining cost of Consulting Services includes corporate allocations, including back-office information technology, real estate, and other support services. 
Certain items, including stock-based compensation and reorganization-related costs, were excluded from segment gross profit to conform to the way the Company manages and reviews the results by segment.
The following table presents revenues by geographic area for the years ended December 31: 
In millions202520242023
United States$829 $894 $973 
International834 856 860 
Total revenue$1,663 $1,750 $1,833 
The following table presents property and equipment, net by geographic area at December 31: 
In millions20252024
United States$132 $122 
International66 63 
Property and equipment, net$198 $185 
Concentrations. No single customer accounts for more than 10% of the Company's revenue for any period presented. No country outside the United States accounts for more than 10% of the Company's revenue or property and equipment, net, for any period presented. As of December 31, 2025, the Company is not aware of any significant concentration of business transacted with a particular customer that could, if suddenly eliminated, have a material adverse effect on the Company’s operations. The Company's hardware components are assembled primarily by Flex. In addition, the Company utilizes preferred supplier relationships to better ensure more consistent quality, cost, and delivery. There can be no assurances that a disruption in production at Flex or at a supplier would not have a material adverse effect on the Company's operations. In addition, a significant change in the forecasts to any of these preferred suppliers could result in purchase obligations or components that may be in excess of demand.
v3.25.4
Accumulated Other Comprehensive (Loss) Income
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income
The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31:
In millionsDerivativesDefined 
benefit
plans		Foreign 
currency
translation
adjustments		Total 
AOCI
Balance as of December 31, 2022$9 $(31)$(97)$(119)
Other comprehensive (loss) income before reclassifications(4)(12)1 (15)
Amounts reclassified from AOCI— 5 — 5 
Net other comprehensive (loss) income(4)(7)1 (10)
Balance as of December 31, 2023$5 $(38)$(96)$(129)
Other comprehensive income (loss) before reclassifications1 (8)(18)(25)
Amounts reclassified from AOCI— 7 — 7 
Net other comprehensive income (loss)1 (1)(18)(18)
Balance as of December 31, 2024$6 $(39)$(114)$(147)
Other comprehensive (loss) income before reclassifications(6)(17)11 (12)
Amounts reclassified from AOCI— 6 — 6 
Net other comprehensive (loss) income(6)(11)11 (6)
Balance as of December 31, 2025$— $(50)$(103)$(153)
The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31:
In millions 
AOCI ComponentLocation202520242023
Other expenseOther expense$(8)$(9)$(7)
Tax portionIncome tax benefit2 2 2 
Total reclassifications
Net (loss) income
$(6)$(7)$(5)
Further information on the Company’s defined benefit plans is included in Note 8.
v3.25.4
Reorganization and Business Transformation
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Reorganization and Business Transformation Reorganization and Business Transformation
On August 5, 2024, the Company announced that it realigned its sales function and initiated global restructuring and cost actions to optimize operations, reduce non-revenue generating expenses, and drive efficiencies for long-term growth and profitability (the "Restructuring"). The majority of the actions related to the Restructuring were completed as of December 31, 2025, with remaining actions to be completed by early 2026.
The majority of the costs relating to the Restructuring include one-time employee separation benefits, transition support, and other employee-related costs. The Company has incurred total charges related to the Restructuring of approximately $20 million. Cash expenditures related to these actions are estimated at approximately $45 to $50 million.
The Company recognized costs of $6 million ($4 million cash and $2 million non-cash) in 2025 for employee severance and other employee-related costs associated with the Restructuring.
The Company recognized costs of $14 million ($9 million cash and $5 million non-cash) in 2024 for employee severance and other employee-related costs associated with the Restructuring.
In 2025, $2 million of these costs were recorded in costs of revenue, $4 million were recorded in selling, general and administrative expenses. There was no impact to the segment gross profit.
In 2024, $3 million of these costs were recorded in costs of revenue, $7 million were recorded in selling, general and administrative expenses and $4 million were recorded in research and development expenses. There was no impact to the segment gross profit.
Cash paid related to the plan listed above was $27 million in 2025 and $14 million in 2024. Not included in the table below are approximately $18 million in 2025 and $5 million in 2024 of cash payments for international employees which did not have a material impact on the Consolidated Statements of Income (Loss) as the Company accounts for its International postemployment benefits under Accounting Standards Codification 712, Compensation - Nonretirement Postemployment Benefits ("ASC 712"), which uses actuarial estimates to accrue for severance benefits over the course of employees' service period.
The estimate of the savings (and any reinvestment thereof), costs, charges, and cash expenditures that the Company expects to incur in connection with the remaining Restructuring, and the timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from the estimates. In addition, the Company may incur other costs and charges not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Restructuring.

The 2025 activity and the reserves related to the Restructuring are as follows:
In millionsBalance at December 31, 2024Expense accrualsCash paymentsBalance at
December 31, 2025
Employee severance and other employee-related costs$5 $6 $(9)$2 
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
As disclosed in Note 10, Teradata has been involved in several litigation proceedings (collectively, the "Litigation") against SAP SE, SAP America, Inc., and SAP Labs, LLC (collectively, "SAP" and with "Teradata" the "Parties"). On February 19, 2026 (the "Effective Date"), Teradata entered into a Settlement Agreement (the “Settlement Agreement”) with SAP, pursuant to which the Parties have agreed, among other things, to (i) resolve all past and pending litigation between the Parties, including the Litigation and (ii) mutual releases of all claims and liabilities asserted or that could have been asserted in the Litigation. As a result of the Settlement Agreement, Teradata will receive a gross payment of $480 million (the "Settlement Amount") no later than 60 days after the Effective Date. Upon Teradata’s receipt of the Settlement Amount, the Parties will request that the court dismiss all claims, defenses and counterclaims with prejudice. Teradata believes that the net cash benefit of the Settlement Amount after associated fees and expenses, including a customary contingent fee arrangement and other outstanding legal
fees incurred in connection with the Litigation, will be in the range of approximately $355–$362 million before taxes (the "Net Proceeds"). Teradata is currently evaluating the appropriate use of the Net Proceeds and will provide an update on its 2026 first quarter earnings call.
v3.25.4
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
(In millions)
 
Column AColumn BColumn CColumn DColumn E
DescriptionBalance at
Beginning
of Period		Provision/reversals
Charged
to Costs &
Expenses		Charged
to Other
Accounts		DeductionsBalance
at End of
Period
Allowance for doubtful accounts
Year ended December 31, 2025$14 $3 $— $(7)$10 
Year ended December 31, 2024$12 $2 $— $— $14 
Year ended December 31, 2023$12 $1 $— $(1)$12 
Deferred tax valuation allowance
Year ended December 31, 2025$101 $15 $(6)$— $110 
Year ended December 31, 2024$90 $11 $— $— $101 
Year ended December 31, 2023$69 $21 $— $— $90 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the three months ended December 31, 2025, other than the director and officers shown in the table below, no other director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
Name (Title)ActionDateTrading ArrangementTotal Shares to be SoldExpiration Date
Rule 10b5-1*Non-Rule 10b5-1**
Stephen McMillan (Chief Executive Officer and director)
Adopt11/28/2025x
Up to 80,000
11/14/2026
Sumeet Arora (Chief Product Officer)
Adopt12/09/2025x
Up to 42,580 (1)
12/15/2026
Richard Petley (Chief Revenue Officer)
Adopt12/05/2025x
Up to 108,324(2)
12/04/2026
* Intended to satisfy the affirmative defense of Rule 10b5-1(c).
**Not intended to satisfy the affirmative defense of Rule 10b5-1(c).

(1) Mr. Arora’s Rule 10b5-1 trading plan, includes the sale of up to 50% of the net shares (not yet determinable) after shares are withheld to satisfy tax obligations upon the vesting of 71,841 restricted share units ("RSUs") and 13,318 performance-based RSUs (which such number for purposes of this disclosure is based on the target amount of performance-based RSUs granted to Mr. Arora in 2025, but the number of shares of common stock subject to Mr. Arora’s plan may vary based on the Company’s actual performance achieved at the end of the 2025 performance period for the performance-based RSUs).
(2) Mr. Petley’s Rule 10b5-1 trading plan includes the sale of up to (i) 34,317 shares and (ii) an amount of either 50% or 100% of the of net shares (not yet determinable) after shares are withheld to satisfy tax obligations upon the vesting of 44,198 RSUs and 29,809 performance-based RSUs (which such number for purposes of this disclosure is based on the target amount of performance-based RSUs granted to Mr. Petley in 2023, but the number of shares of common stock subject to Mr. Petley’s plan may vary based on the Company’s actual performance achieved at the end of the 2025 performance period for the performance-based RSUs).
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Stephen McMillan [Member]  
Trading Arrangements, by Individual  
Name Stephen McMillan
Title Chief Executive Officer and director
Rule 10b5-1 Arrangement Adopted true
Adoption Date 11/28/2025
Expiration Date 11/14/2026
Arrangement Duration 351 days
Aggregate Available 80,000
Sumeet Arora [Member]  
Trading Arrangements, by Individual  
Name Sumeet Arora
Title Chief Product Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date 12/09/2025
Expiration Date 12/15/2026
Arrangement Duration 371 days
Aggregate Available 42,580
Richard Petley [Member]  
Trading Arrangements, by Individual  
Name Richard Petley
Title Chief Revenue Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date 12/05/2025
Expiration Date 12/04/2026
Arrangement Duration 364 days
Aggregate Available 108,324
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management and Strategy
Our cybersecurity program is designed to protect information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction.
Enterprise Risk Management. We have processes in place for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our Enterprise Risk Management ("ERM") program. Our ERM program, which is coordinated through our Enterprise Risk and Internal Audit function ("ERAS team"), includes the identification of risks relevant to Teradata’s business, including material risks from cybersecurity threats; assigning personnel responsible for such risks; the development of strategies and plans to monitor, assess, and mitigate such risks; and oversight of the identified risks through regular reporting and risk evaluations with management, our Board, and/or relevant Board committee. Our ERAS team works closely with the Information Security function, including our Chief Information Security Officer ("CISO"), in the cybersecurity risk management process that informs the ERM program.
Cybersecurity Processes. The processes in place for managing cybersecurity threats, including threats associated with our use of third-party service providers, include identifying potential cybersecurity threats; defining the roles and responsibilities of our personnel pursuant to our Cybersecurity Incident Response Plan ("CIRP"); continuous testing and training of our employees on cybersecurity risks and security hygiene; communication and escalation protocols; and tools and technologies for incident detection and responses. We continuously assess risks and changes in the cybersecurity environment and adjust our processes and cybersecurity investments as appropriate.

•Our information security processes are built upon a foundation of advanced security technology, a trained team of security experts, and operations based on various global practices, standards, and frameworks, including the International Organization for Standardization, International Electrotechnical Commission, and National Institute of Standards and Technology Cybersecurity Framework.
•We maintain policies, procedures, and controls that are designed to identify, protect, detect, respond to, and recover from information security and cybersecurity threats and incidents. Such items are reviewed, approved, and monitored by our CISO on an ongoing basis. In addition, we engage external advisors periodically to review and assess our policies, procedures, and controls.
•We engage periodically independent security firms and other third-party experts, where appropriate, to assess, test, and certify components of our cybersecurity program, and to assist with aspects of our cybersecurity processes and controls.
•Our incident response process provides a documented framework for handling cybersecurity incidents. The program includes protocols for preventing, detecting and responding to cybersecurity incidents, and cross-functional coordination across multiple functions of the organization.
•We have processes to manage cybersecurity risks associated with third-party service providers. Risk management process for third-party service providers and vendors includes due diligence and information security assessments in the selection process and periodic monitoring regarding adherence to applicable cybersecurity standards. However, despite the controls that we have in place, we also rely on our third-parties to implement security programs and we cannot ensure in all circumstances that their efforts will be successful.
•We maintain an annual cybersecurity training plan including employee training on cybersecurity risks, requirements, and incident reporting. As part of our training plan, we regularly perform phishing tests of our employees. On an annual basis, our employees must complete cybersecurity awareness training.
•We perform simulations to review and test our information security program, including tabletop exercises, penetration and vulnerability testing, and other exercises to evaluate the effectiveness of our information security program and improve our security measures and planning.
•We maintain insurance to provide coverage for certain losses from cybersecurity threats and incidents.
•We have developed business continuity and disaster recovery capabilities to mitigate interruptions to critical information systems and the loss of data and services from the effects of natural or man-made disasters to Teradata systems.
Cybersecurity Incidents. To protect our information systems from cybersecurity incidents and threats, we use various security tools that help prevent, identify, escalate, investigate, resolve, and recover from identified vulnerabilities and security incidents in a timely manner. We maintain controls and procedures that include escalation procedures based on the nature and severity of the incident to ensure prompt escalation so that decisions regarding materiality of the incident and any necessary public disclosure and reporting of such incidents can be made in a timely manner. In the last several fiscal years, we have not experienced any material cybersecurity incident and the expenses we have incurred from security incidents were immaterial. As a result, we do not believe that cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially impacted our results of operations and financial condition. As cybersecurity threats become more sophisticated and coordinated, it is reasonably likely that we will be required to expend greater resources to continue to modify and enhance our protective measures as we pursue our business strategies.
Cybersecurity Risks. Notwithstanding the extensive approach we take to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. While we maintain cybersecurity insurance, the costs related to cybersecurity incidents may not be fully insured. See "Risk Factors — A cybersecurity incident, disruption, or failure of our information systems or those of our third-party providers could adversely impact our reputation, business, and financial results."
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have processes in place for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our Enterprise Risk Management ("ERM") program. Our ERM program, which is coordinated through our Enterprise Risk and Internal Audit function ("ERAS team"), includes the identification of risks relevant to Teradata’s business, including material risks from cybersecurity threats; assigning personnel responsible for such risks; the development of strategies and plans to monitor, assess, and mitigate such risks; and oversight of the identified risks through regular reporting and risk evaluations with management, our Board, and/or relevant Board committee. Our ERAS team works closely with the Information Security function, including our Chief Information Security Officer ("CISO"), in the cybersecurity risk management process that informs the ERM program.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Board Oversight of Cybersecurity Risk. Our Board’s role is to engage in informed oversight of enterprise-wide risks as managed through our ERM program, including cybersecurity. While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Audit Committee.
The Audit Committee is responsible for reviewing the adequacy and effectiveness of the Company’s information security policies, the internal controls regarding information security and cybersecurity, and risks related to such exposures and actions taken to monitor and/or mitigate such risks. The Audit Committee receives quarterly reports as part of its meeting materials prepared by our CISO regarding the assessment of the status, adequacy, and effectiveness of our processes related to assessing, identifying, and managing cybersecurity risks and related
mitigation plans. In addition, at least twice per year, the Audit Committee meeting agenda includes a presentation by the CISO to review and discuss the CISO’s report on cybersecurity risks, mitigation plans and the steps the security team has taken to monitor and control related exposures. The Audit Committee reports to the Board on cybersecurity matters discussed at its meetings and the CISO’s quarterly reports are provided to the Board as part of their meeting materials for their information as well.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee is responsible for reviewing the adequacy and effectiveness of the Company’s information security policies, the internal controls regarding information security and cybersecurity, and risks related to such exposures and actions taken to monitor and/or mitigate such risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee receives quarterly reports as part of its meeting materials prepared by our CISO regarding the assessment of the status, adequacy, and effectiveness of our processes related to assessing, identifying, and managing cybersecurity risks and related mitigation plans. In addition, at least twice per year, the Audit Committee meeting agenda includes a presentation by the CISO to review and discuss the CISO’s report on cybersecurity risks, mitigation plans and the steps the security team has taken to monitor and control related exposures. The Audit Committee reports to the Board on cybersecurity matters discussed at its meetings and the CISO’s quarterly reports are provided to the Board as part of their meeting materials for their information as well.
Cybersecurity Risk Role of Management [Text Block] Management is responsible for the Company’s planning, identification, assessment, and mitigation of risks from cybersecurity threats. Our CISO, Chief Administrative Officer, and Chief Operating Officer comprise our Core Cybersecurity Management Team (the "CCMT"). The CCMT has oversight of Teradata’s CIRP and is informed and consulted on the response and resolution process for cybersecurity incidents. The CCMT is responsible for determining communications to inform relevant stakeholders of cybersecurity incidents as applicable, relevant, and/or required, including the Board; Audit Committee; the executive leadership team; investors; customers; employees; law enforcement; and regulators.
Depending on the nature and/or severity of the incident, additional stakeholders within the broader enterprise-wide management team may be included in the assessment, response, and resolution of an incident by the CCMT. The broader management team for this purpose may include, but is not limited to, executive and senior leaders in our Product, Customer, People, Information Technology, and Law functions, as well as others that may be considered necessary (collectively referred to as the "ECMT"). The ECMT provides oversight, perspective, and support from their respective areas of expertise to assist in analyzing the cybersecurity incident, materiality of the incident, and remediation considerations.
CISO and Cybersecurity Team. Our Information Security function is led by our CISO and is responsible for executing our enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes.

•The Information Security function consists of qualified professionals in cybersecurity. This team sets the cybersecurity strategy for Teradata; develops Teradata’s cybersecurity architecture and deploys and manages tools and technologies aligned with such architecture to safeguard our information systems; manages the cybersecurity training required of our employees; monitors our cybersecurity threats and incidents; escalates the occurrence of cybersecurity incidents pursuant to the CIRP; and addresses and incorporates mitigation items.
•The CISO appoints a Cybersecurity Incident Response Coordinator ("CIRC") to lead the management of cybersecurity incidents. The primary responsibilities of the CIRC include, but are not limited to:
◦receiving and tracking all reported potential cybersecurity threats;
◦escalating incident response;
◦determining relevant stakeholders of the Information Technology function and cybersecurity incident response team, which team is selected by CIRC to serve as the lead function for investigating and coordinating cybersecurity incidents;
◦alerting the applicable support functions of the potential cybersecurity threat and any defensive action that would be required; and
◦alerting management, as applicable and necessary, of the potential cybersecurity threat.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The Audit Committee is responsible for reviewing the adequacy and effectiveness of the Company’s information security policies, the internal controls regarding information security and cybersecurity, and risks related to such exposures and actions taken to monitor and/or mitigate such risks. The Audit Committee receives quarterly reports as part of its meeting materials prepared by our CISO regarding the assessment of the status, adequacy, and effectiveness of our processes related to assessing, identifying, and managing cybersecurity risks and related
mitigation plans. In addition, at least twice per year, the Audit Committee meeting agenda includes a presentation by the CISO to review and discuss the CISO’s report on cybersecurity risks, mitigation plans and the steps the security team has taken to monitor and control related exposures. The Audit Committee reports to the Board on cybersecurity matters discussed at its meetings and the CISO’s quarterly reports are provided to the Board as part of their meeting materials for their information as well.
Executive Oversight of Cybersecurity. Management is responsible for the Company’s planning, identification, assessment, and mitigation of risks from cybersecurity threats. Our CISO, Chief Administrative Officer, and Chief Operating Officer comprise our Core Cybersecurity Management Team (the "CCMT"). The CCMT has oversight of Teradata’s CIRP and is informed and consulted on the response and resolution process for cybersecurity incidents. The CCMT is responsible for determining communications to inform relevant stakeholders of cybersecurity incidents as applicable, relevant, and/or required, including the Board; Audit Committee; the executive leadership team; investors; customers; employees; law enforcement; and regulators.
Depending on the nature and/or severity of the incident, additional stakeholders within the broader enterprise-wide management team may be included in the assessment, response, and resolution of an incident by the CCMT. The broader management team for this purpose may include, but is not limited to, executive and senior leaders in our Product, Customer, People, Information Technology, and Law functions, as well as others that may be considered necessary (collectively referred to as the "ECMT"). The ECMT provides oversight, perspective, and support from their respective areas of expertise to assist in analyzing the cybersecurity incident, materiality of the incident, and remediation considerations.
CISO and Cybersecurity Team. Our Information Security function is led by our CISO and is responsible for executing our enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes.

•The Information Security function consists of qualified professionals in cybersecurity. This team sets the cybersecurity strategy for Teradata; develops Teradata’s cybersecurity architecture and deploys and manages tools and technologies aligned with such architecture to safeguard our information systems; manages the cybersecurity training required of our employees; monitors our cybersecurity threats and incidents; escalates the occurrence of cybersecurity incidents pursuant to the CIRP; and addresses and incorporates mitigation items.
•The CISO appoints a Cybersecurity Incident Response Coordinator ("CIRC") to lead the management of cybersecurity incidents. The primary responsibilities of the CIRC include, but are not limited to:
◦receiving and tracking all reported potential cybersecurity threats;
◦escalating incident response;
◦determining relevant stakeholders of the Information Technology function and cybersecurity incident response team, which team is selected by CIRC to serve as the lead function for investigating and coordinating cybersecurity incidents;
◦alerting the applicable support functions of the potential cybersecurity threat and any defensive action that would be required; and
◦alerting management, as applicable and necessary, of the potential cybersecurity threat.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Members of our Information Security function have broad ranges of qualifications and experience in information technology and security. The team within the Information Security function (referred hereinto as the "cybersecurity team") possesses technical knowledge, practical skills, and strategic insight, gained through years of experience in the field of cybersecurity. Additionally, they possess various certifications in specific technologies and cloud security from providers like AWS and Microsoft, along with numerous other industry-relevant security certifications. The cybersecurity team periodically attends training programs to update their skills and knowledge. Our CISO is a seasoned cybersecurity executive with 20+ years of experience working with security programs across global technology organizations. He brings experience in cloud security, regulatory compliance, and incident response. He has experience with many different types of enterprises, including, private companies, consumer platforms, and publicly listed companies.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Audit Committee receives quarterly reports as part of its meeting materials prepared by our CISO regarding the assessment of the status, adequacy, and effectiveness of our processes related to assessing, identifying, and managing cybersecurity risks and related mitigation plans. In addition, at least twice per year, the Audit Committee meeting agenda includes a presentation by the CISO to review and discuss the CISO’s report on cybersecurity risks, mitigation plans and the steps the security team has taken to monitor and control related exposures. The Audit Committee reports to the Board on cybersecurity matters discussed at its meetings and the CISO’s quarterly reports are provided to the Board as part of their meeting materials for their information as well.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]  
Description of the Business
Description of the Business. Teradata Corporation ("we," "us," "Teradata," or the "Company") is focused on helping organizations activate the intelligence in their enterprise and turn the insights from across their organizations into outcomes. We believe that we have architected our platform for autonomous Artificial Intelligence ("AI") operations and organizations’ toughest data and analytics challenges, particularly as enterprises are evaluating how to cost effectively deploy agentic AI. With our AI and knowledge platform, underpinned by our extensive patented workload management optimization technology, we believe we are well positioned to help enterprises become more autonomous, while enabling our customers to focus on managing, securing, and providing trustworthy data for AI and analytics across hybrid and multi-cloud environments.
Basis of Presentation
Basis of Presentation. The financial statements are presented on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Recurring revenue consists of our on-premises and cloud subscriptions, which have varying term lengths from one month to five years. Recurring revenue is intended to depict the revenue recognition model for these subscription transactions. The recurrence of these revenue streams in future periods depends on several factors, including contractual periods and customers' renewal decisions. Perpetual software licenses, hardware and other revenue consists of hardware and perpetual software licenses recognized upfront and revenue related to third party perpetual products. Consulting Services revenue consists of consulting, implementation and installation services.
Use of Estimates
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. On an ongoing basis, management evaluates these estimates and judgments, including those related to allowances for doubtful accounts, the valuation of inventory to net realizable value, impairments of goodwill and other intangibles, stock-based compensation, leases, pension and other postemployment benefits, and income taxes and any changes will be accounted for on a prospective basis. Actual results could differ from those estimates.
Revenue Recognition, Contract Balances and Contract Costs
Revenue Recognition
The Company adopted Financial Accounting Standards Board ("FASB") Standards Update No. 2014-09, Revenue from Contracts with Customers ("Topic 606") as of January 1, 2018 for all contracts not completed as of the date of adoption. The core principle of Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company performs the following five steps:
1.identify the contract with a customer,
2.identify the performance obligations in the contract,
3.determine the transaction price,
4.allocate the transaction price to the performance obligations in the contract, and
5.recognize revenue when (or as) the Company satisfies a performance obligation.
The Company only applies the above five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for goods or services it transfers to the customer. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience, published credit, and financial information pertaining to the customer.
Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales, value add, and other taxes the Company collects concurrent with revenue-producing activities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a good or service to a customer. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of
cumulative revenue will not occur once the uncertainty is resolved. The Company uses the expected value method or the most likely amount method depending on the nature of the variable consideration. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates in the period such variances become known. Typically, the amount of variable consideration is not material.
For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the relative standalone selling price of each distinct good or service in the contract. The Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct within the context of the contract. If these criteria are not met, the promised goods or services are combined with other goods or services and accounted for as a combined performance obligation. Revenue is then recognized either at a point in time or over time depending on our evaluation of when the customer obtains control of the promised goods or services. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue recorded in a given period. In addition, the Company has developed assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. The Company determines the standalone selling price for a good or service by considering multiple factors including, geographies, market conditions, product life cycles, competitive landscape, internal costs, gross margin objectives, purchase volumes and pricing practices. The Company reviews the standalone selling price for each of its performance obligations on a periodic basis and updates it, when appropriate, to ensure that the practices employed reflect the Company’s recent pricing experience. The Company maintains internal controls over the establishment and updates of these estimates, which includes review and approval by the Company’s management.
Teradata delivers its platform and services primarily through direct sales channels, as well as through other independent software vendors and distributors and value-added resellers. Standard payment terms may vary based on the country in which the contract is executed, but are generally between 30 days and 90 days. The following is a description of the principal activities and performance obligations from which the Company generates its revenue:
•Subscription software licenses, services and other - The Company sells on-premises and cloud subscriptions to its customers through its subscription licenses, cloud and hardware rental offerings. Teradata’s on-premises subscription licenses include a right-to-use license and revenue is recognized upfront at a point in time unless the customer has a contractual right to cancel, where revenue is recognized period-to-period based on the cancellation terms. Subscription licenses are reported within the subscription software licenses caption on the Consolidated Statements of Income. The subscription software license support and unspecified software license upgrade rights on a when-and-if-available basis that are included in the subscription are reported within the recurring services and other caption and recognized ratably over the contract term. Cloud arrangements include a right-to-access software license on third party hosted hardware such as the public cloud. Revenue is recognized ratably, or as consumed, over the contract term and included within the recurring services and other caption. Cloud arrangements typically include a minimum fixed amount that is recognized ratably over the contract term and may include an elastic amount for usage above the minimum, which is recognized monthly based on actual utilization. For the Company's hardware rental offering, the Company owns the hardware and typically finances the hardware to more closely align the use of cash with the expected cash inflows from contracts with customers. The revenue for these arrangements is generally recognized straight-line over the term of the contract and is included within the recurring services and other caption. Hardware rentals are generally accounted for as operating leases and considered outside the scope of Topic 606.
•Perpetual maintenance and software upgrade rights - Revenue for maintenance and unspecified software upgrade rights on a when-and-if-available basis are recognized straight-line over the term of the contract and included within the recurring services and other caption.
•Perpetual software licenses, hardware and other - Revenue for software is generally recognized when the customer has the ability to use and benefit from its right to use the license. Hardware is typically
recognized upon delivery once title and risk of loss have been transferred (when control has passed). Other revenue includes the sale of perpetual third-party related products.
•Consulting Services - The Company accounts for individual services as separate performance obligations if a service is separately identifiable from other items in a combined arrangement and if a customer can benefit from it on its own or with other resources that are readily available to the customer. Revenue for consulting, managed services, implementation and installation services is recognized as services are provided by measuring progress toward the complete satisfaction of the Company’s obligation. Progress for services that are contracted for at a fixed price is generally measured based on hours incurred as a portion of total estimated hours. Progress for services that are contracted for on a time and materials basis is generally based on hours expended. These input methods (e.g. hours incurred or expended) of revenue recognition are considered a faithful depiction of our efforts to satisfy services contracts and therefore reflect the transfer of services to a customer under such contracts.
Significant Accounting Policies and Practical Expedients
The following are the Company’s significant accounting policies not already disclosed elsewhere and practical expedients relating to revenue from contracts with customers:
•Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.
•Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment cost and are included in cost of revenues.
•The Company does not adjust for the effects of a significant financing component if the period between performance and customer payment is one year or less.
•The Company expenses the costs to obtain a contract as incurred when the expected amortization period is one year or less.
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets, and customer advances and deposits (deferred revenue or contract liabilities) on the consolidated balance sheet. Accounts receivable include amounts due from customers that are unconditional. Contract assets relate to the Company’s rights to consideration for goods delivered or services completed and recognized as revenue but billing and the right to receive payment is conditional upon the completion of other performance obligations. Contract assets are included in other current assets on the balance sheet and are transferred to accounts receivable when the rights become unconditional. Deferred revenue consists of advance payments and billings in excess of revenue recognized. Deferred revenue is classified as either current or noncurrent based on the timing of when the Company expects to recognize revenue. These assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period.Contract CostsThe Company capitalizes sales commissions and other contract costs that are incremental direct costs of obtaining customer contracts if the expected amortization period of the asset is greater than one year. These costs are recorded in Capitalized contract costs on the Company’s balance sheet. The capitalized amounts are calculated based on the sales commissions for individual multi-term contracts. The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Costs to obtain a contract are amortized as selling, general and administrative expenses on a straight-line basis over the expected period of benefit, which is typically four years. These costs are periodically reviewed for impairment.
Cash and Cash Equivalents
Cash and Cash Equivalents. All short-term, highly-liquid investments having original maturities of three months or less are considered to be cash equivalents.
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts. Teradata establishes provisions for doubtful accounts using expected credit losses methodology and specific provisions for known issues.
Inventories
Inventories. Inventories are stated at the lower of cost or market. Finished goods inventory is determined using actual cost.
Long-Lived Assets
Long-Lived Assets
Property and Equipment. Property and equipment, leasehold improvements and rental equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets primarily on a straight-line basis. The Company's estimate of depreciation expense incorporates management assumptions regarding the useful economic lives and residual values of its assets. Equipment is generally depreciated over 3 to 5 years and buildings over 25 to 45 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Customer rental equipment is typically depreciated over the associated customer rental period, which is typically 3 years.
Capitalized Software
Capitalized Software. Direct development costs associated with internal-use software are capitalized and amortized over the estimated useful lives of the resulting software. The costs are capitalized when both the preliminary project stage is completed and it is probable that computer software being developed will be completed and placed in service. Teradata typically amortizes capitalized internal-use software on a straight-line basis over four years beginning when the asset is substantially ready for use.
Costs incurred for the development of analytic database software that will be sold, leased or otherwise marketed are expensed as incurred based on the frequency and agile nature of development. The Company uses agile development methodologies to help respond to new technologies and trends and rapidly changing customer needs. Agile development methodologies are characterized by a more dynamic development process with more frequent and iterative revisions to a product release features and functions as the software is being developed. Due to the shorter development cycle and focus on rapid production associated with agile development, the Company did not capitalize any amounts for external-use software development costs in 2025, 2024 and 2023 due to the relatively short duration between the completion of the working model and the point at which a product is ready for general release.
Valuation of Long-Lived Assets Valuation of Long-Lived Assets. Long-lived assets such as property and equipment, acquired intangible assets and internal capitalized software are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment is calculated based on the present value of future cash flows and an impairment loss would be recognized when estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount.
Cloud computing arrangements
Cloud computing arrangements. Implementation costs incurred in our hosting arrangements that are service contracts are recorded as other long-term assets on the consolidated balance sheets. Implementation costs include activities such as integrating, configuring and customizing the related software. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for post-configuration training, maintenance and minor modifications or enhancements are expensed as incurred. The capitalized cloud computing implementation costs are amortized on the straight-line basis over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. We apply the same impairment model to these assets as we use to evaluate internally-developed software for impairment.
Goodwill Goodwill. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather are tested for impairment annually or upon occurrence of an event or change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
Research and Development Costs
Research and Development Costs. Research and development costs are expensed as incurred. Research and development costs primarily include labor-related costs, contractor fees, and overhead expenses directly related to research and development support.
Pension and Postemployment Benefits
Pension and Postemployment Benefits. The Company accounts for its pension benefit and its non-U.S. postemployment benefit obligations using actuarial models. The measurement of plan obligations was made as of
December 31, 2025. Liabilities are computed using the projected unit credit method. The objective under this method is to expense each participant’s benefits under the plan as they accrue, taking into consideration salary increases and the plan’s benefit allocation formula. Thus, the total pension or postemployment benefit to which each participant is expected to become entitled is broken down into units, each associated with a year of past or future credited service.
The Company recognizes the funded status of its pension and non-U.S. and Japan postemployment plan obligations in its consolidated balance sheet and records, in other comprehensive income, certain gains and losses that arise during the period, but are deferred under pension and postemployment accounting rules.
Foreign Currency
Foreign Currency. Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment are translated into U.S. dollars at period-end exchange rates. Income and expense accounts are translated at daily exchange rates prevailing during the period. Adjustments arising from the translation are included in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in determining net income.
Income Taxes Income Taxes. Income tax expense is provided based on income before income taxes in the various jurisdictions in which the Company conducts its business. Deferred income taxes reflect the impact of temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. These deferred taxes are determined based on the enacted tax rates expected to apply in the periods in which the deferred assets or liabilities are expected to be settled or realized. The Company made an accounting policy election in 2018 related to the 2017 Tax Act to provide for the tax expense related to global intangible low-taxed income ("GILTI") in the year the tax is incurred. Teradata recognizes tax benefits from uncertain tax positions only if it is more likely than not the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company records valuation allowances related to its deferred income tax assets when it is more likely than not that some portion or all the deferred income tax assets will not be realized.
Stock-based Compensation Stock-based Compensation. Stock-based payments to employees, including restricted shares and restricted share units, are recognized in the financial statements based on their fair value.
Earnings Per Share Earnings Per Share. Basic earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted-average number of shares outstanding includes the dilution from potential shares added from stock options, restricted share awards and other stock awards.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements
Recently Adopted Accounting Pronouncements
Beginning with our 2025 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" that was issued by the Financial Accounting Standards Board (FASB). This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. Upon adoption, the guidance was applied prospectively to the current period presented in the financial statements. For additional information, see Note 6 — Income Taxes.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). The new guidance requires disaggregated information about certain income statement expense line items on an annual and interim basis. This guidance will be effective for annual periods beginning the year ended December 31, 2027 and for interim periods thereafter. The new standard permits early adoption and can be applied prospectively or retrospectively. We are evaluating the effect that this guidance will have on our Consolidated Financial Statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). The new guidance eliminates the requirement to classify software development costs by project stage, instead, entities now capitalize internal-use software costs when management has both authorized and committed funding for the project and it is probable the software will be completed and used as intended. This guidance will be effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption is permitted and the standard may be applied prospectively, retrospectively, or using a modified approach. We are evaluating the effect that this guidance will have on our Consolidated Financial Statements.
Fair Value Measurements Fair Value Measurements
Fair value measurements are established utilizing a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as significant other observable inputs, such as quoted prices in active markets for similar assets or liabilities, or quoted prices in less-active markets for identical assets; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]  
Schedule of Depreciation Expense Total depreciation expense on the Company’s property and equipment for December 31 was as follows:
In millions202520242023
Depreciation expense$86 $94 $110 
Schedule of Activities Relating to Capitalized Internal-use Software
The following table identifies the activity relating to capitalized internal-use software for the following periods:
 Internal-use Software
In millions202520242023
Beginning balance at January 1$4 $5 $8 
Capitalized2 2 2 
Amortization(2)(3)(5)
Ending balance at December 31$4 $4 $5 
Schedule of Aggregate Amortization Expense for Internal-Use Software
The aggregate amortization expense (actual and estimated) for internal-use software for the following periods is:
 ActualFor the years ended (estimated)
In millions202520262027202820292030
Internal-use software amortization expense$2 $2 $2 $1 $1 $1 
Schedule of Basic and Diluted Earnings Per Share
The components of basic and diluted earnings per share for the years ended December 31 are as follows: 
In millions, except earnings per share202520242023
Net income attributable to common stockholders$130 $114 $62 
Weighted average outstanding shares of common stock94.4 96.4 99.8 
Dilutive effect of employee stock options, restricted shares and other stock awards2.2 1.8 2.6 
Common stock and common stock equivalents96.6 98.2 102.4 
Earnings per share:
Basic$1.38 $1.18 $0.62 
Diluted$1.35 $1.16 $0.61 
v3.25.4
Supplemental Financial Information (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Supplemental Financial Information
 At December 31
In millions20252024
Accounts receivable
Trade$257 $243 
Other4 5 
Accounts receivable, gross261 248 
Less: allowance for doubtful accounts(10)(14)
Total accounts receivable, net$251 $234 
Other current assets
Income tax receivable$12 $12 
Pre-paid expenses and Other68 65 
Total other current assets$80 $77 
Property and equipment
Land$8 $8 
Buildings and improvements95 86 
Finance lease assets220 218 
Machinery and other equipment494 438 
Property and equipment, gross817 750 
Less: accumulated depreciation(619)(565)
Total property and equipment, net$198 $185 
Other current liabilities
Income tax payable$4 $52 
Sales and value-added taxes20 17 
Pension and other postemployment plan liabilities15 13 
Other49 33 
Total other current liabilities$88 $115 
Deferred revenue
Deferred revenue, current$533 $512 
Long-term deferred revenue11 10 
Total deferred revenue$544 $522 
Other long-term liabilities
Uncertain tax positions$13 $21 
Other5 7 
Total other long-term liabilities$18 $28 

Twelve Months Ended December 31,
In millions202520242023
Other expense
Foreign currency (gains) losses$(2)$8 $38 
Blue chip swap losses1 4 13 
Other11 15 13 
Total Other expense$10 $27 $64 
v3.25.4
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents a disaggregation of revenue for the years ended December 31:
In millions20252024*2023*
United States
Recurring $765 $815 $862 
Perpetual software licenses, hardware and other7 7 13 
Consulting services57 72 98 
Total United States829 894 973 
International
Recurring680 664 630 
Perpetual software licenses, hardware and other10 16 32 
Consulting services144 176 198 
Total International834 856 860 
Total Revenue$1,663 $1,750 $1,833 
* Prior period information has been reclassified to conform to the current period presentation.
Schedule of Receivables, Contract Assets, and Deferred Revenue from Contracts with Customers The following table provides information about receivables, contract assets and deferred revenue from contracts with customers:
In millionsDecember 31, 2025December 31, 2024
Accounts receivable, net$251 $234 
Contract assets$6 $4 
Current deferred revenue$533 $512 
Long-term deferred revenue$11 $10 
Schedule of Transaction Price Allocated to Unsatisfied Obligations
The following table includes estimated revenue expected to be recognized in the future related to the Company's unsatisfied (or partially satisfied) obligations at December 31, 2025:
In millionsDecember 31, 2025Year 1Year 2 and Thereafter
Remaining unsatisfied obligations$2,182 $1,473 $709 
v3.25.4
Contract Costs (Tables)
 12 Months Ended
Dec. 31, 2025
Capitalized Contract Cost [Abstract]  
Schedule of Activity Related to Capitalized Contract Costs The following table identifies the activity relating to capitalized contract costs:
In millionsDecember 31, 2024CapitalizedAmortizationDecember 31, 2025
Capitalized contract costs$46 $21 $(25)$42 
In millionsDecember 31, 2023CapitalizedAmortizationDecember 31, 2024
Capitalized contract costs$68 $13 $(35)$46 
v3.25.4
Goodwill and Acquired Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill by Operating Segment
The following table identifies the activity relating to goodwill by our new operating segments:
In millionsBalance December 31,
2024		Currency
Translation
Adjustments		Balance December 31,
2025
Goodwill
Product Sales$387 $5 $392 
Consulting Services7 — 7 
Total goodwill$394 $5 $399 
Schedule of Gross Carrying Amount and Accumulated Amortization for Acquired Intangible Assets The gross carrying amount and accumulated amortization for Teradata’s acquired intangible assets were as follows:
December 31,
2025
In millionsAmortization
Life (in Years)		Gross Carrying
Amount		Accumulated Amortization
Amount
Acquired intangible assets
Intellectual property/developed technology5$14 $(7)
Schedule of Aggregate Amortization Expense for Acquired Intangible Assets
The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:
ActualFor the years ended (estimated)
In millions202520262027202820292030
Amortization expense$3 $3 $3 $1 $— $— 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes
For the years ended December 31, income before income taxes consisted of the following: 
In millions202520242023
Income before income taxes
United States$44 $58 $35 
Foreign134 106 82 
Total income before income taxes$178 $164 $117 
Schedule of Income Tax Expense
For the years ended December 31, income tax expense consisted of the following:
In millions202520242023
Income tax expense
Current
Federal$(6)$32 $25 
State and local1 5 5 
Foreign22 24 36 
Deferred
Federal21 (9)(12)
State and local3 (2)(2)
Foreign7 — 3 
Total income tax expense$48 $50 $55 
Effective income tax rate27.0%30.5%47.0%
Schedule of Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate
The following table presents the principal components, (on a prospective basis, as enhanced by ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures), of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
20252025
(amounts in millions)Amount%
Income tax expense at the U.S. federal tax rate$37 21.0 %
Foreign tax effects
Ireland
Statutory tax rate difference between Ireland and U.S.(8)(4.5)%
Argentina
Statutory tax rate difference between Argentina and U.S.1 0.6 %
Permanent Tax Benefit for Hyperinflationary Adjustment(4)(2.4)%
Valuation Allowance Offset42.2%
Withholding Tax for Ireland31.7%
Other foreign jurisdictions 7 3.9 %
Effect of Cross Border Tax Laws
GILTI Tax2 1.1 %
Subpart F Income3 1.7 %
Foreign Tax Credits(5)(2.8)%
Incremental US Tax on US Branches2 1.1 %
State and local income taxes, net of federal benefits (a)
2 1.1 %
Non-Taxable or Non-Deductible Items
Share-Based Payment Awards15 8.4 %
Tax Credits
US Research & Development Tax Credits(5)(2.8)%
US Investment Tax Credit(5)(2.8)%
Change in valuation allowance5 2.8 %
Changes in unrecognized tax positions(6)(3.3)%
Effective income tax rate$48 27.0 %
    
(a) State taxes in Arizona, California, Minnesota, Illinois, New Jersey, North Carolina, Rhode Island and Texas made up the majority (greater than 50 percent) of the tax effect in this category.
The following table presents the principal components, (as reported in prior years), of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
20242023
Income tax expense at the U.S. federal tax rate21.0 %21.0 %
Foreign income tax differential(3.2)%1.5 %
U.S. tax on foreign earnings(0.7)%(1.7)%
State and local income taxes (1.3)%(3.2)%
U.S. permanent book/tax differences1.8 %3.7 %
U.S. research and development tax credits(4.2)%(6.1)%
Change in valuation allowance10.7 %18.6 %
Argentina hyperinflationary adjustment
— %13.1 %
Tax impact of stock compensation4.3 %1.7 %
Tax impact of uncertain tax positions2.1 %(0.8)%
Other, net— %(0.8)%
Effective income tax rate30.5 %47.0 %
Schedule of Deferred Income Tax Assets and Liabilities
Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:
In millions20252024
Deferred income tax assets
Employee pensions and other liabilities$42 $41 
Other balance sheet reserves and allowances30 29 
Operating lease liabilities2 2 
Tax loss and credit carryforwards133 115 
Deferred revenue3 3 
Intangibles and capitalized software161 184 
Total deferred income tax assets371 374 
Valuation allowance(110)(101)
Net deferred income tax assets261 273 
Deferred income tax liabilities
Right of use assets - operating lease2 2 
Property and equipment30 24 
Other32 31 
Total deferred income tax liabilities64 57 
Total net deferred income tax assets$197 $216 
Schedule of Unrecognized Tax Benefits Roll Forward
Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:
In millions20252024
Balance at January 1$44 $40 
Gross increases for prior period tax positions1 1 
Gross increases for current period tax positions3 3 
Decreases due to the lapse of applicable statute of limitations(2)— 
Decreases relating to settlements with taxing authorities(8)— 
Balance at December 31$38 $44 
Schedule of Income Taxes (Net of Refunds Received)
For the year ended December 31, 2025, the Company paid the following income taxes (net of refunds received), disaggregated by jurisdiction:
In millions2025
Income tax paid (net of refunds received)
Domestic
Federal$43 
State and local4 
Foreign
Ireland7 
Other17 
Total income tax paid (net of refunds received)$71 
v3.25.4
Employee Stock-based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
The Company recorded stock-based compensation expense for the years ended December 31 as follows: 
In millions202520242023
Restricted share units109 115 122 
Employee stock purchase program3 4 4 
Total stock-based compensation before income taxes112 119 126 
Tax benefit(11)(17)(23)
Total stock-based compensation, net of tax$101 $102 $103 
Schedule of Restricted Shares and Restricted Share Unit Activity The following table reports restricted share unit activity during the year ended December 31, 2025:
Shares in thousandsNumber of
Shares		Weighted-
Average 
Grant
Date Fair
 Value
per Share
Unvested shares at January 1, 20256,657 $40.05 
Granted6,563 $22.74 
Vested(3,004)$40.19 
Forfeited/canceled(1,312)$29.26 
Unvested shares at December 31, 20258,904 $28.66 
Schedule of Weighted-Average Fair Value and Total Fair Value of Shares Vested
The following table summarizes the weighted-average fair value of restricted share units granted for Teradata equity awards and the total fair value of shares vested.
202520242023
Weighted-average fair value of restricted share units granted
$22.74 $36.33 $39.98 
Total fair value of shares vested (in millions)
$121 $124 $116 
Schedule of Composition of Teradata Restricted Stock Grants
The following table represents the composition of Teradata restricted share unit grants in 2025:
Shares in thousandsNumber of
Shares		Weighted-
Average 
Grant
Date Fair 
Value
Service-based restricted share units5,547 $23.30 
Performance-based restricted share units1,016 $19.69 
Total restricted share unit grants6,563 $22.74 
Schedule of Employee Purchases and Aggregate Cost
Employee purchases and aggregate cost were as follows at December 31:
In millions202520242023
Employee stock purchases0.5 0.4 0.4 
Aggregate cost $10 $12 $13 
v3.25.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Pension and Postemployment Benefit Costs
Pension and postemployment benefit costs for the years ended December 31 were as follows: 
 202520242023
In millionsPensionPostemploymentPensionPostemploymentPensionPostemployment
Service cost$4 $9 $4 $11 $4 $12 
Interest cost3 2 3 2 3 2 
Expected return on plan assets(2)— (2)— (2)— 
Settlement charge— — 1 — — — 
Amortization of actuarial loss — 7 — 8 — 6 
Amortization of prior service cost— 1 — 1 — 1 
Total costs$5 $19 $6 $22 $5 $21 
Schedule of Accumulated Pension Benefit Obligation The following tables present the changes in benefit obligations, plan assets, funded status and the reconciliation of the funded status to amounts recognized in the consolidated balance sheets and in accumulated other comprehensive income at December 31:
 PensionPostemployment
In millions2025202420252024
Change in benefit obligation
Benefit obligation at January 1$100 $116 $56 $56 
Service cost4 4 9 11 
Interest cost3 3 2 2 
Plan participant contributions1 1 — — 
Actuarial (gain) loss(6)— 26 11 
Benefits paid(3)(2)(27)(24)
Settlement(5)(9)— — 
Plan Amendment3 (6)(4)— 
Currency translation adjustments9 (7)— — 
Benefit obligation at December 31$106 $100 $62 $56 
Change in plan assets
Fair value of plan assets at January 1$49 $60 $— $— 
Actual return on plan assets— 4 — — 
Company contributions5 5 — — 
Benefits paid(3)(2)— — 
Currency translation adjustments3 (4)— — 
Plan participant contribution1 1 — — 
Settlements(5)(9)— — 
Other— (6)— — 
Fair value of plan assets at December 3150 49 — — 
Funded status (underfunded)$(56)$(51)$(62)$(56)
Amounts Recognized in the Consolidated Balance Sheet
Non-current assets$11 $10 $— $— 
Current liabilities(3)(2)(12)(11)
Non-current liabilities(64)(59)(50)(45)
Net amounts recognized$(56)$(51)$(62)$(56)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Unrecognized Net actuarial (gain) loss $(11)$(6)$81 $62 
Unrecognized Prior service cost3 — (2)3 
Total$(8)$(6)$79 $65 
The following table presents the accumulated pension benefit obligation at December 31:
In millions20252024
Accumulated pension benefit obligation$97 $93 
The following table presents pension plans with accumulated benefit obligations in excess of plan assets at December 31:
In millions20252024
Projected benefit obligation$91 $84 
Accumulated benefit obligation$84 $79 
Fair value of plan assets
$25 $24 
Schedule of Pre-Tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income
The following table presents the pre-tax net changes in projected benefit obligations recognized in other comprehensive income:
 PensionPostemployment
In millions2025202420252024
Actuarial (gain) loss arising during the year
$(3)$(2)$26 $12 
Amortization of loss included in net periodic benefit cost
— — (8)(9)
Prior service cost arising during the year3 — (4)— 
Recognition of loss due to settlement
— (1)— — 
Foreign currency exchange(1)— — — 
Total recognized in other comprehensive (income) loss
$(1)$(3)$14 $3 
Schedule of Weighted-Average Rates and Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
The weighted-average rates and assumptions used to determine benefit obligations at December 31, and net periodic benefit cost for the years ended December 31, were as follows:
 Pension Benefit ObligationsPension Benefit Cost
 20252024202520242023
Discount rate3.6%3.2%3.2%3.2%3.1%
Rate of compensation increase3.5%3.4%3.4%3.2%3.1%
Expected return on plan assetsN/AN/A3.9%4.0%3.9%
Interest crediting rate assumption1.7%1.6%1.6%1.6%1.5%
 Postemployment 
Benefit Obligations		Postemployment 
Benefit Cost
 20252024202520242023
Discount rate5.2%4.6%4.6%4.6%3.8%
Rate of compensation increase4.9%4.3%4.3%3.0%3.0%
Involuntary turnover rate6.0%5.0%5.0%4.5%4.0%
Schedule of Weighted-Average Asset Allocations, by Category The weighted-average asset allocations at December 31, by asset category are as follows:
Actual Asset Allocation
as of December 31		Target Asset
 20252024Allocation
Equity securities35%33%34%
Debt securities54%56%59%
Insurance (annuity) contracts9%8%4%
Real estate2%3%3%
Total100%100%100%
Schedule of Pension Plan Assets at Fair Value
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2025: 
  Fair Value Measurements at Reporting Date Using
Quoted Prices in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs
In millionsDecember 31, 2025(Level 1)(Level 2)(Level 3)
Money market funds$2 $— $2 $— 
Equity funds18 — 18 — 
Bond/fixed-income funds27 — 27 — 
Real estate indirect investments1 — 1 — 
Insurance contracts2 — — 2 
Total assets at fair value$50 $— $48 $2 
The following table sets forth by level, within the fair value hierarchy, the pension plan assets at fair value as of December 31, 2024: 
  Fair Value Measurements at Reporting Date Using
Quoted Prices in Active 
Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs
In millionsDecember 31, 2024(Level 1)(Level 2)(Level 3)
Equity funds$17 $— $17 $— 
Bond/fixed-income funds26 — 26 — 
Real estate indirect investments3 — 3 — 
Insurance contracts2 — — 2 
Total assets at fair value$48 $— $46 $2 
Schedule of Changes in Fair Value of the Pension Plan Level 3 Assets
The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2025:
In millionsInsurance
Contracts
Balance as of January 1, 2025$2 
Purchases, sales and settlements, net— 
Balance as of December 31, 2025$2 
The table below sets forth a summary of changes in the fair value of the pension plan level 3 assets for the year ended December 31, 2024:
In millionsInsurance
Contracts
Balance as of January 1, 2024$8 
Purchases, sales and settlements, net(6)
Balance as of December 31, 2024$2 
Schedule of Estimated Future Benefit Payments The Company expects to make the following benefit payments, estimated based on the assumptions used to measure the Company's benefit obligation at the end of the year, reflecting past and future service from its pension and postemployment plans:
 Pension Postemployment
In millionsBenefitsBenefits
Year
2026$6 $12 
2027$6 $12 
2028$6 $12 
2029$6 $12 
2030$7 $12 
2031 - 2035$41 $60 
Schedule of U.S and International Subsidiary Savings Plans The following table identifies the expense for the United States and International subsidiary savings plans for the years ended December 31:
In millions202520242023
U.S. savings plan$13 $15 $16 
International subsidiary savings plans$12 $10 $10 
v3.25.4
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Contract Notional Amount
The following table identifies the contract notional amount of the Company’s hedging instruments at December 31:
In millions20252024
Contract notional amount of foreign exchange forward contracts$81 $70 
Net contract notional amount of foreign exchange forward contracts$7 $21 
Contract notional amount of foreign currency exchange (net investment hedge)$150 $150 
Contract notional amount of interest rate swap $416 $439 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements
The Company’s assets and liabilities measured at fair value on a recurring basis and subject to fair value disclosure requirements at December 31, 2025 and December 31, 2024 were as follows:
 Fair Value Measurements at Reporting Date Using
Quoted Prices 
in Active Markets
for Identical
Assets		Significant
Other
Observable
Inputs		Significant Unobservable Inputs
In millionsTotal(Level 1)(Level 2)(Level 3)
Assets
Money Market Funds at December 31, 2025$162 $162 $— $— 
Money Market Funds at December 31, 2024$151 $151 $— $— 
Foreign Currency Swap at December 31, 2024$1 $— $1 $— 
Interest Rate Swap at December 31, 2025$1 $— $1 $— 
Interest Rate Swap at December 31, 2024$9 $— $9 $— 
Liabilities
Foreign Currency Swap at December 31, 2025$18 $— $18 $— 
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Annual Contractual Maturities of Outstanding Principal on Term Loan
Annual contractual maturities of outstanding principal on the Term Loan at December 31, 2025, are as follows: 

In millionsPrincipal payments
202625 
2027431 
Total$456 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease-related Assets And Liabilities Recorded on the Balance Sheet
The table below presents the lease-related assets and liabilities recorded on the balance sheet at December 31:
In millions, except weighted average calculationsClassification on the Balance Sheet20252024
Assets  
Operating lease assetsRight of use assets - operating lease, net$7 $8 
Finance lease assetsProperty and equipment, net118 109 
Total lease assets $125 $117 
   
Liabilities  
Current  
OperatingCurrent portion of operating lease liability$2 $4 
FinanceCurrent portion of finance lease liability50 57 
Non current  
OperatingOperating lease liability4 5 
FinanceFinance lease liability45 30 
Total lease liabilities $101 $96 
   
Weighted-average remaining lease term  
Operating leases 3.96 years3.49 years
Finance leases 2.06 years1.65 years
Weighted-average discount rate  
Operating leases(1)
 5.73 %5.40 %
Finance leases 6.25 %6.83 %
(1) Upon adoption of the new lease standard, discount rates used for existing leases were established based on the Company's incremental borrowing rate at January 1, 2019. For new leases entered after January 1, 2019, the discount rate was determined based on the Company's incremental borrowing rate at lease commencement.
Schedule of Lease Costs
The table below presents certain information related to the lease costs for finance and operating leases recognized in the Company's consolidated statements of income for the years ended December 31:
In millions202520242023
Finance lease cost 
Depreciation of leased assets$56 $61 $68 
Interest of lease liabilities6 7 7 
Operating lease cost4 5 7 
Sub-lease income from real estate properties owned and leased(6)(5)(5)
Total lease cost$60 $68 $77 
The table below presents supplemental cash flow information related to cash paid for amounts included in the measurement of lease liabilities for the year ended December 31:
In millions20252024
Operating cash flows for operating leases$5 $7 
Operating cash flows for finance leases$6 $7 
Financing cash flows for finance leases$69 $71 
Schedule of Undiscounted Cash Flows, Finance Lease Liability
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2025:
In millionsOperating LeasesFinance Leases
2026$4 $54 
20272 33 
20281 14 
20291 — 
20301 — 
Thereafter— — 
Total minimum lease payments9 101 
Less: amount of lease payments representing interest(3)(6)
Present value of future minimum lease payments6 95 
Less: current obligations under leases(2)(50)
Long-term lease obligations$4 $45 
The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2024:
In millionsOperating LeasesFinance Leases
2025$7 $61 
20263 27 
20271 5 
20281 — 
20292 — 
Thereafter— — 
Total minimum lease payments14 93 
Less: amount of lease payments representing interest(5)(6)
Present value of future minimum lease payments9 87 
Less: current obligations under leases(4)(57)
Long-term lease obligations$5 $30 
Schedule of Undiscounted Cash Flows, Operating Lease Liability
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at December 31, 2025:
In millionsOperating LeasesFinance Leases
2026$4 $54 
20272 33 
20281 14 
20291 — 
20301 — 
Thereafter— — 
Total minimum lease payments9 101 
Less: amount of lease payments representing interest(3)(6)
Present value of future minimum lease payments6 95 
Less: current obligations under leases(2)(50)
Long-term lease obligations$4 $45 
The table below provides the undiscounted cash flows for the Company's finance lease liabilities and operating lease obligations as of December 31, 2024:
In millionsOperating LeasesFinance Leases
2025$7 $61 
20263 27 
20271 5 
20281 — 
20292 — 
Thereafter— — 
Total minimum lease payments14 93 
Less: amount of lease payments representing interest(5)(6)
Present value of future minimum lease payments9 87 
Less: current obligations under leases(4)(57)
Long-term lease obligations$5 $30 
Schedule of Rental Revenue
The following table includes rental revenue for the years ended December 31:
In millions202520242023
Rental revenue*$212 $213 $216 
*Rental revenue includes hardware maintenance.
Schedule of Estimated Rental Revenue Expected to be Recognized in the Future
The following table includes estimated rental revenue expected to be recognized in the future based on executed contracts at December 31, 2025:
In millionsRental Revenue
2026$225 
202785 
2028-2966 
Total$376 
v3.25.4
Segment, Other Supplemental Information and Concentrations (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Revenue and Segment Gross Profit
The following table presents segment revenue, segment cost of revenue and segment gross profit for the Company for the years ended December 31: 
In millions202520242023
Segment revenue
Product Sales$1,462 $1,502 $1,537 
Consulting Services201 248 296 
Total revenue1,663 1,750 1,833 
Segment cost of revenue
Product Sales (1)
464 453 446 
Consulting Services (2)
189 217 254 
Total segment cost of revenue653 670 700 
Segment gross profit
Product Sales998 1,049 1,091 
Consulting Services12 31 42 
Total segment gross profit1,010 1,080 1,133 
Stock-based compensation expense17 17 17 
Acquisition, integration and reorganization-related costs6 5 1 
Total gross profit987 1,058 1,115 
Selling, general and administrative expenses502 565 635 
Research and development expenses280 284 294 
Total income from operations$205 $209 $186 
(1) Cost of Product Sales includes product costs of $241 million in 2025, $223 million in 2024, and $193 million in 2023 for Public Cloud fees and direct product and third-party software costs associated with the Company's perpetual product sales. Depreciation expense included in Cost of Product Sales was $71 million in 2025, $79 million in 2024, and $88 million in 2023. The remaining cost of Product Sales includes payroll and benefits costs, and corporate allocations including back-office information technology, real estate, and other support services.
(2) Cost of Consulting Services includes payroll and benefit costs of $120 million in 2025, $137 million in 2024, and $149 million in 2023. The remaining cost of Consulting Services includes corporate allocations, including back-office information technology, real estate, and other support services. 
Schedule of Revenue by Geographic Area
The following table presents revenues by geographic area for the years ended December 31: 
In millions202520242023
United States$829 $894 $973 
International834 856 860 
Total revenue$1,663 $1,750 $1,833 
Schedule of Property and Equipment, Net by Geographic Area
The following table presents property and equipment, net by geographic area at December 31: 
In millions20252024
United States$132 $122 
International66 63 
Property and equipment, net$198 $185 
v3.25.4
Accumulated Other Comprehensive (Loss) Income (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive (Loss) Income (AOCI), Net of Tax
The following table provides information on changes in accumulated other comprehensive (loss) income, net of tax ("AOCI"), for the years ended December 31:
In millionsDerivativesDefined 
benefit
plans		Foreign 
currency
translation
adjustments		Total 
AOCI
Balance as of December 31, 2022$9 $(31)$(97)$(119)
Other comprehensive (loss) income before reclassifications(4)(12)1 (15)
Amounts reclassified from AOCI— 5 — 5 
Net other comprehensive (loss) income(4)(7)1 (10)
Balance as of December 31, 2023$5 $(38)$(96)$(129)
Other comprehensive income (loss) before reclassifications1 (8)(18)(25)
Amounts reclassified from AOCI— 7 — 7 
Net other comprehensive income (loss)1 (1)(18)(18)
Balance as of December 31, 2024$6 $(39)$(114)$(147)
Other comprehensive (loss) income before reclassifications(6)(17)11 (12)
Amounts reclassified from AOCI— 6 — 6 
Net other comprehensive (loss) income(6)(11)11 (6)
Balance as of December 31, 2025$— $(50)$(103)$(153)
Schedule of Impact and Respective Location of AOCI Reclassifications in Consolidated Statements of Income
The following table presents the impact and respective location of AOCI reclassifications in the Consolidated Statements of Income for the years ended December 31:
In millions 
AOCI ComponentLocation202520242023
Other expenseOther expense$(8)$(9)$(7)
Tax portionIncome tax benefit2 2 2 
Total reclassifications
Net (loss) income
$(6)$(7)$(5)
v3.25.4
Reorganization and Business Transformation (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs
The 2025 activity and the reserves related to the Restructuring are as follows:
In millionsBalance at December 31, 2024Expense accrualsCash paymentsBalance at
December 31, 2025
Employee severance and other employee-related costs$5 $6 $(9)$2 
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($)
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Impairment of long-lived assets $ 0 $ 0 $ 0
Employee Stock Option      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Antidilutive options to purchase were excluded from computation of diluted earnings per share (in shares) 0.0 0.0 0.3
Internal-Use Software      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Period capitalized on a straight-line basis when the asset is substantially ready for use 4 years    
Customer Rental Equipment      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful lives 3 years    
Minimum      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Contract term 1 month    
Standard payment term 30 days    
Minimum | Equipment      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful lives 3 years    
Minimum | Building      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful lives 25 years    
Maximum      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Contract term 5 years    
Standard payment term 90 days    
Maximum | Equipment      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful lives 5 years    
Maximum | Building      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful lives 45 years    
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies - Schedule of Depreciation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Depreciation expense $ 86 $ 94 $ 110
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies - Schedule of Activities Relating to Capitalized Internal-use Software (Details) - Internal-Use Software - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Movement in Capitalized Computer Software, Net [Roll Forward]      
Beginning balance $ 4 $ 5 $ 8
Capitalized 2 2 2
Amortization (2) (3) (5)
Ending balance $ 4 $ 4 $ 5
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies - Schedule of Aggregate Amortization Expense for Internal-Use Software (Details) - Internal-use software amortization expense
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Acquired Intangible Assets Amortization [Line Items]  
Actual 2025 $ 2
2026 2
2027 2
2028 1
2029 1
2030 $ 1
v3.25.4
Description of Business, Basis of Presentation and Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Description of Business, Basis of Presentation and Significant Accounting Policies [Abstract]      
Net income attributable to common stockholders $ 130 $ 114 $ 62
Weighted average outstanding shares of common stock (in shares) 94.4 96.4 99.8
Dilutive effect of employee stock options, restricted shares and other stock awards (in shares) 2.2 1.8 2.6
Common stock and common stock equivalents (in shares) 96.6 98.2 102.4
Earnings per share:      
Basic (in usd per share) $ 1.38 $ 1.18 $ 0.62
Diluted (in usd per share) $ 1.35 $ 1.16 $ 0.61
v3.25.4
Supplemental Financial Information - Supplemental Financial Information (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Accounts receivable    
Trade $ 257 $ 243
Other 4 5
Accounts receivable, gross 261 248
Less: allowance for doubtful accounts (10) (14)
Total accounts receivable, net 251 234
Other current assets    
Income tax receivable 12 12
Pre-paid expenses and Other 68 65
Total other current assets 80 77
Property and equipment    
Land 8 8
Buildings and improvements 95 86
Finance lease assets 220 218
Machinery and other equipment 494 438
Property and equipment, gross 817 750
Less: accumulated depreciation (619) (565)
Total property and equipment, net 198 185
Other current liabilities    
Income tax payable 4 52
Sales and value-added taxes 20 17
Pension and other postemployment plan liabilities 15 13
Other 49 33
Total other current liabilities 88 115
Deferred revenue    
Deferred revenue, current 533 512
Long-term deferred revenue 11 10
Total deferred revenue 544 522
Other long-term liabilities    
Uncertain tax positions 13 21
Other 5 7
Total other long-term liabilities $ 18 $ 28
v3.25.4
Supplemental Financial Information - Supplemental Financial Other Expense Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other expense      
Foreign currency (gains) losses $ (2) $ 8 $ 38
Blue chip swap losses 1 4 13
Other 11 15 13
Total Other expense $ 10 $ 27 $ 64
v3.25.4
Supplemental Financial Information - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Blue chip swap losses $ 1 $ 4 $ 13
v3.25.4
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenue $ 1,663 $ 1,750 $ 1,833
United States      
Disaggregation of Revenue [Line Items]      
Total revenue 829 894 973
International      
Disaggregation of Revenue [Line Items]      
Total revenue 834 856 860
Recurring      
Disaggregation of Revenue [Line Items]      
Total revenue 1,445 1,479 1,492
Recurring | United States      
Disaggregation of Revenue [Line Items]      
Total revenue 765 815 862
Recurring | International      
Disaggregation of Revenue [Line Items]      
Total revenue 680 664 630
Perpetual software licenses, hardware and other      
Disaggregation of Revenue [Line Items]      
Total revenue 17 23 45
Perpetual software licenses, hardware and other | United States      
Disaggregation of Revenue [Line Items]      
Total revenue 7 7 13
Perpetual software licenses, hardware and other | International      
Disaggregation of Revenue [Line Items]      
Total revenue 10 16 32
Consulting services | United States      
Disaggregation of Revenue [Line Items]      
Total revenue 57 72 98
Consulting services | International      
Disaggregation of Revenue [Line Items]      
Total revenue $ 144 $ 176 $ 198
v3.25.4
Revenue from Contracts with Customers - Schedule of Receivables, Contract Assets, and Deferred Revenue from Contracts with Customers (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 251 $ 234
Contract assets 6 4
Current deferred revenue 533 512
Long-term deferred revenue $ 11 $ 10
v3.25.4
Revenue from Contract with Customer - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue recognized from amounts included in deferred revenue $ 461
Amount of customer only general cancellation 1,167
Amount of non-cancelable contracts $ 537
v3.25.4
Revenue from Contracts with Customers - Schedule of Transaction Price Allocated to Unsatisfied Obligations (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied obligations $ 2,182
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied obligations $ 1,473
Performance obligations expected to be satisfied in 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied obligations $ 709
Performance obligations expected to be satisfied in
v3.25.4
Contract Costs - Narrative (Details)
Dec. 31, 2025
Capitalized Contract Cost [Abstract]  
Capitalized contract cost, amortization period 4 years
v3.25.4
Contract Costs - Schedule of Activity Related to Capitalized Contract Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Capitalized Contract Cost, Net [Roll Forward]    
Capitalized contract cost, net at period start $ 46 $ 68
Capitalized 21 13
Amortization (25) (35)
Capitalized contract cost, net at period end $ 42 $ 46
v3.25.4
Goodwill and Acquired Intangible Assets - Schedule of Goodwill by Operating Segment (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Goodwill  
Goodwill, beginning balance $ 394
Currency Translation Adjustments 5
Goodwill, ending balance 399
Product Sales  
Goodwill  
Goodwill, beginning balance 387
Currency Translation Adjustments 5
Goodwill, ending balance 392
Consulting Services  
Goodwill  
Goodwill, beginning balance 7
Currency Translation Adjustments 0
Goodwill, ending balance $ 7
v3.25.4
Goodwill and Acquired Intangible Assets - Narrative (Details)
 3 Months Ended 12 Months Ended 17 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2025
reporting_unit
Dec. 31, 2025
segment
Goodwill and Intangible Assets Disclosure [Abstract]      
Number of operating segments     2
Number of reportable segments     2
Impairment of goodwill and acquired intangibles | $ $ 0    
Number of reporting units | reporting_unit   2  
v3.25.4
Goodwill and Acquired Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization for Acquired Intangible Assets (Details) - Intellectual property/developed technology
$ in Millions
Dec. 31, 2025
USD ($)
Goodwill [Line Items]  
Amortization Life (in Years) 5 years
Gross Carrying Amount $ 14
Accumulated Amortization Amount $ (7)
v3.25.4
Goodwill and Acquired Intangible Assets - Schedule of Aggregate Amortization Expense for Acquired Intangible Assets (Details) - Amortization expense
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Intangible Asset, Acquired, Finite-Lived [Line Items]  
Actual 2025 $ 3
2026 3
2027 3
2028 1
2029 0
2030 $ 0
v3.25.4
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income before income taxes      
United States $ 44 $ 58 $ 35
Foreign 134 106 82
Income before income taxes $ 178 $ 164 $ 117
v3.25.4
Income Taxes - Schedule of Income Tax Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current      
Federal $ (6) $ 32 $ 25
State and local 1 5 5
Foreign 22 24 36
Deferred      
Federal 21 (9) (12)
State and local 3 (2) (2)
Foreign 7 0 3
Total income tax expense $ 48 $ 50 $ 55
Effective income tax rate 27.00% 30.50% 47.00%
v3.25.4
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Income tax expense at the U.S. federal tax rate $ 37    
Permanent Tax Benefit for Hyperinflationary Adjustment (4)    
Withholding taxes 3    
Effect of Cross Border Tax Laws      
GILTI Tax 2    
Subpart F Income 3    
Foreign Tax Credits (5)    
Incremental US Tax on US Branches 2    
State and local income taxes, net of federal benefits 2    
Non-Taxable or Non-Deductible Items      
Share-Based Payment Awards 15    
Tax Credits      
U.S. research & development tax credits (5)    
US Investment Tax Credit (5)    
Changes in unrecognized tax positions (6)    
Total income tax expense $ 48 $ 50 $ 55
%      
Income tax expense at the U.S. federal tax rate 21.00% 21.00% 21.00%
Statutory tax rate difference between foreign countries and United States   (3.20%) 1.50%
Permanent Tax Benefit for Hyperinflationary Adjustment (2.40%) 0.00% 13.10%
Change in valuation allowance   10.70% 18.60%
Withholding Tax for Ireland 1.70%    
Effect of Cross Border Tax Laws      
GILTI Tax 1.10%    
Subpart F Income 1.70%    
Foreign Tax Credits (2.80%)    
Incremental US Tax on US Branches 1.10%    
State and local income taxes 1.10% (1.30%) (3.20%)
Non-Taxable or Non-Deductible Items      
Share-Based Payment Awards 8.40% 4.30% 1.70%
Tax Credits      
U.S. research and development tax credits (2.80%) (4.20%) (6.10%)
US Investment Tax Credit (2.80%)    
Tax impact of uncertain tax positions (3.30%) 2.10% (0.80%)
Effective income tax rate 27.00% 30.50% 47.00%
Ireland      
Amount      
Statutory tax rate difference between foreign countries and United States $ (8)    
%      
Statutory tax rate difference between foreign countries and United States (4.50%)    
Argentina      
Amount      
Statutory tax rate difference between foreign countries and United States $ 1    
Change in valuation allowance $ 4    
%      
Statutory tax rate difference between foreign countries and United States 0.60%    
Change in valuation allowance 2.20%    
Other      
Amount      
Statutory tax rate difference between foreign countries and United States $ 7    
%      
Statutory tax rate difference between foreign countries and United States 3.90%    
United States      
Amount      
Change in valuation allowance $ 5    
%      
Change in valuation allowance 2.80%    
v3.25.4
Income Taxes - Schedule of Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate in Prior Years (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Income tax expense at the U.S. federal tax rate 21.00% 21.00% 21.00%
Foreign income tax differential   (3.20%) 1.50%
U.S. tax on foreign earnings   (0.70%) (1.70%)
State and local income taxes 1.10% (1.30%) (3.20%)
U.S. permanent book/tax differences   1.80% 3.70%
U.S. research and development tax credits (2.80%) (4.20%) (6.10%)
Change in valuation allowance   10.70% 18.60%
Permanent Tax Benefit for Hyperinflationary Adjustment (2.40%) 0.00% 13.10%
Share-Based Payment Awards 8.40% 4.30% 1.70%
Tax impact of uncertain tax positions (3.30%) 2.10% (0.80%)
Other, net   0.00% (0.80%)
Effective income tax rate 27.00% 30.50% 47.00%
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Taxes      
Discrete income tax expense (benefit) $ (2) $ 3 $ 18
Reversal of unrecognized tax benefits 9    
Vesting of share based awards, tax expense 7    
Translation impact on deferred tax and tax payable balances     15
Discrete tax benefit related to an uncertain tax position 6    
Tax benefit from equity compensation     3
Net operating loss and tax credit carryforwards 135    
Tax credit carryforward, FIN 48 reserve 25    
Deferred foreign withholding tax expense 4    
Tax liability related to uncertain tax positions 38 44 40
Uncertain tax positions 13 $ 21  
Uncertain tax positions related to business acquisitions not recognized on balance sheet 25    
Uncertain tax positions recognized as current liability on balance sheet 38    
Interest accruals related to uncertain tax liabilities 2    
Deferred Tax Assets For Argentina and Other Reorganization Activities      
Income Taxes      
Change in valuation allowance     10
Valuation Allowance, Reversal FIN 48 Tax Reserve      
Income Taxes      
Discrete tax benefit related to an uncertain tax position     $ 4
United States and Certain Foreign Jurisdictions      
Income Taxes      
Net operating loss carryforwards in the United States and certain foreign jurisdictions 12    
Valuation allowance 4    
Domestic Tax Jurisdiction      
Income Taxes      
Net operating loss carryforwards in the United States and certain foreign jurisdictions 24    
Valuation allowance 24    
Research Tax Credit Carryforward | Domestic Tax Jurisdiction      
Income Taxes      
Research and development tax credit carryforwards 5    
Research Tax Credit Carryforward | State and Local Jurisdiction      
Income Taxes      
Valuation allowance 69    
Research and development tax credit carryforwards $ 94    
v3.25.4
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred income tax assets    
Employee pensions and other liabilities $ 42 $ 41
Other balance sheet reserves and allowances 30 29
Operating lease liabilities 2 2
Tax loss and credit carryforwards 133 115
Deferred revenue 3 3
Intangibles and capitalized software 161 184
Total deferred income tax assets 371 374
Valuation allowance (110) (101)
Net deferred income tax assets 261 273
Deferred income tax liabilities    
Right of use assets - operating lease 2 2
Property and equipment 30 24
Other 32 31
Total deferred income tax liabilities 64 57
Total net deferred income tax assets $ 197 $ 216
v3.25.4
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Unrecognized Tax Benefits [Roll Forward]    
Beginning balance $ 44 $ 40
Gross increases for prior period tax positions 1 1
Gross increases for current period tax positions 3 3
Decreases due to the lapse of applicable statute of limitations (2) 0
Decreases relating to settlements with taxing authorities (8) 0
Ending balance $ 38 $ 44
v3.25.4
Income Taxes - Schedule of Income Taxes (Net of Refunds Received) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal $ 43    
State and local 4    
Foreign      
Total income tax paid (net of refunds received) 71 $ 75 $ 65
Ireland      
Foreign      
Foreign 7    
Other      
Foreign      
Foreign $ 17    
v3.25.4
Employee Stock-based Compensation Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]      
Restricted share units $ 109 $ 115 $ 122
Employee stock purchase program 3 4 4
Total stock-based compensation before income taxes 112 119 126
Tax benefit (11) (17) (23)
Total stock-based compensation, net of tax $ 101 $ 102 $ 103
v3.25.4
Employee Stock-based Compensation Plans - Narrative (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
May 31, 2025
2023 SIP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares authorized to be issued (in shares) 10.9  
2025 NESIP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares authorized to be issued (in shares)   1.0
Employee Stock Purchase Program    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Employee stock purchase program purchase period 6 months  
Employee stock purchase program discount from average market price 15.00%  
Percentage of authorized payroll deductions for common stock purchases by employees 10.00%  
Shares authorized to be issued under the Employee Stock Purchase Program (in shares) 9.3  
Remaining shares authorized to be issued under the Employee Stock Purchase Program (in shares) 1.7  
Service-Based Awards | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Performance Based Awards | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 1 year  
Performance Based Awards | Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years  
Restricted Stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total unrecognized compensation cost related to unvested stock grants $ 138  
Cost expected to be recognized over a weighted-average period 1 year  
v3.25.4
Employee Stock-based Compensation Plans - Schedule of Restricted Shares and Restricted Share Unit Activity (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Number of Shares  
Unvested shares at period start (in shares) | shares 6,657
Granted (in shares) | shares 6,563
Vested (in shares) | shares (3,004)
Forfeited/canceled (in shares) | shares (1,312)
Unvested shares at period end (in shares) | shares 8,904
Weighted- Average  Grant Date Fair  Value per Share  
Unvested shares at period start (in usd per share) | $ / shares $ 40.05
Granted (in usd per share) | $ / shares 22.74
Vested (in usd per share) | $ / shares 40.19
Forfeited/canceled (in usd per share) | $ / shares 29.26
Unvested shares at period end (in usd per share) | $ / shares $ 28.66
v3.25.4
Employee Stock-based Compensation Plans - Schedule of Weighted-Average Fair Value and Total Fair Value of Shares Vested (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of restricted shares units granted (in usd per share) $ 22.74    
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of restricted shares units granted (in usd per share) $ 22.74 $ 36.33 $ 39.98
Total fair value of shares vested (in millions) $ 121 $ 124 $ 116
v3.25.4
Employee Stock-based Compensation Plans - Schedule of Composition of Teradata Restricted Stock Grants (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares (in shares) | shares 6,563
Weighted-average grant date fair value of restricted share unit grants (in usd per share) | $ / shares $ 22.74
Service-based restricted share units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares (in shares) | shares 5,547
Weighted-average grant date fair value of restricted share unit grants (in usd per share) | $ / shares $ 23.30
Performance-based restricted share units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares (in shares) | shares 1,016
Weighted-average grant date fair value of restricted share unit grants (in usd per share) | $ / shares $ 19.69
v3.25.4
Employee Stock-based Compensation Plans - Schedule of Employee Purchases and Aggregate Cost (Details) - Employee Stock Puchase Program - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity, Class of Treasury Stock [Line Items]      
Employee stock purchases (in shares) 0.5 0.4 0.4
Aggregate cost $ 10 $ 12 $ 13
v3.25.4
Employee Benefit Plans - Pension and Postemployment Benefit Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 4 $ 4 $ 4
Interest cost 3 3 3
Expected return on plan assets (2) (2) (2)
Settlement charge 0 1 0
Amortization of actuarial loss 0 0 0
Amortization of prior service cost 0 0 0
Total costs 5 6 5
Postemployment      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 9 11 12
Interest cost 2 2 2
Expected return on plan assets 0 0 0
Settlement charge 0 0 0
Amortization of actuarial loss 7 8 6
Amortization of prior service cost 1 1 1
Total costs $ 19 $ 22 $ 21
v3.25.4
Employee Benefit Plans - Changes in Benefit Obligations Plan Assets Funded Status and Reconciliation of Funded Status to Amounts Recognized in Consolidated Balance Sheets and in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension      
Change in benefit obligation      
Benefit obligation at January 1 $ 100 $ 116  
Service cost 4 4 $ 4
Interest cost 3 3 3
Plan participant contributions 1 1  
Actuarial (gain) loss (6) 0  
Benefits paid (3) (2)  
Settlement (5) (9)  
Plan Amendment 3 (6)  
Currency translation adjustments 9 (7)  
Benefit obligation at December 31 106 100 116
Change in plan assets      
Beginning balance 49 60  
Actual return on plan assets 0 4  
Company contributions 5 5  
Benefits paid (3) (2)  
Currency translation adjustments 3 (4)  
Plan participant contribution 1 1  
Settlements (5) (9)  
Other 0 (6)  
Ending balance 50 49 60
Funded status (underfunded) (56) (51)  
Amounts Recognized in the Consolidated Balance Sheet      
Non-current assets 11 10  
Current liabilities (3) (2)  
Non-current liabilities (64) (59)  
Net amounts recognized (56) (51)  
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)      
Unrecognized Net actuarial (gain) loss (11) (6)  
Unrecognized Prior service cost 3 0  
Total (8) (6)  
Postemployment      
Change in benefit obligation      
Benefit obligation at January 1 56 56  
Service cost 9 11 12
Interest cost 2 2 2
Plan participant contributions 0 0  
Actuarial (gain) loss 26 11  
Benefits paid (27) (24)  
Settlement 0 0  
Plan Amendment (4) 0  
Currency translation adjustments 0 0  
Benefit obligation at December 31 62 56 56
Change in plan assets      
Beginning balance 0 0  
Actual return on plan assets 0 0  
Company contributions 0 0  
Benefits paid 0 0  
Currency translation adjustments 0 0  
Plan participant contribution 0 0  
Settlements 0 0  
Other 0 0  
Ending balance 0 0 $ 0
Funded status (underfunded) (62) (56)  
Amounts Recognized in the Consolidated Balance Sheet      
Non-current assets 0 0  
Current liabilities (12) (11)  
Non-current liabilities (50) (45)  
Net amounts recognized (62) (56)  
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)      
Unrecognized Net actuarial (gain) loss 81 62  
Unrecognized Prior service cost (2) 3  
Total $ 79 $ 65  
v3.25.4
Employee Benefit Plans - Accumulated Pension Benefit Obligation (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Pension    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Accumulated pension benefit obligation $ 97 $ 93
v3.25.4
Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligation $ 91 $ 84
Accumulated benefit obligation 84 79
Fair value of plan assets $ 25 $ 24
v3.25.4
Employee Benefit Plans - Pre-tax Net Changes in Projected Benefit Obligations Recognized in Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Total recognized in other comprehensive (income) loss $ 21 $ 9 $ 17
Pension      
Defined Benefit Plan Disclosure [Line Items]      
Actuarial (gain) loss arising during the year (3) (2)  
Amortization of loss included in net periodic benefit cost 0 0  
Prior service cost arising during the year 3 0  
Recognition of loss due to settlement 0 (1)  
Foreign currency exchange (1) 0  
Total recognized in other comprehensive (income) loss (1) (3)  
Postemployment      
Defined Benefit Plan Disclosure [Line Items]      
Actuarial (gain) loss arising during the year 26 12  
Amortization of loss included in net periodic benefit cost (8) (9)  
Prior service cost arising during the year (4) 0  
Recognition of loss due to settlement 0 0  
Foreign currency exchange 0 0  
Total recognized in other comprehensive (income) loss $ 14 $ 3  
v3.25.4
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pension      
Pension Benefit Obligations      
Discount rate 3.60% 3.20%  
Rate of compensation increase 3.50% 3.40%  
Interest crediting rate assumption 1.70% 1.60%  
Pension Benefit Cost      
Discount rate 3.20% 3.20% 3.10%
Rate of compensation increase 3.40% 3.20% 3.10%
Expected return on plan assets 3.90% 4.00% 3.90%
Interest crediting rate assumption 1.60% 1.60% 1.50%
Postemployment      
Pension Benefit Obligations      
Discount rate 5.20% 4.60%  
Rate of compensation increase 4.90% 4.30%  
Involuntary turnover rate 6.00% 5.00%  
Pension Benefit Cost      
Discount rate 4.60% 4.60% 3.80%
Rate of compensation increase 4.30% 3.00% 3.00%
Expected return on plan assets 5.00% 4.50% 4.00%
v3.25.4
Employee Benefit Plans - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Retirement Benefits [Abstract]  
Amount of gains and losses to be amortized to the extent that they exceed 10% of the higher of the market-related value or the projected benefit obligation of each respective plan 10.00%
Estimated benefits in the next fiscal year $ 2
v3.25.4
Employee Benefit Plans - Weighted Average Asset Allocations by Asset Category (Details)
Dec. 31, 2025
Dec. 31, 2024
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]    
Actual Asset Allocation as of December 31 100.00% 100.00%
Target Asset Allocation 100.00%  
Equity securities    
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]    
Actual Asset Allocation as of December 31 35.00% 33.00%
Target Asset Allocation 34.00%  
Debt securities    
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]    
Actual Asset Allocation as of December 31 54.00% 56.00%
Target Asset Allocation 59.00%  
Insurance (annuity) contracts    
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]    
Actual Asset Allocation as of December 31 9.00% 8.00%
Target Asset Allocation 4.00%  
Real estate    
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items]    
Actual Asset Allocation as of December 31 2.00% 3.00%
Target Asset Allocation 3.00%  
v3.25.4
Employee Benefit Plans - Pension Plan Assets at Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Insurance contracts      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value $ 2 $ 2 $ 8
Recurring      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 50 48  
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 48 46  
Recurring | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 2 2  
Recurring | Money market funds      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 2    
Recurring | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0    
Recurring | Money market funds | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 2    
Recurring | Money market funds | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0    
Recurring | Equity funds      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 18 17  
Recurring | Equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Equity funds | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 18 17  
Recurring | Equity funds | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Bond/fixed-income funds      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 27 26  
Recurring | Bond/fixed-income funds | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Bond/fixed-income funds | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 27 26  
Recurring | Bond/fixed-income funds | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Real estate indirect investments      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 1 3  
Recurring | Real estate indirect investments | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Real estate indirect investments | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 1 3  
Recurring | Real estate indirect investments | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Insurance contracts      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 2 2  
Recurring | Insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Insurance contracts | Significant Other Observable Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value 0 0  
Recurring | Insurance contracts | Significant Unobservable Inputs (Level 3)      
Defined Benefit Plan Disclosure [Line Items]      
Total assets at fair value $ 2 $ 2  
v3.25.4
Employee Benefit Plans - Changes in Fair Value of Pension Plan Level 3 Assets (Details) - Insurance Contracts - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]    
Beginning balance $ 2 $ 8
Purchases, sales and settlements, net 0 (6)
Ending balance $ 2 $ 2
v3.25.4
Employee Benefit Plans - Schedule of Estimated Future Benefit Payments (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Pension  
Defined Benefit Plan Disclosure [Line Items]  
2026 $ 6
2027 6
2028 6
2029 6
2030 7
2031 - 2035 41
Postemployment  
Defined Benefit Plan Disclosure [Line Items]  
2026 12
2027 12
2028 12
2029 12
2030 12
2031 - 2035 $ 60
v3.25.4
Employee Benefit Plans - Schedule of U.S and International Subsidiary Savings Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
U.S. savings plan      
Defined Benefit Plan Disclosure [Line Items]      
Expense for the U.S. and international subsidiary savings plan $ 13 $ 15 $ 16
International subsidiary savings plans      
Defined Benefit Plan Disclosure [Line Items]      
Expense for the U.S. and international subsidiary savings plan $ 12 $ 10 $ 10
v3.25.4
Derivative Instruments and Hedging Activities - Narrative (Details)
€ in Millions, $ in Millions
 1 Months Ended
Jun. 30, 2022
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jun. 30, 2022
EUR (€)
Jun. 28, 2022
USD ($)
Medium-Term Note | Credit Agreement Issued In June 2022 | Line of Credit          
Derivative          
Principal outstanding $ 500       $ 500
Cross Currency Interest Rate Contract          
Derivative          
Contract notional amount of interest rate swap $ 150 $ 150 $ 150 € 143  
Interest rate swap, agreement period 4 years        
Interest Rate Swap          
Derivative          
Contract notional amount of interest rate swap $ 450 $ 416 $ 439   $ 450
Interest rate swap, agreement period 5 years        
Percentage of principal 90.00%     90.00% 90.00%
v3.25.4
Derivative Instruments and Hedging Activities - Schedule of Contract Notional Amount (Details)
€ in Millions, $ in Millions
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2022
EUR (€)
Jun. 28, 2022
USD ($)
Foreign Exchange Contract          
Derivative          
Contract notional amount of foreign exchange forward contracts $ 81 $ 70      
Net contract notional amount of foreign exchange forward contracts 7 21      
Cross Currency Interest Rate Contract          
Derivative          
Contract notional amount of foreign exchange forward contracts 150 150 $ 150 € 143  
Interest Rate Swap          
Derivative          
Contract notional amount of foreign exchange forward contracts $ 416 $ 439 $ 450   $ 450
v3.25.4
Commitments and Contingencies (Details) - patent
 1 Months Ended
Aug. 31, 2020
Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Loss contingency on patents allegedly infringed upon (in patents)   5
Gain contingency on patents allegedly infringed upon (in patents) 4  
v3.25.4
Fair Value Measurements - Narrative (Details)
€ in Millions, $ in Millions
 1 Months Ended
Jun. 30, 2022
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jun. 30, 2022
EUR (€)
Jun. 28, 2022
USD ($)
Interest Rate Swap          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis          
Term of contract 5 years        
Contract notional amount of foreign exchange forward contracts $ 450 $ 416 $ 439   $ 450
Cross-currency swap          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis          
Term of contract 4 years        
Contract notional amount of foreign exchange forward contracts $ 150 $ 150 $ 150 € 143  
v3.25.4
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis and Subject to Fair Value Disclosure Requirements (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Money market funds $ 162 $ 151
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Money market funds 162 151
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Money market funds 0 0
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Money market funds 0 0
Cross Currency Interest Rate Contract    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets   1
Liabilities 18  
Cross Currency Interest Rate Contract | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets   0
Liabilities 0  
Cross Currency Interest Rate Contract | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets   1
Liabilities 18  
Cross Currency Interest Rate Contract | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets   0
Liabilities 0  
Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets 1 9
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets 0 0
Interest Rate Swap | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets 1 9
Interest Rate Swap | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Assets $ 0 $ 0
v3.25.4
Debt - Narrative (Details)
Jun. 28, 2022
USD ($)
date
renewal
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jun. 30, 2022
USD ($)
Interest Rate Swap        
Debt Instrument        
Percentage of principal 90.00%     90.00%
Amount of interest rate swap $ 450,000,000 $ 416,000,000 $ 439,000,000 $ 450,000,000
Line of Credit | Credit Agreement Issued In June 2022        
Debt Instrument        
Number of renewals | renewal 2      
Renewal term 1 year      
Line of Credit | Medium-Term Note | Credit Agreement Issued In June 2022        
Debt Instrument        
Revolving credit agreement period 5 years      
Debt instrument, face amount $ 500,000,000      
Term loan, payable quarterly installments 1.25%      
Number of payment dates | date 12      
Principal outstanding $ 500,000,000     $ 500,000,000
Line of Credit | Revolving Credit Facility | Credit Agreement Issued In June 2022        
Debt Instrument        
Revolving credit agreement period 5 years      
Credit facility maximum borrowing capacity $ 400,000,000      
Additional borrowings available 450,000,000      
Principal outstanding   0 0  
Additional borrowing capacity   400,000,000 400,000,000  
Line of Credit | Letter of Credit | Credit Agreement Issued In June 2022        
Debt Instrument        
Credit facility maximum borrowing capacity 50,000,000      
Line of Credit | Bridge Loan | Credit Agreement Issued In June 2022        
Debt Instrument        
Credit facility maximum borrowing capacity $ 50,000,000      
Term Loan        
Debt Instrument        
Unamortized debt issuance expense   1,000,000    
Term Loan | Senior Unsecured term loan Issued June 2018        
Debt Instrument        
Long-term debt   $ 456,000,000 $ 481,000,000  
Percentage with fixed rate   90.00%    
Fixed rate on term loan   3.25%    
All-in fixed rate   4.16% 4.24%  
v3.25.4
Debt - Schedule of Annual Contractual Maturities of Outstanding Principal on Term Loan (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Debt Disclosure [Abstract]  
2026 $ 25
2027 431
Total $ 456
v3.25.4
Leases - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
Lessee, Lease, Description [Line Items]  
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Total revenue
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract 7 years
v3.25.4
Leases - Schedule of Lease-related Assets And Liabilities Recorded on the Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets    
Operating lease assets $ 7 $ 8
Finance lease assets 118 109
Total lease assets $ 125 $ 117
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Property and equipment, net Property and equipment, net
Liabilities    
Current portion of operating lease liability $ 2 $ 4
Current portion of finance lease liability 50 57
Noncurrent portion of operating lease liability 4 5
Noncurrent portion of finance lease liability 45 30
Total lease liabilities $ 101 $ 96
Weighted-average remaining lease term    
Operating leases 3 years 11 months 15 days 3 years 5 months 26 days
Finance leases 2 years 21 days 1 year 7 months 24 days
Weighted-average discount rate    
Operating leases 5.73% 5.40%
Finance leases 6.25% 6.83%
v3.25.4
Leases - Lease Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finance lease cost      
Depreciation of leased assets $ 56 $ 61 $ 68
Interest of lease liabilities 6 7 7
Operating lease cost 4 5 7
Sub-lease income from real estate properties owned and leased (6) (5) (5)
Total lease cost $ 60 $ 68 $ 77
v3.25.4
Leases - Supplemental Cash Flow Information Related to Cash Paid (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating cash flows for operating leases $ 5 $ 7  
Operating cash flows for finance leases 6 7  
Financing cash flows for finance leases $ 69 $ 71 $ 82
v3.25.4
Leases - Undiscounted Cash Flows (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Operating Leases    
Operating lease liability to be paid, year one $ 4 $ 7
Operating lease liability to be paid, year two 2 3
Operating lease liability to be paid, year three 1 1
Operating lease liability to be paid, year four 1 1
Operating lease liability to be paid, year five 1 2
Thereafter 0 0
Total minimum lease payments 9 14
Less: amount of lease payments representing interest (3) (5)
Present value of future minimum lease payments 6 9
Less: current obligations under leases (2) (4)
Long-term lease obligations 4 5
Finance Leases    
Finance lease liability to be paid, year one 54 61
Finance lease liability to be paid, year two 33 27
Finance lease liability to be paid, year three 14 5
Finance lease liability to be paid, year four 0 0
Finance lease liability to be paid, year five 0 0
Thereafter 0 0
Total minimum lease payments 101 93
Less: amount of lease payments representing interest (6) (6)
Present value of future minimum lease payments 95 87
Less: current obligations under leases (50) (57)
Long-term lease obligations $ 45 $ 30
v3.25.4
Leases - Schedule of Rental Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Rental revenue $ 212 $ 213 $ 216
v3.25.4
Leases - Schedule of Estimated Rental Revenue Expected to be Recognized in the Future (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 225
2027 85
2028-29 66
Total $ 376
v3.25.4
Segment, Other Supplemental Information and Concentrations - Narrative (Details)
 17 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.25.4
Segment, Other Supplemental Information and Concentrations - Schedule of Segment Revenue and Segment Gross Profit (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Segment revenue $ 1,663 $ 1,750 $ 1,833
Segment cost of revenue 676 692 718
Total gross profit 987 1,058 1,115
Stock-based compensation expense 17 17 17
Acquisition, integration and reorganization-related costs 6 5 1
Selling, general and administrative expenses 502 565 635
Research and development expenses 280 284 294
Income from operations 205 209 186
Depreciation expense 86 94 110
Operating Segments      
Segment Reporting Information [Line Items]      
Segment revenue 1,663 1,750 1,833
Segment cost of revenue 653 670 700
Total gross profit 1,010 1,080 1,133
Operating Segments | Product Sales      
Segment Reporting Information [Line Items]      
Segment revenue 1,462 1,502 1,537
Segment cost of revenue 464 453 446
Total gross profit 998 1,049 1,091
Product costs 241 223 193
Depreciation expense 71 79 88
Operating Segments | Consulting Services      
Segment Reporting Information [Line Items]      
Segment revenue 201 248 296
Segment cost of revenue 189 217 254
Total gross profit 12 31 42
Cost of consulting services includes payroll and benefit costs $ 120 $ 137 $ 149
v3.25.4
Segment, Other Supplemental Information and Concentrations - Schedule of Revenue by Geographic Area (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 1,663 $ 1,750 $ 1,833
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 829 894 973
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 834 $ 856 $ 860
v3.25.4
Segment, Other Supplemental Information and Concentrations - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Identifiable Assets By Segment [Line Items]    
Property and equipment, net $ 198 $ 185
United States    
Schedule Of Identifiable Assets By Segment [Line Items]    
Property and equipment, net 132 122
International    
Schedule Of Identifiable Assets By Segment [Line Items]    
Property and equipment, net $ 66 $ 63
v3.25.4
Accumulated Other Comprehensive (Loss) Income - Schedule of Changes in Accumulated Other Comprehensive (Loss) Income (AOCI), Net of Tax (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance $ 133 $ 135 $ 258
Other comprehensive (loss) income before reclassifications (12) (25) (15)
Amounts reclassified from AOCI 6 7 5
Other comprehensive loss (6) (18) (10)
Ending balance 230 133 135
Total  AOCI      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (147) (129) (119)
Ending balance (153) (147) (129)
Derivatives      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance 6 5 9
Other comprehensive (loss) income before reclassifications (6) 1 (4)
Amounts reclassified from AOCI 0 0 0
Other comprehensive loss (6) 1 (4)
Ending balance 0 6 5
Defined  benefit plans      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (39) (38) (31)
Other comprehensive (loss) income before reclassifications (17) (8) (12)
Amounts reclassified from AOCI 6 7 5
Other comprehensive loss (11) (1) (7)
Ending balance (50) (39) (38)
Foreign  currency translation adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Beginning balance (114) (96) (97)
Other comprehensive (loss) income before reclassifications 11 (18) 1
Amounts reclassified from AOCI 0 0 0
Other comprehensive loss 11 (18) 1
Ending balance $ (103) $ (114) $ (96)
v3.25.4
Accumulated Other Comprehensive (Loss) Income - Schedule of Impact and Respective Location of AOCI Reclassifications in Consolidated Statements of Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]      
Other expense $ 10 $ 27 $ 64
Income tax benefit (48) (50) (55)
Net (loss) income 130 114 62
Amount Reclassified from of Accumulated Other Comprehensive Income      
Defined Benefit Plan Disclosure [Line Items]      
Other expense (8) (9) (7)
Income tax benefit 2 2 2
Net (loss) income $ (6) $ (7) $ (5)
v3.25.4
Reorganization and Business Transformation - Narrative (Details) - 2024 Restructuring Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cost $ 20  
Payments for restructuring 27 $ 14
Employee severance and other employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Expense accruals 6 14
Payments For Restructuring, Excluding Beginning Balance 4 9
Restructuring reserve, settled without cash 2 5
Payments for restructuring 9  
International | Employee    
Restructuring Cost and Reserve [Line Items]    
Cash payment for international employees 18 5
Minimum    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cash expenditure 45  
Maximum    
Restructuring Cost and Reserve [Line Items]    
Restructuring and related cost, expected cash expenditure 50  
Cost of Revenue | Employee severance and other employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Expense accruals 2 3
Selling, General and Administrative Expenses | Employee severance and other employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Expense accruals $ 4 7
Research and Development Expense | Employee severance and other employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Expense accruals   $ 4
v3.25.4
Reorganization and Business Transformation - Schedule of Restructuring and Related Costs (Details) - 2024 Restructuring Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Restructuring Reserve [Roll Forward]    
Cash payments $ (27) $ (14)
Employee severance and other employee-related costs    
Restructuring Reserve [Roll Forward]    
Balance at December 31, 2024 5  
Expense accruals 6 14
Cash payments (9)  
Balance at December 31, 2025 $ 2 $ 5
v3.25.4
Subsequent Events (Details) - Subsequent Event - Litigation Proceedings Against SAP
$ in Millions
Feb. 19, 2026
USD ($)
Subsequent Event [Line Items]  
Litigation settlement, amount awarded from other party $ 480
Litigation payment settlement period 60 days
Minimum  
Subsequent Event [Line Items]  
Proceeds from legal settlements, net $ 355
Maximum  
Subsequent Event [Line Items]  
Proceeds from legal settlements, net $ 362
v3.25.4
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Allowance for doubtful accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 14 $ 12 $ 12
Provision/reversals Charged to Costs & Expenses 3 2 1
Charged to Other Accounts 0 0 0
Deductions (7) 0 (1)
Balance at End of Period 10 14 12
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 101 90 69
Provision/reversals Charged to Costs & Expenses 15 11 21
Charged to Other Accounts (6) 0 0
Deductions 0 0 0
Balance at End of Period $ 110 $ 101 $ 90