TDC net income +661% on $480M SAP settlement as operations swing to $36M loss

Filed May 6, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 7, 2025 · ~2 min read

Key Changes

• high

  Net income surged to $335M from $44M, driven by $480M SAP settlement ($280M after-tax). Operating income swung to -$36M from +$66M as $121M in settlement legal fees overwhelmed the business. The earnings gain came entirely from below-the-line items (+$393M net: non-operating/other +$481M, income tax -$88M), not operations.

  MD&A: SAP Settlement & Operating Results verify on EDGAR →
• high

  Recurring revenue grew 12% (vs -8% prior year) and gross margin expanded 290 bp to 62.2%, driven by higher-margin subscription mix (90% of revenue). Total ARR turned positive at +3% after a year of decline, signaling stabilization in the core business.

  MD&A: Revenue & Margins verify on EDGAR →
• medium

  Public Cloud ARR growth decelerated to 13% from 15%, though absolute dollar gains held steady at ~$80M. Company discontinued reporting Cloud Net Expansion Rate (was 115%), removing visibility into same-customer expansion trends as the cloud business matures.

  MD&A: Cloud Metrics verify on EDGAR →