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 millions	Balance December 31, 2024		Currency Translation Adjustments		Balance December 31, 2025
Goodwill
Product Sales	$	387	$	5	$	392
Consulting Services	7		—		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 millions	Amortization Life (in Years)	Gross Carrying Amount		Accumulated Amortization Amount
Acquired intangible assets
Intellectual property/developed technology	5	$	14	$	(7)

The aggregate amortization expense (actual and estimated) for acquired intangible assets for the following periods is:

	Actual		For the years ended (estimated)
In millions	2025		2026		2027		2028		2029		2030
Amortization expense	$	3	$	3	$	3	$	1	$	—	$	—