Constellation Software Inc. Q3 2026 Earnings Recap

Constellation Software shares fell 3.0% after earnings, as 2% organic growth masked pressure in U.S. healthcare: the group was down about 10%, with broader consolidation and competition weighing on the business. Recurring-revenue growth was 4%, but the outlook for healthcare recovery remains uncertain.

Key Takeaways

• Revenue was $3.5 billion, up 19%; organic growth was 2%, while maintenance and other recurring revenue grew 4%.
• Excluding U.S. healthcare, recurring-revenue organic growth would have been about 5%. U.S. healthcare was down about 10%, versus 1% in the prior quarter; excluding two recently acquired businesses expected to shrink, it would have been down about 3%.
• Cash from operations rose 5% to $717 million, while free cash flow available to shareholders fell 16% to $443 million. Management said the decline largely reflected a noncash revaluation charge of $117 million, versus $16 million a year earlier.
• Management described AI efforts as early-stage experimentation across its businesses, with spending not currently material to results and no forecast provided.