Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>Q2 revenues missed expectations due to delayed large Subscription and SaaS contracts, not weaker demand. Most contracts were signed in early Q3, supporting management's reaffirmed FY2026 guidance.</li>
<li>FY2026 guidance remains intact. Delayed Q2 revenues should be recognised in Q3, while the Additiv acquisition provides modest ARR and revenue upside without affecting profit or cash flow guidance.</li>
<li>Temenos remains well positioned despite macro uncertainty. Strong banking transformation demand, stable competitive dynamics and attractive valuation support our constructive investment case.</li>
</ul>


Q2 revenues missed expectations due to delayed large Subscription and SaaS contracts, not weaker demand. Most contracts were signed in early Q3, supporting management's reaffirmed FY2026 guidance.
FY2026 guidance remains intact. Delayed Q2 revenues should be recognised in Q3, while the Additiv acquisition provides modest ARR and revenue upside without affecting profit or cash flow guidance.
Temenos remains well positioned despite macro uncertainty. Strong banking transformation demand, stable competitive dynamics and attractive valuation support our constructive investment case.


<ul>
<li>Temenos acquires Additiv to strengthen wealth management, expand into the mass affluent segment, and add a cloud-native orchestration platform that accelerates implementation and supports AI-driven innovation.</li>
<li>Additiv contributes strong growth metrics, including 138% NRR and double-digit ARR growth, alongside a blue-chip client base and opportunities to expand internationally through Temenos’ distribution network.</li>
<li>The acquisition appears attractively priced at an estimated 4–5x revenue, while Temenos’ gradual integration strategy aims to capture synergies and reduce execution risks.</li>
</ul>


Temenos acquires Additiv to strengthen wealth management, expand into the mass affluent segment, and add a cloud-native orchestration platform that accelerates implementation and supports AI-driven innovation.
Additiv contributes strong growth metrics, including 138% NRR and double-digit ARR growth, alongside a blue-chip client base and opportunities to expand internationally through Temenos’ distribution network.
The acquisition appears attractively priced at an estimated 4–5x revenue, while Temenos’ gradual integration strategy aims to capture synergies and reduce execution risks.


Temenos (TEMN SW): Additiv Acquisition - Adding an Orchestration Layer

<ul>
<li>Temenos positioned itself as an AI-enabled banking platform provider, focused on progressive modernisation, composable banking and incremental core transformation rather than large-scale replacement programmes.</li>
<li>AI dominated TCF 2026, with Temenos highlighting embedded AI capabilities across banking workflows, positioning AI operationalisation as the next competitive differentiator in banking technology.</li>
<li>Management highlighted continued SaaS and cloud momentum, while Temenos’ regulatory expertise, trusted banking workflows and proprietary data strengthen its competitive positioning against AI vendors.</li>
</ul>


Temenos positioned itself as an AI-enabled banking platform provider, focused on progressive modernisation, composable banking and incremental core transformation rather than large-scale replacement programmes.
AI dominated TCF 2026, with Temenos highlighting embedded AI capabilities across banking workflows, positioning AI operationalisation as the next competitive differentiator in banking technology.
Management highlighted continued SaaS and cloud momentum, while Temenos’ regulatory expertise, trusted banking workflows and proprietary data strengthen its competitive positioning against AI vendors.


Temenos (TEMN SW): TCF 2026 - Focus on AI-Led Progressive Modernisation

Thematic (Sector/Industry)

<ul>
<li>European growth remains subdued, but large-cap software vendors are proving resilient, with Top 10 lfl revenue growth reaching 9.7%, versus 3.0% for the broader market.</li>
<li>North America continues to outperform Europe, with lfl revenue growth accelerating to 13.3% and reaching 25.9% among the ten largest software companies.</li>
<li>Software M&amp;A remains strong but concentrated, with USD 145bn of transactions above USD 200m year-to-date, driven primarily by strategic buyers rather than private equity.</li>
</ul>


European growth remains subdued, but large-cap software vendors are proving resilient, with Top 10 lfl revenue growth reaching 9.7%, versus 3.0% for the broader market.
North America continues to outperform Europe, with lfl revenue growth accelerating to 13.3% and reaching 25.9% among the ten largest software companies.
Software M&amp;A remains strong but concentrated, with USD 145bn of transactions above USD 200m year-to-date, driven primarily by strategic buyers rather than private equity.


European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

<ul>
<li>Temenos delivered results ahead of consensus across all key metrics (revenue, margins, EPS, ARR), supported by operating leverage and strong maintenance growth, despite the headwind from the BNPL contract termination.</li>
<li>The company reports a robust sales pipeline supported by improvements in sales execution and innovation. However, management has reiterated full-year guidance due to seasonality, tougher comparatives ahead, and geopolitical uncertainty.</li>
<li>Demand has shifted towards corporate banking, offering greater stability, while Temenos continues to invest in AI, R&amp;D, and go-to-market capabilities, underpinning sustained outperformance versus the broader European software sector.</li>
</ul>


Temenos delivered results ahead of consensus across all key metrics (revenue, margins, EPS, ARR), supported by operating leverage and strong maintenance growth, despite the headwind from the BNPL contract termination.
The company reports a robust sales pipeline supported by improvements in sales execution and innovation. However, management has reiterated full-year guidance due to seasonality, tougher comparatives ahead, and geopolitical uncertainty.
Demand has shifted towards corporate banking, offering greater stability, while Temenos continues to invest in AI, R&amp;D, and go-to-market capabilities, underpinning sustained outperformance versus the broader European software sector.


Temenos (TEMN SW): The Resilience of Core Banking

Switzerland

Temenos AG provides integrated software solutions. The Company offers analytics, channels, financial crime mitigation, funds and securities, risk and compliance, and front office and digital banking suits for the management of administrative tasks at banks and financial services companies. Temenos operates worldwide.

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Temenos AG (TEMN SW)

Temenos (TEMN SW): Timing Is Everything

Q2 revenues missed expectations due to delayed contracts, but guidance reaffirmed. Additiv acquisition provides upside. Temenos remains well...

Gregory Ramirez

Temenos (TEMN SW): Additiv Acquisition - Adding an Orchestration Layer

Temenos acquires Additiv to enhance wealth management with cloud-native platform, strong growth metrics, and international expansion opportunities.

Gregory Ramirez

Temenos (TEMN SW): TCF 2026 - Focus on AI-Led Progressive Modernisation

Temenos focuses on AI-enabled banking platform, highlighting embedded AI capabilities and competitive edge in SaaS and cloud momentum.

Gregory Ramirez

European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

European software growth remains weak, but large caps are resilient. US vendors are outperforming, while strategic M&A remains strong despite...

Gregory Ramirez

Temenos (TEMN SW): The Resilience of Core Banking

Temenos beats expectations with strong results, driven by operating leverage and growth in corporate banking, despite challenges from contract...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Temenos (TEMN SW): Timing Is Everything

​Q2 revenues missed expectations due to delayed contracts, but guidance reaffirmed. Additiv acquisition provides upside. Temenos remains well...

Gregory Ramirez

Temenos (TEMN SW): Additiv Acquisition - Adding an Orchestration Layer

​Temenos acquires Additiv to enhance wealth management with cloud-native platform, strong growth metrics, and international expansion opportunities.

Gregory Ramirez

Temenos (TEMN SW): TCF 2026 - Focus on AI-Led Progressive Modernisation

​Temenos focuses on AI-enabled banking platform, highlighting embedded AI capabilities and competitive edge in SaaS and cloud momentum.

Gregory Ramirez

European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

European software growth remains weak, but large caps are resilient. US vendors are outperforming, while strategic M&A remains strong despite...

Gregory Ramirez

Temenos (TEMN SW): The Resilience of Core Banking

​Temenos beats expectations with strong results, driven by operating leverage and growth in corporate banking, despite challenges from contract...

Gregory Ramirez

Q2 revenues missed expectations due to delayed contracts, but guidance reaffirmed. Additiv acquisition provides upside. Temenos remains well...

Temenos acquires Additiv to enhance wealth management with cloud-native platform, strong growth metrics, and international expansion opportunities.

Temenos focuses on AI-enabled banking platform, highlighting embedded AI capabilities and competitive edge in SaaS and cloud momentum.

Temenos beats expectations with strong results, driven by operating leverage and growth in corporate banking, despite challenges from contract...