TERADATA CORP /DE/ 8-K

What Happened
Teradata Corporation (TDC) announced on Form 8-K (Item 8.01) that it entered into a Settlement Agreement with SAP SE, SAP America, Inc., and SAP Labs, LLC effective February 19, 2026. Under the agreement Teradata will receive a gross payment of $480 million no later than 60 days after the effective date, and the parties will seek dismissal with prejudice of all past and pending litigation between them. Teradata estimates the net cash benefit after fees and expenses (including a customary contingent fee and other legal costs) will be approximately $355–$362 million before taxes. The company is evaluating how to use the net proceeds and will provide an update on its 2026 first quarter earnings call.

Key Details

• Settlement gross payment: $480 million, payable within 60 days of the February 19, 2026 effective date.
• Estimated net proceeds: approximately $355–$362 million before taxes after contingent fees and other legal expenses.
• Scope: resolves all past and pending litigation between Teradata and SAP (mutual releases and request to dismiss claims with prejudice).
• Next update: Teradata will discuss planned use of proceeds on its Q1 2026 earnings call.

Why It Matters
This is a one-time, non-operational cash inflow that materially improves Teradata’s near-term liquidity by several hundred million dollars. Investors should watch the company’s Q1 2026 earnings call and subsequent filings for how management allocates the net proceeds (e.g., debt reduction, buybacks, investments). The company’s filing also includes standard forward-looking disclaimers about risks that could affect actual results.