EarningsQ1 2026 Earnings Report
MX:TEMNN Q1 2026 EPS Results
Actual EPS$16.34
Consensus EPS$15.75
Beat/MissBeat by +$0.60
One Year Ago EPS$14.71
MX:TEMNN Q1 2026 Revenue Results
Actual Revenue$4.34B
Expected Revenue$4.50B
Beat/MissMissed by -$161.00M
YoY Revenue Growth-5.03%
Earnings Announcement Details
QuarterQ1 2026
Date02/24/2026
TimeTBA
Conference CallTuesday, February 24, 2026
MX:TEMNN Upcoming Earnings
Temenos's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q1 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q1 2026 Earnings Slide Deck
Q1 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong recurring revenue growth (ARR +13%), above‑market product revenue (+14%), robust profitability expansion (EBIT & EPS +20%), healthy free cash flow (+22%) and confirmed guidance/2028 targets. Key operational achievements include notable regional wins (Middle East & Africa), U.S. pipeline progress, AI product momentum and senior hires including a new CFO. Principal negatives were the one‑off BNPL termination headwind, a U.S. performance that is not yet translating into signed large deals, increased investment and R&D spend, and unchanged prudent guidance due to macro/geopolitical uncertainties. Overall, the positive financial and operational metrics and reconfirmed targets materially outweigh the manageable headwinds and uncertainties discussed.Company Guidance
Strong ARR and Recurring Revenue Growth
ARR reached $860 million with ARR growth of 13% year‑on‑year, providing strong visibility on future recurring revenue and cash flow.
Above‑Market Product Revenue Expansion
Product revenue grew 14% year‑on‑year, described as well above the market run rate, driven by subscription, SaaS and maintenance momentum.
Subscription & SaaS and Total Revenue Momentum
Subscription and SaaS revenue grew 12% in Q1 and total revenue grew 13% in the quarter, with broad‑based growth across client tiers, products and geographies.
High Maintenance Growth and Upsells
Maintenance revenue grew 15% in Q1, supported by premium maintenance signings and successful upsell activity; full‑year maintenance guidance remained prudent at 7%–8%.
Profitability Leverage and Margin Expansion
Non‑IFRS EBIT and EPS each increased 20% in Q1. EBIT margin improved by 190 basis points to 32.7% year‑on‑year, reflecting operational leverage and efficiency gains.
Net Profit, EPS and Free Cash Flow Strength
Net profit increased 19% and EPS increased 20% year‑on‑year. Free cash flow was $60 million, up 22% YoY, with strong operating cash generation of $204 million in the quarter.
Balance Sheet and Capital Allocation Discipline
Leverage stood at 1.3x (within 1.0–1.5x target). Net debt was $609 million. Completed share buybacks (CHF100m in April 2026; prior CHF250m in Aug 2025) and canceled prior buyback shares to support EPS and capital efficiency.
Confirmed Guidance and Multi‑Year Targets
Management reconfirmed 2026 guidance and 2028 targets, explicitly including the one‑off headwind from a BNPL client termination with no further headwind expected beyond 2026.
Commercial Momentum and Notable Deal Wins
Good sales performance in Middle East & Africa and momentum in the U.S.; highlighted wins include Al Salam Bank (Bahrain) go‑live on core, Tier‑1 bank expansions in Japan, a Swiss private bank payments expansion, SaaS extension in GCC and a multi‑product deal in APAC (core, payments, FCM).
Product & AI Progress and Talent Additions
On track for several product launches in Q2 across core, digital, AI and composability; continued AI tooling rollout (including Anthropic in product teams). Hired senior sales/product executives and announced new CFO Daniel Schmucki (joining Aug 3).
MX:TEMNN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed