The record results and strong cash position support the dividend and potential M&A. Monitor the TSG defense segment for further growth and the impact of the capital gain normalization in H2. The stock may see positive momentum from the beat, but the lack of consensus estimates limits surprise magnitude.
Price Chart
Executive Summary
Formula Systems reported record Q2 2026 revenue of $782.4M (+29.8% YoY) and net income from continued operations of $23.3M (+163.7% YoY). The board declared a $1.63/share dividend ($25M aggregate), reflecting strong cash generation and the Advent/Sapiens proceeds. The results are robust across all segments, with no consensus estimates provided for comparison.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $782.4M, +29.8% YoY (record)
- Q2 2026 net income from continued operations $23.3M, +163.7% YoY
- Q2 2026 diluted EPS from continued operations $1.47 vs $0.56 YoY
- H1 2026 revenue $1.52B, +24.4% YoY (record)
- H1 2026 operating income $153.7M, +53.3% YoY (includes $16.6M capital gain from TSG dilution)
- Cash and equivalents $863.8M as of June 30, 2026
- Board declared $1.63/share dividend, ~$25M aggregate, payable Oct 6, 2026
- All debenture covenants met with significant headroom
- Matrix, Michpal, and TSG all reported record or strong results
Financial Impact
Revenue growth of 29.8% YoY and net income growth of 163.7% YoY from continued operations; $25M dividend declared
Risk Factors
- No consensus estimates provided; absolute performance is strong but surprise magnitude is unquantifiable
- Cash and equivalents declined from $1.28B to $863.8M since Dec 2025, partly due to dividend and investments
- TSG capital gain of $16.6M is non-recurring; excluding it, operating income growth was 36.7% YoY
- Geopolitical risks in Israel and currency fluctuations could impact future results
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3350346 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 25, 2026 8w ago | Press Release | $117.51 $125.72 | ▲ +6.99% | ▲ +7.53% | $129.90 (+10.54%) |
May 28, 2026 21w ago | Press Release | $132.54 $138.25 | ▲ +4.31% | ▲ +4.36% | $129.90 (−1.99%) |
May 14, 2026 23w ago | Press Release | $126.91 $129.64 | ▲ +2.15% | ▲ +2.88% | $129.90 (+2.36%) |
US Market Status
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