Constellation Software beats Q4 revenue estimates driven by acquisitions

Constellation Software

09/03/2026 11:07

Overview

Vertical market software firm's Q4 revenue grew 18%, beating analyst expectations

Net income for Q4 decreased 61% yr/yr

Company completed acquisitions totaling $571 mln in Q4

Outlook

Constellation Software did not provide specific future guidance in the press release

Result Drivers

ACQUISITIONS - Revenue growth in Q4 was primarily driven by acquisitions, contributing to an 18% increase

LIABILITY INCREASE - Net income was impacted by increased liabilities related to Asseco and Sygnity investments

CASH FLOW GROWTH - Operating cash flow rose 16% in Q4, reflecting strong cash generation

Company press release: ID:nGNX4XHSmV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$3.18 bln
$3.14 bln (7 Analysts)
Q4 EPS
$5.19
Q4 Net Income
$110 mln
Q4 Free Cash Flow
$423 mln
Q4 Operating Cash Flow
$788 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Constellation Software Inc is C$4,600.00, about 55.2% above its March 6 closing price of C$2,963.34

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)