Temenos Revenue Rises 13% to $292.5 Million in Third Quarter
Key Facts
Temenos said on October 27, 2026, that third-quarter revenue was $292.5 million under IFRS and $292.8 million on a non-IFRS basis, up 13% on both measures from the same period in 2025. The announcement also showed faster growth in profitability: IFRS EBIT rose to $84.8 million, up 41%, while non-IFRS EBIT reached about $109.3 million, up 29%. IFRS earnings per share increased 42% to $0.92, and non-IFRS earnings per share rose 32% to $1.23. The figures show a contrast between revenue growth and faster gains in some profitability measures. The company said underlying business momentum was good and the sales environment stable.
Recurring income remained a prominent part of the quarter's results, with annual recurring revenue of $904 million, up 12% year on year in constant currencies. Subscription and software-as-a-service revenue was $121.7 million under IFRS and $121.8 million on a non-IFRS basis, up 23% in both cases from the third quarter of 2025. These metrics provide a measure of recurring revenue and subscription growth during the period, alongside quarterly total revenue. Temenos said, however, that subscription and software-as-a-service revenue growth was affected by the timing of signing a large deal in Africa. It said the deal was signed in the first days of the fourth quarter, after the period covered by the results.
Deal timing was also a factor in comparing the third quarter with the previous quarter. In its second-quarter results announcement, Temenos said some large and new deals had been delayed, most of them in Europe. The company then guided for subscription and software-as-a-service revenue growth of at least 30% in the third quarter in constant currencies. The chief executive said at the time that the company had signed most of the delayed revenue in the first three weeks of the third quarter. The deals included a large bank in Central and Eastern Europe and a Tier 1 European bank, he said in the context of the second-quarter results. He added that the company had lost none of those delayed deals.
Alongside the African deal whose signing moved to the start of the fourth quarter, the company cited activity in other regions during the third quarter. In the Middle East, it said it signed multiple deals with new and existing customers in the Gulf region. In North America, it announced four new software-as-a-service deals, including one with a regional bank in the United States and a large deal in Canada. Temenos did not specify the value of these contracts or their individual impact on quarterly revenue in the announcement. These regional updates formed part of the company's description of business momentum and the sales environment during the period.
On cash profitability, Temenos generated free cash flow of $36.4 million in the third quarter, up 24% from the third quarter of 2025. Management attributed profit growth to efficiency savings, cost control and operating leverage. The company also raised its 2026 EBIT growth forecast to about 12% in constant currencies, from about 9% previously. It raised its earnings-per-share growth forecast to about 10% from about 7%. The upward revision covered both the EBIT and earnings-per-share forecasts, while the company left its other forecasts unchanged.
Temenos kept its 2026 annual recurring revenue growth forecast at about 12% in constant currencies and its subscription and software-as-a-service revenue growth forecast at about 9% in constant currencies. Its free cash flow growth guidance also remained at about 16%. These forecasts accompany the revised EBIT and earnings-per-share outlook following the third-quarter results. The company is scheduled to publish its fourth-quarter and full-year 2026 results on February 23, 2027. That announcement will present the annual results alongside the final quarter of the year.