Temenos ( (TMNSF) ) has released its Q3 earnings. Here is a breakdown of the information Temenos presented to its investors.
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Temenos AG is a global leader in banking technology, offering a comprehensive suite of core banking and modular solutions that modernize the banking industry through AI-enhanced experiences, catering to banks of all sizes with flexible deployment options.
In its latest earnings report for Q3 2025, Temenos announced strong financial results, with significant growth across key metrics and an upward revision of its full-year guidance. The company highlighted its robust sales momentum and successful strategic investments, despite a stable sales environment with no disruptions from US bank credit concerns.
Key financial highlights include an 11% year-on-year increase in Annual Recurring Revenue (ARR) to USD 811 million, a 36% rise in non-IFRS EBIT, and a 41% increase in non-IFRS EPS. The company also reported a 30% increase in free cash flow to USD 29 million. Temenos raised its FY-25 guidance, expecting subscription and SaaS growth of at least 7%, EBIT growth of at least 14%, and EPS growth of 15-17%.
The company continues to invest in its business, with plans to increase its sales headcount by 50% by year-end and expand its AI initiatives. Temenos completed a CHF 250 million share buyback, representing 5.5% of its share capital, which will be proposed for cancellation at the 2026 AGM.
Looking ahead, Temenos remains cautious but optimistic, with expectations of large deals in Q4 2025. The company is confident in its strategic direction and financial targets, reaffirming its FY-28 goals while actively searching for a new CEO to lead its continued growth.