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Temenos AG TEMN

SIX SwissApplication softwareFinancials to Sep 30, 2026 · Updated Nov 11, 2026

On Stock Analysis · affiliate link
TEMN financials
Moat score
64
ROIC
18.0%
Fiscal 2025
P/E
30.7
EV/EBIT
23.6
FCF yield
5.0%
Dividend yield
1.8%
Market cap
$6.5B

Moat ranks

Score rankTied #288 of 396
Durabilitydurable
Market structureCompetitive
Pricing powermoderate

Balance sheet

12/31/25
$MDec '24Dec '25
Cash110.5199.8
Securities0.00.0
Restricted cash3.73.7
Debt695.8776.5
Net cash-585.3-576.6
Equity639.0478.0
Leverage
Debt / EBITDA
1.84×
Debt / equity
1.62×
Leases (6/30/26)
$32M
Capital
Diluted shares
69M
Book value / share
$6.96
Price / book
13.7×
Net cash / share
−$8.39
Market cap
$6.5B
Enterprise value
$7.1B

Per-share record

Fiscal years and TTM
Scale
$0$5$10$15$20'16'17'18'19'20'21'22'23'2415.54'2516.62TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q3 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth13.1%+8.4 pts
Operating margin29.0%+5.7 pts
FCF margin15.2%+0.9 pts
Capex / revenue6.9%+0.1 pts
Annual recurring revenue$904M+11%
Maintenance revenue$135M+7%
Subscription and SaaS revenue$122M+23%
Listed delivery providers38––
Core banking customers · 6/30/26≥950–

Margins and growth from reported quarters; company KPIs as reported in results releases.

About TEMN

Temenos sells core banking, digital banking, payments and wealth software. Product accounts for about 88% of FY2025 revenue.

Revenue mix
Product 88.1%Services 11.9%
  • Training Org Change Costs

    Core banking platforms sit inside mission-critical bank operations.

  • Ecosystem Complements

    Temenos maintains partner certification, common implementation methods and official training.

Timeline
  1. Sep 28, 2026

    Temenos and Hamilton Reserve Bank won an IDC digital-transformation award. The bank reported onboarding cut from five days to 20 minutes, a useful customer outcome that does not establish companywide retention.

  2. Aug 12, 2026

    Temenos announced up to CHF100m of share purchases from August 13 through February 26, 2027, to fund staff awards and acquisitions. These shares are not earmarked for cancellation.

  3. Jul 29, 2026

    Temenos appointed Cormac Flanagan Chief Product Officer and Tony Coleman Chief Technology Officer. Their banking-software experience supports the product and AI roadmap, while delivery outcomes remain the test.

  4. Jul 28, 2026

    A US court granted transfer of the Landmark Credit Union contract case to Pennsylvania. The order changes the venue without deciding liability; no loss amount was verified.

  5. Jul 22, 2026

    Temenos kept FY2026 guidance despite weak Q2 new sales, reported that most delayed European deals had signed, and forecast at least 30% Q3 subscription and SaaS growth in constant currency.

Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share ($)
Revenue8.8010.0811.5313.2312.1213.3613.2013.7714.3415.5416.62+6.5%/yr
Cash flow3.433.954.724.725.236.364.144.564.995.045.85+4.4%/yr
Earnings1.611.902.312.462.392.401.591.852.434.003.10+10.6%/yr
Free cash flow2.653.113.833.654.054.952.683.343.914.004.77+4.7%/yr
Capex0.780.830.891.071.181.411.461.221.081.041.08+3.2%/yr
Dividends0.440.540.630.710.870.991.031.221.331.571.72+15.2%/yr
Book value5.545.204.106.067.156.918.049.398.776.818.07+2.3%/yr
Diluted shares (M)7273737373727273737069-0.3%/yr
Totals ($B)
Revenue0.60.70.81.00.91.00.91.01.01.11.1+6.2%/yr
Operating income0.10.20.20.20.20.20.20.20.20.20.3+5.8%/yr
Net income0.10.10.20.20.20.20.10.10.20.30.2+10.3%/yr
Free cash flow0.20.20.30.30.30.40.20.20.30.30.3+4.4%/yr
Buybacks0.10.20.20.00.00.20.00.00.20.30.2+20.1%/yr
Dividends0.00.00.00.10.10.10.10.10.10.10.1+14.9%/yr
Net cash-0.2-0.3-0.5-1.0-0.8-0.8-0.7-0.6-0.6-0.6–−$0.4B
Margins & returns (%)
Gross margin69.871.972.772.866.366.366.570.972.173.7–+3.8 pts
Operating margin23.524.226.024.226.324.617.219.922.122.726.4-0.8 pts
Net margin18.318.820.018.619.717.912.013.517.025.718.6+7.5 pts
FCF margin30.130.933.227.633.537.020.324.227.325.728.7-4.4 pts
ROIC19.420.720.112.713.214.29.711.614.418.0–-1.5 pts
Return on equity29.036.556.340.733.434.719.819.727.758.738.4+29.7 pts
R&D % of revenue28.227.627.327.731.028.729.527.827.425.623.6-2.6 pts
Stock pay % of revenue3.94.44.54.10.74.65.55.35.04.8–+0.9 pts
Capex % of revenue8.98.37.78.19.710.611.18.97.56.76.5-2.2 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Sep 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 23.6% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score64
Strength
Confidence
Structure
Competitive
Durability
durable
Trajectory
stable
Pricing power
moderate
Segments
  • Product88.1%
    2 claims
  • Services11.9%
    No moat

Moat claims

Applies to
Product
Confidence
Durability
durable
Trajectory
stableas of Sep 30, 2026
Why it holds

Core banking platforms sit inside mission-critical bank operations. Temenos documents migration cutover, change management and staff training, which make replacing a live system costly. SACOMBANK reported upgrading to Temenos R25 on May 4, 2026 rather than replacing the vendor. This is one retained customer, not a companywide renewal rate. Temenos reported about 3% annual dollar churn in FY2023; no current comparable rate was verified.

Why stable

Q3 ARR reached $903.6 million with 12% constant-currency growth and maintenance revenue was $134.560 million. Installed systems support recurring revenue, but client churn and one large deal slipping into Q4 show that contracts are not permanent.

Indicators
  • Annual recurring revenue$904M+11%
  • Maintenance revenue$135M+7%
  • Core banking customers≥950
  • Digital banking customers≥600
  • SaaS annual contract value signed$25M+188%
  • Subscription and SaaS revenue$122M+23%
  • Annual dollar churn~3.0%
  • Cloud share of ARR39.0%
Risks
  • Customer contract disputes and failed delivery can weaken renewal trust even when changing core systems is expensive
  • Cloud-native core banking challengers reducing migration friction
  • Banks standardizing on a single strategic vendor during consolidation
  • Open APIs and middleware reducing vendor lock-in over time

Profile change log

  1. Oct 9, 2026 · analyst revision

    Customer go-lives provide newer delivery evidence: 316 in FY2025 after 347 in FY2024, with the Multifonds sale limiting comparison. The alrajhi case shows that in-house configuration can reduce service dependence while the bank retains Temenos software. The latest currency mix makes staff-cost exposure clearer. Both moat strengths, stable trajectories and the Services no-moat judgment remain unchanged.

  2. Oct 9, 2026 · analyst revision

    Swift deferred the payments changes planned for November 2026 and set a separate securities and trade release for June 12, 2027. Compliance work still supports software demand, but its timing can move. The banking and implementation markets now show this risk, along with the disclosed direct interest-rate exposure.

  3. Oct 9, 2026 · analyst revision

    CPI-linked contracts and renewal value uplift support some maintenance pricing power, while maintenance growth alone does not establish better retention. The annual report distinguishes share-award expense from a wider adjustment that includes social charges. Both moat strengths, stable trajectories and the Services no-moat judgment remain unchanged.

  4. Oct 9, 2026 · analyst revision

    Temenos lists 38 delivery providers in its current directory. This supports access to delivery capacity but uses a narrower scope than its historical total partner count; it does not show network growth. Both moat strengths, stable trajectories and the Services no-moat judgment remain unchanged. Management now cites the annual report that supports its leadership and voting-class facts. The additiv bull case uses acquired-business clients and retention, with the measurement limits stated.

  5. Oct 9, 2026 · analyst revision

    ARR and SaaS signed contract value now test recurring product demand alone. Partner counts and delivery outcomes test the ecosystem claim. Net asset-purchase cash flows and aggregate legal provisions are described without treating them as gross purchases or a case-specific loss.

  6. Oct 9, 2026 · analyst revision

    Named SACOMBANK and Hamilton Reserve Bank as customers. Customer-confirmed SACOMBANK delivery adds evidence for both existing Product moats; their strengths and stable trajectories stay unchanged. The global bank survey records modernization plans, while currency hedging and floating debt explain direct macro exposure. Services remains verified as having no moat.

  7. Oct 9, 2026 · business change

    SACOMBANK completed an upgrade to Temenos R25, retaining its core vendor while modernizing bank operations. Temenos later announced the hybrid-cloud deployment with IBM; one customer does not establish the wider renewal rate.

  8. Oct 9, 2026 · analyst revision

    The banking-software market uses the company forecast of approximately USD30bn for 2028 instead of the USD25bn 2025 base. IBSi leaders refer to calendar-2025 contract wins, despite the 2026 edition date; neither measure is revenue market share.

  9. Oct 9, 2026 · analyst revision

    Historical disclosures establish about 3% annual dollar churn and 391 software implementations in FY2023. Current comparable retention and delivery rates remain unverified. Digital-bank clients test the installed base rather than partner strength; both moat strengths and Services evidence status stay unchanged.

  10. Oct 9, 2026 · business change

    Temenos appointed Cormac Flanagan Chief Product Officer and Tony Coleman Chief Technology Officer. Their banking-software experience supports the product and AI roadmap, while delivery outcomes remain the test.

  11. Oct 9, 2026 · business change

    A US court granted transfer of the Landmark Credit Union contract case to Pennsylvania. The order changes the venue without deciding liability; no loss amount was verified.

  12. Oct 9, 2026 · business change

    Landmark Credit Union sued Temenos USA and Temenos Cloud Americas over a customer contract. The dispute creates delivery and trust risk; its allegations do not establish liability.

  13. Oct 9, 2026 · business change

    Temenos announced up to CHF100m of share purchases from August 13 through February 26, 2027, to fund staff awards and acquisitions. These shares are not earmarked for cancellation.

  14. Oct 9, 2026 · business change

    Temenos kept FY2026 guidance despite weak Q2 new sales, reported that most delayed European deals had signed, and forecast at least 30% Q3 subscription and SaaS growth in constant currency.

  15. Oct 9, 2026 · business change

    Temenos completed the additiv acquisition with provisional consideration of CHF226.7m. It expands wealth software and adds integration and financing risk.

  16. Oct 9, 2026 · business change

    Temenos agreed to buy additiv to add wealth orchestration and embedded-finance capabilities.

  17. Oct 9, 2026 · business change

    Temenos appointed Daniel Schmucki CFO effective August 3, adding a former SIX finance leader.

  18. Oct 9, 2026 · business change

    Temenos appointed Takis Spiliopoulos permanent CEO, retaining a leader who had been CFO since 2019.

  19. Oct 9, 2026 · business change

    Takis Spiliopoulos became interim CEO after the leadership change, while the company continued its banking-software strategy.

  20. Oct 9, 2026 · business change

    Temenos completed the Multifonds sale. FY2025 consolidated earnings include the disposal gain and operations through May, making growth comparisons harder.

  21. Oct 9, 2026 · business change

    Temenos agreed to sell Multifonds for about USD400m including an earnout, narrowing the portfolio toward banking software.

  22. Oct 9, 2026 · analyst revision

    Both moat trajectories are stable. Dated interim evidence supports the installed bank base and maintenance growth; partner awards show delivery activity. Global banking software is competitive across categories, rather than one uniform oligopoly. Moat strengths, industry, sector and Services evidence status are unchanged.

  23. Oct 9, 2026 · analyst revision

    Annual FY2025 segment revenue replaces the Q2 2026 mix. Product share changes from 86.48% to 88.09%; Services from 13.52% to 11.91%. Sources: 2025 Annual Report, March 3, 2026.

  24. Oct 9, 2026 · business change

    Temenos and Hamilton Reserve Bank won an IDC digital-transformation award. The bank reported onboarding cut from five days to 20 minutes, a useful customer outcome that does not establish companywide retention.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianTEMNORCLJKHY

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global banking software

As of Oct 9, 2026
CompetitiveMedium cyclicalityUSD 30B in 2028

Global third-party core banking, digital banking, payments, wealth, financial-crime, risk and analytics software, including subscriptions, SaaS, term licenses and support. Excludes professional implementation services, fund administration sold with Multifonds, hardware and internally developed bank software.

  1. Temenos
  2. Infosys Finacle
  3. Intellect Design Arena
  4. TCS Financial Solutions
  5. SBS
  6. Objectway
2025 leaders, no comparable shares · IBSi Sales League Table 2026
StocksMoatGross m.Op. m.
TEMN64–26.4%
Industry median317875.8%19.9%
Sector median777564.7%23.8%
All stocks median3987653.1%20.0%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Bank cloud migration, digital service and legacy core replacement create multi-year software demand. The 2026 Celent bank survey supports plans for core modernization in 2027, although intentions need to become funded contracts.
  • Regulatory, security and data-residency requirements support compliant upgrades. Payment-message standards also require data and software changes, although Swift has deferred payments changes planned for November 2026.
  • Installed systems need continuing maintenance; this makes recurring support less sensitive to the economy than large new projects.
  • Healthy bank earnings and funding conditions support technology budgets. Rate changes matter mainly through customer profitability and project decisions.
  • AI and composable software can add products and expand deployment capacity; verified paid demand matters more than launch announcements.
Risks
  • Large bank purchasing decisions can slip during weak growth, rising credit losses or funding stress, causing volatile new software sales. Changes to mandatory upgrade dates can also shift spending between periods.
  • Banks can choose specialist cloud platforms, competing suites or internal development; open interfaces can reduce dependence on one vendor.
  • Data breaches, failed migrations and regulatory changes can increase delivery cost or damage trust in mission-critical systems.
  • Scarce skilled developers, integrator wages and cloud-hosting costs can pressure software and service margins.
  • International vendors face currency translation and mismatches between sales and staff costs. Temenos reports most sales in USD but substantial costs in other currencies, including INR; stronger cost currencies can reduce USD earnings. Matching and hedging limit this risk, while floating-rate debt, acquisitions and shareholder distributions can reduce cash available for product investment.

Bulls & bears

Key question · as of Nov 11, 2026

Can Temenos keep banks on its installed platforms and turn delayed large deals into recurring growth after losing a BNPL customer?

Arguments

5 forFaded: weakening or settled6 against

What to watch

  1. 1Proforma ARR and constant-currency growth
  2. 2Maintenance revenue and premium-maintenance adoption
  3. 3Subscription and SaaS revenue; signed European deals
  4. 4SaaS annual contract value
  5. 5Operating cash flow, capitalized development and buybacks
  6. 6Bank churn, migrations and partner delivery outcomes when disclosed
  7. 7Bank upgrade dates after Swift postponed planned 2026 payments changes
  8. 8Landmark Credit Union litigation outcomes and disclosed loss provisions
  9. 9Currency effects on reported revenue and finance costs

Next check: Q4 and FY2026 results: test the African deal that slipped into early Q4, raised12% non-IFRS EBIT growth and 10% EPS growth guidance, cash generation after development and additiv, and promised FY2028 targets including additiv. Monitor the Landmark dispute; a results date is not confirmed.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.

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Moat Score 64/100 by <a href="https://www.findmymoat.com/stocks/XSWX:TEMN">Find My Moat</a> (as of September 2026)

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