Temenos 2026 Capital Markets Day Summary Company Overview - **Company**: Temenos (OTCPK:TMSN.Y) - **Event**: 2026 Capital Markets Day - **Date**: February 25, 2026 Key Industry Insights - **Market Growth**: The banking IT spending market grew 7% to approximately $25 billion in the past year, with expectations to reach $30 billion by 2028. Temenos outperformed this growth with a 12% increase in product revenue [7][8]. - **Market Segmentation**: - Tier 1 and Tier 2 banks account for about one-third of the market, favoring composable core and best-of-breed solutions. - Tier 3 to Tier 5 banks represent two-thirds of the market, typically opting for front-to-back best-of-breed solutions [8][9]. - **Deployment Models**: On-premise remains prevalent, but public cloud (growing at 15% per annum) and SaaS (growing at 11% per annum) are increasing in adoption [9][10]. Core Company Strategies - **Vision and Mission**: Temenos aims to help banks deliver reliability while evolving, focusing on execution, integrity, and innovation to improve client outcomes [4][5]. - **Investment Focus**: Significant investments have been made in product development, go-to-market strategies, and U.S. expansion, with a strong emphasis on modernization and customer experience [3][12]. - **Growth Areas**: Key revenue growth areas include Tier 3 and lower-end Tier 2 U.S. regional banks, retail core banking for Tier 1 and Tier 2 banks, and wealth management in Europe [14]. Product and Technology Developments - **Product Roadmap**: Transitioned to an agile team structure, launched differentiated products, and simplified the portfolio, including the sale of Multifonds [12][13]. - **AI Integration**: AI is embedded throughout the platform to enhance operational efficiency and customer experience, with a focus on compliance and risk management [27][34]. - **SaaS Operations**: Improved provisioning speed and onboarding efficiency, with 95% of environments provisioned in under five days, down from 15 days [50]. Go-to-Market Strategy - **Sales Expansion**: Increased sales headcount by over 60% and implemented strict account segmentation to enhance focus and accountability [64]. - **Partner Engagement**: Launched a hybrid delivery model and enhanced partner governance, treating partners as extensions of the consultancy pool [65]. - **Revenue Conversion**: The main priority for FY 2026 is converting the expanded pipeline into revenue, with a focus on execution and deal conversion [66]. Financial Outlook - **2028 Targets**: Due to strong execution in the first year of the strategic plan, Temenos is raising its financial targets for 2028 [16]. - **Annual Recurring Revenue (ARR)**: Strong ARR pipeline growth is expected across most growth areas, reinforcing confidence in achieving financial goals [14][15]. Cultural and Operational Enhancements - **Cultural Focus**: Emphasis on accountability, alignment, and collaboration within the organization to drive performance [26]. - **ESG Leadership**: Recognized for leadership in ESG, achieving top CSA scores in the software industry and maintaining an MSCI Triple-A rating [27]. Conclusion - Temenos is well-positioned to capitalize on market opportunities through strategic investments in product development, go-to-market execution, and AI integration, aiming for sustained growth and enhanced client value in the evolving banking landscape [37].