Constellation Software 4Q Profit Falls on One-Off Charge; Revenue Rises
By Adriano Marchese
Constellation Software profit fell in the fourth quarter due to a large noncash charge tied to the rising value of an investment, which offset higher revenue.
The acquirer and operator of vertical-market software businesses on Monday reported a decline in net income of $166 million, or $5.19 a share, down from $320 million, or $13.44 a share, in the prior year-period.
According to FactSet, analysts were expecting $15.36 a share.
The decline was mainly due to one of its companies recording a large, noncash expense tied to the rising value of an investment. Constellation noted that it has since switched to the equity method for this investment, which means it will no longer face these fair-value swings each quarter.
Revenue rose 18% to $3.18 billion, topping analyst expectations of a more modest rise to $3.14 billion.
Constellation credits the growth mainly to its acquisitions, while organic growth was of 6%. After accounting for U.S. dollar movements, organic growth was closer to 2%, it said.
The stock has been under pressure so far this year, with the stock falling over 10% year to date to close Friday at 2,963.34 Canadian dollars as it has been forced to navigate artificial-intelligence fears that have rippled through the software sector.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 09, 2026 08:03 ET (12:03 GMT)
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