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1. Company Snapshot

1.a. Company Description

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide.The company provides Temenos Transact, a banking solution that offers banking software, and data and analytics; and Temenos Payments, a payment solution that gives banks real-time control, customer service experience, and cost efficiencies and risk management solutions.It also offers Temenos Infinity, a digital banking product; Temenos Multifonds, a fund administration solution; Temenos SaaS solution that supports banks in various sectors and geographies; Temenos Quantum, a multi-experience development platform that delivers digital transformation; and Temenos AI that provides frictionless customer experiences and automate processes.


In addition, the company provides Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; and Temenos Regulatory Compliance, which is used to address fraud, remain compliant with regulations, and manage risk.Further, it offers retail and private banking, corporate and business banking, Islamic banking, wealth management, financial inclusion, mobile banking, consultancy and training services, and support services.Additionally, the company provides Temenos Developer Community, an open API catalogue that brings standardized out-of-the-box APIs to fast track innovation with online support and resources.


The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018.Temenos AG was founded in 1993 and is headquartered in Geneva, Switzerland.

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1.b. Last Insights on TEMN

Temenos AG's recent performance was driven by strong Q3 results, with revenue up 15% to $285.5m, beating expectations. The company raised its guidance, citing strengths in its integrated front-to-back office wealth offering and portfolio management capabilities. Additionally, Temenos was named a Leader in the IDC MarketScape for Wealth Management Technology Services for Investment Advisors, and a Overall Winner in IDC FinTech Real Results 2025. A CEO search continues, with Takis Spiliopoulos appointed as interim CEO.

1.c. Company Highlights

2. Temenos' Q3 '25 Earnings: A Strong Performance

Temenos delivered a robust financial performance in Q3 '25, with total revenue growth of 11%, driven by broad-based wins across new and existing customers. The company's subscription and SaaS revenue grew 10% in the quarter, while maintenance revenue was largely driven by premium maintenance signings. EBIT grew 36% in the quarter, driven by strong revenue growth and operating leverage. The actual EPS came out at $0.746, which was lower than the estimated $1.07. The company's reported net debt stood at $702 million at quarter end.

Publication Date: Nov -14

📋 Highlights

Revenue Growth and Margin Expansion

The company's revenue growth was driven by its strong sales momentum, with both new and existing customers contributing to the growth. The company's EBIT margin expansion was driven by operating leverage, with EBIT growing 36% in the quarter. As Panagiotis Spiliopoulos mentioned, "We delivered 11% total revenue growth this quarter, driven by broad-based wins with both new and existing customers." The company's guidance implies a deceleration in EBIT growth in Q4, but the year-to-date growth of 24% was driven by strong growth in subscription and SaaS, as well as cost savings initiatives.

Valuation Metrics

Using the current valuation metrics, we can assess what's priced in for Temenos. The company's P/E Ratio is 21.77, P/B Ratio is 12.3, and P/S Ratio is 5.94. The EV/EBITDA ratio is 12.03, and the Free Cash Flow Yield is 4.25%. The ROIC is 13.69%, and the ROE is 50.21%. For a financial software company like Temenos, these valuation metrics suggest that the market is pricing in a high growth rate. Analysts estimate next year's revenue growth at 5.3%, which is lower than the current year's growth rate.

Guidance and Outlook

The company is increasing its subscription and SaaS guidance to at least 7% to reflect the sales momentum. The EBIT growth guidance has been upgraded to at least 14%, and the EPS growth guidance has been upgraded to 15% to 17%. The company's ARR guidance remains unchanged at at least 12%, and the free cash flow guidance remains unchanged at at least 12% growth. The company's guidance suggests that it is confident in its ability to deliver strong growth in the coming quarters.

AI Initiatives and Sales Force Expansion

Temenos is investing in AI use cases on the client side and has rolled out a substantial number of AI initiatives internally. The company is seeing traction with deals signed for its FCM AI agent, although the numbers are still small. The company's sales force is growing in all regions, with a focus on Tier 2 and Tier 3 customers in the US, as well as adjacent solutions. The company is investing in self-funding to support its 2028 targets.

3. NewsRoom

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Temenos Named a Leader in IDC MarketScape for North America Retail Digital Banking Solutions

Nov -18

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Temenos (SWX:TEMN): Evaluating Valuation After Recent Share Price Momentum

Nov -13

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VPBank completes core banking migration to Temenos platform

Nov -11

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Hamilton completes digital transformation with Tailwind’s AI platform

Nov -10

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Tailwind Powers Hamilton Reserve Bank's Rapid Digital Transformation with AI-Driven Implementation

Nov -07

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Prove Pre-Fill® Now Available on Temenos Exchange, Delivering Seamless Onboarding to Banks Worldwide

Nov -06

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FPT Deepens Partnerships with Taiwan’s Financial Institutions to Advance Digital Transformation

Nov -06

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Additional Considerations Required While Assessing Temenos' (VTX:TEMN) Strong Earnings

Nov -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.37%)

6. Segments

Product

Expected Growth: 3.5%

Temenos AG's 3.5% growth is driven by increasing demand for digital banking solutions, expansion into emerging markets, and strategic partnerships. The company's cloud-native and API-first architecture enables banks to modernize their core systems, driving adoption. Additionally, Temenos' investment in AI and machine learning enhances customer experience, further fueling growth.

Services

Expected Growth: 2.5%

Temenos AG's 2.5% growth in services is driven by increasing demand for digital banking solutions, cloud adoption, and regulatory compliance. Banks and financial institutions are investing in Temenos' software to enhance customer experience, improve operational efficiency, and reduce costs. Additionally, the company's strategic partnerships and acquisitions have expanded its market reach and offerings, contributing to its growth.

7. Detailed Products

Temenos Transact

A core banking system that provides a single, cloud-native platform for banks to process daily transactions, manage accounts, and perform other core banking functions.

Temenos Infinity

A digital banking platform that enables banks to create personalized, omnichannel experiences for their customers, across multiple devices and channels.

Temenos Payments

A payment system that enables banks to process high-volume, high-value transactions, and provides real-time payment processing, clearing, and settlement.

Temenos Data & Analytics

A data analytics platform that provides banks with insights and intelligence to inform business decisions, manage risk, and optimize operations.

Temenos Compliance and Risk Management

A suite of solutions that helps banks manage risk, comply with regulations, and detect financial crime.

Temenos Wealth Management

A wealth management platform that enables banks to provide personalized investment advice, portfolio management, and wealth planning services to their customers.

8. Temenos AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Temenos AG operates in a niche market with a high barrier to entry, reducing the threat of substitutes. However, the company's reliance on a few large clients increases the risk of substitution.

Bargaining Power Of Customers

Temenos AG's clients are primarily large financial institutions, which have significant bargaining power due to their size and negotiating ability.

Bargaining Power Of Suppliers

Temenos AG has a diverse supplier base, reducing the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power in supplier relationships.

Threat Of New Entrants

The high barriers to entry in the core banking software market, including significant capital requirements and regulatory hurdles, reduce the threat of new entrants.

Intensity Of Rivalry

The core banking software market is highly competitive, with a few large players competing for market share. However, Temenos AG's strong brand and established customer base mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.86%
Debt Cost 4.25%
Equity Weight 47.14%
Equity Cost 8.33%
WACC 6.18%
Leverage 112.13%

11. Quality Control: Temenos AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sportradar

A-Score: 4.8/10

Value: 1.3

Growth: 8.0

Quality: 6.8

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
ATOSS Software

A-Score: 4.6/10

Value: 0.0

Growth: 8.9

Quality: 9.4

Yield: 3.1

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Qt

A-Score: 3.8/10

Value: 3.2

Growth: 9.6

Quality: 8.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Temenos

A-Score: 3.8/10

Value: 2.3

Growth: 3.8

Quality: 8.2

Yield: 1.9

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
SoftwareONE

A-Score: 3.2/10

Value: 6.0

Growth: 1.2

Quality: 4.5

Yield: 5.6

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Monday

A-Score: 2.8/10

Value: 2.2

Growth: 9.1

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.5$

Current Price

77.5$

Potential

-0.00%

Expected Cash-Flows