Temenos Lifts Full-Year Outlook Despite Macro Uncertainty lift its full-year outlook despite macro uncertainty
Temenos (SIX: TEMN) has raised its FY-2025 guidance later than delivering a strong third quarter, supported by broad-based sales growth, accelerating subscription momentum, and expanding profitability. The results underline the company’s continued success in executing its strategic plan, emphasizing AI-driven innovation, disciplined cost management, and steady demand from both new and existing banking clients.
During Q3 2025, Temenos recorded non-IFRS revenue of USD 258.5 million, up 12% year-on-year, and non-IFRS EBIT of USD 84.6 million, up 36%. Free cash flow climbed 30% to USD 29.3 million, while non-IFRS EPS increased 41% to USD 0.93, driven by operational leverage and sustained SaaS adoption.
Takeaway
Sales Momentum And AI Innovation Drive Growth
Temenos reported robust demand across regions and client segments, with no visible impact from U.S. banking credit concerns during the quarter. The company added a healthy number of new client logos and saw strong traction among existing customers, underpinned by recent , including its Financial Crime Mitigation (FCM) AI agent and Money Movement & Management suite.
Interim CEO and CFO Takis Spiliopoulos said:
“We had a strong third quarter, driven by broad-based demand from new logos as well as existing customers. We are on track to increase our sales headcount by 50% by year end and continue to roll out substantial AI initiatives across the business.”
He added that the company’s investments have been largely self-funded through ongoing cost efficiencies, with operating leverage fueling double-digit earnings growth.
Takeaway
Upgraded FY-25 Outlook
Temenos raised its FY-2025 guidance to reflect continued momentum in SaaS and subscription revenue. The company now expects:
EBIT growth of at least 14% in constant currency (previously 9%)
EPS growth of 15–17% (previously 10–12%)
Subscription and SaaS growth of at least 7% (previously 6%)
ARR growth of at least 12% (unchanged)
Free cash flow growth of at least 12% (unchanged)
Temenos also reconfirmed its FY-2028 long-term targets, including ARR of USD 1.2 billion, EBIT around USD 450 million, and FCF million. The guidance assumes continued stable currency conditions and an effective tax rate between 15–17% for FY-25.
Takeaway
Balance Sheet Strength And Capital Returns
Temenos ended the quarter with net leverage at 1.4x EBITDA, within its target range of 1.0x–1.5x, demonstrating strong balance sheet discipline. The company also completed a CHF 250 , repurchasing 5.5% of its registered share capital, which will be proposed for cancellation at the 2026 AGM.
With USD 29 million in free cash flow generated in Q3, Temenos has continued to fund growth investments while maintaining shareholder returns and financial flexibility.
Takeaway
Leadership And Strategic Outlook
On the company’s ongoing CEO search, Chairman Thibault de Tersant said the Board is actively considering internal and external candidates, noting that the executive team continues to deliver strong results under interim leadership.
With its upgraded financial outlook and a growing AI product suite, Temenos appears well-positioned to capitalize on global demand for core banking modernization and cloud-based financial software. The company’s focus on recurring revenue, cost efficiency, and shareholder returns underscores a disciplined approach to sustainable growth.
