SAP Legal Battle Ends as Teradata Secures $480 Million Settlement

A long-running courtroom dispute closes with a major payout, marking a decisive moment for SAP and Teradata.

In a significant development for the enterprise software industry, Teradata Corporation has reached a comprehensive legal settlement with SAP, bringing an end to all past and pending litigation between the two companies. The agreement, which became effective on February 19, 2026, closes a chapter that had drawn attention across the technology sector.

Under the terms of the settlement, SAP will pay Teradata a gross amount of $480 million within 60 days. After accounting for legal fees and related expenses, Teradata expects to receive between $355 million and $362 million in net cash before taxes.

The dispute, which had involved multiple claims and counterclaims, will now be formally dismissed once the payment is completed. Both parties have agreed to request that the court close the case permanently, ensuring there are no further legal proceedings tied to the matter.

“This settlement allows us to move forward with clarity and focus,” Teradata said in its official filing. While the company has not yet detailed how it will use the funds, it confirmed that further information will be shared during its first-quarter 2026 earnings call.

For SAP, the resolution removes legal uncertainty. For Teradata, the settlement represents not just financial gain, but the opportunity to redirect attention toward growth and innovation in the competitive enterprise technology market.