EarningsQ3 2026 Earnings Report
MX:TEMNN Q3 2026 EPS Results
Actual EPS$23.11
Consensus EPS$21.77
Beat/MissBeat by +$1.33
One Year Ago EPS$17.47
MX:TEMNN Q3 2026 Revenue Results
Actual Revenue$5.50B
Expected Revenue$5.54B
Beat/MissMissed by -$40.22M
YoY Revenue Growth+16.48%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeTBA
Conference CallTuesday, October 27, 2026
MX:TEMNN Upcoming Earnings
Temenos's next earnings date is estimated for February 23, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TEMNN Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Temenos reported strong ARR, revenue, profitability, free cash flow, win rates, client wins, AI-driven efficiency gains, and raised EBIT and EPS guidance. The main challenges were the subscription and SaaS revenue miss caused by one delayed African deal, the BNPL client headwind, double-digit Americas subscription and SaaS decline, large-deal timing execution, and higher leverage following the additiv acquisition. Management nevertheless maintained its full-year guidance and 2028 targets.Company Guidance
Strong Recurring Revenue and Product Growth
ARR grew 12% to $904 million, reflecting continued demand from both the installed base and new logos. Product revenue increased 14%, while total revenue grew 13%, supported by subscription and SaaS, maintenance, and services revenue.
Subscription and SaaS Momentum Excluding BNPL Headwind
Subscription and SaaS revenue grew 22% in Q3, or 30% excluding the BNPL client headwind. Win rates remained strong, all revenue that slipped from Q2 was signed, and the company said Q4 is the last quarter facing the BNPL headwind.
Strong Profitability and Operating Leverage
Non-IFRS EBIT grew 26% and non-IFRS EPS grew 32% in the quarter. EBIT margin improved by 4 percentage points year-on-year to 37.3%, reflecting operating leverage, cost efficiencies, and disciplined cost management.
Efficiency Gains from AI and Automation
Management said it achieved approximately CHF 12 million of EBIT improvement, with roughly CHF 2 million to CHF 3 million from maintenance and services and CHF 8 million to CHF 9 million from AI and automation efficiencies. These efficiency gains were described as sustainable and were partly reinvested in strategic growth areas.
Free Cash Flow Growth
Free cash flow increased 24% year-on-year to $36 million in the quarter, driven by strong ARR growth, operating profitability, and disciplined capital allocation. Operating cash flow before tax expenses was $72 million.
Raised Full-Year EBIT and EPS Guidance
The company raised full-year non-IFRS EBIT growth guidance to 12% from 9% and EPS growth guidance to 10% from 7%.
Full-Year Guidance Reconfirmed
Temenos reconfirmed guidance for 12% ARR growth, 9% subscription and SaaS revenue growth, and 16% free cash flow growth. Maintenance growth guidance was raised to 8%-9% for the full year, and the company reconfirmed its 2028 targets.
Broad Regional Sales Momentum
Europe performed particularly well, North America delivered strong SaaS performance with four new deals, and the Middle East recorded both new-logo and existing-customer wins across the Gulf region. The company also reported good pipeline growth in Brazil and Japan.
Large Global Bank and Vancity Wins
Temenos expanded its relationship with a U.S.-headquartered global bank, rolling out Temenos Core Banking across multiple private-banking geographies. It also signed Vancity, Canada's largest credit union, for a broad core-banking modernization covering retail deposits, lending, corporate banking, and payments.
Additional Tier 1 and Existing-Customer Wins
The company extended a core-banking relationship with a Tier 2 corporate bank in Europe, expanded a Tier 1 relationship in the Middle East and Africa with additional transaction-processing modules, and signed a Tier 1 APAC bank for digital wealth modernization.
Successful Client Modernization and SaaS Implementations
Bank Syariah Indonesia, serving more than 23 million customers, upgraded to the latest Temenos Core. U.K. specialist bank Kingdom Bank went live with Temenos Core, payments, and Financial Crime Mitigation on Temenos SaaS running on Microsoft Azure.
Additiv Integration and Early Commercial Traction
The additiv integration was progressing as planned, with key corporate functions being integrated while its founder-led management team continued running the business. Additiv had already been integrated with Temenos Core Banking, generated strong interest from Tier 1 and Tier 2 prospects, and signed a new Tier 1 APAC bank deal in Q3.
Continued Investment in Product, Technology, and Growth
Temenos is accelerating its product and technology roadmap, selectively investing in sales capabilities and growth markets, and continuing to invest in product and technology and go-to-market capabilities for large deals. The company is also increasing automation and simplifying processes and systems.
AI-Enabled Implementation Progress
The company has built AI agents with partners and is trialing AI-enabled deployments and upgrades for existing customers. Management said the results were already exciting, although the process still needs time to reach industrial grade.
Cyber Resilience Investment
Temenos is reinvesting in corporate IT and cybersecurity and running its software and products against the most modern frontier models on a recurring basis. Management said cyber resilience is a high-priority agenda for banks and that the company will continue investing in it.
Strong Competitive Win Rates
Management reported very good win rates over the last 12 months across most competitors. Outside the U.S., Infosys, Oracle, and Intellect were identified as prominent competitors, while FIS and Fiserv remained the main competitors in the U.S.
Capital Allocation and Capitalized Development Discipline
Temenos launched a share buyback program of up to 100 million Swiss francs running until the end of February 2027. Management said net capitalized development was expected to grow much less than revenue or EBIT in 2027 and was being kept as flat as possible, potentially declining slightly in future years.
Positive New CFO Assessment
New CFO Daniel Schmucki highlighted the quality of Temenos' people, culture, strategy, product portfolio, roadmap, client relationships, and disciplined execution. He also said he inherited a strong finance organization and plans to continue adapting AI across finance functions.
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