Teradata (TDC) risk factors, FY2025 10-K

Teradata's FY2025 10-K, filed Feb 27, 2026, lists 30 risk factors in 5 groups. Against the prior year's 27: 5 new, 2 dropped, 11 substantially reworded.

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Risk factors listed
305 groups
New this year
5vs 27 last year
Dropped
2since the prior 10-K
Substantially reworded
11of those kept
Section length
10k wordsItem 1A

What the changes say

  • Teradata is aggressively transforming its business toward cloud, hybrid, and autonomous AI/ML offerings, facing execution risks, complex ERP stabilization, and competitive pressures for specialized talent.

What changed since the prior 10-K

New

  • NewRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Failure to successfully execute our strategy and realize the anticipated benefits of our business transformation, including R&D investments, could have a material adverse effect on our business

    The company faces significant execution and operational risks in implementing its business transformation and R&D strategy across cloud, hybrid, and AI/ML offerings.

  • NewRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    we migrate our customers from on-premises environments to the cloud and hybrid deployments, expand our customers’ workloads or introduce new consumption or deployment models, we may incur unexpected, delays, or operational complexity

    Migrating customers to cloud and hybrid deployments may cause unexpected delays, operational complexity, and pricing challenges.

  • NewRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    or obtaining future returns on these investments, or if we are otherwise unable to maintain adequate relationships with any of these cloud service providers, our financial results may be adversely impacted

    Reliance on single-source hardware suppliers and third-party vendors like Flex, Dell, NetApp, and NVIDIA creates supply chain and delivery interruption risks.

  • NewRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Increased scrutiny from governments, investors, rating agencies, customers, and other stakeholders regarding our environmental, social, and governance ("ESG") practices, commitments, goals and performance could impose additional costs, expose us to new risks, or negatively impact our reputation

    Increasing ESG regulatory scrutiny in the EU and California poses compliance costs, reporting challenges, and reputational risks.

  • NewRISKS RELATED TO LEGAL AND REGULATORY MATTERS

    Regardless of whether these claims have any merit, they can be burdensome to defend or settle and can harm our business, reputation, financial condition and results of operations

    Using proprietary technology and open-source components exposes the company to potential intellectual property infringement claims and enforcement actions.

Dropped

  • DroppedRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    these investments for several years, if at all. R&D expenses represent a significant portion of our discretionary fixed costs

  • DroppedRISKS RELATED TO OUR INDUSTRY

    difficult to meet expectations from or commitments to customers, lead to significant fines, penalties or liabilities for noncompliance, or slow the pace at which we close sales transactions, any of which could harm our business

    Uncertainty around long-term R&D returns and discretionary fixed costs.

Reworded

  • 99% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Challenges with our new enterprise resource planning ("ERP") system could adversely impact our business and operations

    Updated to note that ERP deployment completed in 2025, shifting the focus to ongoing stabilization, optimization, and integration challenges.

    Was: Challenges with the design and implementation of our new enterprise resource planning ("ERP") system could adversely impact our business and operations

  • 92% rewrittenRISKS RELATED TO HUMAN CAPITAL

    We depend on key employees and face competition in hiring and retaining qualified employees

    Added specific hiring competition for AI adoption and noted that remote work policies may not fully mitigate talent retention pressures.

  • 90% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Demand for the offerings and services we sell could decline if we fail to maintain positive brand perception and recognition

    Updated brand positioning from trusted data and AI to autonomous AI and knowledge-based data and analytics offerings.

  • 79% rewrittenRISKS RELATED TO OUR INDUSTRY

    Our platform and service offerings incorporate AI/ML capabilities, which exposes us to an emerging and uncertain regulatory environment and rapidly changing technology, and any failure to comply with applicable requirements could result in reputational harm, liability and disruption to our business operations

    Clarified that evolving AI regulations could specifically require product changes or limit customer usage of offerings.

    Was: Our cloud and service offerings are designed to offer AI/ML capabilities, which exposes us to an emerging and uncertain regulatory environment and rapidly changing technology where any inability to comply with any such regulations may result in reputational harm, liability and disruption to our business operations

  • 69% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Increases in the cost, or reduced availability, of components used in our product, and/or increases in our other costs of doing business, have, and could continue to, adversely affect our profit margins

    Added specific mentions of inflation, increased costs, and tariffs on imported foreign items affecting profit margins.

    Was: Increases in the cost of components used in our product, and/or increases in our other costs of doing business, have, and could continue to, adversely affect our profit margins

  • 68% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Failure to successfully complete reorganization activities in connection with our transformation activities or otherwise could negatively affect our operations

    Added a specific example of August 5, 2024 sales function realignment and global restructuring actions continuing into 2025.

  • 53% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Inadequate internal control over financial reporting and accounting practices could lead to errors, which could adversely impact our ability to assure timely and accurate financial reporting

    Minor phrasing adjustments regarding internal control over financial reporting and the new ERP system.

  • 50% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Our future results depend in part on our relationships with strategic partners, key suppliers, and other third parties

    Refined partner categories to include alliance partners and consultants alongside cloud service providers and system integrators.

  • 41% rewrittenRISKS RELATED TO OUR INDUSTRY

    Current and evolving privacy laws and regulations, cross-border data transfer restrictions and other aspects of data privacy may impact the use and adoption of our solutions and services and adversely affect our business

  • 30% rewrittenRISKS RELATED TO OUR INDUSTRY

    The IT industry, particularly for data analytics and AI solutions, is intensely competitive and evolving, and competitive pressures could adversely affect our pricing practices or demand for our offerings and services

    Was: The IT industry is intensely competitive and evolving, and competitive pressures could adversely affect our pricing practices or demand for our offerings and services

  • 25% rewrittenRISKS RELATED TO OUR BUSINESS AND OPERATIONS

    Any disruption, including as a result of natural disasters or climate change, at or near any of our facilities or other operations or those of our customers, vendors, data warehouses, distribution channels, and public cloud service providers could adversely affect our business

All 30 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01In addition, past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

  1. 02Failure to successfully execute our strategy and realize the anticipated benefits of our business transformation, including R&D investments, could have a material adverse effect on our businessNew
  2. 03we migrate our customers from on-premises environments to the cloud and hybrid deployments, expand our customers’ workloads or introduce new consumption or deployment models, we may incur unexpected, delays, or operational complexityNew
  3. 04We may experience variability in our operating results based on the purchasing behavior of our customers
  4. 05As we develop new offerings with enhanced capacity, delivery and performance capabilities, the increased difficulty and complexity associated with producing these offerings may increase the likelihood of reliability, quality, operability, and/or security issues
  5. 06A 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
  6. 07While we maintain insurance coverage for certain liabilities related to cyber-attacks and/or data breaches, such coverage may not adequately cover all costs, expenses, liability and damages that we or our customers may incur as a result of such incidents
  7. 08If our existing customers fail to renew, or cancel their subscription license arrangements or support agreements, or if customers do not renew on terms favorable to us, our business could be adversely affected
  8. 09Our future results depend in part on our relationships with strategic partners, key suppliers, and other third parties50% rewritten
  9. 10or obtaining future returns on these investments, or if we are otherwise unable to maintain adequate relationships with any of these cloud service providers, our financial results may be adversely impactedNew
  10. 11Demand for the offerings and services we sell could decline if we fail to maintain positive brand perception and recognition90% rewritten
  11. 12Increases in the cost, or reduced availability, of components used in our product, and/or increases in our other costs of doing business, have, and could continue to, adversely affect our profit margins69% rewritten
  12. 13Challenges with our new enterprise resource planning ("ERP") system could adversely impact our business and operations99% rewritten
  13. 14Any disruption, including as a result of natural disasters or climate change, at or near any of our facilities or other operations or those of our customers, vendors, data warehouses, distribution channels, and public cloud service providers could adversely affect our business25% rewritten
  14. 15Failure to successfully complete reorganization activities in connection with our transformation activities or otherwise could negatively affect our operations68% rewritten
  15. 16Our business is affected by the global economies in which we operate and the economic climate of the industries we serve
  16. 17Generating substantial revenues from our international operations pose several risks
  17. 18Any of these events, among others, could materially and adversely affect our financial condition and operating results
  18. 19Inadequate internal control over financial reporting and accounting practices could lead to errors, which could adversely impact our ability to assure timely and accurate financial reporting53% rewritten
  19. 20Increased scrutiny from governments, investors, rating agencies, customers, and other stakeholders regarding our environmental, social, and governance ("ESG") practices, commitments, goals and performance could impose additional costs, expose us to new risks, or negatively impact our reputationNew

RISKS RELATED TO OUR INDUSTRY

  1. 21Our platform and service offerings incorporate AI/ML capabilities, which exposes us to an emerging and uncertain regulatory environment and rapidly changing technology, and any failure to comply with applicable requirements could result in reputational harm, liability and disruption to our business operations79% rewritten
  2. 22The IT industry, particularly for data analytics and AI solutions, is intensely competitive and evolving, and competitive pressures could adversely affect our pricing practices or demand for our offerings and services30% rewritten
  3. 23Current and evolving privacy laws and regulations, cross-border data transfer restrictions and other aspects of data privacy may impact the use and adoption of our solutions and services and adversely affect our business41% rewritten

RISKS RELATED TO HUMAN CAPITAL

  1. 24We depend on key employees and face competition in hiring and retaining qualified employees92% rewritten

RISKS RELATED TO LEGAL AND REGULATORY MATTERS

  1. 25We face uncertainties regarding legal proceedings, complex and changing laws and regulations, and other related matters
  2. 26Gaps in protection of Teradata’s intellectual property or unlicensed use of third-party intellectual property could impact our business and financial condition
  3. 27Regardless of whether these claims have any merit, they can be burdensome to defend or settle and can harm our business, reputation, financial condition and results of operationsNew
  4. 28A change in our effective tax rate can have a significant adverse impact on our business

RISKS RELATED TO OUR FINANCIAL CONDITION

  1. 29Our indebtedness could adversely affect our financial condition and limit our financial flexibility
  2. 30Fluctuations in foreign currency exchange rates have affected our operating results and could continue to impact our revenue and net earnings

Other Teradata 10-Ks

  • FY2024 10-K risk factors
    27 risks

    Teradata faces operational risks from transitioning to a subscription-based pricing model and scaling cloud services.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.