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EarningsQ2 2026 Earnings Report
TSE:CSU Q2 2026 EPS Results
Actual EPSC$45.10
Consensus EPSC$39.68
Beat/MissBeat by +C$5.43
One Year Ago EPSC$36.25
TSE:CSU Q2 2026 Revenue Results
Actual RevenueC$4.62B
Expected RevenueC$4.79B
Beat/MissMissed by -C$177.24M
YoY Revenue Growth+17.23%
Earnings Announcement Details
QuarterQ2 2026
Date08/11/2026
TimeAfter Close
Conference CallTuesday, August 11, 2026
TSE:CSU Upcoming Earnings
Constellation Software's next earnings date is estimated for November 6, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong execution on M&A (including larger deals and carve-outs), measurable productivity gains from AI adoption in development, improving cohort profitability and substantial cash flow from large assets like Altera. Offsetting items were near-term organic growth softness driven by a few one-off comps and customer losses, short-term profitability volatility from purchase accounting, integration complexity for large deals, and elevated multiples on some transactions. Management expects these issues to normalize and emphasized a long-term verticalization strategy and disciplined IRR targets.Company Guidance
Strong M&A Activity and Deal Flow
Elevated acquisition volume in Q2 and early Q3 including DerbySoft, TouchBistro and Imagine; management sees opportunities across owner-managers, PE portfolios and carve-outs and notes increased availability of larger deals (>$100M). No change to hurdle rates and expected IRRs remain consistent despite higher multiples.
AI Adoption Driving Development Productivity
Businesses are adopting AI tools to move faster through product backlogs and improve development productivity; management reports productivity increases across the group (not universal). Company has no AI revenue targets and is not centralizing AI spend—business units fund initiatives from their own P&Ls.
Improving Cohort Profitability Trend
2026 acquisition cohort profitability improved materially within the quarter (from ~-16% in Q1 to ~+16% in Q2). The 2025 cohort moved from mid-teens up to ~20%, and prior cohorts remain in the high-20s to 30s margins, indicating upward trajectory over time.
Altera Delivering Significant Cash Flow Despite Revenue Decline
Since acquisition in May 2022 Altera has generated approximately $400M cumulative free cash flow; TTM revenue declined from just over $800M to about $646M, but management states Altera is operating ahead of original IRR expectations.
Carve-Out Expertise and Capacity for Larger Deployments
Constellation highlights repeat experience executing corporate carve-outs from large companies, maintaining customer and employee relationships, and the ability to deploy larger amounts of capital into carve-outs given proven processes and reputation.
Actionable Financial Controls and Tracking
Finance is implementing GL accounts to track AI/token expenses going forward; current tax expense as a percentage of adjusted pre-tax income remains in the mid-20s, and cash tax volatility is attributed to timing rather than a structural change.
Verticalization Strategy to Improve Long-Term Positioning
Management is grouping businesses into coherent verticals (without functional integration) to become the obvious long-term owner in niches, enable shared learnings and accelerate AI/product adoption across related businesses; emphasis is long-term rather than near-term results.
TSE:CSU 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