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>Temenos has raised its 2026 guidance and 2028 organic targets. Management execution, operating leverage and a strengthened sales infrastructure underpin confidence in medium-term growth.   </li>
<li>Operating in a regulated, risk-averse banking environment, Temenos benefits from domain expertise, embedded workflows and mission-critical data. Rather than being disintermediated by AI vendors, the company reinforces its competitive moat.   </li>
<li>With expanded sales capacity, a local innovation hub and a pipeline skewed towards composable, SaaS-based modernisation deals, Temenos is well positioned to gain share despite increased competitive responses from incumbents.</li>
</ul>


Temenos has raised its 2026 guidance and 2028 organic targets. Management execution, operating leverage and a strengthened sales infrastructure underpin confidence in medium-term growth.   
Operating in a regulated, risk-averse banking environment, Temenos benefits from domain expertise, embedded workflows and mission-critical data. Rather than being disintermediated by AI vendors, the company reinforces its competitive moat.   
With expanded sales capacity, a local innovation hub and a pipeline skewed towards composable, SaaS-based modernisation deals, Temenos is well positioned to gain share despite increased competitive responses from incumbents.


Temenos (TEMN SW): AI and Core Banking’s Trust and Regulatory Fortresses

Thematic (Sector/Industry)

<ul>
<li>European software revenue growth slowed to 4.4% in Q1 2026, mainly due to tough comparatives, contract timing and company-specific issues. Large-cap vendors remained resilient, with solid growth and improving momentum. </li>
<li>North American software companies outperformed Europe, with like-for-like revenue growth recovering to 13.1% and reaching 24.3% among the ten largest firms, driven by cloud, cybersecurity and AI demand.  </li>
<li>Software M&amp;A accelerated in 2026, reaching USD 127bn by early June. Landmark deals and strong valuation multiples, especially in cybersecurity and AI, reflected sustained investor appetite.</li>
</ul>


European software revenue growth slowed to 4.4% in Q1 2026, mainly due to tough comparatives, contract timing and company-specific issues. Large-cap vendors remained resilient, with solid growth and improving momentum. 
North American software companies outperformed Europe, with like-for-like revenue growth recovering to 13.1% and reaching 24.3% among the ten largest firms, driven by cloud, cybersecurity and AI demand.  
Software M&amp;A accelerated in 2026, reaching USD 127bn by early June. Landmark deals and strong valuation multiples, especially in cybersecurity and AI, reflected sustained investor appetite.


European Software: Q1 2026 Takeaways – A Seasonal Slowdown

<ul>
<li>In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   </li>
<li>US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   </li>
<li>Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.</li>
</ul>


In Q2 2025, European software firms—particularly small caps—experienced a slowdown in revenue growth due to geopolitical uncertainty and US tariffs, while large-cap players remained resilient and even accelerated growth.   
US software continued to outperform European peers, with strong momentum driven by AI, cybersecurity, and digital banking, but growth is stabilising below the high levels of the low-interest rate era.   
Software M&amp;A is recovering strongly in 2025, with USD 111bn in deals closed year-to-date—driven mainly by strategic buyers. Private equity remains active, particularly in Europe, though below historical peaks.


European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

<ul>
<li>Software companies see a slow improvement in revenue growth, with Europe narrowing the performance gap. However, growth remains below post-lockdown levels, and a return to high double-digit rates is unlikely.  </li>
<li>The best-performing vendors are those focused on defence, large-scale data handling, AI infrastructure, cybersecurity, financial services digitisation, and modern accounting platforms. US firms still lead in absolute growth numbers.   </li>
<li>While the number of software M&amp;A deals above USD 200m has declined, total deal value is on track for a record year in 2025, driven primarily by strategic acquirers.</li>
</ul>


Software companies see a slow improvement in revenue growth, with Europe narrowing the performance gap. However, growth remains below post-lockdown levels, and a return to high double-digit rates is unlikely.  
The best-performing vendors are those focused on defence, large-scale data handling, AI infrastructure, cybersecurity, financial services digitisation, and modern accounting platforms. US firms still lead in absolute growth numbers.   
While the number of software M&amp;A deals above USD 200m has declined, total deal value is on track for a record year in 2025, driven primarily by strategic acquirers.


European Software: Q1 2025 Takeaways – Gradual Improvement

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

OmniVision Integrated Circuits Group / Technical Analysis

OmniVision Integrated Circuits Group (603501 CH)

<ul>
<li>Our outlook remains bullish on MSCI ACWI. Discussed in Jan9,2025 report how we viewed the pullback as a buying opportunity and were watching for $116-$117 support to hold on ACWI-US. </li>
<li>$116 support held perfectly, and now both ACWI-US and the S&amp;P 500 are coiling just below all-time highs, likely setting up for major breakouts. ACWI is now breaking out.</li>
<li>DXY and 10-Year Treasury yield are both topping, a crucial risk-on signal for global equities. More and more countries breaking out. Actionable Themes: Technology, Services, Communications, Industrials, Gold Miners, Financials</li>
</ul>


Our outlook remains bullish on MSCI ACWI. Discussed in Jan9,2025 report how we viewed the pullback as a buying opportunity and were watching for $116-$117 support to hold on ACWI-US. 
$116 support held perfectly, and now both ACWI-US and the S&amp;P 500 are coiling just below all-time highs, likely setting up for major breakouts. ACWI is now breaking out.
DXY and 10-Year Treasury yield are both topping, a crucial risk-on signal for global equities. More and more countries breaking out. Actionable Themes: Technology, Services, Communications, Industrials, Gold Miners, Financials


More Countries Breaking Out; Bullish Outlook Intact; Buys in China, Europe, More; DXY & Yields Top

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): AI and Core Banking’s Trust and Regulatory Fortresses

Temenos is confident in its growth trajectory, leveraging management execution and sales infrastructure to reinforce its competitive advantage in...

Gregory Ramirez

European Software: Q1 2026 Takeaways – A Seasonal Slowdown

European software revenue growth slowed in Q1 2026, while North American companies outperformed with strong growth driven by cloud, cybersecurity,...

Gregory Ramirez

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

European Software: Q1 2025 Takeaways – Gradual Improvement

Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...

Gregory Ramirez

More Countries Breaking Out; Bullish Outlook Intact; Buys in China, Europe, More; DXY & Yields Top

More Countries Breaking Out; Bullish Outlook Intact $ACWI $EAFE $EEM. More buys in China; Germany continues to lead Europe higher. Will...

Vermilion Research

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Temenos (TEMN SW): AI and Core Banking’s Trust and Regulatory Fortresses

​Temenos is confident in its growth trajectory, leveraging management execution and sales infrastructure to reinforce its competitive advantage in...

Gregory Ramirez

European Software: Q1 2026 Takeaways – A Seasonal Slowdown

​European software revenue growth slowed in Q1 2026, while North American companies outperformed with strong growth driven by cloud, cybersecurity,...

Gregory Ramirez

European Software: Q2 2025 Takeaways – Europe Weakens, but Not the Large Players

​European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Gregory Ramirez

European Software: Q1 2025 Takeaways – Gradual Improvement

​Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...

Gregory Ramirez

More Countries Breaking Out; Bullish Outlook Intact; Buys in China, Europe, More; DXY & Yields Top

More Countries Breaking Out; Bullish Outlook Intact $ACWI $EAFE $EEM. More buys in China; Germany continues to lead Europe higher. Will...

Vermilion Research

Temenos is confident in its growth trajectory, leveraging management execution and sales infrastructure to reinforce its competitive advantage in...

European software revenue growth slowed in Q1 2026, while North American companies outperformed with strong growth driven by cloud, cybersecurity,...

European software firms face revenue growth slowdown in Q2 2025, while US software outperforms. Software M&A is recovering strongly with USD 111bn...

Software companies in Europe are closing the revenue growth gap with the US. M&A deals above $200m are declining, but total deal value is set for...