Constellation Software Inc. Announces Results for the Second Quarter Ended June 30, 2026 and Declares Quarterly Dividend

First things that jumped out at me:

\- 1% organic growth after adjusting for FX (last quarter I think was 2%). Their Maintenance and other recurring organic growth (2%) is the lowest we've seen (largely due to Altera business decline); it's 4% excluding that which is ok but still tied as the lowest. This is not going to squash the AI fears.

\- Very healthy capital deployment of $893 million in Q2 and another $818 million since end of June. They are going on a shopping spree and doing big deals.

\- The headline 57% growth in FCFA2S is a bit misleading since the majority of that is IRGA/TSS revaluation charge and the lumpy dividend/interest. If we don't consider them, the growth is much more modest and in the same range as historical.

My initial verdict is that the results are mixed, or even mildly negative.

Predicting a red day tomorrow, similar to my unpopular red day prediction on Topicus which turned out to be true.

Edit1: just finished listening to the earnings call. Verdict is neutral to marginally positive. Still wouldn't count on a green day though. Keeping the prediction.

Edit2: yup, just as expected a big red day.