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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.