Constellation Software’s third-quarter revenue grew 19%, but calendar EPS of 24.70 missed the 29.62 estimate by 16.6%. The results put earnings growth and acquisition spending in focus.
Constellation Software Inc. (TSX: CSU) reported results for the quarter ended September 30, 2026, after market close on November 5. Calendar data shows EPS of 24.70, compared with an estimate of 29.62. The company reported revenue of US$3.512 billion, up 19% from a year earlier. Net income attributable to common shareholders edged up to US$212 million from US$210 million. All dollar amounts in the company’s release are in U.S. dollars unless noted otherwise.
Recent earnings trend
Constellation Software Inc.
CSU.TO
CSU.TO
Constellation Software Inc.
WealthAwesomeMarket cap
$74.73B
P/E
56.1x
Div. yield
0.11%
Div. / share
$4.00
52W high
$3532.73
52W low
$2192.51
1W change
+3.92%
Beta
0.72
Analyst Price Targets
Based on analyst covering CSU · as of Nov 9, 2026
Wall Street analysts forecast CSU stock price to rise 13.2% over the next 12 months.
Consensus
Moderately BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$3993.31
+13.2% Upside
Previously C$3943.82 on Nov 6, 2026
Current Price
C$3526.52
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on CSU's historical volatility
30-Day Vol
28.7%
Annualized
90-Day Vol
40.9%
Annualized
Trend (90d)
+50.0%
Annualized drift
90d Mean
C$4215.98
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$3742.81 | C$3389.98 – C$4132.35 |
| 60 trading days | C$3972.36 | C$3453.32 – C$4569.40 |
| 90 trading days | C$4215.98 | C$3551.58 – C$5004.68 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 3 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 1 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-12-31 | 2027-03-08 | — | 32.5000 | — |
| 2026-09-30 | 2026-11-05 | 24.7000 | 29.6200 | -16.6% |
| 2026-06-30 | 2026-08-10 | 26.6100 | 26.9200 | -1.2% |
| 2026-03-31 | 2026-05-12 | 27.3700 | 24.3100 | +12.6% |
| 2025-12-31 | 2026-03-09 | 21.4900 | 28.0000 | -23.3% |
| 2025-09-30 | 2025-11-07 | 28.8500 | 25.6100 | +12.7% |
For Canadian investors, the key points are the EPS miss, acquisition-led growth and lower quarterly free cash flow. See the CSU stock page for more company data.
Investor takeaway: Revenue grew 19%, but net income rose only slightly and free cash flow available to shareholders fell 16% year over year. Calendar EPS missed its estimate by 16.6%. In the supplied history, CSU beat estimates in just one of its last four reported quarters. Growth also remains heavily tied to acquisitions: organic growth was 2% before foreign-exchange adjustments, while acquisitions drove most of the revenue increase. Investors may want to consider this alongside CSU’s acquisition commitments and a P/E ratio of about 56.
US$443 million in quarterly free cash flow available to shareholders
Free cash flow available to shareholders fell 16% from US$529 million a year earlier, even as revenue climbed 19%. Operating cash flow rose 5% to US$717 million. The difference between operating cash flow and free cash flow is worth watching alongside the company’s acquisition spending.
Bull case
Revenue rose 19% year over year to US$3.512 billion, and operating cash flow increased 5% to US$717 million. Revenue and operating cash flow were also higher over the first nine months of the year than in the same period last year. Constellation spent US$484 million in cash on acquisitions during the quarter. It also reported US$526 million in cash consideration for businesses completed or under open commitments after quarter-end.
The company’s portfolio of vertical-market software businesses and its acquisition program continue to support growth. Company news also reported a trailing net margin of 7.3%, up from 6.2% a year earlier.
Bear case
The EPS miss is the clearest near-term concern. Calendar EPS of 24.70 came in below the 29.62 estimate, and CSU beat estimates in only one of the last four comparable quarters. Revenue growth translated into little change in quarterly net income, which was US$212 million versus US$210 million a year earlier.
Free cash flow available to shareholders fell 16% to US$443 million, while organic growth was just 2% before foreign-exchange adjustments. With CSU trading at a P/E ratio of about 56, weaker earnings growth or lower returns on acquisitions could put pressure on its valuation.
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