Teradata Corp at UBS Global Technology and AI Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Radi Sultan - UBS AG - Analyst : <_ALACRA_META_ABSTRACT>Awesome. Maybe just to kick it off, let's start at a high level. I think you very recently hit your 6-month mark at Teradata. The business has really stabilized. You've gotten into a good cadence of upbeat. So maybe just walk through your biggest learnings, the biggest takeaways in your first six months on the job.

Question: Radi Sultan - UBS AG - Analyst : Yeah. Awesome. Maybe just drilling into the AI front, I believe AI is being attached to around 1/3 of deals in the pipeline today. So maybe just talk through where are you seeing the most traction? What are some of the biggest early AI use cases where Teradata is getting pulled along?

Question: Radi Sultan - UBS AG - Analyst : Awesome. And maybe when you think about the AI products portfolio today, you have enterprise vector store, MCP server, agent builder, like how do you think about monetizing these offerings longer term? And maybe which of those do you see as the biggest needle mover over the next several years?

Question: Radi Sultan - UBS AG - Analyst : Got it. And a big focus on the last call was around the FTE group that you guys formed. Can you walk through a little bit of the background there, where that group has been most focused, the extent to which it's just AI? Or is it sort of around use cases for the broader platform and maybe any early wins or traction there you could share?

Question: Radi Sultan - UBS AG - Analyst : And I guess you guys already have a pretty substantial services footprint already. How much of this sort of AI services group was the repurposing of your existing services footprint and maybe helping you streamline that versus incremental?

Question: Radi Sultan - UBS AG - Analyst : And I guess maybe just zooming out when you think about the services business more broadly going forward, like how do you think about that business from a top line and margin perspective going forward? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, TDC.N - Teradata Corp at UBS Global Technology and AI Conference

Question: Radi Sultan - UBS AG - Analyst : Got it. And maybe just drilling down into that cloud migration piece around Q4, specifically, you guys called out a few large customers that were considering on-prem versus cloud and sort of that hadn't made the decision yet. So maybe you could just talk through sort of what are the key sort of decision factors in those customers and how you can ultimately still monetize those customers, whether they're on-prem or in the cloud?

Question: Radi Sultan - UBS AG - Analyst : Got it. So do you think it's sort of very specific to those handful of large customers? Or do you think it's sort of a broader, across your entire installed base, these are sort of themes that you're seeing? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, TDC.N - Teradata Corp at UBS Global Technology and AI Conference

Question: Radi Sultan - UBS AG - Analyst : Got it. And maybe just as we think about sort of getting to the other side of that bell curve of cloud migrations following up on an earlier point you made, like is there a go-to-market change that also happens? I mean you mentioned the services piece

Question: Radi Sultan - UBS AG - Analyst : Yeah. You mentioned new logos. I think it's a really interesting point that kind of flies under the radar as sort of the new customers that you guys are gaining. And I think that really does speak to the product investment that you guys have made. So maybe you could just talk about sort of that new customer activity you're seeing. I know maybe small from a revenue standpoint, but maybe how you think about that part of your business?

Question: Radi Sultan - UBS AG - Analyst : Is there any theme amongst those customers, like a vertical or sort of, you mentioned regulated industries, like is there any sort of theme amongst those customers of how they're using the platform or theme of what vertical they're in, maybe?

Question: Radi Sultan - UBS AG - Analyst : Got it. You mentioned government. I know we've talked about federal a lot. The question comes up quite a bit. So maybe you could just quickly speak to sort of the federal exposure you guys have today and sort of maybe the opportunity there because that's a little bit of a bit more relevant.

Question: Radi Sultan - UBS AG - Analyst : Got it. Maybe just shifting gears to competition. Like how do you see the competitive environment changing? Like you think win rates? I mean, I know the overall business is sort of stabilizing, but have you seen win rates from a competitive standpoint, stabilize? And maybe any pockets are you having the most success from a competitive standpoint?

Question: Radi Sultan - UBS AG - Analyst : And maybe just like on the go-to-market side, like how do you feel about sort of broadly speaking, the go-to-market where it is today? Any big change? I mean you guys have had a lot of changes. So maybe just how do you see sort of over the next 12 months? I mean where there are still pockets of improvement or sort of areas of focus over the next 12 months?

Question: Radi Sultan - UBS AG - Analyst : Got it. And you noted you're looking more at sort of the expansion side versus the migration opportunity. I mean when you think about maybe the product and the go-to-market, I think we touched a little bit on the go-to-market, but maybe just on the product side, like how do you position the product portfolio and also go to market, right, to capture that mix shift?

Question: Radi Sultan - UBS AG - Analyst : Got it. Maybe the other side of the corn will be on the cost side. As we think about margins going forward, I mean, you mentioned the services piece of the business, but where do you see the most room on margins going forward? And how do you sort of balance that with the product investment that you know --

Question: Radi Sultan - UBS AG - Analyst : Got it. Yes. I imagine the margin expansion is easier when the top line is...

Question: Radi Sultan - UBS AG - Analyst : Yeah. And I guess's how do you think there's sort of that sort of -- that cost versus like wanting to have that investment be positioned for growth, but also being able to drive margin expansion at the same time sort of that product investment versus --

Question: Radi Sultan - UBS AG - Analyst : Got it. And when we think about free cash flow, you guys have a very healthy free cash flow profile. I mean, when you think about sort of a buyback versus M&A, sort of other uses of free cash flow, maybe just how do you think through those options LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 9:55PM, TDC.N - Teradata Corp at UBS Global Technology and AI Conference sort of why one versus the other? And maybe just sort of the process around how you think about deploying free cash flow because it is a very important lever for you guys.

Question: Radi Sultan - UBS AG - Analyst : Is there any particular area maybe within the product portfolio where you think should have you need that incremental investment or where you think that sort of the M&A bolt-on opportunity could be a little bit more accretive to the business?

Question: Radi Sultan - UBS AG - Analyst : Got it. Maybe just one more on the growth opportunity before we wrap it up. When you think about maybe longer term, the business does seem to be stabilizing, gotten to a good cadence here of beats. I mean, so without guiding to next year, like can you just walk me through sort of the key puts and takes as you think about the business next year, the biggest growth drivers, where you see the most opportunity, maybe just lay it all out for us to go up.

Question: Radi Sultan - UBS AG - Analyst : Awesome. I know it's been great to see the business stabilize and look forward to checking back in this time next year. Thank you so much guys for being here.