Temenos Lifts Profit Outlook as AI Gains Outpace Software Slump

The company’s adjusted operating margin climbed to 37.3 percent, up from 32.7 percent in the previous year. Management credits this efficiency drive partly to artificial intelligence deployments and disciplined cost management, though they declined to break down specific savings attributable to AI or provide updates on headcount. Adjusted earnings per share climbed 32 percent to $1.23, providing enough momentum to lift the 2026 profit forecast. Temenos now anticipates a 12 percent growth in adjusted operating profit, up from a previous guidance of 9 percent.

Despite the bottom-line strength, the software-as-a-service (SaaS) division faces headwinds. Revenue in this segment rose 23 percent to $121.8 million, missing the 30 percent growth floor the company had signaled earlier this summer. Executives pinned the shortfall on a major contract in Africa that slipped into the fourth quarter. Meanwhile, the integration of Zurich-based fintech Additiv, acquired in July, remains on track to bolster wealth management solutions without altering the broader 2026 profit trajectory. Looking further ahead, Temenos reaffirmed its 2028 targets, aiming for $480 million in adjusted operating profit and $410 million in free cash flow.