Technology
Dolby Laboratories Reports Second Quarter 2025 Financial Results
Published
1 year agoon
By
SAN FRANCISCO, May 1, 2025 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the second quarter of fiscal 2025.
“We had a strong second quarter with continued momentum across our end markets, especially in Auto and Mobile,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “While there is economic uncertainty, we are well positioned to operate across a range of scenarios. We are in a strong financial position, we continue to see strong engagement from our ecosystem, and we remain focused on driving long-term growth.”
Second Quarter Fiscal 2025 Financial Highlights
Total revenue was $370 million, compared to $365 million for the second quarter of fiscal 2024.GAAP net income was $92 million or $0.94 per diluted share, compared to GAAP net income of $98 million or $1.01 per diluted share for the second quarter of fiscal 2024. On a non-GAAP basis, second quarter net income was $131 million or $1.34 per diluted share, compared to $123 million or $1.27 per diluted share for the second quarter of fiscal 2024.Dolby repurchased approximately 429,000 shares of its common stock for approximately $35 million, and ended the quarter with approximately $352 million of stock repurchase authorization available going forward.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
The Super Bowl and March Madness were available in Dolby Atmos and Dolby Vision.In the UK, Sky released the Sky Glass Gen 2 TV that supports Dolby Vision and a Dolby Atmos soundbar built into the TV.LG announced the evo C5 and G5 TVs with Dolby Atmos and Dolby Vision.Waipu.tv, a market leader in IPTV/OTT in Germany, announced support for Dolby Atmos and Dolby Vision.TOD, a leading streaming platform for sports and entertainment in the Middle East and Northern Africa, launched a 4K set-top box supporting Dolby Atmos and Dolby Vision.OPPO launched the Find X8 Ultra, Find X8s, and Find X8s+, all supporting Dolby Vision capture and playback.Sonos, Vizio, and Teufel released soundbars that support Dolby Atmos.Porsche announced that Dolby Atmos will be supported in the Taycan, the Panamera, the Cayenne, and the 911 in the 2026 models.Cadillac announced that its entire EV lineup in 2026 will support Dolby Atmos.Volvo, Xiaomi, and Hyundai recently announced new vehicle models that support our technologies.Dolby Laboratories and AMC Entertainment announced an expansion of their partnership that will add 40 Dolby Cinema screens at select locations nationwide by 2027.
Dividend
Today, Dolby announced a cash dividend of $0.33 per share of Class A and Class B common stock, payable on May 21, 2025, to stockholders of record as of the close of business on May 13, 2025.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including developments concerning trade restrictions and changes in trade or diplomatic relationships, supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2025, to be filed on or around the date hereof.
Dolby is providing the following estimates for its third quarter of fiscal 2025:
Total revenue is estimated to range from $290 million to $320 million.Licensing revenue is estimated to range from $265 million to $295 million.Gross margins are anticipated to be approximately 86% on a GAAP basis and approximately 88% on a non-GAAP basis.Operating expenses are anticipated to range from $225 million to $235 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.Effective tax rate is anticipated to be around 23% on a GAAP basis and around 20.5% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.26 to $0.41 on a GAAP basis and from $0.62 to $0.77 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2025:
Total revenue is expected to range from $1.31 billion to $1.38 billion.Licensing revenue is estimated to range from $1.21 billion to $1.28 billion.Gross margins are anticipated to be approximately 87% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $905 million to $920 million on a GAAP basis and from $760 million to $775 million on a non-GAAP basis.Dolby expects operating margins to be roughly 20% on a GAAP basis and to be roughly 33% on a non-GAAP basis.Effective tax rate is anticipated to be around 22.5% on a GAAP basis and around 20.0% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.31 to $2.46 on a GAAP basis and from $3.88 to $4.03 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss second quarter fiscal 2025 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, May 1, 2025. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-888-210-2212 (+1-646-960-0390 for international callers) and entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Thursday, May 1, 2025, until 8:59 p.m. PT (11:59 p.m. ET) on Thursday, May 8, 2025 by dialing 1-800-770-2030 (+1-647-362-9199 for international callers) and entering the confirmation code 5587811. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the third quarter of fiscal 2025 and full year fiscal 2025, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Quarterly Report on Form 10-Q filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. Dolby partners with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby OptiView.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby OptiView, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
March 28,
2025
March 29,
2024
March 28,
2025
March 29,
2024
Revenue:
Licensing
$ 346,006
$ 338,240
$ 676,485
$ 632,007
Products and services
23,555
26,283
50,075
48,090
Total revenue
369,561
364,523
726,560
680,097
Cost of revenue:
Cost of licensing
19,685
15,318
40,795
31,054
Cost of products and services
16,152
23,459
35,816
39,783
Total cost of revenue
35,837
38,777
76,611
70,837
Gross profit
333,724
325,746
649,949
609,260
Operating expenses:
Research and development
61,707
62,493
128,345
129,526
Sales and marketing
89,629
90,038
184,028
169,041
General and administrative
70,415
66,742
140,507
131,908
Restructuring charges/(credits)
4,210
(2,495)
9,426
3,596
Total operating expenses
225,961
216,778
462,306
434,071
Operating income
107,763
108,968
187,643
175,189
Other income/(expense):
Interest income/(expense), net
3,559
8,597
6,205
17,784
Other income, net
8,928
4,183
12,453
9,608
Total other income
12,487
12,780
18,658
27,392
Income before income taxes
120,250
121,748
206,301
202,581
Provision for income taxes
(28,024)
(23,534)
(46,005)
(36,786)
Net income including noncontrolling interest
92,226
98,214
160,296
165,795
Less: net income attributable to noncontrolling interest
(433)
(384)
(681)
(984)
Net income attributable to Dolby Laboratories, Inc.
$ 91,793
$ 97,830
$ 159,615
$ 164,811
Net income per share:
Basic
$ 0.95
$ 1.02
$ 1.66
$ 1.72
Diluted
$ 0.94
$ 1.01
$ 1.64
$ 1.69
Weighted-average shares outstanding:
Basic
96,329
95,718
95,972
95,547
Diluted
97,471
96,856
97,581
97,397
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
March 28,
2025
September 27,
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 626,551
$ 482,047
Restricted cash
123,791
95,705
Accounts receivable, net
314,114
315,465
Contract assets, net
230,352
197,478
Inventories, net
34,594
33,728
Prepaid expenses and other current assets
59,878
69,994
Total current assets
1,389,280
1,194,417
Long-term investments
73,757
89,267
Property, plant, and equipment, net
472,663
479,109
Operating lease right-of-use assets
34,086
39,046
Goodwill and intangible assets, net
937,083
967,722
Deferred taxes
223,410
219,758
Other non-current assets
98,757
120,609
Total assets
$ 3,229,036
$ 3,109,928
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 17,288
$ 17,380
Accrued liabilities
376,498
347,529
Income taxes payable
13,309
9,045
Contract liabilities
39,615
31,644
Operating lease liabilities
10,775
12,238
Total current liabilities
457,485
417,836
Non-current contract liabilities
29,664
34,593
Non-current operating lease liabilities
29,656
34,754
Other non-current liabilities
129,212
135,852
Total liabilities
646,017
623,035
Stockholders’ equity:
Class A common stock
55
53
Class B common stock
40
41
Retained earnings
2,601,552
2,496,255
Accumulated other comprehensive loss
(27,978)
(19,187)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,573,669
2,477,162
Noncontrolling interest
9,350
9,731
Total stockholders’ equity
2,583,019
2,486,893
Total liabilities and stockholders’ equity
$ 3,229,036
$ 3,109,928
DOLBY LABORATORIES, INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year-To-Date Ended
March 28,
2025
March 29,
2024
Operating activities:
Net income including noncontrolling interest
$ 160,296
$ 165,795
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
43,899
35,890
Stock-based compensation
66,734
60,809
Amortization of operating lease right-of-use assets
5,725
5,847
Amortization of premium on investments
—
(1,757)
Provision for/(benefit from) credit losses
1,967
(1,454)
Deferred income taxes
(3,741)
(6,779)
Other non-cash items affecting net income
(13,844)
(2,500)
Changes in operating assets and liabilities:
Accounts receivable, net
(420)
(18,509)
Contract assets, net
(32,864)
(61,008)
Inventories
(1,155)
(7,836)
Operating lease right-of-use assets
(1,608)
(7,848)
Prepaid expenses and other assets
38,653
33,527
Accounts payable and accrued liabilities
27,267
3,923
Income taxes, net
5,906
5,215
Contract liabilities
3,282
2,651
Operating lease liabilities
(5,682)
1,028
Other non-current liabilities
(12,739)
(17,176)
Net cash provided by operating activities
281,676
189,818
Investing activities:
Purchases of marketable securities
—
(104,135)
Proceeds from sales of marketable securities
15,911
4,451
Proceeds from maturities of marketable securities
—
97,459
Proceeds from sale of assets held for sale
16,881
—
Purchases of property, plant, and equipment
(13,676)
(15,015)
Business combinations, net of cash and restricted cash acquired, and other related payments
(1,362)
—
Net cash provided by/(used in) investing activities
17,754
(17,240)
Financing activities:
Proceeds from issuance of common stock
26,124
29,345
Repurchase of common stock
(49,999)
(104,999)
Payment of excise tax on repurchase of common stock
(261)
—
Payment of cash dividend
(63,377)
(57,268)
Distributions to noncontrolling interest
(981)
(1,047)
Shares repurchased for tax withholdings on vesting of restricted stock
(33,950)
(36,054)
Equity issued in connection with business combination
—
722
Net cash used in financing activities
(122,444)
(169,301)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
(4,396)
3,113
Net increase in cash, cash equivalents, and restricted cash
172,590
6,390
Cash, cash equivalents, and restricted cash at beginning of period
577,752
817,966
Cash, cash equivalents, and restricted cash at end of period
$ 750,342
$ 824,356
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year-To-Date Ended
Market
March 28, 2025
March 29, 2024
March 28, 2025
March 29, 2024
Broadcast
$ 94,249
27 %
$ 105,480
31 %
$ 210,011
31 %
$ 217,896
34 %
Mobile
100,123
29 %
88,690
26 %
161,647
24 %
123,977
20 %
CE
38,140
11 %
42,221
12 %
87,597
13 %
95,441
15 %
PC
58,402
17 %
49,938
15 %
89,658
13 %
79,617
13 %
Other
55,092
16 %
51,911
16 %
127,572
19 %
115,076
18 %
Total licensing revenue
$ 346,006
100 %
$ 338,240
100 %
$ 676,485
100 %
$ 632,007
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the second quarters of fiscal 2025 and fiscal 2024:
Net income:
Fiscal Quarter Ended
(in thousands)
March 28,
2025
March 29,
2024
GAAP net income attributable to Dolby Laboratories, Inc.
$ 91,793
$ 97,830
Stock-based compensation (1)
30,664
28,915
Amortization of acquisition-related intangibles (2)
10,078
3,031
Restructuring charges/(credits)
4,210
(2,495)
Income tax adjustments
(6,017)
(4,091)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 130,728
$ 123,190
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 414
$ 356
Research and development
9,043
8,949
Sales and marketing
10,640
9,927
General and administrative
10,567
9,683
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 6,720
$ (15)
Cost of products and services
728
524
Sales and marketing
317
650
General and administrative
1,872
1,872
Other income, net
441
—
Diluted earnings per share:
Fiscal Quarter Ended
March 28,
2025
March 29,
2024
GAAP diluted earnings per share
$ 0.94
$ 1.01
Stock-based compensation
0.32
0.30
Amortization of acquisition-related intangibles
0.10
0.03
Restructuring charges
0.04
(0.03)
Income tax adjustments
(0.06)
(0.04)
Non-GAAP diluted earnings per share
$ 1.34
$ 1.27
Weighted-average shares outstanding – diluted (in thousands)
97,471
96,856
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the third quarter of fiscal 2025 and full year fiscal 2025 included in this release:
Gross margin:
Q3 2025
Fiscal 2025
GAAP gross margin
86.0 %
87.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
1.9 %
2.9 %
Non-GAAP gross margin
88.0 %
90.0 %
Operating expenses (in millions):
Q3 2025
Fiscal 2025
GAAP operating expenses (low – high end of range)
$225 – $235
$905 – $920
Stock-based compensation
(32)
(127)
Amortization of acquisition-related intangibles
(3)
(9)
Restructuring charges
—
(9)
Non-GAAP operating expenses (low – high end of range)
$190 – $200
$760 – $775
Operating margin:
Fiscal 2025
GAAP operating margin
20% +/-
Stock-based compensation
9 %
Amortization of acquisition-related intangibles
3 %
Restructuring charges
1 %
Non-GAAP operating margin
33% +/-
Effective tax rate:
Q3 2025
Fiscal 2025
GAAP effective tax rate
23.0 %
22.5 %
Stock-based compensation (low – high end of range)
(2%) – 0%
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of range)
(1%) – 0%
(1%) – 0%
Non-GAAP effective tax rate
20.5 %
20.0 %
Diluted earnings per share:
Q3 2025
Fiscal 2025
Low
High
Low
High
GAAP diluted earnings per share (low – high end of range)
$ 0.26
$ 0.41
$ 2.31
$ 2.46
Stock-based compensation
0.33
0.33
1.34
1.34
Amortization of acquisition-related intangibles
0.11
0.11
0.42
0.42
Restructuring charges
—
—
0.10
0.10
Income tax adjustments
(0.08)
(0.08)
(0.29)
(0.29)
Non-GAAP diluted earnings per share (low – high end of range)
$ 0.62
$ 0.77
$ 3.88
$ 4.03
Weighted-average shares outstanding – diluted (in thousands)
96,900
96,900
97,200
97,200
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
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SOURCE Dolby Laboratories, Inc.
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Privacy Protection
Access control determines who can see sensitive data. Identity reduction changes how much identifying information needs to be present in the analytical environment in the first place. Teradata combines both, through an OEM partnership with Anonomatic, whose privacy capabilities are natively available to Teradata customers.
Poly-Anonymization replaces PII fields with a stable identifier while holding underlying identity separately within Anonomatic PII Vault, a post-quantum-secure environment built with multiple layers of overlapping security controls designed to protect sensitive identity information. Authorized users can restore identity when a legitimate use case requires it, but everyone else works with data that retains its analytical structure, its relationships, and its utility. The result is an analytical environment where sensitive data can be used for AI, analytics, testing, and approved collaboration without broadly exposing who the data is about.
Unlike approaches that rely solely on mathematically reversible encryption, PII Vault combines identity separation, Poly-Anonymization, access controls, and additional layered protections to reduce identity exposure while retaining the utility required for AI and analytics. Format-preserving encryption extends that protection to situations where a value’s structure matters to downstream systems, protecting sensitive data without breaking the applications and workflows built around it.
Testing at large scale demonstrated that Teradata’s Anonomatic-powered privacy-preserving controls can support enterprise analytical workloads without the performance tradeoffs organizations typically associate with data privacy. Multi-table join queries on protected data used fewer Teradata resources than equivalent queries on unprotected data, though results will vary by workload and configuration.
Partner Quote
“Enterprise AI creates a fundamentally different privacy challenge. Organizations need to use sensitive, individual-level data to build effective AI, but the traditional tools for protecting that data weren’t designed to preserve what AI needs to work. Our partnership with Teradata makes it possible to reduce identity exposure at enterprise scale without forcing organizations to choose between protection and utility.”
-Matt Fleck, Founder and CEO at Anonomatic, a data security software company focused on making PII data privacy secure, simple and cost effective
Native Data Security
Protection that follows the data requires controls enforced at the data layer, not just at the systems surrounding it. Teradata applies classification, policy enforcement, and access controls closer to the data itself. Together, these capabilities provide a governance-led foundation for protecting data and intelligence across users, applications, and workloads.
For data in transit, Teradata introduces post-quantum protection via TLS 1.3 hybrid-key exchange, which combines classical and post-quantum cryptographic algorithms in a single handshake. As quantum computing advances make current encryption standards increasingly vulnerable, organizations that establish cryptographic readiness now will be better positioned for what’s ahead.
New native capabilities including dynamic data masking, data classification and tagging, column-level encryption, and global identity extend that protection across the data layer. Through a partnership with Immuta, a data authorization platform between identity and enterprise data, dynamic ABAC brings identity-aware, attribute-driven access control that enforces policy consistently across users and AI workloads without duplicating data or rewriting governance rules.
Teradata’s security architecture is designed to extend as AI environments evolve, with ongoing investment in controls that govern how AI agents access and act on enterprise data within policy boundaries.
Enterprise Data Protection
For enterprises running AI at scale, a cyberattack is a threat to the data, context, and operational knowledge that AI depends on to function. Teradata Enterprise Data Protection addresses that reality through a workload-aligned approach that lets organizations match protection levels to business criticality rather than applying the same resiliency architecture to every workload. The objective is not simply to restore data, but to restore the trusted context AI needs to resume mission-critical operations.
Database-level high availability via real-time replication introduces an additional availability layer designed for continuous synchronization and low recovery objectives.
Immutable backup protection strengthens cyber-recovery readiness by ensuring recovery points cannot be modified, encrypted, or deleted, even by privileged administrators. As ransomware increasingly targets backup data specifically, protected recovery points have become as critical as the protection strategies built around them. Teradata’s resiliency architecture is designed to extend as cyber threats and recovery requirements evolve.
Additional capabilities including backup and recovery, scheduled data synchronization, and disaster recovery round out a more consistent Enterprise Data Protection experience.
Availability
Privacy capabilities, powered by Anonomatic and delivered by Teradata, are available now for Teradata Cloud on AWS, Azure, and Google Cloud.Native data security capabilities including dynamic data masking, data classification and tagging, and column-level encryption are available on Teradata Cloud across AWS, Azure, and Google Cloud. Dynamic data masking, data classification and tagging are available for Teradata Factory and on-premises deployment options.Teradata Enterprise Data Protection including immutable backup protection is available now on Teradata Cloud across AWS, Azure, and Google Cloud with availability on Teradata Customer Cloud planned in the coming months.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s privacy, security, and resiliency capabilities. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
Poly-Anonymization and PII Vault are registered trademarks of Anonomatic, Inc.
MEDIA CONTACT
Jennifer Donahue
Jennifer.Donahue@Teradata.com
View original content:https://www.prnewswire.com/news-releases/teradata-introduces-new-privacy-security-and-resiliency-capabilities-as-ai-forces-change-in-enterprise-data-protection-302913579.html
SOURCE Teradata
Technology
Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments
Published
21 minutes agoon
October 20, 2026By
New Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud capabilities give enterprises greater control over where their most sensitive data and AI operate
SAN DIEGO, Oct. 20, 2026 /PRNewswire/ — Teradata (NYSE: TDC) today announced a portfolio of deployment and platform capabilities designed to give governments and enterprises greater control over the data, AI, and technology that power their most critical operations. This includes expanded capabilities for Teradata Factory with AI Studio and the availability of Teradata Sovereign Cloud on Google Distributed Cloud air-gapped environment.
What’s New
Teradata’s portfolio spans two complementary deployment models designed to address different sovereignty requirements.
The expanded capabilities for Teradata Factory with AI Studio bring a unified AI environment to operate on data, vectors, models, and agents directly into customer-controlled on-premises infrastructure. These capabilities include:
Tera, the agentic coworker for enterprise data work, including Tera Harness and Tera Context EngineAgentStack, the complete AI agent development capabilities to build, manage, observe and operate agents through natural language, pro-code, low-code, and Model Context Protocol (MCP) interfacesModel services, which provide machine learning operations and AI model management with pre-integrated model and bring-your-own-model supportData pipelines for ingesting multimodal unstructured data, vector embeddings, vector storage and hybrid search for RAGAnalytics, native notebooks backed by in-database analytics and Teradata’s Elastic Python Compute, built on Ray and Arrow, bring AI to where data lives
Teradata Sovereign Cloud on Google Distributed Cloud air-gapped brings Teradata’s high-performance enterprise-scale analytics into fully isolated environments. Key benefits of running Teradata Sovereign Cloud on Google Distributed Cloud air-gapped include:
Full isolation: Deploy Teradata in an air-gapped environment with no external connectivity— keeping classified and regulated data fully containedSecurity and compliance: Meet stringent regulatory requirements while maintaining complete audit trails and governanceHigh-performance analytics and AI at scale: Run complex queries across billions of rows and petabytes of data with predictable performance
Why it Matters
Research points to growing urgency. According to a 2026 BARC global study of 320 business and IT decision-makers, 62 percent of organizations cite data and AI in core business processes as a key driver of sovereignty requirements. A separate IBM study found that 91 percent of executives say they do not fully understand their organization’s dependencies across AI vendors, models and infrastructure. And Gartner predicts that by 2030, more than 75 percent of enterprises outside the United States will have a digital sovereignty strategy, supported by a sovereign cloud strategy.
As AI moves into mission-critical operations, sovereignty is no longer only about where data resides. Organizations must also consider where AI runs, which models are used, how enterprise information is accessed, who operates the environment, and which external technologies their AI depends on.
This is particularly relevant for governments, defense organizations, regulated industries and critical infrastructure, where data residency, privacy, jurisdiction, operational continuity or national-security requirements can limit the use of traditional public-cloud AI services.
Teradata frames sovereignty across three dimensions: data sovereignty (where data lives and who can access it), operational sovereignty (who controls the environment and whether it can operate independently), and digital sovereignty (which technologies and AI models the organization depends on). An organization can satisfy data residency requirements and still lack full sovereignty if AI processing occurs externally, external administrators can access the environment, or operations stop when public connectivity is unavailable.
Teradata’s sovereign portfolio is designed to address these requirements, bringing enterprise analytics and AI inside the boundaries that organizations control.
The Deployment Portfolio
Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped address different sovereignty requirements.
Teradata Factory is an integrated hardware and software rack that brings a private enterprise data and AI environment into customer-controlled on-premises infrastructure. It is designed for organizations that require direct physical control over their infrastructure and AI execution.
Teradata Sovereign Cloud on Google Distributed Cloud air-gapped provides a cloud operating model inside a sovereign boundary. The environment has no connection to the public internet and is operated by the customer. It is designed for organizations that need the operational model of cloud within a fully isolated, sovereign environment. Teradata provides the enterprise analytics layer within the air-gapped boundary, enabling organizations to support use cases such as operational reporting, mission analysis, intelligence fusion, training and simulation analytics, and defense logistics and sustainment inside the sovereign boundary.
Together, Teradata Factory and Teradata Sovereign Cloud on Google Distributed Cloud air-gapped support a hybrid approach to sovereign deployment, giving organizations the flexibility to run enterprise analytics and AI inside whichever boundary their requirements demand.
Executive Perspectives
“As AI becomes embedded in mission-critical decisions, organizations can no longer treat sovereignty as a data-location requirement. They need control over where AI runs, which models are used, who can operate the environment, and whether critical workloads can continue if external connectivity disappears. And increasingly, sovereignty is not a single location. It is an architecture that spans public cloud, sovereign cloud, and on-premises infrastructure. Teradata is uniquely built for that reality. We can run in all of those environments, connect them through Teradata Fabric without requiring data to move, and give organizations the freedom to choose the AI models and infrastructure that work for them.”
— Sumeet Arora, Chief Product Officer, Teradata
“Google Distributed Cloud is purpose-built, air-gapped infrastructure that delivers complete technical, operational and software sovereignty. By combining Google Distributed Cloud’s sovereign infrastructure with Teradata’s AI and knowledge capabilities, we are giving enterprise customers in regulated industries the ability to innovate without sacrificing control over their data.”
— Muninder Singh Sambi, VP of Product Management, Google Distributed Cloud
Availability
The expanded Teradata sovereign capabilities for Teradata Factory with AI Studio will be available in Q1 2027. Teradata Sovereign Cloud on Google Distributed Cloud air-gapped is available in Private Preview.
About Teradata
Teradata empowers enterprises to turn intelligence into autonomous action, grounding AI agents in deep business context and trusted data. As AI agents multiply, Teradata is the context foundation, governance layer, and performance backbone that companies need now. The Teradata Autonomous Knowledge Platform puts AI into production across cloud, on-premises, and hybrid environments.
Teradata Forward-Looking Statements
This press release contains “forward-looking statements” about the expectations, beliefs, plans, and intentions relating to Teradata’s sovereign portfolio. Such statements include statements regarding future product availability, capabilities, and offerings, and expected benefits to Teradata customers. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Teradata’s results could differ materially from the results expressed or implied by the forward-looking statements made. Teradata undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the planned product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether customer adoption will justify the investments in the product capabilities and offerings. Further information on factors that could affect Teradata’s financial and other results is included in the filings Teradata makes with the Securities and Exchange Commission from time to time.
The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.
MEDIA CONTACT
January Machold
January.Machold@Teradata.com
View original content:https://www.prnewswire.com/news-releases/teradata-expands-sovereign-ai-across-on-premises-and-air-gapped-cloud-environments-302913587.html
SOURCE Teradata Corporation
Technology
State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel
Published
22 minutes agoon
October 20, 2026By
Drivefulness™ research explores the human side of a nearly $100 billion roadway risk
BLOOMINGTON, Ill., Oct. 20, 2026 /PRNewswire/ — As vehicles become more connected and technology-enabled, the challenge of distracted driving is becoming more complex across the country. The question is no longer simply what distracts drivers, but understanding why people make certain choices behind the wheel and how technology may influence those decisions.
State Farm® and the MIT AgeLab are exploring those questions through a research initiative examining driver attention, distraction, and the behaviors that influence decision-making behind the wheel. Researchers have coined the term “drivefulness” to describe a state in which a driver is safe, aware, appropriately engaged, and ready to respond to the road, while being supported in having the best possible driving experience for them.
The study brings together State Farm’s decades of experience understanding crash risk, driver behavior, and the real-world consequences of distraction with MIT AWARE initiative’s multidisciplinary research expertise in transportation safety, human factors, behavioral science, and how people interact with technology.
Distracted driving carries significant human and economic consequences. According to U.S. Department of Transportation research, distraction was involved in 29% of motor vehicle crashes studied, contributing to more than 10,000 deaths, 1.3 million injuries, and an estimated $98.2 billion in economic costs.
Understanding the relationship among driver attention, distraction, and behaviors could help inform how automakers, organizations, regulators, and insurers approach roadway safety, risk prevention, and the design of future driving experiences.
“Distracted driving is not simply about whether a driver knows what is safe or unsafe. It reflects a much more complex interaction between the driver’s state, the demands of the driving environment, and the technologies that compete for or support their attention,” said Dr. Pnina Gershon of the MIT AgeLab. “With this research, we are looking beyond individual moments of distraction to understand what drivers need to be prepared, attentive, and appropriately engaged during the driving task. That allows us to think differently about safety and about how technology, information, and interventions can support drivers before, during, and after the drive.”
Dr. Gershon is the director of the MIT AWARE initiative and a co-director of the MIT Advanced Vehicle Technology Consortium. With more than two decades of research experience, she leads work at the intersection of driving safety, human behavior, health, and human-centered AI. Her research uses sensing, real-world data, and behavioral analytics to understand human states and to develop technologies and interventions that support safer, more effective interactions between people and increasingly automated systems.
Understanding the behavior behind the risk
Drivers may know distraction is dangerous, but State Farm research shows that knowledge doesn’t always change what happens behind the wheel. Sixty-eight percent of drivers admit to engaging in distracting behaviors while driving, and 44% say they have crashed or experienced a near-crash while doing so.
Perception may be part of the challenge. Sixty-two percent of drivers believe taking their eyes off the road for two or more seconds is safe, even though a two-second glance away doubles crash risk.
“Technology is changing the driving experience, creating new opportunities to better understand and support drivers,” said Jeff Legner, technology executive at State Farm. “The more we learn about how people interact with technology behind the wheel, the better positioned we are to anticipate evolving risks, improve driver experiences and explore new approaches to accident prevention. This research can help turn those insights into meaningful ways to support drivers before, during and after every drive.”
Combining real-world risk with behavioral science
State Farm has worked to address distracted driving from multiple angles, including advocating for stronger hands-free laws, supporting cross-industry safety research and advancing technology that can help drivers better understand their behavior. That work includes telematics-based tools for customers and collaboration with companies such as Cambridge Mobile Telematics to explore how technology and data can help reduce roadway risk. The MIT AgeLab brings deep expertise in understanding the human side of a rapidly changing driving environment.
The collaboration builds on an established research relationship between State Farm and MIT, including State Farm’s participation in the MIT Advanced Vehicle Technology Consortium, which studies how drivers interact with increasingly automated and technology-enabled vehicles.
First findings expected in October
The first phase of the research is focused on establishing a deeper understanding of how people perceive and manage attention behind the wheel.
Findings from the first phase of the drivefulness study are expected later in October 2026, providing an early look at what the research is uncovering about driver attention, distraction and behavior through consumer survey findings.
The findings will help inform the next phase of drivefulness research, beginning in January 2027, on how people, technology and the driving environment can work together to support safer driving.
About State Farm®
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. State Farm Mutual Automobile Insurance Company and its affiliates are the largest providers of auto and home insurance combined in the United States. Its more than 19,200 agent offices and over 62,000 employees serve over 96 million policies and accounts – including auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the 2025 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.
About the AWARE initiative at the MIT AgeLab
AWARE is an MIT research initiative focused on developing intelligent vehicle systems that can better understand drivers and support them in real-world conditions. Based at the MIT AgeLab and Center for Transportation & Logistics, AWARE brings together naturalistic driving research, advanced simulation, behavioral science, and artificial intelligence to study how driver state, behavior, and context interact across the driving journey. Its research examines areas such as distraction, fatigue, impairment, workload, automation use, driver monitoring, and human-machine interaction, with the goal of moving beyond simply detecting driver behavior toward systems that can sense, interpret, respond, and promote safer and more appropriate driver engagement. Through this work, AWARE is building the evidence and methods needed to support the next generation of adaptive, human-centered mobility technologies. For more information about AWARE, visit https://ctl.mit.edu/aware-initiative, and about the AgeLab, visit https://agelab.mit.edu/.
View original content to download multimedia:https://www.prnewswire.com/news-releases/state-farm-and-mit-agelab-collaborate-to-study-whats-driving-distraction-behind-the-wheel-302913331.html
SOURCE State Farm
Teradata Introduces New Privacy, Security, and Resiliency Capabilities as AI Forces Change in Enterprise Data Protection
Teradata Expands Sovereign AI Across On-Premises and Air-Gapped Cloud Environments
State Farm® and MIT AgeLab Collaborate to Study What’s Driving Distraction Behind the Wheel
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