Constellation Software (CSU) Q2 2026 earnings summary

Executive summary

• AI adoption is accelerating across business units, improving development productivity, but has not yet materially impacted organic growth; AI initiatives are decentralized and managed at the business unit level.

• Revenue for Q2 2026 rose 17% year-over-year to $3,335 million, with organic growth of 3% (1% after FX adjustment).

• Net income attributable to common shareholders surged 386% to $274 million ($12.93 per diluted share), mainly due to FX and IRGA liability revaluation; excluding these, net income increased 8%.

• Acquisition activity remains robust, with recent deals including DerbySoft, TouchBistro, and Imagine; multiple acquisitions were completed for $732 million in cash, with total consideration (including deferred payments) of $893 million.

• Verticalization efforts are underway, grouping businesses into coherent verticals to deepen expertise and enhance long-term acquisition prospects, without integrating operations.

Financial highlights

• Q2 2026 revenue: $3,335 million, up from $2,844 million in Q2 2025.

• Net income for Q2 2026: $274 million vs. $56 million in Q2 2025; six-month net income: $641 million vs. $192 million.

• Free cash flow available to shareholders (FCFA2S) for Q2 2026: $345 million, up 57% year-over-year; six-month FCFA2S: $1,078 million.

• Cash flows from operations for Q2 2026: $477 million, up 10% year-over-year.

• Total assets as of June 30, 2026: $17,615 million; total liabilities: $12,741 million.

Outlook and guidance

• Organic growth is expected to normalize to historical trends (5-6%) as recent one-off impacts from large contracts and customer attrition subside.

• No significant customer attrition or unusual comps anticipated in the near term based on current portfolio.

• M&A pipeline remains strong, but timing of deal closures is unpredictable.

• Forward-looking statements highlight significant risks and uncertainties, with no guarantees of future performance.