Temenos (TEMN) Q2 2026 earnings summary

Executive summary

• Stable sales environment in Q2 2026, with strong APAC and US momentum; large European deals slipped to Q3 but were signed with no losses.

• Double-digit growth in premium maintenance signings and free cash flow, with profitability driven by operational leverage.

• Strategic investments included senior hires, increased development headcount in India and US, and the acquisition of additiv to expand wealth and AI orchestration capabilities.

• EBIT and EPS grew double-digit in H1 2026, with EBIT margin rising to 37.2%.

• FY-26 and FY-28 guidance reconfirmed, with strong Q3-26 pipeline and visibility.

Financial highlights

• ARR grew 11% year-over-year to CHF 881 million (USD 880.6m) by Q2-26 end.

• Total revenue up 1% in Q2-26 and 6% in H1-26; H1-26 revenue reached $534.4m, up 7% year-over-year.

• Subscription and SaaS revenue declined 13% in Q2-26 and 3% in H1-26 due to deal slippage, but most revenue recovered in Q3.

• Maintenance revenue grew 14% year-over-year to $266.2m; services revenue rose 15% to $72.0m.

• Non-IFRS EBIT margin at 41.3% in Q2-26, up 1pt year-over-year; non-IFRS EPS up 7% in Q2-26.

• Free cash flow reached CHF 74 million ($74.2m) in Q2-26, up 14% year-over-year.

Outlook and guidance

• Q3-26 guidance: subscription and SaaS revenue expected to grow at least 30% year-over-year.

• FY-26 guidance: ARR +12%, subscription and SaaS +9%, EBIT +9%, EPS +7%, FCF +16%.

• FY-28 targets reconfirmed: ARR ≥ $1.23bn, EBIT ~$480m, FCF ~$410m.

• Maintenance growth guided at 8% for full year.

• Leverage expected to remain within 1x-1.5x target range by year-end, including additiv acquisition.