Temenos, the Swiss banking software provider, has raised its profit forecast for 2026 after a third quarter that was more profitable than expected. According to finews.ch, which reported the group's statement on 28 October 2026, adjusted operating profit reached $109.3 million. Analysts had expected $99.9 million.
What Temenos now expects for 2026
The revision only affects the profit targets. Temenos now aims for an increase of around 12% in adjusted operating profit at constant currency, compared with 9% previously. Adjusted earnings per share are expected to rise by 10%, instead of 7%. The other annual targets remain unchanged, according to finews.ch.
| Temenos 2026 target | Previous forecast | Forecast of 28 October 2026 |
|---|---|---|
| Adjusted operating profit, at constant currency | +9% | around +12% |
| Adjusted earnings per share | +7% | +10% |
| Annual recurring revenue | around +12% | unchanged |
| Subscription and SaaS revenue | +9% | unchanged |
| Free cash flow | around +16% | unchanged |
These figures remain management forecasts, not achieved results. They will be tested against the company's annual accounts.
The third-quarter 2026 figures
Temenos's revenue rose by 13% in the third quarter, to $292.8 million. Reported earnings before interest and taxes (EBIT) jumped by 41%, to $84.8 million. Excluding one-off effects, it reached $109.3 million, up 29%.
The adjusted operating margin rose from 32.7% to 37.3%. Adjusted earnings per share gained 32%, to $1.23. Like EBIT, it exceeded analysts' expectations, according to finews.ch.
Temenos attributes this profitability in particular to efficiency gains driven by artificial intelligence (AI). The company also cites strict cost control and economies of scale. However, it does not quantify AI's share of these savings, finews.ch notes.
Two readings of the quarter: profit and sales
The quarter reads differently depending on the indicator chosen. On profit, Temenos beat the consensus. On revenue, the group remained slightly below analysts' expectations, according to finews.ch.
The clearest gap concerns subscriptions and SaaS, software as a service hosted by the provider. This revenue grew by 23%, to $121.8 million, and by 22% at constant currency. This summer, however, Temenos had pointed to growth of at least 30%.
The company explains this shortfall by a major contract in Africa. It was only signed at the beginning of October, and therefore in the fourth quarter. Annual recurring revenue (ARR) reached $903.6 million.
Temenos's recent SaaS contracts in North America
Two contracts announced in October 2026 show which clients Temenos serves in SaaS mode: North American credit unions. The sources do not say whether they already weigh on the third-quarter figures.
The first concerns Vancity, a Canadian credit union. According to Fintechnews Switzerland, on 27 October 2026, it chose Temenos SaaS to modernise its core banking system. Vancity has more than 588,000 members, more than three million accounts and CAD 42.4 billion in assets.
The programme covers retail deposits and lending, business banking and payments. It relies on the Temenos Core, Temenos Payments Hub and Temenos Data Hub modules, deployed on the Microsoft Azure cloud. Vancity will first launch new digital services on the platform, then gradually migrate its existing business to it.
"Moving to Temenos SaaS represents a deliberate shift towards a simpler, more scalable technology foundation," says Wendy Murphy, Chief Technology and Information Officer at Vancity. According to Temenos, this phased migration is intended to protect members, operations and business continuity.
The second contract involves Sound Credit Union, a Washington-based credit union with more than 183,000 members. As 2clics reported, it selected Temenos's SaaS collections solution. Brian DuVal, President of Temenos for North America, described the United States as a "strategic growth market".
Additiv and the 2028 targets
Temenos also reports progress in integrating Additiv, the Zurich fintech whose acquisition was completed in July 2026. The acquisition is intended to strengthen its software offering for banks and wealth managers. According to finews.ch, it should not have a significant impact on the 2026 profit forecast.
The company confirms its medium-term targets. In 2028, its adjusted operating profit is expected to reach around $480 million, and its free cash flow around $410 million. These are management targets, to be compared with the results of the coming years.
What we do not know yet
- AI's share of the savings achieved: Temenos does not quantify it.
- The trend in headcount: the statement says nothing about it, according to finews.ch.
- The contract signed in Africa: neither the client nor the amount appears in the sources.
- The Vancity and Sound Credit Union contracts: no amount or duration has been published.
- The catch-up in SaaS revenue in the fourth quarter: it will be tested against the annual accounts.
This article does not constitute investment advice.
Sources
- finews.ch: "Temenos hebt Gewinnprognose an", 28 October 2026
- Fintechnews Switzerland: "Vancity to Shift Core Banking onto Temenos SaaS", 27 October 2026
