Swiss banking software provider Temenos expects core earnings to grow about 9% in 2026, the company announced Tuesday. The forecast includes roughly 7% reported EPS growth and 16% free cash flow growth, reflecting its successful shift toward subscription-based revenue models.

The company reported stronger performance for 2025, with annual recurring revenue reaching $860 million in the fourth quarter, up 12% year over year at constant currency. Full-year 2025 non-IFRS revenue grew 10% while EBIT climbed 21%, driven by increased demand for digital banking solutions.

Temenos also raised its medium-term targets, now expecting annual recurring revenue of at least $1.23 billion by 2028, non-IFRS EBIT of about $480 million and free cash flow of roughly $410 million. The company's capital markets day is scheduled for Wednesday, where it will likely provide more details on its growth strategy and market positioning.