Teradata Corporation and SAP SE finalized a settlement agreement effective February 19, 2026, and publicly announced the deal on February 23, 2026. The agreement provides Teradata with a $480 million gross payment, which is expected to translate into a net cash benefit of approximately $355 million to $362 million before taxes after accounting for contingent fees and legal costs.
The dispute that led to the settlement began in 2018, when Teradata alleged that SAP had misappropriated its trade secrets and engaged in anticompetitive practices related to the development of SAP’s HANA database. A Ninth Circuit Court of Appeals reversal of a summary judgment in December 2024 intensified pressure on both parties, ultimately prompting the settlement to avoid further litigation costs and uncertainty.
Under the terms of the settlement, both companies mutually release all claims and liabilities, and the parties agree to have the court dismiss all claims with prejudice. No admission of wrongdoing is made by either side, and the agreement includes a clause that prevents either party from pursuing additional claims related to the same matters.
Teradata’s Q4 2025 results—an earnings per share of $0.74 versus analyst expectations of $0.55 and revenue of $421 million versus $399.49 million—were bolstered by the settlement’s cash influx. Management indicated that the proceeds will be used to strengthen the balance sheet, reduce debt, and accelerate investment in its Autonomous AI and Knowledge platform. The company will detail its capital allocation plan during its first‑quarter 2026 earnings call.
SAP reported strong Q4 2025 performance, with revenue growth of 8‑11% at constant currencies and a new share‑repurchase program of up to €10 billion. The settlement’s resolution of a long‑running legal dispute is expected to improve SAP’s legal risk profile and provide additional liquidity for future strategic initiatives.
The settlement removes a significant source of legal uncertainty for Teradata, enhances its financial flexibility, and supports the company’s strategic focus on AI‑driven data analytics. By resolving the litigation, Teradata positions itself to pursue growth opportunities without the distraction of ongoing legal proceedings.
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