Temenos AG TEMN
SIX SwissApplication softwareFinancials to Sep 30, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $M | Dec '24 | Dec '25 |
|---|---|---|
| Cash | 110.5 | 199.8 |
| Securities | 0.0 | 0.0 |
| Restricted cash | 3.7 | 3.7 |
| Debt | 695.8 | 776.5 |
| Net cash | -585.3 | -576.6 |
| Equity | 639.0 | 478.0 |
- Debt / EBITDA
- 1.84×
- Debt / equity
- 1.62×
- Leases (6/30/26)
- $32M
- 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
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 13.1% | +8.4 pts | |
| Operating margin | 29.0% | +5.7 pts | |
| FCF margin | 15.2% | +0.9 pts | |
| Capex / revenue | 6.9% | +0.1 pts | |
| Annual recurring revenue | $904M | +11% | |
| Maintenance revenue | $135M | +7% | |
| Subscription and SaaS revenue | $122M | +23% | |
| Listed delivery providers | 38 | – | – |
| Core banking customers · 6/30/26 | ≥950 | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About TEMN
Temenos sells core banking, digital banking, payments and wealth software. Product accounts for about 88% of FY2025 revenue.
- Training Org Change Costs
Core banking platforms sit inside mission-critical bank operations.
- Ecosystem Complements
Temenos maintains partner certification, common implementation methods and official training.
- Sep 28, 2026
Temenos and Hamilton Reserve Bank won an IDC digital-transformation award. The bank reported onboarding cut from five days to 20 minutes, a useful customer outcome that does not establish companywide retention.
- Aug 12, 2026
Temenos announced up to CHF100m of share purchases from August 13 through February 26, 2027, to fund staff awards and acquisitions. These shares are not earmarked for cancellation.
- Jul 29, 2026
Temenos appointed Cormac Flanagan Chief Product Officer and Tony Coleman Chief Technology Officer. Their banking-software experience supports the product and AI roadmap, while delivery outcomes remain the test.
- Jul 28, 2026
A US court granted transfer of the Landmark Credit Union contract case to Pennsylvania. The order changes the venue without deciding liability; no loss amount was verified.
- Jul 22, 2026
Temenos kept FY2026 guidance despite weak Q2 new sales, reported that most delayed European deals had signed, and forecast at least 30% Q3 subscription and SaaS growth in constant currency.
Ownership
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On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 8.80 | 10.08 | 11.53 | 13.23 | 12.12 | 13.36 | 13.20 | 13.77 | 14.34 | 15.54 | 16.62 | +6.5%/yr | |
| Cash flow | 3.43 | 3.95 | 4.72 | 4.72 | 5.23 | 6.36 | 4.14 | 4.56 | 4.99 | 5.04 | 5.85 | +4.4%/yr | |
| Earnings | 1.61 | 1.90 | 2.31 | 2.46 | 2.39 | 2.40 | 1.59 | 1.85 | 2.43 | 4.00 | 3.10 | +10.6%/yr | |
| Free cash flow | 2.65 | 3.11 | 3.83 | 3.65 | 4.05 | 4.95 | 2.68 | 3.34 | 3.91 | 4.00 | 4.77 | +4.7%/yr | |
| Capex | 0.78 | 0.83 | 0.89 | 1.07 | 1.18 | 1.41 | 1.46 | 1.22 | 1.08 | 1.04 | 1.08 | +3.2%/yr | |
| Dividends | 0.44 | 0.54 | 0.63 | 0.71 | 0.87 | 0.99 | 1.03 | 1.22 | 1.33 | 1.57 | 1.72 | +15.2%/yr | |
| Book value | 5.54 | 5.20 | 4.10 | 6.06 | 7.15 | 6.91 | 8.04 | 9.39 | 8.77 | 6.81 | 8.07 | +2.3%/yr | |
| Diluted shares (M) | 72 | 73 | 73 | 73 | 73 | 72 | 72 | 73 | 73 | 70 | 69 | -0.3%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 0.6 | 0.7 | 0.8 | 1.0 | 0.9 | 1.0 | 0.9 | 1.0 | 1.0 | 1.1 | 1.1 | +6.2%/yr | |
| Operating income | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | +5.8%/yr | |
| Net income | 0.1 | 0.1 | 0.2 | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | 0.2 | +10.3%/yr | |
| Free cash flow | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.4 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | +4.4%/yr | |
| Buybacks | 0.1 | 0.2 | 0.2 | 0.0 | 0.0 | 0.2 | 0.0 | 0.0 | 0.2 | 0.3 | 0.2 | +20.1%/yr | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | +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 margin | 69.8 | 71.9 | 72.7 | 72.8 | 66.3 | 66.3 | 66.5 | 70.9 | 72.1 | 73.7 | – | +3.8 pts | |
| Operating margin | 23.5 | 24.2 | 26.0 | 24.2 | 26.3 | 24.6 | 17.2 | 19.9 | 22.1 | 22.7 | 26.4 | -0.8 pts | |
| Net margin | 18.3 | 18.8 | 20.0 | 18.6 | 19.7 | 17.9 | 12.0 | 13.5 | 17.0 | 25.7 | 18.6 | +7.5 pts | |
| FCF margin | 30.1 | 30.9 | 33.2 | 27.6 | 33.5 | 37.0 | 20.3 | 24.2 | 27.3 | 25.7 | 28.7 | -4.4 pts | |
| ROIC | 19.4 | 20.7 | 20.1 | 12.7 | 13.2 | 14.2 | 9.7 | 11.6 | 14.4 | 18.0 | – | -1.5 pts | |
| Return on equity | 29.0 | 36.5 | 56.3 | 40.7 | 33.4 | 34.7 | 19.8 | 19.7 | 27.7 | 58.7 | 38.4 | +29.7 pts | |
| R&D % of revenue | 28.2 | 27.6 | 27.3 | 27.7 | 31.0 | 28.7 | 29.5 | 27.8 | 27.4 | 25.6 | 23.6 | -2.6 pts | |
| Stock pay % of revenue | 3.9 | 4.4 | 4.5 | 4.1 | 0.7 | 4.6 | 5.5 | 5.3 | 5.0 | 4.8 | – | +0.9 pts | |
| Capex % of revenue | 8.9 | 8.3 | 7.7 | 8.1 | 9.7 | 10.6 | 11.1 | 8.9 | 7.5 | 6.7 | 6.5 | -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.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Product88.1%2 claims
- Services11.9%No moat
Moat claims
- Applies to
- Product
- Confidence
- Durability
- durable
- Trajectory
- stableas of Sep 30, 2026
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.
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.
- 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%
- 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
- SourceImplementation Methodology | TemenosOct 9, 2026
- SourceTemenos Products and Services | Temenos (Core Banking)Oct 9, 2026
- SourceTemenos 2025 Annual Report: maintenance pricing and contract CPI linksMar 3, 2026
- SourceTemenos Q4 2023 results: historical customer churnFeb 19, 2024
- Applies to
- Product
- Confidence
- Durability
- medium
- Trajectory
- stableas of Sep 30, 2026
Temenos maintains partner certification, common implementation methods and official training. It reported 316 customer go-lives in FY2025, after 347 in FY2024; the Multifonds sale limits a direct comparison. Its directory lists 38 delivery providers, including Accenture, Capgemini and Cognizant. SACOMBANK upgraded its installed core on Red Hat OpenShift and IBM Power, showing that the ecosystem can modernize existing clients. Banks can choose among delivery firms. The current directory is narrower than the more than 200 total partners reported in 2023, so it does not prove network growth. Some regional delivery rights are exclusive, but no global exclusivity or partner-sourced revenue series was verified.
Temenos reported four new North American SaaS deals and a new APAC tier 1 bank deal at additiv in Q3. Ecosystem reach is growing, while quantified partner retention and implementation success rates are not disclosed.
- Tech Mahindra bank go-lives8
- Delivery and ecosystem partners≥200
- Software implementations391
- Listed delivery providers38
- Annual customer go-lives316-9%
- Systems integrators building equivalent capabilities across multiple vendor platforms
- Partner dissatisfaction or margin compression reducing ecosystem engagement
- Clients preferring in-house builds with hyperscalers and fintech components
- SourceTemenos delivery-partner directory: 38 listed providersOct 9, 2026
- SourceImplementation Methodology | TemenosOct 9, 2026
- SourceDelivery Partner Certifications | TemenosOct 9, 2026
- SourceTemenos Learning Community | TemenosOct 9, 2026
Profile change log
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Oct 9, 2026 · business change
Temenos agreed to buy additiv to add wealth orchestration and embedded-finance capabilities.
- Oct 9, 2026 · business change
Temenos appointed Daniel Schmucki CFO effective August 3, adding a former SIX finance leader.
- Oct 9, 2026 · business change
Temenos appointed Takis Spiliopoulos permanent CEO, retaining a leader who had been CFO since 2019.
- Oct 9, 2026 · business change
Takis Spiliopoulos became interim CEO after the leadership change, while the company continued its banking-software strategy.
- 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.
- Oct 9, 2026 · business change
Temenos agreed to sell Multifonds for about USD400m including an earnout, narrowing the portfolio toward banking software.
- 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.
- 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.
- 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
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global banking software
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.
- Temenos
- Infosys Finacle
- Intellect Design Arena
- TCS Financial Solutions
- SBS
- Objectway
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| TEMN | 64 | – | 26.4% | |
| Industry median | 31 | 78 | 75.8% | 19.9% |
| Sector median | 77 | 75 | 64.7% | 23.8% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- 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.
- 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
Can Temenos keep banks on its installed platforms and turn delayed large deals into recurring growth after losing a BNPL customer?
Arguments
What to watch
- 1Proforma ARR and constant-currency growth
- 2Maintenance revenue and premium-maintenance adoption
- 3Subscription and SaaS revenue; signed European deals
- 4SaaS annual contract value
- 5Operating cash flow, capitalized development and buybacks
- 6Bank churn, migrations and partner delivery outcomes when disclosed
- 7Bank upgrade dates after Swift postponed planned 2026 payments changes
- 8Landmark Credit Union litigation outcomes and disclosed loss provisions
- 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.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 64/100 by <a href="https://www.findmymoat.com/stocks/XSWX:TEMN">Find My Moat</a> (as of September 2026)Curation & Accuracy
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